Millions of Australians will soon see a little extra money in their pay packets, with the Fair Work Commission announcing an increase to the national minimum wage and award wages from 1st July.
In a decision handed down this morning, the commission confirmed that minimum and award wages will rise by 4.75%, benefiting around 3 million workers across the country. The increase applies to employees covered by modern awards as well as those earning the national minimum wage.
A pay rise for millions
For workers on the national minimum wage, the increase means earnings will rise from $24.95 per hour to $26.44 per hour, or from $948 per week to $1,004.90 per week based on a full-time 38-hour working week.
The change also pushes the annual minimum wage beyond the $50,000 mark for the first time. Some of Australia’s lowest-paid workers will receive an even larger boost, with wages at the bottom end of the pay scale increasing by 6%.
The Fair Work Commission said it introduced the increase to ensure workers on minimum and award wages do not fall behind in real terms compared with July 2025. However, the commission acknowledged that many employees remain worse off overall after years of inflation-driven cost-of-living pressures.
“The determination of this year’s review outcome has been particularly challenging,” the commission said, noting it had to balance support for low-paid workers with broader economic considerations, including productivity, employment and inflation.
Why it matters
The increase lands somewhere between the competing proposals put forward during consultations. Australia’s union movement had argued for a rise of between 5-6% to help workers keep pace with rising costs, while employer groups pushed for a smaller increase of between 3.5 and 3.9%.
The commission also cited ongoing economic uncertainty, including higher interest rates and global instability, as factors influencing its decision. At the same time, forecasts from both the Reserve Bank and the federal government suggest inflation is expected to return to target levels over the coming financial years.
While workers on minimum and award wages account for just over one in $10 paid in wages nationally, annual Fair Work decisions often have a broader influence on salary negotiations across the workforce.
The new rates will come into effect from 1st July 2026, delivering a pay rise to around one in five Australian employees.
