The Fair Work Wage Increase Just Made Payroll More Complicated
The headline is simple: “Award wages increase by 4.75% from 1 July 2026”.
But once you look at the detail, it is not that simple.
The Commission has decided to increase the lowest-paid award classifications at a faster rate than the rest of the award system.
As a result, some employees will receive an increase closer to 5.97%, while others receive the headline 4.75%
For example, under the Hospitality Award:
- A Food & Beverage Attendant Grade 1 on $24.95 per hour will increase to $26.44 per hour (5.97% increase).
- But the Food & Beverage Attendant Grade 2 on $25.85 per hour will increase to $27.08 per hour (a 4.75% increase)
Two employees. Same award. Different percentage increases.
4 Steps to Ensure Payroll Compliance by 1 July
So, what appears to be a simple annual wage review now requires employers to:
- Review classification levels
- Check updated award rates
- Update payroll systems
- Test for compliance
And that is before considering the inevitable employee conversations when one team member discovers they received a bigger percentage increase than another.
Another day.
Another compliance change.
Another layer of red tape for business owners.
Wayne Wanders is an experienced Business Advisor and Outsourced CFO who can help to scale and grow your business profitably.
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