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Circular 2026/02: Annual Wage Review updating Australian Government Awards

Published
  1. This circular is to inform Australian Government agencies of changes to the minimum wage rates that will be effective from 1 July 2026, specifically in regard to the Australian Public Service Enterprise Award 2015, the Australian Government Industry Award 2016 and other modern enterprise awards covering Australian Government employment.

Annual Wage Review 2025-26 Decision

  1. The Fair Work Commission published the Annual Wage Review 2026 Decision on 2 June 2026.
  2. The decision will take effect in relation to affected employees from the start of their first full pay period on or after July 1, 2026.
  3. The decision increased modern award minimum rates by 4.75 per cent.
  4. The decision also increased the National Minimum Wage from $24.95 to $26.44 per hour, amounting to an increase of 5.97 per cent.
  5. The decision also increased the C13 and C14 modern award wage rates. These adjustments will result in the lowest wage rate in the modern award system applicable to ongoing employment being $1004.90 per week or $26.44 per hour, and the lowest wage rate applicable to entry-level employment for a period of no more than six months being $978.10 per week or $25.74 per hour.

Actions agencies need to take

  1. Commonwealth employers have obligations under the Fair Work Act 2009 to ensure their employees are paid correctly. The hourly base rate of pay for an employee must not be less than the hourly base rate payable under the award which covers that employee.
  2. Agencies should ensure that employees are paid at least the new award minimum pay rates. As an example, the minimum award hourly pay rate for an APS Level 1 employee will increase from $27.53 to $28.84 on 1 July 2026.
  3. APS agencies should note that the minimum pay rates for APS classifications (APS1-EL2) introduced through the APS-Bargaining pay fragmentation mechanism should still be higher than the corresponding classifications in the Australian Public Service Enterprise Award 2015 following the 4.75 per cent increase.
  4. Agencies with modern award coverage other than the Australian Public Service Enterprise Award 2015 should also ensure they are not impacted by any increases, including changes to the C13 and C14 award rates.
  5. The Fair Work Commission will update the minimum pay rates in awards. Agencies need to ensure payroll processes are up to date and accurate and to avoid any potential for underpayments. Information on the correction of underpayment of wages can be found in this APSC Circular.
  6. Agencies should also be aware that the adjustment from this decision will also flow through to employees engaged through the Supported Wage System. Awards will be updated accordingly.

Further information and advice

  1. For further information, please contact the Australian Public Service Commission at workplacerelations@apsc.gov.au or your agency’s relationship manager.
Topics
Circulars, Guidance, and Advice
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Acknowledgement of Country

The APSC acknowledges the Traditional Custodians of Country throughout Australia and recognises the continuing connection to lands, waters and communities. We pay our respect to Aboriginal and Torres Strait Islander cultures and to Elders both past and present.