Minimum Award wages are increasing by 4.75% from 1 July 2026

The Fair Work Commission has announced a 4.75% increase to minimum Award wages, effective from the first full pay period after 1 July 2026.

(If you need a refresher on Modern Awards and how they apply to you check out this article).

What employers need to know

Award changes

Some Awards may have other updates besides pay. If your team is covered by an Award, it’s worth checking for other tweaks.

The updated Modern Award Pay Guides for 1 July 2026 are available to view here: Pay guides - Fair Work Ombudsman.

Loadings and allowances

Importantly, this increase also applies to many loadings and allowances. Items such as personal vehicle usage rates as well as tool, uniform, first aid allowances are all likely to get a boost.

Are you really paying "Above Award"?

Modern Award rates have increased 12% over the last 3 years and a salary that was historically ‘above Award’ may no longer be. If you're unsure, it's best to get it checked.

For some businesses, we recommend undertaking a BOOT (Better Off Overall Test) that checks an employee isn't worse off under a contract or annualised salary arrangement. This ensures the salaries you're paying cover all the Award entitlements you're expecting them to.

What should you do?

• Check which Award(s) apply to your team, if any.
• Review your team’s current pay rates against the new minimums.
• Don’t forget any allowances or loadings that also apply.

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If you're unsure, it's best to get some help!

Navigating HR and pay compliance can be overwhelming. We're here to make it easier.

Our team can help with decoding Awards and agreements, reviewing current pay rates and calculating increases.
‍Get in touch.