Minimum Wage Increase July 2026: What Employers Must Update Now
Australia’s minimum wage just broke $1,000 a week for the first time. From 1 July 2026, the National Minimum Wage rises to $26.44 per hour, or $1,004.90 per week.
The Fair Work Commission handed down a 4.75% increase to award wages across the board. That number hits payroll immediately from the first full pay period on or after 1 July 2026.
What’s Actually Changed
The increase is 4.75% across all modern award minimum wages. For the National Minimum Wage specifically, the numbers are:
- Old rate: $24.95 per hour / $948.00 per week
- New rate: $26.44 per hour / $1,004.90 per week
- Increase: $1.49 per hour / $56.90 per week
For the 100,000 lowest-paid workers in the C13 award classification, the increase is slightly higher around 5.95% as part of a three-stage structural change the Commission is phasing in.
Entry-level rates for roles in the first six months of employment must now be at least $25.74 per hour, or $978.10 per week.
What This Costs Your Business
The impact scales directly with how many award-covered employees you have.
A business with five staff on minimum award rates is now paying an extra $284 per week, or around $14,800 per year. Ten staff means roughly $29,600 more annually. Twenty staff means nearly $59,200 a year in additional wage costs.
These figures are for employees paid exactly at the minimum. Anyone already paid above award rates doesn’t automatically get 4.75% lift only employees sitting below the new minimum need to be brought up to it. But it’s worth checking, because the new floor may catch employees on old rates that haven’t been reviewed in a while.
When the New Rates Apply
This is the detail that trips people up every year. The increase applies from the first full pay period starting on or after 1 July 2026 not necessarily the first payment you make in July.
If your pay period starts on Wednesday, the new rates apply from Wednesday 1 July 2026. If your pay period started on Monday 30 June, you’re still on old rates for that entire period, and the new rate kicks in the following Monday.
The Fair Work Ombudsman and your payroll software’s pay calendar will both tell you the exact date. Check before you process not after.
Which Industries Are Most Affected
The 4.75% increase applies across all modern awards, but some industries carry a much higher concentration of award-reliant workers than others.
Hospitality and food service, retail, cleaning and facilities, childcare, aged care, and construction all commonly employ staff at or close to minimum award rates. If your business sits in any of these sectors, this increase directly affects your wage bill from the first July pay run.
The Super Ripple Effect
Don’t forget the flow-on. Higher wages mean higher superannuation contributions. At 12%, a $56.90 weekly wage increase adds around $6.83 per week, per employee, in extra super on top of the wage cost itself.
For a business with ten minimum-wage employees, that’s an extra $3,552 in super contributions annually, on top of the $29,600 in additional wages.
What to Do Before Your First July Pay Run
Update your payroll software rates now. Most platforms update award rates automatically through pay guides or Fair Work integrations, but verify this actually happened rather than assuming it did.
Check every employee’s current rate against the new award minimum. If anyone is sitting below the new floor, their pay must be increased from the first applicable pay period.
Review casual employees specifically. Casual loading stays at 25% on top of the base award rate. With the base now higher, the all-up casual rate lifts accordingly.
Model the cash flow impact for July onwards. If this increase meaningfully changes your weekly wage bill, factor it into your July and August cash flow before the first pay slip goes out.
Update annualized salary arrangements. If any employees are on a flat annual salary that’s meant to cover award entitlements, check the salary still sits above the new award minimum for their full entitlement calculation.
Frequently Asked Questions
When exactly do the new rates apply? From the first full pay period starting on or after 1 July 2026. This isn’t necessarily the first payment made in July it depends on when your pay period starts.
Do all employees get a 4.75% increase? No. Only employees paid at or below the new minimum need to be brought up. Employees already paid above award rates don’t automatically receive the 4.75% unless your contracts require it.
Does the increase apply to casual employees too? Yes. The base award rate rises 4.75%, and the 25% casual loading is applied on top of the new base rate.
What happens if I miss updating the rates? Paying below the new minimum wage is an underpayment under the Fair Work Act. It becomes a civil and potentially criminal matter depending on intent and duration.
Make Sure Your Payroll Is Right Talk to Edulink
Award rate updates, casual loadings, super recalculations every pay run needs to be right from the first day of the new financial year.
Edulink Payroll Services charges $750 per employee, per year, covering payroll, compliance, and reporting, for small and medium businesses across greater Sydney and Campbelltown.
Have more employees? Call us for a discounted rate.
📞 Call us today: 04 044 71 816
Edulink Payroll Services | Campbelltown & Greater Sydney | Call 04 044 71 816
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