What is the minimum wage increase for 2026?

The Fair Work Commission announced a 4.75% increase to the national minimum wage and modern award minimum wages, effective from the first full pay period on or after 1 July 2026. The adult national minimum wage becomes $26.44 per hour, $1,004.90 per week for a 38-hour week. Casual employees receive a 25% loading, making the casual rate $33.05 per hour. Award rates also increase by 4.75%, but the lowest ongoing classification cannot fall below the national minimum.

Does my employer have to pay the new rate from 1 July 2026?

Yes, if you are a national-system employee and award-free or agreement-free, your employer must pay at least the new national minimum wage from the first full pay period on or after 1 July 2026. If you are covered by a modern award or enterprise agreement, your employer must pay the applicable award or agreement rate, which may be higher than the national minimum. Some state-system employees may be covered by state awards instead. Always check your award or agreement for your specific minimum.

How does superannuation apply to the minimum wage?

Employers must pay the super guarantee on top of your ordinary time earnings. From 1 July 2026, the super guarantee rate is 12%. This means if you earn the national minimum wage of $26.44 per hour, your employer must contribute an additional 12% (about $3.17 per hour) into your super fund. Super is not deducted from your pay; it is an extra payment by the employer.

Minimum wage increase 2026: How to check your hourly rate against the new national minimum

From 1 July 2026, the adult national minimum wage rises to $26.44 per hour, or $1,004.90 per week for a 38-hour week, with casual loading of $33.05 per hour.

Minimum wage increase 2026: A practical check for your hourly rate

The minimum wage increase 2026 takes effect from the first full pay period on or after 1 July 2026. The Fair Work Commission has set the adult national minimum wage at $26.44 per hour (or $1,004.90 per week for a 38-hour week). If you are a casual employee, the minimum casual rate is $33.05 per hour (including the 25% casual loading). This guide helps you compare your own hourly rate against these new figures and understand what other rules might apply.

The legal minimum vs other pay benchmarks

It is important to separate the legal minimum from other figures you might see. The national minimum wage is the absolute floor for award-free and agreement-free employees in the national system. It is set by the Fair Work Commission and enforced by the Fair Work Ombudsman. By contrast, the Australian Bureau of Statistics (ABS) May 2026 survey reports that full-time adult ordinary-time earnings average $2,083.70 per week – more than double the minimum. That average includes many people on award or above-award wages. Your own rate could be higher than the minimum if you are covered by a modern award or an enterprise agreement, which often set higher minimums for specific industries or roles.

How to check your hourly rate

Take the hourly rate you are paid for ordinary hours (excluding overtime and penalties). Compare it to $26.44 if you are an adult (21 or over) and not a junior, apprentice, or trainee. If your rate is below $26.44, your employer may be underpaying you – unless you fall into one of the categories that allow lower rates (see below). Remember that your employer must also pay superannuation on top of your ordinary time earnings. The super guarantee is 12% from 1 July 2026, so the total cost to your employer is at least $26.44 + $3.17 = $29.61 per hour (for a permanent employee).

When a lower rate is allowed

Not every worker must receive $26.44 per hour. The following groups have different minimums:

Junior employees (under 21) who are award-free: percentages of the adult rate apply. For example, a 17-year-old gets 57.8% = $15.29 per hour (casual $19.11).
Apprentices and trainees who are award-free: their minimum rates follow the Miscellaneous Award, not the junior percentages.
Introductory award rates: For the first 6 months in a job under a modern award, the introductory minimum is $25.74 per hour (or $978.10 per week), provided the award allows it.
Supported wages: Employees with a disability may have a pro‑rata minimum under a supported wage system.

If you are covered by a modern award, check the award’s classification structure – your minimum may be higher than the national minimum. Enterprise agreements can also set higher rates.

The role of awards and agreements

A modern award or enterprise agreement can require a higher rate than the national minimum. For example, the award backstop ensures that the lowest ongoing classification in any award cannot fall below $26.44 per hour from 1 July 2026. But many award rates are above that figure. If you are unsure which award applies, visit Which minimum wage applies to find your industry or occupation. You can also browse Rate tables for common award minimums.

Superannuation is on top

When discussing pay, remember that the super guarantee is an employer payment on top of your ordinary time earnings. It is not deducted from your wage. For the 2026-27 financial year, the rate is 12%. So if you earn the minimum $26.44 per hour, your employer must contribute an extra $3.17 per hour into your super fund. This is separate from your take-home pay.

What about the ABS average?

The ABS May 2026 figure for all employees average total earnings is $1,579.20 per week. That includes part-time and casual workers. It is a useful benchmark but not a legal requirement. Your pay may be lower than the average and still be perfectly legal if it meets the minimum wage or your award rate.

Summary

To check if you are being paid correctly under the minimum wage increase 2026:

Identify your employment type (permanent, casual, junior, apprentice, etc.).
Find the applicable minimum – either the national minimum, an award rate, or an agreement rate.
Compare your ordinary hourly rate (excluding overtime) to that minimum.
Add 12% super to see the total cost to your employer.

If you need more detailed guidance, see How the figures work for an explanation of rounding and calculations, or visit Topics for articles on specific industries.

FAQs

(FAQs are listed separately above.)