National Wage Case
The Fair Work Commission handed down its decision in the National Wage Case earlier today declaring a 4.75% increase in the Award rates of pay.
This is substantially less than the increase of 6% sought by the union movement. In handing down its decision the Commission noted that wage rates, in real terms, remain lower than what they were in July 2021, prior to the post-pandemic spike in inflation.
Of note, however, is the adjustment the Commission is making to the lowest rates under the awards, particularly for entry level employees. These are being increased substantially, and by more than the above percentage rates. For Level 1 employees in the Pastoral Award, Wine Industry Award, and Horticulture Award, the rate will increase to $25.74 per hour.
This is the third highest increase since 2010 when the modern awards commenced.
The increases to the award rates of pay are effective from the first full pay period commencing on or after 1 July, 2026. If you are paying above the award rate of pay the increase can be absorbed against the above award amount provided the rate you pay is still equal to or more than the new award rate.
If you are paying an annualised salary you will need to check that the salary will cover the increased rates of pay at the end of the 12 month period when the review is required.
We will be putting the new wages schedules on the Members Only section of the website shortly. Many allowances were also increased, and these will be shown in the schedules.
Please contact Andrew if you have any queries.