ACTU Minimum Wage Increase: What the 2026 National Minimum Means for Your Pay

ACTU Minimum Wage Increase and the Legal Floor

The phrase "actu minimum wage increase" often refers to the Australian Council of Trade Unions' annual campaign for a higher minimum wage. While the ACTU's specific proposed figure is not contained in this reference, the legal floor that applies to most award-free employees is the national minimum wage set by the Fair Work Commission. From 1 July 2026, that rate is $26.44 per hour or $1,004.90 per week for an adult employee working 38 ordinary hours. Employers must also pay superannuation guarantee of 12% on top of ordinary time earnings.

It is important to separate the legal minimum from other pay concepts. The national minimum wage is not the same as a survey average, an award rate, or a negotiated salary. For example, the ABS May 2026 survey shows full-time adult ordinary-time earnings of $2,083.70 per week — well above the minimum. A modern award or enterprise agreement can require a higher rate than the national minimum, and many workers are covered by such instruments. If you are unsure which pay floor applies, start with Which minimum wage applies.

Award Backstop and Introductory Rates

Modern award minimum wages also rose by 4.75% from the first full pay period on or after 1 July 2026. However, the lowest ongoing classification in an award cannot sit under the national minimum of $26.44 per hour. An introductory rate, limited to the first six months, cannot sit under $25.74 per hour or $978.10 per week. This award backstop ensures that even the most junior award-covered employee has a floor.

For award-free employees, the adult national minimum applies. But juniors, apprentices, trainees, and supported wage employees can be paid less. Award-free junior percentages range from 36.8% for under 16 ($9.73/h) up to 97.7% for age 20 ($25.84/h). Casual workers receive a 25% loading, making the casual rate $33.05 per hour for adults. See the full Rate tables for age-based and casual rates.

How the ACTU Campaign Fits In

The ACTU typically argues that the minimum wage should rise faster than inflation or average wages to address cost-of-living pressures. While the Fair Work Commission considers such submissions, its decision is the binding legal minimum. The 2026 increase from $24.95 to $26.44 per hour represents a 5.97% rise, which is above the 4.75% award increase. The Commission sets the national minimum wage independently, and the Fair Work Ombudsman enforces it.

If you are covered by an enterprise agreement, your rate may be higher than the national minimum. Always check your award or agreement first. For more detail on how these figures are calculated, see How the figures work.

Super and Other On-Costs

Remember that the minimum wage is before tax. Employers must pay super guarantee of 12% on ordinary time earnings. For a full-time adult on $1,004.90 per week, that adds $120.59 per week in super contributions. Tax is then deducted from your gross pay. For the 2026-27 tax year, resident rates with the full tax-free threshold apply, and Medicare is estimated at 2% once annualised ordinary gross reaches $30,000. This site does not provide tax advice; consult the ATO for your situation.

Common Misunderstandings

• Not every worker must receive $26.44 per hour. Juniors, apprentices, trainees, introductory award rates, and supported wages can be lower.
• The national minimum wage is not the same as the living wage or a fair wage; it is the legal floor.
• The ACTU's proposed increase is not the law. Only the Fair Work Commission's decision sets the binding rate.

For a complete overview of pay floors, visit Topics.