News » 09.06.2026 - Minimum wages in Australia to rise 5.97% from July 2026
Australia's Fair Work Commission (FWC) has confirmed increases to the National Minimum Wage and minimum award wages, with the new rates taking effect from the first full pay period on or after 1 July 2026.
The National Minimum Wage will increase by 5.97%, rising from US$16.14 to US$17.10 per hour, or from US$613.30 to US$650.10 per week based on a 38-hour work week.
Employees covered by modern awards will receive a 4.75% increase to minimum wage rates.
According to the FWC, approximately 21% of Australia's workforce, or around 2.8 million employees, are paid according to minimum award rates. The changes are expected to affect sectors including horticulture, hospitality, retail, manufacturing, childcare, aged care, and community services.
The Commission stated that the review considered the impact of inflation during 2022 and 2023. The FWC found that many award-reliant employees remain below pre-inflation wage levels in real terms, although it also noted the cost pressures facing employers.
Alongside the wage increase, the Commission confirmed changes to the lowest-paid classifications within the award system. The C13 classification will be phased out as the minimum rate for ongoing employment, with the C12 classification becoming the new minimum wage rate for ongoing employees under modern awards.
As a result, the minimum ongoing award wage will align with the National Minimum Wage of US$650.10 per week or US$17.10 per hour.
The C14 entry-level classification will remain in place for employment periods of up to six months. The C14 rate will rise by 6.01% to US$632.80 per week or US$16.65 per hour.
For horticulture employers, the changes will affect classifications under the Horticulture Award 2020. The current Level 2 classification aligns with the C13 rate, while Level 1 functions similarly to the C14 entry-level classification.
Under the updated structure, growers should expect the Level 1 rate, applicable during an employee's first three months in the horticulture industry, to increase to at least US$16.65 per hour from 1 July 2026.
The Level 2 rate is also expected to rise to at least the new National Minimum Wage of US$17.10 per hour, as the FWC determined that the lowest ongoing employment classification under modern awards cannot fall below the National Minimum Wage.
Updated Horticulture Award wage rates are expected closer to 30 June. Growers are being advised to review payroll systems, labor budgets, contracts, and workforce planning ahead of the implementation date.
Source: www.floraldaily.com
« Back