Award and minimum wage workers to receive at least 4.75% pay increase

The Fair Work Commission handed down the 2026 Annual Wage Review decision today, increasing modern award wages by 4.75 per cent and the National Minimum Wage by 6 per cent from 1 July this year.

This is a real wage increase. 

This decision provides cost of living relief for almost 2.7 million National Minimum Wage and Modern Award reliant Australian workers around the country. 

The decision ensures award-reliant workers are not worse off in real terms relative to 1 July 2025.

Today’s decision means the National Minimum Wage will increase from:

• $24.95 to $26.44 per hour 
• $948.00 to $1,004.90 per 38-hour week
• $49,296.00 to $52,254.80 per year.

This is the first time the National Minimum Wage is above $1,000 per week.

Since the Albanese Government came to office, we’ve advocated for Australian workers at every single Annual Wage Review – five years in a row.

Our advocacy has seen the National Minimum Wage has increased by $6.11 per hour, $232.30 per week and $12,079.60 per year, or a 30.1 per cent increase.

In making this decision, the Fair Work Commission Expert Panel considered a number of factors, including the performance of the national economy – which has been impacted by uncertainty around the conflict in the Middle East – and the relative living standards and needs of minimum and award wage earners. 

The Fair Work Commission Expert Panel acknowledged that the determination of this year’s Review outcome has been particularly challenging because of the degree of complexity in the interaction of the matters they are required to take into account.

Modern Award employees predominantly work part-time hours, are in female-dominated industries, and a majority are casuals. 

Earlier this year, the Albanese Government lodged a submission to the 2026 Annual Wage Review recommending the Fair Work Commission award an economically sustainable real wage increase to Australia’s award workers.

Quotes attributable to Minister for Employment and Workplace Relations, Amanda Rishworth:

“The Albanese Government welcomes today’s Annual Wage Review decision and the cost of living help it will provide working Australians. 

“This decision means that the National Minimum Wage is above $1,000 per week for the first time.

“This is needed cost of living help for the minimum wage and award-reliant workers, many of whom are in lower-paid roles, work fewer hours, and have fewer financial buffers to fall back on.”

Quotes attributable to Treasurer, Jim Chalmers:

“This is the pay rise millions of Australian workers need and deserve.

“This is the sustainable real wage increase that we called for in our submission to the Fair Work Commission. 

“Under Labor, wages are higher, income taxes are lower, and we’re helping first home buyers get into the housing market. 

“This decision means the minimum wage is now $12,079 higher per year compared to when we came to government.”