Express newsletter: 2026 FWC Annual wage increase
Express newsletter: FWC Annual wage increase
Workplace Law is ever-changing whether through decisions of the courts and commissions or changes to the many pieces of State and Federal legislation that regulates the relationship between Employee and Employer. We’ve put together this fortnightly update to assist by giving you easy to understand snapshots of some of the recent changes that affect Employers.
Fair Work Commission raises award wages by 4.75% and national minimum wage by 6%
Millions of Australian workers will receive a 4.75% pay rise following the Fair Work Commission’s (FWC) decision to raise the minimum wage. The FWC has announced its minimum wage decision this morning at their Annual Wage Review.
The changes are as follows:
- A 4.75% increase to the modern award minimum wages
- A 6% increase to the national minimum wage (to $26.44 per hour and $1004.90 per week) by revising the national minimum wages benchmark from the C13 to the C12 classification level in the manufacturing award
- The changes will take effect from the first pay period on 1 July 2026, and will take effect in relation to a particular employee from the start of the employee’s first full pay period on or after 1 July 2026
These changes will affect millions of Australia’s lowest paid workers and has been made in response to inflation increasing over the past year more than forecasted coupled with the uncertainty of the trajectory of the economy as it is directly impacted by the Middle East conflict, disrupting oil supplies and the cost of goods and services. These increases only apply to employees covered by an award or the national minimum wage order. However, employers should review wages paid to employees paid at or around award rates, as well as those paid above award remuneration to ensure their remuneration meets overall minimum requirements. Particularly given the compounding effect these increases will have on penalties, loadings and allowances and thus on minimum pay obligations overall are being met. Other employees may be affected where enterprise agreements or other instruments provide for pay increases in lien with award wages.
This decision is in line with the past decisions the FWC has made in its Annual Wage Review; in 2025 there was a 3.5% increase, in 2024 there was a 3.75% increase and in 2023 there was a 5.75% increase (this larger bump was in response to major cost of living spikes at the time). This year’s increase is slightly higher than the last two years as the Commission attempts to combat the uncertainty in the economy.
To find all the information regarding this decision and how it may affect you, more information can be found on the Fair Work Ombudsman’s page: Minimum wages – Fair Work Ombudsman
The full decision can be found here: Annual Wage Review 2026 – Announcement of Decision
We hope you have enjoyed this fortnight’s employment law news. See you next fortnight!
