The National Minimum Wage rose to $26.44 an hour, or $1,004.90 a week, and modern award minimum wages increased by 4.75%, following the Fair Work Commission's Annual Wage Review. The new rates apply from the first full pay period on or after 1 July 2026, which means most workers saw the change land a week or two into July rather than on 1 July itself.
For a site about leave, the headline number is only half the story. A pay rise quietly increases the value of leave you banked months or years ago, because leave is paid at the rate that applies when you take it, not the rate you were on when you accrued it.
What changed
The Fair Work Commission reviews both the National Minimum Wage and minimum pay rates under modern awards every year. Most changes begin from the first full pay period on or after 1 July. This year the Commission set the National Minimum Wage at $26.44 an hour and lifted award minimum wages by 4.75%.
| Measure | From 1 July 2026 |
|---|---|
| National Minimum Wage (hourly) | $26.44 |
| National Minimum Wage (weekly, 38 hours) | $1,004.90 |
| Modern award minimum wages | Increased by 4.75% |
| Applies from | First full pay period on or after 1 July 2026 |
Fair Work Ombudsman, Minimum wages (content last updated 1 July 2026). The page's own source reference is Fair Work Act 2009 (Cth) ss.282-287, 293-195, 536AA. Figures verified 26 July 2026.
Who gets which rate
The National Minimum Wage is the floor for employees not covered by an award or a registered agreement. Most Australian employees are covered by an award, so for them the relevant number is their own award classification rate, which rose 4.75%, not the National Minimum Wage. Award rates are frequently higher than the National Minimum Wage, and our award pages and the modern awards guide explain how to find yours.
If you are covered by an enterprise agreement, check the agreement itself for its pay rates. An agreement cannot leave you worse off than the award and cannot undercut the National Employment Standards.
What a pay rise does to your leave
This is the part most coverage skips. Annual leave is not banked at the rate you earned it. When you take leave, or when it is paid out because you are leaving a job, it is paid at the rate that applies at that time. So a wage increase raises the cash value of every hour of leave already sitting on your balance.
The same logic flows through several other entitlements that are calculated off your rate of pay:
- Accrued annual leave is worth more the moment the new rate applies, whether you take it or are paid it out.
- Annual leave loading is a percentage of your base rate, so a higher base automatically produces a higher loading.
- Redundancy pay is a number of weeks at your base rate, so the same number of weeks is worth more.
- Notice paid in lieu is paid at your full rate of pay, so it moves with the increase too.
What does not change is the number of weeks or days you are entitled to. The NES entitlement stays at 4 weeks of annual leave and 10 days of personal leave a year regardless of what you are paid.
The leave loading multiplier
Most modern awards add 17.5% annual leave loading when you take annual leave. Because the loading is calculated as a percentage of your base rate, a wage increase compounds through it. A 4.75% award increase produces a 4.75% higher base and a 4.75% higher loading on top of that base, so the total value of a week of leave rises by the full 4.75% rather than some smaller fraction. Check your own figure with the leave loading calculator.
A worked example
Nadia is covered by a modern award. Before 1 July 2026 her base rate was $30.00 an hour and she had 152 hours of accrued annual leave, worth $4,560 at base rate.
Her award rate rises 4.75%, taking her to $31.43 an hour (rounded to the cent).
The same 152-hour balance is now worth $4,777.36, an increase of about $217, without her accruing a single extra hour.
If she takes that leave with 17.5% loading, it is worth $5,613.40 rather than $5,358.
Run your own numbers with the leave accrual calculator or, if you are leaving a job, the annual leave payout calculator.
Common questions
Does the increase apply from 1 July exactly?
Not usually. It applies from the first full pay period on or after 1 July 2026. If your pay period started on 28 June, the old rate applies to that whole period and the new rate starts with the next one.
Do I get the new rate on leave I already accrued?
Yes. Leave is paid at the rate applying when it is taken or paid out, not the rate you were on when it accrued. Your existing balance is simply worth more.
What if I am on leave when the increase takes effect?
Leave taken in a pay period that attracts the new rate is paid at the new rate. If you are unsure how your employer has applied it, ask for a breakdown of the pay period dates used.
Author & reviewer
Sarah has spent over a decade advising Australian SMBs on Fair Work, NES compliance, and payroll. Based in Sydney, she has worked across hospitality, retail and professional services.