Anthony Albanese’s government said it had backed a pay rise for minimum- and award-wage workers, but the Fair Work Commission—not the Prime Minister—set the 2026 rates. From 1 July 2026, the National Minimum Wage is $1,004.90 a week, or $26.44 an hour for a 38-hour week, and minimum award wages rise by 4.75%. The new rates apply from the first full pay period starting on or after 1 July; your increase depends on which workplace instrument and classification covers you.
What did Albo back, and who set the rates?
The Fair Work Commission announced its 2026 Annual Wage Review decision on 2 June 2026. On 1 July, Prime Minister Anthony Albanese said the government had “backed in a pay rise for 3 million minimum and award wage workers – because we know every bit of help matters.” That is the government’s description of the workers it said were backed by the increase; the legal wage determination was made by the Commission.
The Commission decision says 21.1% of employees in Australia—almost 2.8 million people—are paid at an applicable minimum wage rate. That figure has a different stated definition from the government’s 3 million figure for minimum- and award-wage workers, so the two should not be treated as interchangeable.
What is the new minimum wage in Australia?
For adult employees in the national workplace relations system who are not covered by an award or enterprise agreement, the National Minimum Wage from 1 July 2026 is $1,004.90 per week, equivalent to $26.44 an hour based on 38 ordinary hours. The Fair Work Commission sets out the adult National Minimum Wage rate in its 2026 Annual Wage Review decision, and the Fair Work Ombudsman lists the rate in its 2026 Annual Wage Review update.
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Special minimum rates may apply to some junior workers, apprentices or trainees, and employees with disability. The adult figure is not automatically the right rate for every worker.
Do I get the 4.75% increase?
The 4.75% increase applies to minimum award wages, not automatically to every worker’s pay. Most employees are covered by a modern award, which sets minimum pay and conditions for their job or industry. Enterprise agreements have their own applicable terms and rates. The National Minimum Wage instead applies to employees who are not covered by an award or enterprise agreement.
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For minimum award rates, the Fair Work Ombudsman says the lowest ongoing rate must be at least $1,004.90 a week or $26.44 an hour. An entry-level rate for the first six months or less must be at least $978.10 a week or $25.74 an hour. These are thresholds for minimum award rates; your applicable rate still depends on your award classification and circumstances.
When does the pay rise start?
The 2026 rates apply from the first full pay period starting on or after 1 July 2026—not necessarily from the first shift worked on 1 July or the beginning of a pay period that was already underway. The Fair Work Ombudsman explains the effective date and rates in its Annual Wage Review 2026 update.
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How to check your award rate
- Find out whether you are covered by a modern award or a registered enterprise agreement. Your employer or payroll team can identify the instrument that applies to your role.
- Use the Fair Work Ombudsman’s Pay and Conditions Tool or the relevant pay guide to look up your award, classification and minimum rate.
- Compare the rate with your actual employment details, including ordinary hours, penalties and allowances. Check that the instrument’s applicable rate and the 2026 effective date have been used.
- If you are not covered by an award or agreement, compare your pay with the National Minimum Wage and check whether a special minimum rate applies to you.
The Fair Work Ombudsman’s minimum wages information explains the coverage distinction. The National Minimum Wage is not the right comparison for everyone: an award-covered worker should check the rate for their own classification.
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