Who does the national minimum wage actually cover?
Fewer people than the name suggests. Most Australian employees are covered by an award or agreement, and their floor is the relevant award classification rate, not the national minimum wage. The national rate is the backstop for award-free employees, with adjusted rates for juniors, apprentices, trainees and employees with disability under supported wage arrangements.
How is it set?
Each year the Fair Work Commission's Expert Panel reviews minimum wages, taking submissions from government, employer groups and unions, and sets both the national minimum wage and the increase to award minimum rates. The 2026 review lifted award minimum wages by 4.75% from 1 July 2026. Because the decision lands every July, wage budgets and annualised salary reconciliations should be built around that date.
What it means for employers in practice
Two checks every July: award-covered staff move with the award increase automatically, and salaried staff sitting just above old award rates can quietly fall below the new ones. The second is how compliant employers drift into underpayment without a single decision being made.
.webp)
.png?width=383&height=200&name=team%20(1).png)
