Does the salary increase 2026 apply to everyone?

The National Minimum Wage increase applies to employees not covered by an award or enterprise agreement. Most employees are covered by an award, which also increased by 4.75% from 1 July 2026, with the lowest award rate at least the new National Minimum Wage. Check your award on the [pay guides](/blog) page.

How does casual loading work with the new rates?

Casual employees get a 25% loading on top of the base rate. For the National Minimum Wage, that’s $33.05 per hour. Our [timesheet](/) has a checkbox to add casual loading automatically – never enter a rate that already includes loading.

What tax and super should I expect on the new rates?

Superannuation is 12% of ordinary earnings, paid on top of your wage, up to the maximum contribution base of $270,830. Tax uses the 2026–27 resident rates: tax-free up to $18,200, then 15% to $45,000, 30% to $135,000, 37% to $190,000, and 45% above. Medicare levy is generally 2%. Use our [take-home pay](/topics/take-home) tool for an estimate.

Salary Increase 2026: How the National Minimum Wage and Award Rates Affect Your Pay

From 1 July 2026, the National Minimum Wage is $26.44 per hour, or $1,004.90 per week for a 38-hour week.

Understanding the Salary Increase 2026

The salary increase 2026 from the Fair Work Commission’s Annual Wage Review took effect on 1 July 2026. The National Minimum Wage rose to $26.44 per hour (or $1,004.90 per week for 38 ordinary hours), and most award wages increased by 4.75%. This page explains how to convert your hourly rate to annual, fortnightly, and weekly pay, and what to expect for tax and super.

Converting Hourly to Annual Pay

The standard formula we use is:

Annual gross pay = hourly rate × hours per week × 52

We assume a 38-hour week (full-time ordinary hours). For example, at the new National Minimum Wage:

$26.44 × 38 × 52 = $52,245.44 per year
Fortnightly: $1,004.90 × 2 = $2,009.80

If you work fewer or more hours, adjust the weekly hours in the timesheet – it’s the home page where you type your base hourly rate.

National Minimum Wage vs Award Rates

The National Minimum Wage is the legal floor for employees not covered by an award or enterprise agreement. Most employees, however, are covered by a modern award that sets higher minimum rates for their industry or occupation. From 1 July 2026, award rates increased by 4.75%, but the lowest rate in any award must be at least the National Minimum Wage ().

If you’re on an award, check your classification in the pay guides or use the reference tables to find your correct rate.

Casual Loading

Casual employees receive a 25% loading on top of the base rate to compensate for lack of paid leave. For the National Minimum Wage, that’s:

$26.44 × 1.25 = $33.05 per hour
Annual: $33.05 × 38 × 52 = $65,306.80

Our timesheet includes a checkbox to add casual loading. Never type a rate that already includes casual loading – the tool adds it for you.

Superannuation

Employers must pay superannuation guarantee of 12% of your ordinary earnings, on top of your wage. This is not deducted from your pay. The maximum contribution base for 2026–27 is $270,830 – super is only required on earnings up to that amount. For example, on the National Minimum Wage annual pay of $52,245.44, the super contribution would be:

$52,245.44 × 12% = $6,269.45 per year

Learn more about super and packaging.

Tax and Medicare

Income tax for 2026–27 uses the resident rates:

$0 – $18,200: Nil
$18,201 – $45,000: 15% of excess over $18,200
$45,001 – $135,000: $4,020 plus 30% of excess over $45,000
$135,001 – $190,000: $31,020 plus 37% of excess over $135,000
$190,001+: $51,370 plus 45% of excess over $190,000

Plus Medicare levy generally 2% of taxable income (with reductions for low-income earners using 2025–26 thresholds). Our take-home pay tool estimates your net pay after tax and Medicare.

Example: Award Employee

Suppose you’re a full-time retail employee covered by the General Retail Industry Award. Your classification rate might be, say, $28.00 per hour (after the 4.75% increase). Using our formula:

Weekly: $28.00 × 38 = $1,064.00
Fortnightly: $1,064.00 × 2 = $2,128.00
Annual: $28.00 × 38 × 52 = $55,328.00
Super (12%): $6,639.36
Estimated tax (using 2026–27 rates): approximately $7,239 (excluding Medicare)

This is an estimate – actual pay depends on your exact award classification, hours, and any penalties or allowances.

Key Points to Remember

The salary increase 2026 raised the National Minimum Wage to $26.44/hr and award rates by 4.75%.
Use the timesheet to convert your hourly rate to annual, fortnightly, and weekly figures.
Casual loading is added via checkbox – do not include it in your base rate.
Super is paid on top at 12% up to the maximum contribution base.
Tax estimates use the 2026–27 resident scale; Medicare is 2%.
This is an estimate only – see the disclaimer below.

Disclaimer

Annual pay here is hourly rate × hours per week × 52. It assumes the same rate every week, no unpaid overtime, no penalty rates, no allowances, and no salary sacrifice. Super is estimated at 12% of ordinary earnings only, paid on top, and stops at the $270,830 maximum contribution base. Tax is the 2026–27 resident scale with the full tax-free threshold. Medicare uses the 2025–26 single reduction thresholds because the 2026–27 reduction thresholds were not confirmed here. HELP, the Medicare levy surcharge, and salary packaging are not deducted. This is an estimate, not a determination of your pay or tax.