How much is the 2026 minimum wage increase? The Fair Work Commission increased modern award minimum wages by 4.75%, with a targeted floor ensuring the lowest ongoing award rate is at least $26.44/hr ($1,004.90/week). The National Minimum Wage (for the small share of employees not covered by any award) also rises to $26.44/hr. The increase applies from the first full pay period starting on or after 1 July 2026.
Based on the Fair Work Commission Annual Wage Review 2026 decision announced 2 June 2026 — dollar figures are indicative pending the official per-award determinations.
Headline increase: 4.75% to all modern award minimum rates
Lowest-paid floor: at least $26.44/hr ($1,004.90/wk) for the lowest ongoing award rate
National Minimum Wage: rises to $26.44/hr (award-free employees only)
Effective: first full pay period on or after 1 July 2026
Awards affected: Hospitality MA000009, Restaurant MA000119, and all other modern awards
The Fair Work Commission (FWC) sets minimum wages in Australia through its Annual Wage Review each year. This year's decision — the 2026 Fair Work pay rise — was announced at 10am AEST on Tuesday 2 June 2026. Around one in five Australian employees are directly award-reliant, and they are heavily concentrated in the industries Fitz HR serves — accommodation and food services chief among them. If you run a pub, restaurant, cafe, bar, hotel or catering operation, this increase lands directly on your wage bill.
The Commission set the increase at 4.75% rather than the 5%-plus that would have been needed to fully restore the real value of award wages since 2021, citing economic uncertainty. Practically, the headline number is settled — but the award-by-award dollar figures are published separately over the following weeks, and Fair Work's pay tools update closer to 1 July. The rates below are indicative estimates so you can plan now; confirm the final figures against the official determination before your first July pay run.
What Is the New Minimum Wage in Australia in 2026?
The new National Minimum Wage in Australia from 1 July 2026 is $26.44 per hour, or $1,004.90 per week for a 38-hour week. The same dollar floor applies to the lowest ongoing modern award rate, and every other award classification rises by 4.75%. The new rates apply from the first full pay period starting on or after 1 July 2026.
Need the exact new rate for a specific classification? Fitz HR's Award Wizard calculates it the moment Fair Work publishes the determination — no manual maths, no guessing.
Around 21% of Australian employees are award-reliant and directly affected by the 2026 increase, with accommodation and food services among the most impacted sectors. In hospitality, almost every shift type is touched, because penalty rates, loadings and overtime all flow from the base rate.
When the Increase Actually Starts
The single most common error every July is paying the new rate from 1 July itself. The increase applies from the first full pay period that starts on or after 1 July 2026. If your pay week runs Monday to Sunday, and 1 July 2026 falls mid-week, you keep paying the old rate until the next pay period begins — then the new rate applies to the whole period.
Get this wrong in either direction and you create a problem: pay early and you've overpaid; pay late and you've underpaid, which is the exact exposure Fair Work audits look for. Identify your first qualifying pay period now and put the switch date in writing.
Indicative Hospitality Award Rates from July 2026
The figures below apply 4.75% to the current Hospitality Industry (General) Award MA000009 adult base rates. They are estimates for planning only — the Fair Work Commission publishes the exact per-classification determination separately, and the lowest classifications may be adjusted up to the $26.44/hr floor.
| Level | Example Roles | Full-Time (est.) | Casual (est.) |
|---|---|---|---|
| Level 1 | Food & Bev Attendant Gr 1, Kitchen Hand | $27.08 | $33.85 |
| Level 2 | Cook Grade 1, Food & Bev Attendant Gr 2 | $27.95 | $34.94 |
| Level 3 | Cook Grade 2, Food & Bev Attendant Gr 3 | $28.80 | $36.00 |
| Level 4 | Cook Grade 3, Front Office Gr 3 | $29.46 | $36.83 |
| Level 5 | Cook Grade 4, F&B Supervisor | $31.30 | $39.13 |
| Level 6 | Cook Grade 5 (Tradesperson) | $32.14 | $40.18 |
Estimated full-time rates = current MA000009 base × 1.0475. Casual = estimated full-time × 1.25. Penalty rates apply on top of these new bases. For the current (pre-July) figures and full penalty-rate breakdown, see the 2026 Hospitality Award rates guide.
Because weekend, public holiday, evening and overtime rates are calculated off the base, every one of those dollar amounts rises too. A Level 2 casual Sunday shift that was $58.36/hr becomes roughly $61.15/hr before the flat evening loading — small per hour, large across a roster.
Restaurant Award & the Lowest-Paid Floor
The same 4.75% applies to the Restaurant Industry Award MA000119. One nuance to watch: the targeted floor sets the lowest ongoing award rate at $26.44/hr. Where a Restaurant Award classification sits just below that after a straight 4.75% lift, it may be pulled up to the floor instead — meaning a slightly larger increase for those workers. Confirm the entry-level and Level 1 figures against the determination rather than assuming a flat 4.75%. Full current figures are in the 2026 Restaurant Award rates guide, which will be updated once the determination publishes.
Junior, Apprentice & Casual Flow-On
Junior rates, apprentice rates and supported wages are set as percentages of the relevant adult rate, so they rise automatically with the base — you don't apply a separate increase, but you do need to recalculate the dollar figures. Casual loading stays at 25%, applied to the new base. If you've absorbed casual loading into a flat rate, re-test that the flat rate still beats the Award on every shift type after the increase; many flat-rate arrangements quietly fall below the floor on a wage rise.
Annual Wage Review Increases Since 2023
The 4.75% increase sits above the past two years but below the post-inflation peak. The Commission has repeatedly noted that award wages lost real value after the 2021–2022 inflation spike, and that recent reviews aim to repair those losses where economically sustainable.
| Effective | Award Minimum Increase |
|---|---|
| 1 July 2023 | 5.75% |
| 1 July 2024 | 3.75% |
| 1 July 2025 | 3.5% |
| 1 July 2026 | 4.75% |
Modern award minimum wage increases from successive Fair Work Commission Annual Wage Review decisions.
What Employers Must Do Before 1 July
Common Mistakes That Trigger Underpayments
What Happens If You Get This Wrong?
Failing to apply the new rates correctly creates underpayment exposure from the first qualifying pay period. Underpayments must be back-paid in full, and the Fair Work Ombudsman runs targeted compliance audits in award-reliant sectors — hospitality among the most scrutinised. Beyond back-pay, breaches of an award can attract civil penalties, and since 2025 serious, deliberate underpayment can amount to a criminal wage-theft offence. The risk compounds quietly: a single misapplied base rate, multiplied across every penalised shift, every employee, every pay run, is how venues reach six-figure liabilities. See our guide on what happens if you underpay staff in Australia for the full picture.
Frequently Asked Questions
How much is the minimum wage increase in 2026?
When does the 2026 award wage increase take effect?
Does the increase apply to the Hospitality and Restaurant Awards?
Do enterprise agreement rates go up automatically?
Is there a fast way to apply the new rates correctly?
Be Ready for the 1 July Pay Run
Fitz HR updates to the new Award rates the moment Fair Work publishes the determination — so you calculate the exact legal rate for every shift, classification and day without second-guessing the maths.
Check a Rate Free — No Card Required →General information only — not legal advice. This article summarises the Fair Work Commission's Annual Wage Review 2026 decision announced on 2 June 2026. Dollar figures shown are indicative estimates pending the Commission's official per-award determinations and the updated Fair Work Ombudsman pay guides. Confirm final rates against the official determination before processing pay.