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 will have rates updated automatically — everyone else needs to act before the first pay period on or after 1 July.
Affected businesses have less than four weeks to update payroll systems, review classifications, and communicate changes to staff. Missing the effective date is an underpayment — set a reminder 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 rises to $26.44 per hour ($1,004.90 per week for 38 ordinary hours) — an increase of $1.49/hr from the current $24.95/hr. This is the floor: no employee can be paid below this regardless of award or classification.
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, PPL rises to approximately $1,004.90 per 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. The Fair Work Commission will publish updated pay guides for each award in mid-to-late June 2026.
The floor rule: Any classification whose 4.75%-adjusted rate falls below $26.44/hr is automatically lifted to the new minimum wage floor. 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 FWC pay guide for that award once published. 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 begins 1 July 2026
From 1 July 2026, the Payday Super reforms replace the quarterly super payment system. Employers must pay superannuation with every pay run rather than within 28 days of the end of each quarter.
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 is ready before 1 July 2026.
Action required: Contact your payroll software provider before 30 June 2026 to confirm Payday Super is enabled. 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.
Action checklist: what to do before 1 July 2026
- Download the updated Fair Work pay guide for every award covering your employees (expected mid-to-late June 2026 from fairwork.gov.au)
- Update your payroll system with new base rates before the first full pay period on or after 1 July 2026
- Verify entry-level classifications — any rate below $26.44/hr must be lifted to the new floor
- Confirm Payday Super is enabled in your payroll system before 30 June 2026
- If you employ aged care or nursing staff, set a second reminder for 1 August 2026 (additional Work Value Case increases)
- Review and update any employment contracts or letters that reference specific dollar rates
- Check casual conversion eligibility for employees who have worked regular hours for 12+ months
Using award interpretation software means rate increases are applied automatically once your pay guides are updated — no manual recalculation across dozens of classifications.
Start free trialFor 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.
