Australia’s employers are preparing for higher minimum wage and Award wage costs following the Fair Work Commission’s Annual Wage Review decision handed down today.
The Fair Work Commission has determined to increase both the National Minimum Wage and modern Award minimum wage rates effective from 1 July 2026.
In response, the Visual Media Association (VMA) will be providing members with guidance on the decision and the steps required ahead of the implementation date.
“With effect from the first full pay period commencing on or after 1 July 2026, the new adult National Minimum Wage for full-time employees working a 38-hour week will be $1004.90 per week, or $26.44 per hour,” explained Charles Watson, GM – IR, Policy and Governance for the VMA.
This represents an increase from the current National Minimum Wage of $948 per week, or $24.95 per hour.
From an Awards perspective, the Commission has also determined to increase modern Award minimum wage rates by 4.75 per cent effective from the first full pay period commencing on or after 1 July 2026.
The decision also included determinations whereby the lowest adult Award classification rates and entry-level minimum rates in Awards must meet certain minimum dollar values.
Watson says further detail regarding these changes will be provided to members once the Commission releases the related Award determinations over the coming weeks.
“The related increases to the 120-plus Award minimum rates of pay will be determined and rolled out over the coming weeks, along with adjustments to junior and apprentice rates of pay, and Award allowances, and prior to the 1 July 2026 operational date,” Watson said.
“The incoming increases to Award minimum rates of pay can be absorbed into an Award-covered employee’s current rate of pay as long as the result leaves their rate of pay at least equal to the increased Award minimum rates.”
“Over the coming weeks we will work through the detailed Award determinations and provide members with updated minimum rates, compliance guidance and practical advice to assist with implementation before the 1 July commencement date.”
The increases will operate from 1 July 2026 and take effect from the first full pay period commencing on or after that date.