Preparing for the 2026 annual wage review: what employers need to do now

With the Fair Work Commission’s Annual Wage Review decision expected to be announced in June 2026, employers are encouraged to begin reviewing their employment arrangements and workforce management processes to ensure they remain compliant and operationally prepared.

Anticipated Wage Increases

Each year, the Fair Work Commission reviews and determines adjustments to:

• The National Minimum Wage; and
• Minimum wages contained within modern awards.

Increase are usually announced in June and will take effect from the first full pay period on or after 1 July 2026. Even where employees are paid above award rates, employers should ensure that remuneration arrangements continue to satisfy minimum award obligations once increases are applied.

Review Employment Contracts and Pay Arrangements

Now is an appropriate time for employers to review:

• Employment contracts;
• Annualised salary arrangements;
• Individual flexibility agreements;
• Enterprise agreements; and
• Classification levels under applicable awards.

Attention should be given to employees on salary packages to ensure they remain better off overall compared to applicable award entitlements after wage increases are implemented.

Follow Internal Performance and KPI Review Processes

The lead-up to annual wage increases also provides a useful opportunity to undertake employee performance reviews and assess key performance indicators (KPIs).

This is critical where employers have documented performance management policies and procedures, as employees will be entitled to require compliance with these.

Key take-aways for employers

To prepare for the upcoming wage increases, employers should consider taking the following actions over the coming weeks:

1. Identify which awards and classifications apply across the workforce.
2. Review employment contracts and salary arrangements.
3. Assess payroll readiness for updated wage rates.
4. Conduct employee KPI and performance reviews in accordance with policy requirements.
5. Confirm ongoing compliance with Award and NES obligations.

If you have any questions about workplace obligations or employee management concerns, please contact the Workplace Relations Team:

📞 (02) 6175 5900
📧 workplace@mba.org.au