Minimum Wage Up 4.75% From 1 July
The Fair Work Commission has handed down its decision. Minimum wage and award rates rise 4.75% from 1 July 2026.
This is one of the biggest increases in recent years. Here is exactly what it means for your payroll.
The New Numbers
The national minimum wage rises to $1,004.90 a week. That works out to $26.44 an hour, based on a 38-hour week.
This is the first time the minimum wage has passed $1,000 a week. Modern award rates rise by the same 4.75% across the board.
Entry-level rates for the first six months of employment have their own new floor too. These must sit at no less than $978.10 a week, or $25.74 an hour.
When It Actually Applies
The new rates start from your first full pay period on or after 1 July 2026. This detail trips people up every year.
If your weekly pay period begins on a Wednesday, the new rate applies from that Wednesday. Not from 1 July itself if your pay cycle started earlier in the week.
Check your own pay cycle dates carefully. Getting this start date wrong is a common, easy mistake.
Who This Actually Affects
Around one in five Australian workers are paid at or near the award rate. This increase touches all of them directly.
Four industries feel it the most. These are retail, hospitality, health care and social assistance, and administrative support services, which includes labour hire.
If your business sits in any of these industries, assume this increase affects a meaningful share of your staff.
Why This Year’s Rise Is Bigger Than Usual
This year’s 4.75% increase is larger than last year’s 3.5% rise. It reflects ongoing cost of living pressure on award-reliant workers.
The Commission noted that award-reliant workers are still worse off in real terms compared to before the pandemic inflation spike. This increase is meant to start closing that gap.
For employers, the size of the rise means the cost impact is bigger too. It is worth budgeting for now, not discovering at the end of July.
What Happens If You Miss It
Paying the old rate after the new one applies is underpayment. It does not matter if the mistake was accidental.
Underpayment creates backpay obligations. It can also trigger broader scrutiny of your payroll if a pattern of errors is found.
This is exactly the kind of mistake that compounds quietly. A small daily shortfall across many staff adds up fast over a full year.
What To Do Before 1 July
Confirm your exact pay period start date. This decides exactly when the new rate kicks in for your business.
Update your payroll software with the new rates. Do not assume an automatic update has covered every classification correctly.
Check entry-level and apprentice rates separately. These have their own specific new minimums, not just the general 4.75% rise.
Review any above-award pay arrangements. A buffer that covered the old rate may not cover the new one once all entitlements are added up.
Frequently Asked Questions
Does this apply to every single award? Yes. Modern award minimum rates across the board rise by 4.75% from 1 July 2026, alongside the national minimum wage.
What if my pay period starts mid-week? The new rate applies from your first full pay period starting on or after 1 July. Check your specific cycle dates.
Do apprentice and trainee rates increase the same way? Generally yes, by the same 4.75%, unless their rate is set as a percentage of another classification, which follows its own rules.
Get Your Payroll Updated Talk to Edulink
A wage increase this size touches every part of your payroll. Getting it right from the first July pay run matters.
Edulink Payroll Services manages payroll and compliance for small and medium businesses across greater Sydney and Campbelltown, with pricing from $750 per employee, per year.
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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