- Published
The Fair Work Commission announced a 6% increase to the National Minimum Wage and a 4.75% increase to minimum award wages, effective from 1 July 2026.
Employers must review pay rates, award classifications, and payroll settings ahead of 1 July 2026 to ensure compliance with the Fair Work Commission’s new wage changes.
Do not assume that the recent wage increase doesn’t apply to you – take it as your opportunity to review your remuneration practices.
Do I need to update my employees’ pay rates?
Yes—if your employees are covered by an Award or the National Minimum Wage.
Employers should:
- Check current pay rates against updated Award/minimum wage rates
- Apply changes from the correct pay period (on or after 1 July 2026)
- Ensure payroll systems reflect updated rates before processing July wages
What employers should check immediately
To stay compliant, review the following areas before 1 July:
- Employee classification – Confirm each employee is correctly classified under the relevant Award level based on their actual duties—not just job titles.
- Pay rates and entitlements – Ensure employees are receiving, correct base pay rates, any applicable allowances and penalty rates and loadings (if relevant).
- Payroll system settings – Update payroll systems to reflect new wage rates and superannuation calculations (check setup and compliance timing with Payday Super).
- Employment records – Any changes to, pay rates, conditions and entitlements, should be confirmed in writing and updated in payroll records.
What is often missed?
Common compliance gaps include:
- Incorrect Award classification
- Missing allowances
- Flat rates falling below Award minimums
- Payroll system not updated correctly
Wage theft legislation now in effect, underpayments can create serious compliance and legal risk.
Important
Ensure any person involved with preparing contracts, advising on entitlements and/or processing payroll is appropriately trained and up to speed with legislative changes.
