Annual Wage Review 2026: In a Snapshot

| June 2, 2026

The Fair Work Act 2009 (Cth) requires the Fair Work Commission (FWC) to conduct an Annual Wage Review.  

This review has two primary functions:

• Review the National Minimum Wage – the wage that applies to every national system employee who is not covered by a Modern Award or an Enterprise Agreement; and   

• Review Modern Award minimum wages.  

Any increases granted will generally take effect on 1 July of each year.  

2026 Annual Wage Review Decision

On Tuesday morning, 2 June 2026, the FWC’s Expert Panel released its 2026 Annual Wage Review Decision.   

The Expert Panel, consisting of:  

• FWC President Hatcher;  
• FWC Vice President Asbury;  
• FWC Vice President Gibian;  
• FWC Deputy President Millhouse; and  
• Expert Panel lay members Professor Baird, Mr Cully and Ms Labine-Romain,  

determined the following: 

1. minimum wages in modern awards will increase by 4.75% provided that: 
   
   
   • the lowest rate in any Modern Award applicable to ongoing employment must be at least $1,004.90 per week or $26.44 per hour. This means the C14 and C13 rates in several modern awards will be increasing by more than 4.75%; and 
     
   • any entry-level Modern Award rate that is applicable to no more than the first six months of employment must be at least $978.10 per week or $25.74 per hour. This is often referred to as the introductory level in Modern Awards. 

2. the National Minimum Wage (being the minimum wage that must be paid to all employees in the national employment relations system – typically your Award free employees) will also increase to a rate of $1,004.90 per week or $26.44 per hour. 

The National Minimum Wage is aligned with the C13 rate in modern awards.

When Will the Increase Take Effect?

The increases will have effect from the first full pay period on or after 1 July 2026. 

It is important to understand what the words ‘first full pay period’ actually mean.  Practically speaking, the increase will apply to the pay period that commences either on, or after 1 July 2026. 

For example, if you pay your employees on a fortnightly basis and your payroll period is from 24 June to 7 July 2026, you will need to pay the increased minimum wage from the next full pay period (pay period 8 to 21 July).

Preparing for the 2026 Wage Increase

The Annual Wage Review can have significant implications for payroll, employee classifications and wage compliance.

IRiQ Law can assist employers in reviewing Modern Award coverage, employee classifications and payroll practices to ensure wage increases are implemented correctly and compliance risks are minimised.

If you have questions about how the 2026 Annual Wage Review affects your business, contact our team for guidance.

Need support reviewing Modern Award rates or employee classifications? Feel free to contact us.