2025-26 Annual Wage Review – Decision Issued

On 2 June 2026, the Minimum Wage Panel of the Fair Work Commission (FWC) handed down its Minimum Wage Ruling for the 2025-26 Annual Wage Review.

The FWC has awarded an increase of 4.75% for Modern Award base rates of pay which will take effect in ALL Modern Awards from the first full pay period commencing (ppc) on or after 1 July 2026. The increase will flow on proportionately to junior and training rates of pay.

Rates of pay for entry-level classifications – known as C13 and C14 (only applicable in a select number of Modern Awards) – will receive a special increase, with the intent being these rates/classifications will be phased out completely in the years ahead. The lowest rate in any Modern Award applicable to ongoing employment (i.e. the C13 level) will be at least $1004.90 or $26.44 per hour, whilst any entry-level rate applicable to no more than the first six months of employment (i.e. the C14 level) will be at least $978.10 per week or $25.74 per hour from ppc 1 July 2026.

Separately, the National Minimum Wage (NMW) will increase to $1004.90 per week ($26.44 per hour) as of ppc 1 July 2026, up from $948.00 per week ($24.95 per hour) currently. The NMW only applies to employees not captured by a Modern Award or enterprise agreement.

Allowances contained in each Modern Award, which are calculated as a percentage of the ‘standard rate’, will increase following the 4.75% per week increase to the ‘standard rate’ they are calculated from. Furthermore, expense-related allowances, specific to each Modern Award, will increase as necessary subject to the formal determinations issued by the FWC.

All of the new rates and allowances will apply from an employer’s first full pay period that starts on or after 1 July 2026, meaning for an employer that pays fortnightly, who has a pay period that starts on 29 June (for example) and finishes on 12 July, the increased amounts won’t apply until the pay period that starts on 13 July.

The full Annual Wage Review Decision can be viewed on the FWC’s website here.

Subscribers who have questions about this information are invited to contact our advice line on (07) 3220 3500 or try live chat for immediate assistance.