Minimum Wage Increase 2026: What Employers Must Update Before 1 July
The Fair Work Commission has handed down its 2026 Annual Wage Review. From 1 July 2026, minimum and award wages are going up.
If you employ anyone on the minimum wage or under a modern award, this affects your payroll directly. Here is what changed, and what to check before your next pay run.
The New Rates
The National Minimum Wage rises to $1,004.90 per week, or $26.44 an hour. That is an increase of $1.49 an hour from the previous rate.
Modern award minimum wages rise by 4.75 percent across the board. The lowest ongoing award rate must now sit at or above $1,004.90 a week. Entry-level rates for the first six months of employment must be at least $978.10 a week, or $25.74 an hour.
This is the first time the National Minimum Wage has gone above $1,000 a week.
Who This Affects
This change reaches further than many business owners expect. It directly affects around 21 percent of the Australian workforce, roughly 2.8 million award-reliant employees.
Some industries feel this more than others. Health care and social assistance, retail, accommodation and food services, and administration and support all rely heavily on award wages.
If your business sits in one of these industries, check every award classification you use, not just your lowest-paid role.
Why the Timing Matters This Year
This wage rise lands on the same day as Payday Super. From 1 July 2026, employers must also start paying superannuation with every pay run instead of quarterly.
Higher wages mean a higher super guaranteed bill too, since super is calculated as a percentage of ordinary time earnings. Both changes hit your cash flow on the same date, so it is worth modelling the combined impact now, not separately.
What to Check Before 1 July
Confirm your payroll software is updated with the new minimum and award rates before your first pay run in July.
Check the exact start date for your business. The new rates apply from the first full pay period on or after 1 July 2026, which may differ depending on your pay cycle.
Review every award classification you use, not just your lowest-paid employees. Entry-level and ongoing rates have both changed.
Recalculate your wage and super costs together, since both increase from the same date.
Frequently Asked Questions
When exactly do the new rates apply? From the first full pay period that starts on or after 1 July 2026. This may not be 1 July itself, depending on your pay cycle.
Does this apply to casual employees too? Yes. Casual loading still applies on top of the relevant minimum or award rate.
What happens if I do not update my payroll in time? Underpaying staff, even accidentally, can lead to back-pay obligations and Fair Work penalties.
Get Payroll Help You Can Rely On Talk to Edulink
Wage increases, Payday Super, and EOFY all landing at once is a lot to manage. You do not have to work it out alone.
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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