The Fair Work Commission has handed down its 2026 Annual Wage Review decision, delivering a 4.75 per cent increase to modern award minimum wage rates and lifting the National Minimum Wage to $1,004.90 per week, or $26.44 per hour.
The changes take effect from the first full pay period starting on or after 1 July 2026 for employers covered by Australia’s national employment laws.
For tourism and hospitality businesses, the decision will have a direct impact on labour costs. Employers operating hotels, motels, pubs, bars, restaurants, cafés, resorts, caravan parks, tour businesses and other visitor-facing operations should review their payroll systems and wage rates ahead of the commencement date.
Many employees in the sector are covered by modern awards, including the Hospitality Industry (General) Award, Restaurant Industry Award and Registered and Licensed Clubs Award. Employers will need to ensure all minimum wage rates, penalty rates, allowances and related payroll settings are updated to reflect the new award rates once published.
The increase also provides an opportunity to review broader workforce arrangements. Businesses paying above-award rates or annualised salaries should check that these arrangements continue to meet award obligations following the wage increase. Employers may also wish to revisit staffing budgets, pricing structures and forecasts to understand the impact on operating costs for the year ahead.
While the increase presents additional cost pressures for some operators, maintaining compliance with workplace laws remains essential. Underpayments can result in significant financial penalties and reputational damage, making it important to review payroll practices carefully.
Updated pay guides and award rates will be published by the Fair Work Ombudsman before the increase takes effect. Employers can find further information through the Fair Work Commission and Fair Work Ombudsman websites, or seek advice from your industry association, accountant, payroll provider or workplace relations adviser.
With 1 July approaching, now is the time for tourism and hospitality employers to prepare and ensure their systems are ready for the new minimum wage rates.