Who: Three million workers (nearly 25% of all workers in Australia).
What: A pay increase of at least 4.75%.
When: From 1 July 2026.
Where: All of Australia.
Why: Union members, of course!
Let’s get into the details.
How did we get here?
The Fair Work Commission (FWC) has handed down it’s decision for this year’s Annual Wage Review (AWR).
The AWR is a process where the FWC (an independent government body) looks at our National Minimum Wage, and the minimum rates of pay in awards, and decides if they should increase, and if so, by how much.
To help make the decision, the FWC asks interested parties (like unions, employer groups and the government) to share what they think the increase should be and why.
Every year, the union movement submits a claim – on behalf of the workers who rely on these wages – arguing for a fair increase that keeps up with the cost of living.
This year, we were calling for a 6% increase.
Employers put forward arguments that are not grounded in reality (like that a wage rise is unaffordable and will put pressure on inflation) and call for meangingless increases that fall below the cost of living.
The whole process usually kicks off in March each year, with the decsion being announced in June, and then the new pay rates come into effect from July.
Who does it affect and why does it matter?
The workers who are directly affected by the AWR outcome are either:
Workers on the minimum wage
The National Minimum Wage is the lowest hourly rate you can be paid for the work you do, regardless of your job or industry.
It only applies to workers who are not covered by an award or an agreement; which means only a really small amount of workers are actually paid according to it.
Workers on awards
Many more workers (about 2.8 million) are covered by an award, which are documents that outline industry-specific minimum pay rates.
The AWR is so important because for all these workers it directly relates to, it is their biggest – sometimes, only – shot at getting a boost to their pay once a year.
How much is the increase?
The minimum wage is increasing from $24.95 per hour to $26.44 per hour. That’s (very close to) a 6% increase!
Per week, on a 38-hour full-time basis, that’s an increase from $948 to $1,004 – but it’s worth remembering that the majority of workers on the minimum wage are casual or part-time.
Regarding the minimum pay rates in awards, all of them are increasing by 4.75% (with the very lowest rates (which are only in some awards) getting a small extra boost, to bring them in line with the new minimum wage).
Want to work out your new pay rate?
Multiple your current rate of pay by 104.75% to calculate your new rate of pay.
What now?
As the saying goes: A new pay rate is only as effective as the worker holding their boss accountable to it.
Okay, maybe we just made that up… but it’s true: while all affected employers should be across the increase and pass it onto eligible employees from the first full pay period after 1 July – we know that some don’t.
It is so important to be regularly checking your pay slips to ensure that you’re getting paid what you’re entitled to. That includes the correct rate, plus any allowances, penalties, bonuses, etc.
And if you’re not already member of your union, now is the time to join.
Union membership is your tax-deductible ticket to the best source of information, advice and support (and representation, if you need it) when it comes to your rights at work.
Plus, joining your union means joining the movement that stands up to big business and fights for decent pay for all workers.
Did we mention that workers who are union members earn $250 more per week than non-members?
Yeah, that too. (We haven’t even got to talking about the power of collective bargaining!)
