Minimum Wage Australia 2026
The 2026 increase
The Fair Work Commission handed down its Annual Wage Review decision on 2 June 2026: the National Minimum Wage rose 6% to $26.44 an hour from the first full pay period starting on or after 1 July 2026. Modern award minimum rates rose 4.75% — a smaller increase than the minimum wage itself. The lowest award classifications were lifted to the new minimum wage floor. The 2025 increase was 3.5% (to $24.95); the 2026 increase of 6% is the largest since the 8.6% rise in 2023.
| From 1 July 2025 | From 1 July 2026 | |
|---|---|---|
| Hourly rate | $24.95 | $26.44 |
| Weekly (38 hours) | $948.00 | $1,004.90 |
| Casual hourly (25% loading) | $31.19 | $33.05 |
| Annual (38 hrs × 52 wks) | $49,301.60 | $52,254.80 |
What it is worth a year
On a full-time 38-hour week, $26.44 an hour is $52,254.80 a year before tax. After income tax and the Medicare levy, take-home pay is about $44,900 a year ($3,740 a month) — the $700 LITO helps here, because the income sits below $66,667. On a 40-hour week the same rate is $55,004.80 a year. Casual workers on $33.05 an hour earn more per hour but get no paid leave, no sick leave and no notice period — the 25% loading is the compensation for that.
Who gets the minimum wage?
The National Minimum Wage applies to adult employees not covered by an award or registered agreement — about one in five Australian workers. Most workers are covered by one of the 121 modern awards, which set higher rates for their industry and job classification; the award rates also rose 4.75% from 1 July 2026. Juniors, apprentices and trainees have their own percentage rates. The minimum wage is reviewed every year, with the decision due in June and taking effect on 1 July.
Minimum wage vs the cost of living
The 6% increase was the largest in three years and came after the Commission noted that the minimum wage had fallen behind inflation: the 2025 rate of $24.95 was worth less in real terms than the 2023 rate. At $26.44, a full-time minimum-wage worker earns about 52% of the median full-time wage — one of the highest ratios in the developed world. Whether that is enough depends on where you live: Sydney and Melbourne rents take a far bigger share of $1,004.90 a week than rents in regional Australia.
Related: Take Home Pay Calculator Australia · Australia Tax Brackets 2026-27
Sources: Fair Work Ombudsman, “Minimum wages” and “Minimum wage increase starts today” (1 July 2025); Fair Work Commission, Annual Wage Review 2026 decision (2 June 2026) (fairwork.gov.au). Checked 13 November 2026.