Live: Fair Work Commission to hand down annual wage review

Lead

Australia's Fair Work Commission has increased the national minimum wage by 5.97% to $26.44 per hour, while minimum award workers will receive a 4.75% pay boost, according to reports from ABC Australia and The Guardian. The new rate takes effect on July 1, affecting roughly 3 million workers.

The higher minimum wage — up from $24.95 per hour — applies to the small proportion of the workforce covered directly by the national minimum wage. However, as ABC reports, approximately 21% of all Australian employees (almost 2.8 million people) are paid at a minimum award rate, making the decision significant for low-paid workers across several industries.

Coverage Comparison

The news was covered live by ABC Australia, which initially reported Treasurer Jim Chalmers's pre-announcement comments, and then followed with the Commission's decision. The Guardian offered analytical coverage of the decision, focusing on the impact on workers and the economic context.

While ABC's initial live blog focused on the upcoming announcement and expectations from unions and business groups, both ABC and The Guardian later confirmed the outcome figures. The Guardian additionally reported that about 100,000 of the country's lowest-paid workers would receive a higher 6% increase, while a single-source claim indicated the Albanese government had pushed for an above-inflation pay rise.

Key Claims

The core facts are consistent across ABC and The Guardian: the national minimum wage increased from $24.95 to $26.44 per hour, a 5.97% rise; minimum award workers get a 4.75% increase; and the change applies from July 1.

Inflation, at 4.2% in the year to April (according to Australian Bureau of Statistics figures cited by The Guardian), serves as the economic backdrop. The Guardian additionally reports that the budget predicted consumer price growth could push beyond 5% if Middle East conflict extends and oil prices climb higher.

Perspectives

The decision follows a year in which the Australian government, business groups, and unions all made submissions to the Commission. Treasurer Jim Chalmers, in pre-announcement comments carried by ABC, called for a "real and decent" wage increase. The Australian Council of Trade Unions (ACTU) formally demanded a 5% increase (as reported by ABC), though The Guardian reports unions had pushed for 6%.

Business groups, notably the Australian Industry Group and the Australian Chamber of Commerce and Industry (ACCI), asked for a more modest 3.5% increase, as reported across multiple sources.

The Guardian quotes the Commission's president, Justice Adam Hatcher, who described this year's decision as "particularly challenging" amid surging fuel prices and inflationary pressures. He said falling living standards had hit the lowest paid hardest, justifying "additional measures" to protect more vulnerable employees, including the higher 6% increase for the lowest-paid workers.

The Commission arrived at the 4.75% award increase, which stays above inflation (4.2%) but below the 6% demanded by unions. For the lowest-paid, the effective increase is 5.97% (national minimum wage) and 6% (structural adjustment to lowest classifications).

Impacts and Context

According to ABC's reporting, the pay rise from July 1 will affect millions of low-paid workers. The Commission noted that award-reliant workers are disproportionately female, more than two-thirds part-time, more than half casual, and more than a third low-paid. Four industries — accommodation and food, health care and social assistance, retail, and administrative support — account for over two-thirds of award-reliant employees.

The Commission also pointed out that due to part-time and low-paid characteristics of this workforce, their wages represent only about 11.2% of the national wage bill.

The rise comes as the Reserve Bank has warned it may have to hike interest rates further to prevent inflationary expectations.

This year decision follows last year's 3.5% increase for 2025-26. For the coming year, the October budget projected inflation reaching 5% by June, but the lower April figure of 4.2% remains the latest official reading.