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). Under the Retail Award MA000004, a Retail Employee Level 1 is $27.81/hr. The increase applies from the first full pay period starting on or after 1 July 2026. Because penalties, casual loading and overtime are multiples of the base rate, those dollar amounts rise too.
Rates current as at 2026-07-01 (Annual Wage Review), sourced from the Fair Work Ombudsman Pay Guide MA000004. Next review 2027-07-01.
Headline increase: 4.75% to all modern award minimum rates
Lowest ongoing rate floor: $26.44/hr ($1,004.90/week)
Retail Award base: Retail Employee Level 1 at $27.81/hr
Starts: first full pay period on or after 1 July 2026
Penalties, casual loading & overtime: rise with the new base
The 2026 Fair Work Pay Rise Explained
The Fair Work Commission (FWC) sets minimum wages through its Annual Wage Review each year. The 2026 decision increased modern award minimum rates by 4.75%, with a targeted floor so the lowest ongoing award rate is at least $26.44/hr ($1,004.90/week). The Fair Work Ombudsman published the updated per-award pay guides on 24 June 2026, so the MA000004 dollar figures are confirmed and effective from the first full pay period on or after 1 July 2026.
When the Increase Actually Starts
The new rates apply from the first full pay period that starts on or after 1 July 2026 — not necessarily 1 July itself. If your pay week starts on a Monday, the new rates apply from the first Monday on or after 1 July, and the days before that are still paid at the old rate. Getting this cut-over date wrong is the most common wage-review payroll error.
Confirmed Retail Award Rates from July 2026
Under the Retail Award MA000004, a Retail Employee Level 1 is $27.81/hr from the first full pay period on or after 1 July 2026. Every classification rises by 4.75% off its previous base. Because penalty rates, casual loading and overtime are calculated as multiples of the base rate, those dollar amounts increase automatically — see the full Retail Award rates guide, updated for 1 July 2026.
Junior, Apprentice & Casual Flow-On
Junior and apprentice rates are set as percentages of the adult classification rate, so they rise automatically with the base. The 25% casual loading is unchanged as a percentage, but the dollar value of every casual hour rises because it is calculated on the higher base. Update the base first, then let the percentages flow through — do not freeze junior or casual rates at the old dollar figures.
Annual Wage Review Increases Since 2024
| Effective date | Award minimum wage increase |
|---|---|
| 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 Retail Employers Must Do Before 1 July
- Identify your first full pay period on or after 1 July 2026 — that is your cut-over date.
- Update base rates in payroll by classification level under MA000004.
- Recalculate penalty rates, casual loading and overtime off the new base.
- Check junior and apprentice flow-on percentages update automatically.
- Confirm any enterprise agreement still meets the new award floor for every classification.
- Keep a record of the old and new rates and the date you applied them.
Common Mistakes That Trigger Audits
Frequently Asked Questions
How much is the retail minimum wage increase in 2026?
When does the 2026 award wage increase take effect?
Does the 2026 increase apply to the Retail Award?
What do retail employers need to do before 1 July 2026?
Do enterprise agreement rates increase with the 2026 wage review?
Update Your Retail Award Rates — Instantly
The 4.75% rise touches every base rate, penalty and loading. Fitz HR has the current MA000004 figures built in — ask any rate and get the post-1-July answer in seconds.
Ask Fitz Free — No Card Required →