*New* Modern Award Rates of Pay – 01 JULY 2026
Modern Award rates of pay will increase by 4.75% effective 01 JULY 2026.
The National Minimum Wage will also increase to $26.44 per hour from 01 JULY 2026.
New Minimum rates of pay from 01 JULY 2026 – what to do (now)
We recommend that you conduct an audit of your current rates of pay against the new award minimum rates. These will be released progressively on the Pay and Conditions Tool (or P.AC.T.) so that you are all set for 01 JULY 2026. You can of course also get a headstart and do your own calculation on what the new minimum rates will look like with an increase of 4.75%. Best practice though is to always apply the P.A.C.T. rates so that you can be sure that you are utilising the correct published rates. If you are not familiar with the P.A.C.T. tool it can be a little tricky to get your head around, though we can of course assist you as and if required.
What if we already have Above Award Rates?
Do be sure to cross check the new minimum rate that would otherwise apply from 01 JULY 2026 including for any staff that you may have on above-award rates (ie: those classified as a particular Award level and step though who are receiving more than this). Annual wage decision increases add up quickly and can often mean that even above award rates fall short for some classifications. This is particularly the case at the more entry level Award levels.
What if we have an EBA?
Just because you have an EBA doesn’t mean you don’t need to pay attention to the new Award minimum rates. What is important is that you do a sweep through of the corresponding new minimum rate that will apply from 01 JULY 2026 against your corresponding EBA grades and rates. You should also keep a Masterfile of corresponding Award rates that correlate to each EBA grade and rate so that you can track this from year to year. If you may not have done so or are concerned that could have EBA rates that haven’t kept up with Award minimum increases, then please get in touch with us soonest.
Classification Descriptors (Pro-Tip)
It is now also an opportune time to review your staffing population against the relevant Award based classification descriptors. Doing so means that you can best make sure that the role(s) your people are actually performing are best aligned to the most appropriate classification description and therefore, Award grade/level. It can also mitigate risk of any sort of double claim for re-classification and significant retro-pay to take account of new minimum rates of pay at the new (higher) grade. This can get a bit tricky, though a role description is a great place to start. Alternatively, and at the very least, a Duty Statement that captures work performed can also be a useful foundation for this assessment.
More information
You can access the Fair Work Commission decision here via this link:
https://www.fwc.gov.au/documents/resources/annual-wage-review-2026-decision-announcement.pdf
Contact Us
We are at your service to assist and support you in ensuring compliance with Award minimum rates. This includes if you use common law contracts, have an EBA or simply apply the Award rates. You can complete our online enquiry form here