Updated: 9am, Friday 10 July 2026
Fair Work Commission Minimum Wage Increase
On Tuesday 2 June 2026, the Fair Work Commission (FWC) announced the national minimum wage increase for the SCHADS Award will be 4.75% from 1 July 2026. ACOSS has supported the FWC’s decision and is calling for further action to support people doing it tough, as well as the frontline community services helping them.
The FWC’s decision will help ease the pressure on low-paid workers to cover their basic living costs such as rent, food, and transport. However, far more government action is needed to reverse the decade-long stagnation of living standards endured as wages and incomes have failed to keep pace with costs.
The national minimum wage is now $1,004.90 per week (based on a 38 hour week for a full‑time employee) or $26.44 per hour. Casual employees entitled to the national minimum wage must receive at least $33.05 per hour, which includes the 25% casual loading.
Employees covered by an award must receive a 4.75% increase to their minimum wages, provided that:
- The lowest rate in any award that applies to ongoing employment must be at least $1,004.90 per week or $26.44 per hour.
- Any entry-level rate that applies to the first six months (or less) of employment must be at least $978.10 per week or $25.74 per hour.
You can read the FWC’s full decision and rationale, as well as access their tools and resources.
The Fair Work Ombudsman has also updated their tools, resources and website information. You can:
- Calculate the new rates using the Pay and Conditions Tool; and
- Check the updated pay guide at Pay guides.
Employers should check the relevant award and updated pay guide for any award-specific rates, classifications, allowances, penalties or other entitlements that may apply. Where employees are paid above award rates or under an annualised salary or other above-award arrangement, employers should also review those arrangements to ensure employees remain better off overall when compared with their minimum award entitlements.
SCHADS Industry Award Review Decision
The Fair Work Commission has announced significant changes with its 1 June 2026 decision on the Social, Community, Health and Disability Services (SCHADS) Industry Award.
The new SCHADS Industry Award will come into effect from 1 October 2027. The transition will be challenging, but the decision includes good news, including genuine wins for community services workers.
Preparing for the transition will involve learning about the new SCHADS Industry Award, translating current staff roles into the new classification, and campaigning for resources for the implementation and any variation on wages.
Please also be advised, that the FWC has released updated SCHADS Industry Award pay tables for the first full pay period starting on or after Wednesday 1 July 2026.
What you need to know:
- A new Final Classification Structure (FCS) will replace Schedules B, C, E and F from 1 October 2027.
- Home care disability workers (Schedule E) receive an interim pay rise of ~15% from 1 October 2026, although this is a preliminary decision.
- There are many positive changes, including pay protection for existing workers; the explicit recognition of lived experience; and progression based on time in service, not hours worked.
- The transition to the new SCHADS Industry Award will be challenging, including the translation process and ongoing organisational complexities of operating under the new Award.
- It will be critical that governments fund any cost increases and support the industry through the transition period. TasCOSS is pursuing this as an advocacy priority across all jurisdictions with our partners.