Rise in the minimum wage:
How this affects your business
From 1 July 2026, the minimum wage for Australian workers will increase. We explain the numbers behind the increase and the potential impact for your small business.
On 28 May 2026, the Fair Work Commission’s Expert Panel announced that National Minimum Wage and award wages will increase from 1 July 2026.
This increase in basic pay is great news for Australian workers, especially during the ongoing cost-of-living crisis, with costs of fuel and basic provisions still on the rise.
What’s the new minimum wage?
From 1 July 2026, the National Minimum Wage will be:
$1004.90 per week, or
$26.44 per hour
For employees covered by an award, the Fair Work Commission announced a general 4.75% increase to minimum wages. This increase applies from the first full pay period starting on or after 1 July 2026.
How will the wage increase impact your payroll costs?
If your workforce includes a large percentage of employees that are currently on minimum wage rates, the increase will put extra pressure on your cashflow.
For example, if you’re currently employing 20 people who are on the national minimum wage, and pay them every two weeks, the salary component of your payroll will jump from $37,920 to $40,196 per pay cycle.
That’s an extra $2,276 on your payroll bill every fortnight – and that’s before you factor in super contributions and other benefits.
Talk to us about preparing for the wage increase
If you are concerned about the cashflow impact of an increase in minimum wages, please do come and talk to the team.
We can review the overall effect of the rise and suggest ways to mitigate the impact on your payroll costs, cashflow and overall financial position.
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