Upcoming Minimum Wage and Modern Award Rate Changes

The Fair Work Commission has just announced a 6% increase to the National Minimum Wage, along with a lower increase of 4.75% for the minimum modern award wages. These increases will take effect from the first pay period on or after the 1st of July 2026.

The Fair Work Ombudsman will be working to update all modern awards to reflect this change, as well as the National Employment Standards (NES) around the same time.

For all employees who are paid wages as outlined in their relevant award, business owners will need to update the employees’ profiles to reflect the increases. For any employees who are paid a salary, employers should perform a review to ensure that the employee is still being paid as per the entitlements of the award.

Employers should check their employees’ contracts to confirm what has been specified as they may be able to absorb the increase within the employee’s existing salary. This will all depend on what has been outlined in the employee’s employment contract. Before making any changes to employees’ salaries, have you carried out a Better Off Overall Test (BOOT) to confirm that the employee is still being paid as per the Award/Minimum employment guidelines?

Super Guarantee Contributions
Lastly, on superannuation news, don’t forget that from 1st July, Super Guarantee Contributions must be paid at the same time as you pay salaries/wages to your employees; with all payments to be successfully received by the employee’s nominated fund within 7 business days from the payday.

If your business needs any help in understanding any of these changes; need new/existing contracts amended; or if you need help with completing a BOOT, then please contact one of our friendly HR team who will be more than happy to help you with your needs.

For more information, please refer to Payday Super – Are You Ready? – Key Business Advisors

Call 1300 4 ADVICE or email us at info@keyba.com.au to ensure your business stays compliant and prepared for these changes.