Fair Work Commission Wage Decision 2026
On Tuesday 2 June 2026, the Fair Work Commission handed down the 2026 wage decision, increasing minimum rates of pay by at least 4.75%, with the minimum wage and aligned classifications increasing by 6% as part of a substantial overhaul of lower paid classifications, which will be phased out over a three-stage process.
Tom Earls from Fair Work Lawyers provides a summary of the decision. The ACA will update relevant Award pay rates as soon as possible.
For details on the decision, see the Fair Work Commission summary.
Wage increase
The Fair Work Commission has determined that modern award rates and the National Minimum Wage will increase by 4.75%, with further increases to lower classifications.
The lowest classifications in Awards (often referred to as the C13, which is aligned to the national minimum wage) and C14 wage rates (introductory rates in some Awards) will be phased out over a three-stage process.
Stage one of that process will occur at the same time as this year’s increase. Under stage one, the C13 rate will be increased by an additional amount representing one third of the gap between the C13 and C12 rate. This means that as of 1 July 2026, the C13 wage rate will be $26.44 per hour, and the lowest wage rate applicable to entry level employment (for a period no more than six months) is $978.10 per week or $25.74 per hour. This represents an approximate 6% increase to the national minimum wage and those lower classifications.
The national minimum wage will be $1,094 per week ($26.44 per hour).
Apprentice and trainee rates will increase by proportionate amounts.
The decision does not expressly deal with how allowances will change. In previous years, skill and disability allowances were increased by the same percentage and expense-related allowances by the applicable CPI measure. We anticipate this will be the same but are unable to confirm this at this time.
Operational date
The Commission has decided that this year’s increase will apply from the first full pay period on or after 1 July 2026.
Who does this affect?
This decision affects all employees who a modern award applies to. If you have award-based employees who are paid above award rates, the ‘absorption’ principle means that you do not have to increase above-award payments unless the new award minimum is higher than the employee’s current rate, in which case you must pay at least the new minimum.
Employers who have enterprise agreements in place will need to ensure that the base rate of pay is at least equal to the new minimum. This requirement only applies to the base rate of pay and does not extend to allowances, penalty rates or loadings.
NB: even if an agreement has expired, it remains in force until it is replaced by a new one or the Commission terminates the agreement.
Need more information
If you would like further information about award rates, or to check your existing rates, please contact the team at Fair Work Lawyers.