The Fair Work Commission has announced a 4.75% increase to Australia’s National Minimum Wage and modern award minimum wage rates from 1 July 2026.

The National Minimum Wage will increase to $1,004.90 per week, or $26.44 per hour, based on a 38-hour week.

The increase is aimed at helping lower-paid workers manage ongoing cost-of-living pressures. In making its decision, the Fair Work Commission considered a range of economic factors, including inflation, business conditions, productivity, employment levels and the needs of low-paid workers. The Commission noted that many award-reliant employees are still behind in real wage terms compared with where they were before the post-pandemic inflation spike. While the increase does not fully close that gap, it is intended to help prevent affected workers from falling further behind.

For individuals, the increase will provide a welcome boost to weekly income, particularly for employees paid under modern awards or those on the National Minimum Wage. This is especially relevant for part-time, casual and lower-paid employees, many of whom are more exposed to rising costs for essential goods and services.

For businesses, the increase means higher wage costs from the first full pay period on or after 1 July 2026. Employers should review all award-covered employees, update payroll systems, check loaded rates and annualised salary arrangements, and ensure allowances, overtime, penalty rates and superannuation are calculated correctly using the new rates.

The impact will be greater for businesses in award-heavy industries such as hospitality, retail, health care, social assistance, administration and support services. With the increase arriving at the same time as other 1 July changes, including Payday Super, employers should review their cash flow and payroll processes early to avoid compliance issues.