The national minimum wage rose to $26.44 an hour from the first full pay period on or after 1 July 2026, following the Fair Work Commission's 2026 Annual Wage Review. Modern award minimum rates rose too, by 4.75%, with the lowest classification in every award lifted to match the new $26.44 floor.
What the Fair Work Commission decided
Each year the Fair Work Commission reviews minimum wages across the economy and hands down a decision that applies from 1 July. The 2026 review lifted the national minimum wage by around 6%, and modern award minimum rates by 4.75%. The gap between those two figures matters: it means the lowest-paid classification in most awards now sits at, or very close to, the standalone national minimum wage, even though award rates as a whole rose by a smaller percentage.
The national minimum wage applies to employees who are not covered by any award or registered agreement — a relatively small group, since most employees are covered by an industry award. For everyone else, the award minimum wage for their classification is what actually applies, and it is usually higher than the bare national minimum once you account for the classification structure.
What $26.44 an hour means in real terms
For someone working a standard 38-hour week at the national minimum wage:
- Weekly gross: 38 × $26.44 = $1,004.72
- Annual gross (52 weeks): $52,245
- Annual take-home pay after income tax and the Medicare levy: $45,007
That works out to about $866 a week after tax. Run your own hours and see the full breakdown, including super, with the Award & Fair Work Pay Calculator — or check any hourly rate against annual take-home pay on the hourly wage pages.
How award rates moved
Because award rates rose by a smaller percentage (4.75%) than the national minimum wage (around 6%), the lowest classification in every award covered here was lifted specifically to the new $26.44 floor, rather than by a flat 4.75% from its old rate. Every other classification above that floor rose by the standard 4.75%. That is why, for example, the Hospitality Award's introductory rate now sits at $25.74 — just below the national minimum, reflecting that it is a training or entry classification — while its Level 1 rate matches the $26.44 floor exactly.
Penalty rates (evenings, Saturdays, Sundays, public holidays) did not move as part of this decision. They are a structural feature of each award, set as a multiplier of the base rate, so they only change if the award itself is varied — not automatically every 1 July. Our guide to penalty rates in Australia has the full multiplier table.
Who is affected
This decision affects anyone paid at or near the minimum in an award-covered job or without award coverage at all — commonly retail, hospitality, restaurant, fast food and other entry-level or junior roles. If your pay is well above the minimum for your classification, the annual wage review does not directly change your rate, though it can still shift where the classification structure sits beneath you.
Frequently Asked Questions
General information for pay periods from 1 July 2026, not workplace or legal advice. Confirm your exact award classification and rate with the Fair Work Ombudsman.