The Fair Work Commission has announced a 4.75 per cent increase to Australia's minimum wages following its annual wage review, delivering a rise that will affect around three million workers from 1 July 2026.The decision lifts the national minimum hourly rate to approximately 26.44 dollars, with weekly earnings for the lowest-paid workers under modern awards rising to about 1004.90 dollars.

The commission described the decision as difficult, citing complex economic conditions including inflation pressures and global uncertainty linked in part to the conflict in the Middle East.The increase exceeds recent inflation figures reported at 4.

2 per cent but falls short of the 6 per cent rise sought by unions, who argued stronger growth was needed to restore lost purchasing power and help workers meet living costs.Employers, by contrast, had pushed for a 3.9 per cent increase, warning that higher wage growth could place further strain on businesses already facing challenging trading conditions.

Fair Work Commission president Adam Hatcher acknowledged that while last year’s decision narrowed the real wage gap, rising inflation had widened it again.He noted that closing the gap entirely would require increases above 5 per cent, which he said would not be practical under current conditions.

The federal government, represented by Treasurer Jim Chalmers, supported the outcome, arguing that the rise still constitutes a real wage increase when compared with inflation and budget forecasts.

The Australian Council of Trade Unions welcomed the decision as a positive step above inflation, although it maintained that a higher rise would have been preferable.Employer groups warned the increase could force businesses to pass costs onto consumers or reduce investment and staffing.

Overall, the decision reflects an attempt to balance wage growth with broader economic stability, highlighting ongoing tensions between worker advocacy groups and employer organisations over the direction of wage policy in Australia.