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The Fair Work Commission announced the following increases to the National Minimum Wage and Award Wages:
- The National Minimum Wage will increase to $1,004.90 per week (or $26.44 per hour), up from $948.00 per week (or $24.95 per hour) in the previous financial year; and
- All minimum award wages will increase by 4.75%.
The increased rates take effect from the first full pay period on or after 1 July 2026. This increase may also impact employers who are covered by an enterprise agreement where the minimum rates of pay reflect the underpinning Award.
It’s important that all employers review their obligations under applicable modern award to ensure that they are not underpaying employees and exposing themselves to under payment claims or civil penalties.
Increase to High Income Threshold for Unfair Dismissal Claims
For all unfair dismissals, the high-income threshold (which limits an employee’s eligibility to pursue an unfair dismissal claim) has increased to $190,100 (from $183,100).
Further, the compensation limit, which is the amount that the Fair Work Commission can require an employer to pay to an employee in an unfair dismissal matter, has also increased to $95,050.
Payday Super
From 1 July 2026, businesses must pay Superannuation Contributions at the same time as wages are paid, rather than quarterly. Superannuation Contributions must be received within seven days of the pay day.
Parental Leave
- Government funded paid parental leave increases to 26 weeks under the Paid Parental Leave Act 2010 (Cth);
- Flexible parental leave will increase to 130 days for a child who is born or placed for adoption on or after 1 July 2026
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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