National Minimum Wage crosses $1,004.90, with employer groups warning of cost pressure ahead
Australia's minimum wage increased Wednesday, lifting pay for millions of workers while employer groups warn the rise compounds pressure from a separate superannuation reform taking effect the same day.
The Fair Work Ombudsman confirmed the National Minimum Wage is now $1,004.90 per week, or $26.44 per hour, based on a 38-hour week. Casual employees entitled to the National Minimum Wage must receive at least $33.05 per hour, inclusive of the 25% casual loading.
Employees covered by a modern award must receive a 4.75% increase to their minimum wages, provided the lowest ongoing rate reaches at least $1,004.90 per week and entry-level rates for the first six months of employment reach at least $978.10 per week.
The Fair Work Commission (FWC), a separate body from the Ombudsman, announced the increase on 2 June following its 2026 Annual Wage Review. The increase exceeds the 4.2% inflation rate recorded in April, though it falls short of the 6% rise unions had sought, SBS reported.
Fair Work Ombudsman Anna Booth said employers must apply the new minimum wage from the first full pay period after 1 July.
The timing adds complexity. From 1 July, employers must also begin paying superannuation contributions at the same time as wages under the new Payday Super rules, a shift from the previous quarterly payment cycle.
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