According to the 2026 Annual Wage Review by the Fair Work Commission (FWC), Australia will increase the National Minimum Wage and minimum wage rates under the Modern Award system. These changes will apply from the first full pay period starting on or after 1 July 2026.
The annual minimum wage adjustment is part of the Fair Work Commission’s regular wage review process, which assesses and updates minimum pay rates under Australian workplace laws.
1. New National Minimum Wage in Australia
From 1 July 2026, Australia’s National Minimum Wage will increase from AUD 24.95 per hour (AUD 948 per week) to AUD 26.44 per hour (AUD 1,004.90 per week based on a standard 38-hour working week).
This minimum wage applies to employees who are not covered by a Modern Award or an Enterprise Agreement.
This means that not every worker or international student working part-time in Australia will automatically receive AUD 26.44 per hour. In reality, most employees in Australia are paid according to a Modern Award, meaning their actual pay rate depends on the applicable Award, job classification level, age, employment type, and specific working conditions.
2. Modern Award Minimum Wages Increase by 4.75%
In addition to the National Minimum Wage increase, the Fair Work Commission has also announced a 4.75% increase to minimum wage rates under the Modern Award system.
A Modern Award is a legal framework that sets minimum pay rates and employment conditions for specific industries and occupations in Australia. Since most employees are covered by a Modern Award, actual wages will depend on factors such as:
- The industry and applicable Award;
- Job classification level;
- Age and work experience;
- Employment type (casual, part-time, or full-time);
- Working hours, such as evening shifts, weekends, or public holidays, which may include additional penalty rates depending on the Award.
Under the 2026 Annual Wage Review, minimum pay rates within Modern Awards will be adjusted according to the Fair Work Commission’s decision. However, the exact wage each employee receives will still depend on the applicable Award, classification level, employment arrangement, and any relevant allowances or penalty rates.
3. Which Workers Will Receive the New Wage Rates?
From the first full pay period starting on or after 1 July 2026:
- Employees who are not covered by a Modern Award or Enterprise Agreement will receive the new National Minimum Wage of AUD 26.44 per hour.
- Employees covered by a Modern Award will receive the updated minimum wage rate according to their relevant Award.
- Employees covered by an Enterprise Agreement will continue to be paid according to their workplace agreement. In some cases, Enterprise Agreement pay rates may also be affected by changes to minimum wage standards under Fair Work regulations.
4. What Does This Mean for International Students in Australia?
Many of the most common part-time jobs for international students in Australia, including hospitality, retail, aged care, and community services, are typically paid under a Modern Award.
Therefore, international students should understand that not all part-time jobs in Australia from 1 July 2026 will be paid AUD 26.44 per hour. The actual pay rate depends on the relevant Award, job classification, age, employment contract type, and working hours.
In many cases, employees may receive higher pay rates when working evening shifts, weekends, or public holidays due to additional penalty rates provided under specific Awards.
To check the correct pay rate for your industry and job, workers can use the official tools and resources provided by the Fair Work Ombudsman.
Understanding Your Pay Rights in Australia
The minimum wage increase from 1 July 2026 is an important update to Australia’s employment regulations. However, workers and international students should clearly understand the difference between the National Minimum Wage and Modern Award pay rates to accurately understand their workplace entitlements.
If you are studying and working in Australia, regularly checking updates from official organisations such as the Fair Work Ombudsman and the Fair Work Commission can help you protect your rights and avoid misunderstandings.
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