Australia: FWC 2026 Annual Wage Review: NMW +6% to AUD 26.44/Hour, Modern Awards +4.75%

The Fair Work Commission handed down the 2026 Annual Wage Review decision on 2 June 2026. National Minimum Wage rises 6% to AUD 26.44/hour ($1,004.90/week – first time above $1,000). Modern award minimum rates rise 4.75%. Effective from the first full pay period on or after 1 July 2026. C13 classification being phased out – affected employees get an additional adjustment.

Effective Date

• Fair Work Commission, 2 June 2026

Published Date

• First full pay period on/after 1 July 2026

Payroll action

• Update payroll system NMW to AUD 26.44/hour for all award-free employees with effect from first full pay period on/after 1 July 2026.
• Apply 4.75% increase to modern award classification rates (FWC publishes per-award rates separately – load from Fair Work Pay and Conditions Tool).
• Apply additional C13/C14 structural adjustment to the lowest-paid classifications.
• Review all-inclusive salary employees – confirm new salary still adequately compensates for all award entitlements (overtime, allowances, penalties).
• Review enterprise agreement base rates – they cannot fall below new modern award minimums.
• Update STP Phase 2 wage element mappings if any new classification emerges from FWC per-award orders.
• Update high-income threshold and unfair-dismissal compensation cap per FWC’s separate July order.
• Audit junior employee percentages – recalculate from new NMW base.

Fair Work Commission