For context, the RBA forecasts headline inflation of 4.8% for the year to June 2026. The Commission was clear it couldn’t fully close the real wage gap in the current climate, so this increase is designed to keep award-reliant workers no worse off in real terms than they were on 1 July 2025.

What employers need to know:

The National Minimum Wage moves to $1,004.90 per week ($26.44 per hour).

There’s a structural change to the lowest-paid classifications. The C13 rate is being phased out over three stages, with C12 becoming the lowest rate for ongoing employment. Stage one starts now. C13 gets an extra bump of one-third of the gap to C12, and C14 rises proportionally. The new entry-level rate (capped at six months) is $978.10 per week ($25.74 per hour). Around 100,000 of the lowest-paid employees are affected.

If you employ award-reliant staff, your payroll needs updating before the first pay run on or after 1 July. The sectors most exposed are accommodation and food services, health care and social assistance, retail, and admin and support services.

Now is the time to check your classifications, confirm your rates, and make sure your contracts and payroll systems are ready.