Minimum wage increase 2026 Australia: What the new $26.44 per hour means for you

From 1 July 2026, the adult national minimum wage is $26.44 per hour ($1,004.90 per week), with casual loading to $33.05 per hour.

Minimum wage increase 2026 Australia: Your guide to the new rates

The minimum wage increase 2026 Australia took effect from 1 July 2026, raising the adult national minimum wage to $26.44 per hour or $1,004.90 per week for a 38-hour week. Casual employees receive a 25% loading, making their minimum $33.05 per hour. This guide explains what the increase means for different workers, how it compares to other pay benchmarks, and what you should check about your own pay.

The legal floor: national minimum wage

The Fair Work Commission sets the national minimum wage each financial year. The 2026 increase applies from the first full pay period on or after 1 July 2026. The rate is a legal minimum for adult employees who are not covered by a modern award or enterprise agreement. Employers must pay at least this amount for ordinary hours. Superannuation guarantee of 12% is paid on top of ordinary time earnings.

It is important to understand that not every worker must receive $26.44 per hour. Juniors, apprentices, trainees, and employees on introductory award rates can be paid less. The Fair Work Ombudsman explains and enforces the rules, but does not set the rate.

Award and agreement rates can be higher

If you work under a modern award, your minimum wage is likely higher than the national minimum. From the first full pay period on or after 1 July 2026, modern award minimum wages rose by 4.75%. However, the lowest ongoing classification in any award cannot fall below the national minimum of $26.44 per hour. Introductory award rates (limited to the first six months) cannot fall below $25.74 per hour or $978.10 per week. Enterprise agreements may also set higher rates. Always check your award or agreement first. For more detail, see Which minimum wage applies.

Junior, apprentice and trainee rates

For award-free employees under 21, the national minimum wage is reduced by age-based percentages. From 1 July 2026:

  • Under 16: 36.8% = $9.73/h ($12.16/h casual)
  • 16: 47.3% = $12.51/h ($15.64/h casual)
  • 17: 57.8% = $15.29/h ($19.11/h casual)
  • 18: 68.3% = $18.06/h ($22.58/h casual)
  • 19: 82.5% = $21.82/h ($27.28/h casual)
  • 20: 97.7% = $25.84/h ($32.30/h casual)
  • 21 and over: 100% = $26.44/h ($33.05/h casual)

Apprentice and trainee rates for award-free employees follow the Miscellaneous Award, not the junior percentages. If you are covered by an award, check the specific junior or apprentice clause.

Casual loading and penalty rates

Casual employees under the national minimum wage receive a 25% loading, included in the $33.05 per hour figure. This loading compensates for the lack of paid leave such as annual leave and personal leave. Casual loading is separate from penalty rates for weekend or public holiday work. If you work under an award, penalty rates may apply on top of the casual hourly rate.

How the 2026 minimum wage compares to average earnings

The ABS May 2026 survey reported full-time adult ordinary-time earnings of $2,083.70 per week and all employees average total earnings of $1,579.20 per week. The national minimum wage of $1,004.90 per week is about 48% of full-time average earnings. This gap highlights that the minimum wage is a safety net, not a typical market rate. Many award-covered employees earn more than the minimum, and negotiated salaries can be higher still.

History of recent increases

The national minimum wage has risen each year:

  • 1 July 2023: $23.23/h ($882.80/week)
  • 1 July 2024: $24.10/h ($915.90/week)
  • 1 July 2025: $24.95/h ($948.00/week)
  • 1 July 2026: $26.44/h ($1,004.90/week)

The 2026 increase of 5.97% reflects the Fair Work Commission’s annual review. For historical tables, see Rate tables.

Superannuation guarantee

Employers must pay superannuation guarantee of 12% on top of ordinary time earnings. This is not deducted from the minimum wage; it is an additional payment into a super fund. For an employee earning the adult minimum of $1,004.90 per week, the employer contributes an extra $120.59 per week in super.

What to do if you think you are underpaid

If you are paid less than the minimum wage that applies to you, contact the Fair Work Ombudsman. This site provides orientation only and is not a pay determination or legal advice. Always check your award or agreement, and seek professional advice if needed.

Summary

The minimum wage increase 2026 Australia sets a new national floor of $26.44 per hour for adult award-free employees. Casual loading, junior percentages, and award rates mean many workers receive different amounts. The increase is part of the annual review process by the Fair Work Commission. For more guidance, visit Guides or How the figures work.

Questions people ask next

Does the minimum wage increase 2026 Australia apply to all workers?

No. The national minimum wage of $26.44 per hour applies to award-free and agreement-free national-system employees aged 21 or over. Juniors, apprentices, trainees, and workers on introductory award rates may be paid less. Modern awards and enterprise agreements can set higher rates.

How does the 2026 increase compare to previous years?

The 2026 increase from $24.95 to $26.44 per hour is a 5.97% rise. Previous increases: 1 July 2023 $23.23, 1 July 2024 $24.10, 1 July 2025 $24.95. The Fair Work Commission reviews the rate annually.

What is the casual loading for the 2026 minimum wage?

Casual employees covered by the national minimum wage receive a 25% loading, bringing the casual rate to $33.05 per hour. This loading compensates for the lack of paid leave entitlements.

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