On 2 June 2026, the Fair Work Commission handed down its Annual Wage Review decision for 2026/27. All modern award minimum rates increase by 4.75% from 1 July 2026, with the national minimum wage rising to $26.44/hr. Businesses using award interpretation software had rates updated automatically — everyone else needed to update from the first full pay period on or after 1 July.
The new rates have applied since that pay period. If your payroll system, classifications or staff communications were not updated, every shortfall since then is an underpayment — correct it and back-pay now.
What changed: 2026/27 annual wage review summary
- Standard increase:
4.75% across all modern award classifications
- National minimum wage:
$26.44/hr · $1,004.90/week (was $24.95/hr)
- Penalty rate protection:
New legislation (August 2025) means the FWC can no longer reduce penalty or overtime rates in modern awards
- Payday Super begins:
Super must be paid with every pay run from 1 July 2026 (SG rate stays at 12%)
- Aged care extra increases:
Direct care workers and nurses in aged care receive additional increases from 1 August 2026 (Work Value Case)
The new national minimum wage: $26.44/hr from 1 July 2026
The national minimum wage rose to $26.44 per hour ($1,004.90 per week for 38 ordinary hours) from 1 July 2026 — an increase of $1.49/hr (6%) from the 2025/26 rate of $24.95/hr. This is the floor: no employee can be paid below this regardless of award or classification. Note the national minimum wage rose 6%, while modern award minimum rates rose by a separate 4.75% — the two increases are different this year.
The minimum wage applies to about 2.7 million award workers and affects Paid Parental Leave (PPL) payments, which are calculated at the NMW rate. From 1 July 2026, Parental Leave Pay is $200.94 a day, or $1,004.70 per 5-day week.
$26.44
Per hour (from 1 Jul 2026)
$1,004.90
Per week (38 hours)
4.75%
2026/27 standard increase
How the 4.75% increase applies to award rates
Every classification across all modern award guides increases by 4.75% from the first full pay period on or after 1 July 2026. Updated pay guides for each award were published on 24 June 2026.
The floor rule: The lowest award rate for ongoing work must be at least the new minimum wage of $26.44/hr, although an entry-level rate for an employee’s first 6 months or less can be $25.74/hr ($978.10/week). This mainly affects entry-level and introductory classifications in hospitality, fast food, retail, and other low-wage industries.
Casual workers note
Casual employees receive 25% loading on top of the new base rates. The casual national minimum wage rises to approximately $33.05/hr from 1 July 2026. Penalty rate percentages remain the same — only the base rates change.
Always confirm the exact rates for your specific award using the official pay guide for that award. Do not apply 4.75% to allowances or expense reimbursements — check each award’s allowance provisions separately.
Penalty rate protection law (already in effect from August 2025)
The Fair Work Amendment (Protecting Penalty and Overtime Rates) Act 2025, which passed in August 2025, prevents the FWC from ever reducing penalty rates or overtime rates in any modern award. This protection applies to public holiday, weekend, late night, and early morning loadings for all award workers.
The protection covers approximately 2.6 million award workers. Note: it does not apply to penalty or overtime rates set in enterprise agreements — only modern awards.
Payday super now applies since 1 July 2026
Since 1 July 2026, the Payday Super reforms have replaced the quarterly super payment system. Employers must pay superannuation with every pay run rather than within 28 days of the end of each quarter. It’s one of several 2026 employment law changes landing this year.
The superannuation guarantee rate stays at 12% — the final legislated rate. Only the payment timing changes. Most payroll software will handle this automatically, but confirm your system sends super within 7 business days of each payday.
Action required: Payday Super has applied since 1 July 2026 — confirm with your payroll software provider that super is paid with every pay run and reaches the fund within 7 business days of payday. Late or missed super payments attract the SGC charge and additional penalties.
Aged care and nurses: additional increases from 1 August 2026
Beyond the standard 4.75% increase, eligible aged care direct care workers and nurses in aged care settings receive a further scheduled increase from 1 August 2026 as the next tranche of the Work Value Case determinations. This is on top of — not instead of — the standard 1 July 2026 increase.
If you employ personal care workers, nursing assistants, or registered/enrolled nurses in aged care, you have two separate effective dates to manage in 2026/27:
- 1 July 2026: Standard 4.75% increase for all classifications
- 1 August 2026: Additional Work Value Case increase for direct care workers and aged care nurses (amount TBC from official FWC determination)
See the Aged Care Award guide and Nurses Award guide for full details.
Gender undervaluation: further increases from October 2026 and December 2026
The 1 July increase is not the last change this financial year. The Fair Work Commission’s gender-based undervaluation review covered five priority awards, and two of them change again — on different dates, after one of them was deferred:
- Health Professionals and Support Services Award (MA000027) — in force from the first full pay period on or after 1 October 2026: a new classification structure keyed to AQF level and years of experience, plus the first of five stages of new minimum rates. Decision [2026] FWCFB 123, handed down 26 May 2026. Across all five stages the outcome is roughly 30% for degree-qualified graduates and 20–25% for experienced practitioners, with the remaining stages from 30 June 2027, 2028, 2029 and 2030.
- SCHADS Award (MA000100) — deferred to 1 December 2026. The ~15% interim rise for Schedule E (home care disability) was originally set for 1 October 2026, but the Commission’s final decision of 11 September 2026 pushed it back, partly because no Commonwealth funding commitment had been made. The new integrated classification structure replacing Schedules B, C, E and F now commences 1 October 2027 for everyone.
If you employ allied health staff, this is the one to act on. The HPSS change is not just a rate rise — every health professional has to be re-mapped onto a new classification structure. Applying the new rates to the old classifications produces the wrong pay. Map your staff before your first October pay run.
The other three priority awards move on their own dates: the Pharmacy Award is paying a 14.1% correction in three phases (the last on 30 June 2027), the Children’s Services Award phases to about 23% across 30 June 2026–2029, and the Aboriginal Health Award was restructured on 1 January 2026.
Action checklist: what to do now
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Download the updated Fair Work pay guide for every award covering your employees (published 24 June 2026 on fairwork.gov.au)
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Confirm your payroll system applied the new base rates from the first full pay period on or after 1 July 2026, and back-pay any shortfall
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Verify entry-level classifications — the lowest rate for ongoing work must be at least $26.44/hr ($25.74/hr applies only to an entry-level rate for the first 6 months or less)
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Confirm your payroll system pays super with every pay run (Payday Super has applied since 1 July 2026)
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If you employ aged care or nursing staff, check that the additional Work Value Case increases that applied from 1 August 2026 are in your payroll
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Review and update any employment contracts or letters that reference specific dollar rates
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Be ready for casual employees to ask to become permanent — under the employee choice pathway, casuals can notify you after 6 months (12 months for a small business employer)
Using award interpretation software means rate increases are applied automatically once your pay guides are updated — no manual recalculation across dozens of classifications.
For the full rate tables for your specific industry, see the relevant award rate guide. All guides are being updated as official FWC pay guides are published.
Frequently asked questions
When do the 2026/27 award rate increases take effect?
The 2026/27 rates take effect from the first full pay period on or after 1 July 2026. Check the official Fair Work pay guide for your specific award (published 24 June 2026). Our award rate guides are refreshed with the new figures as soon as they are released.
What is the national minimum wage from 1 July 2026?
The national minimum wage rises to $26.44 per hour ($1,004.90 per week) from 1 July 2026 — a 6% increase from the 2025/26 rate of $24.95/hr. Modern award minimum rates rose by a separate 4.75% in the same decision.
Do all award rates increase by 4.75%?
Most modern award classifications increase by the standard 4.75%. The lowest award rate for ongoing work must still be at least the national minimum wage of $26.44/hr (an entry-level rate for the first 6 months or less can be $25.74/hr). Aged care and nurses award direct care classifications also received additional increases from 1 August 2026 (Work Value Case). Automated award interpretation applies the correct rate to each classification so you do not have to track every change manually.
What is payday super and when does it start?
Payday Super requires employers to pay superannuation with every pay run rather than quarterly. It began on 1 July 2026. The SG rate remains at 12% — only the payment timing changes.
How do the award rate rises relate to the federal budget?
The 1 July 2026 award increases arrive at the same time as payday super and the measures in the 2026-27 federal budget for small business, so it is worth planning your wage costs and payroll readiness for all of them together.
