Annual Wage Review Decision

The Fair Work Commission is responsible for setting minimum wages for employees in the national workplace relations system.

The Expert Panel of the Fair Work Commission has handed down its Annual Wage Review 2026-2027 Decision.

This year the National Minimum Wage (NMW) will increase to $26.44 per hour ($1,004.90 per week) and minimum rates of pay in modern awards will increase by 4.75%.

In addition, there are further increases to the lowest two classifications in some modern awards, as follows:

• The C13 rate in the Manufacturing Award, and rates in other awards that align with the C13 rate, will be increased by an amount that represents one-third of the difference between it and the next highest rate, the C12 rate (approximately 1.2%). The C13 classification is generally the lowest ongoing classification in many awards.
• The C14 rate in the Manufacturing Award, and rates in other awards that align with the C14 rate, will be increased by the same percentage as the increase to the C13 rate. The C14 classification is the entry-level classification in many awards and only applies for a limited time specified in the award.

What is the operative date for the increase this year?

The increased rates will be operative from the first full pay period that starts on or after 1 July 2026.

For example, if an employer’s pay period starts on 24 June and ends on 5 July, the pay increase will not take effect until the next full pay period that commences on 8 July.

Can the wage increase be absorbed into over-award payments?

Generally, yes. If an employer pays above-award rates, then the wage increase can be absorbed into these over-award payments. This is subject to any contractual arrangement in place between an employer and employee.

Does the wage increase apply to award/agreement free adult employees?

A National Minimum Wage Order applies to adult employees who are not covered by an award or enterprise agreement. The National Minimum Wage Order includes:

• The increase to the National Minimum Wage as outlined above.
• A 25% loading for casual employees.

Adult employees who are award/agreement free must not be paid less than the National Minimum Wage.

Does the wage increase apply to award/agreement free juniors, trainees and apprentices?

Most juniors, apprentices and trainees are covered under an award or enterprise agreement and therefore the rates of pay in the relevant award or agreement apply.

Special national minimum wages for any award/agreement free juniors, trainees and apprentices are included in the National Minimum Wage Order.

Does the decision impact upon minimum wages for employees with a disability?

Yes. The following minimum wage arrangements apply to employees with a disability:

1. Award-covered employees whose disability does not impact upon their productive capacity are entitled to the relevant modern award wage rate.
2. Award-covered employees who are unable due to their disability to earn the full modern award wage rate are covered by supported wage provisions in modern awards.
3. For award/agreement free employees with a disability, the National Minimum Wage Order contains two special national minimum wages for employees with a disability. The rate that applies depends on the extent to which their disability impairs their productive capacity.

Further information

The Fair Work Ombudsman’s website has further information about the increase to the National Minimum Wage and minimum award wages.

The new wage rates and allowances for all awards can be accessed via the Fair Work Ombudsman’s Pay Guides or Pay and Conditions Tool.