Annual Wage Review 2026 cost calculator

Work out what the 2026 Annual Wage Review adds to your wage bill for the year, group by group, including super, workers compensation and payroll tax.

Figures checked 5 November 2026. Free to use, no sign-in.

Employee groups

$
hours
$

Before the casual loading.

hours
%

25% under most awards.

$
hours
%

0 if you’ll absorb the rise. Their rate must still be at least the new award minimum.

On-costs

%

From your policy. Premium ÷ wages.

$

All Australian wages plus super. Used to work out the extra payroll tax.

Your estimate

Extra cost a year from the 2026 wage review

$36,613

4.75% on a wage bill of $770,843, including super and on-costs.

Extra wages
$32,258
Extra super
$3,871
Extra on-costs
$484

By group

Retail assistants: $26.55 → $27.81 (4.75%)
$14,952
Weekend casuals: $26.55 → $27.81 (4.75%)
$9,837
Office staff: $42.00 → $43.26 (3%)
$7,469

Extra cost a year

Wages
$32,257.95
Super guarantee (12%)
$3,870.95
Workers compensation (1.5%)
$483.87
Payroll tax (New South Wales)
$0.00
Total
$36,612.78

Based on 17 people.

  • Award minimum rates rose 4.75% from the first full pay period starting on or after 1 July 2026. The lowest adult rate for ongoing employment is now $26.44 an hour ($1,004.90 for a 38-hour week), so rates that were at $24.95 rose about 6%.
  • Published award rates are rounded, so your exact new rate may differ by a cent or two. Check each classification in the award.
  • Annualised over 52 weeks at the hours entered. Penalty rates, overtime and allowances that are set as a percentage of the rate rise too and are not included.

An estimate for planning, not legal or financial advice.

How this works

For each group, the calculator works out the new hourly rate and the extra pay over a year.

  • Adults on the award minimum: old rate × 1.0475, but never less than $26.44 an hour.
  • Junior, apprentice, trainee or entry-level rates: old rate × 1.0475, with no $26.44 floor (these rates are set differently; check the award).
  • Above-award pay: old rate × (1 + the increase you choose).
  • Extra wages: (new rate − old rate) × casual loading if any × hours a week × 52 × number of people.
  • On-costs: super guarantee at 12% (each person capped at the 2026–27 maximum contribution base), workers compensation at your rate, and the extra payroll tax on the extra wages and super using your state’s 2026–27 rules.

Not included: penalty rates, overtime and percentage-based allowances (they rise with the base rate), back pay if the increase was applied late, and enterprise agreement increases.

Questions

What did the 2026 Annual Wage Review decide?

The Fair Work Commission increased modern award minimum wage rates by 4.75% and set the national minimum wage at $1,004.90 a week, or $26.44 an hour. The lowest award rate for ongoing employment must now be at least $26.44 an hour, and an entry-level rate for no more than the first 6 months at least $25.74 an hour ($978.10 a week).

When did the new rates start?

From the start of each employee’s first full pay period on or after 1 July 2026. The 2026 decision did not defer the increase for any award.

Do I have to increase above-award pay?

Only enough to keep the employee at or above their new award minimum, unless their contract or agreement says otherwise. Many employers pass on some or all of the increase anyway.

Does the increase change super and other on-costs?

Yes. Super guarantee is 12% of the higher pay, workers compensation premiums are based on wages, and the extra wages and super can add payroll tax if your payroll is above your state’s threshold.

Why did some rates go up by about 6%?

The Commission is phasing out the C13 level. Rates at $24.95 an hour went to $26.44 rather than by 4.75%, the first of three steps towards making the C12 level the lowest rate for ongoing employment.

Questions the calculator can’t answer?

Workfloor answers pay, award, leave and termination questions for your team, with the Fair Work Act section or award clause behind each answer.

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