Fair Work Commission Announces 4.75% Wage Increase

The Fair Work Commission (FWC) handed down its Annual Wage Review decision on Tuesday 2 June, confirming a 4.75% increase to minimum wage rates in modern awards, effective from the first full pay period on or after 1 July 2026.

The Commission has also increased the National Minimum Wage to $1,004.90 per week or $26.44 per hour. In addition, the FWC has commenced a phased adjustment to the lowest award classifications, which will result in higher increases for some entry-level award classifications. These changes are intended to improve outcomes for Australia's lowest-paid workers.

The FWC acknowledged that businesses continue to face challenging operating conditions, including inflationary pressures, increased fuel and freight costs, supply chain disruption and broader economic uncertainty. However, the Commission also noted that many award-reliant employees have experienced a decline in real wages over recent years and considered it appropriate to provide an increase that maintains their purchasing power. The increase will apply to employees covered by modern awards, including those employed under the Plumbing and Fire Sprinklers Award and other awards relevant to our sector.

Once the Fair Work Commission publishes the final determinations and updated award allowances, MPAQ will review the changes and publish updated wage and allowance schedules on the MPAQ website. These will be available prior to the commencement of the new rates from 1 July 2026. Members are encouraged to review their payroll systems and budgeting arrangements to ensure they are prepared for the upcoming changes. Businesses should also be mindful of the commencement of Payday Super from 1 July 2026 and the potential combined impact on labour costs and cash flow. For assistance with wage queries specific to your business, please contact the MPAQ Advisory team on 07 3273 0800 or email advice@mpaq.com.au.