The Australian Fair Work Commission today announced its decision to increase all award wages by 4.75% effective from first full period from 1 July 2026.
The National Minimum Wage increases to $1004.90 per week or $26.44 per hour effective 1 July 2026.
The Commission stated that it had taken into account a range of factors including what it claimed is:
“A fundamental consideration which must be balanced against these matters is that most modern award-reliant employees are still in the position that their wage rates, in real terms, remain lower than what they were in July 2021, prior to the post-pandemic spike in inflation. The ‘real wage gap’ which has opened between the rate of the CPI and modern award wage rates has particularly affected the living standards of the low paid and their capacity to meet their needs.”
The Commission concluded that “regrettably, that it would not be practicable or responsible in the current uncertain circumstances to award a real wage increase for employees reliant on modern award wage rates that would be sufficient to close the real wage gap entirely.“
Regrettably for Australian employers, the Commission made no reference to the additional financial burden on businesses.
Read the summary decision
Please contact Maguire Legal if you require further advice or support in the implementation of the increases in your business.