The Fair Work Commission has handed down its Annual Wage Review 2026 decision, confirming increases to the National Minimum Wage and modern award minimum wage rates from 1 July 2026.
The decision comes against a backdrop of continued cost-of-living pressures, with the Commission noting its intention to ensure award-reliant employees are not worse off in real terms than they were on 1 July 2025.
If you employ staff covered by a modern award, it is important to review and update payroll rates before the first pay run on or after 1 July 2026.
Approximately 21% of Australian employees (around 2.8 million people) are paid according to minimum award rates. Employers who do not update wage rates from 1 July may be at risk of underpayment and non-compliance with their obligations under the Fair Work Act.
The industries most impacted by these changes include:
These sectors employ a significant proportion of part-time, casual, and lower-paid workers, and continue to be a key focus area for the Fair Work Commission.
The start of a new financial year is an ideal time to review wage obligations, payroll settings, employment arrangements, and workforce budgets to ensure your business remains compliant and well-positioned for the year ahead.
If you're unsure whether your employees are covered by a modern award, or would like support reviewing wage rates and payroll processes, we recommend seeking HR advice.
Most roles in Australia are covered by an award, making regular reviews an important part of managing employment obligations.
If you'd like to discuss how these changes may affect your business, please reach out to the SEIVA team. We can help you understand the implications, review your obligations, and plan ahead with confidence.
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