By James Sanders
On 2 June 2026, the Fair Work Commission (FWC) handed down its minimum wage decision for the 2026/27 financial year. The decision increases base rates of pay in modern awards by 4.75%. This means employers should review their current minimum wages and payroll practices before the new financial year to ensure employees are paid correctly from the first full pay period after 1 July 2026.
What is changing?
The FWC has announced a 4.75% increase to base rates of pay in modern awards.
The FWC is also taking steps to phase out classifications paid at the C13 wage rate in modern awards.
This year, C13 classifications will also increase by one third (33.33%) of the difference between the C13 and C12 rates. The goal is to phase out the C13 wage level and make the C12 level the lowest wage rate for ongoing employment.
The C14 entry level wage rate will also increase by a commensurate percentage amount to maintain the gap between it and the C13 wage rate.
What is the new national minimum wage?
As a result of the decision, the national minimum wage, which is currently aligned to the C13 rate, will increase from $24.95 per hour ($915.90 per week) to $26.44 per hour ($1,004.90 per week).
This change will take effect from the first full pay period after 1 July 2026.
Payday Super changes are also coming
Payday Super changes are also due to commence on 1 July 2026.
These changes are a substantial shift in how employers must pay their employees’ superannuation guarantee.
Employers must ensure that superannuation guarantee payments are received by their employees’ superannuation fund within 7 business days after payday. This is different to the current requirement to pay superannuation quarterly.
Superannuation will also be paid on Qualifying Earnings, which includes Ordinary Time Earnings, rather than just on Ordinary Time Earnings.
Employers should take action now to ensure they are prepared for these changes.
What should employers review?
Employers should review their current minimum wages and payroll practices to ensure they account for:
- the upcoming changes to superannuation payments; and
- the updated national minimum wage rate or applicable award rate of pay.
MST Annual Wage Updater Service
MST Lawyers offers an Annual Wage Updater Service to provide businesses with a summary of minimum wage rates applicable in the 2026/27 financial year.
Businesses that register for the Annual Wage Updater Service will receive:
- a summary of new minimum wage rates for each job classification contained in the relevant modern award or, if applicable, in its registered workplace agreement.
For more information, please contact our Employment Law team by email or by telephone at +61 3 8540 0200.
See more detailed info on the Annual Wage Review here
