The Fair Work Commission this week announced a 4.75 per cent increase to the National Minimum Wage (NMW) and award minimum wage rates as part of the 2025-2026 Annual Wage Review.
The increase, effective July 1, 2026, include adjustments to the C13 and C14 rates. The award minimum wage rates will be increased by 4.75 per cent, provided that:
> The lowest rate in any award applicable to ongoing employment (C13) must be at least $1,004.90 per week or $26.44 per hour; and
> Any entry-level rate that is applicable to no more than the first six months of employment (C14) must be at least $978.10 per week or $25.74 per hour.
The increase will apply to all award minimum wage rates, including those under the Vehicle Repair, Services and Retail Award, Clerks Private Sector Award, and Manufacturing and Associated Industries and Occupations Award.
Employers operating under a registered enterprise agreement must ensure that base rates of pay are not less than the relevant award minimum rates or the NMW, as applicable.
If the agreement rate falls below the applicable minimum, the agreement is taken to provide for the higher rate.
From July 1, 2026, the revised NMW will be $1,004.90 per week or $26.44 per hour. This applies to employees not covered by an award or registered agreement.
HVIA Employer Assist provider Industry Legal Group advises employers to review current remuneration arrangements to determine whether adjustments are required in light of the increased minimum wage.
“Where annualised salary or all-inclusive pay structures are in place, employers must ensure these continue to satisfy minimum entitlements. Employment contracts should include properly drafted set-off provisions where appropriate,” it notes.
“If employees are already being paid above the applicable minimum rate, it may be possible to absorb the increase, depending on the terms of the relevant industrial instrument and the employee’s contract. Specific legal advice is recommended to confirm whether absorption is permitted in your circumstances.”
Industry Legal Group will provide HVIA members with access to updated pay guides in due course, once the FWC publishes the variation determinations.
If you need assistance, please contact Employer Assist on (07) 3376 6266or at hvia@employerasasist.com.au.
HVIA provides members with a range of business assistance, including technical and regulatory support – and EmployerAssist – HR fact sheets, updates and IR hotline. Click here to find out more about HVIA’s cost-effective membership packages that delivers real value for your whole business.
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