The Fair Work Commission has completed their Annual Wage Review for another year and they announced their decision as another increase to the National Minimum Wage and minimum award wages:
The Fair Work Ombudsman is currently updating its pay guides and tools. Updated rates will be available closer to 1 July and can be accessed on the Fair Work Ombudsman’s website.
The new rates will apply from the first full pay period starting on or after 1 July 2026.
For example:
Most likely, yes.
These changes may affect your organisation if you:
Even if your employees are paid above award rates, it is worth reviewing your remuneration arrangements to ensure they continue to meet minimum requirements.
Before updating pay rates, make sure you have correctly identified the award that applies to each employee.
Award coverage can change as roles evolve, and applying the wrong award can create significant underpayment risks.
Once the Fair Work Ombudsman releases the updated pay guides, review the rates that apply to your employees and make any necessary adjustments.
Whether you use Xero, MYOB, Employment Hero or another payroll platform, ensure the new rates are loaded before your first July pay run.
Paying above award does not automatically mean you are compliant.
If you use annual salaries, set-off arrangements or over-award rates, review them to ensure they still provide an adequate buffer above the new minimum rates.
Many award allowances are adjusted each year alongside wage rates.
Travel, meal, first aid, laundry and other allowances can easily be overlooked, so it is worth reviewing these at the same time.
For many organisations, wages are one of the largest operating expenses.
Understanding the impact of the increase early can help you plan cashflow, review budgets and prepare for the new financial year.
Annual wage increases are a regular part of running a business.
Rather than viewing them as simply another compliance task, think of them as an opportunity to conduct an annual payroll health check.
Taking the time to review your awards, pay rates and payroll systems each June can help you enter the new financial year with confidence and reduce the risk of costly mistakes later.
If you’re unsure which award applies to your employees, or whether your current pay arrangements will remain compliant after 1 July, seeking advice early can help you avoid problems before they arise.
