The Fair Work Commission has handed down the outcome of the 2026 Annual Wage Review, confirming a 4.75% increase to Australia’s minimum wages effective from 1 July 2026.
The increase applies to both the National Minimum Wage and minimum award wages, with the new rates taking effect from the first full pay period commencing on or after 1 July 2026.
Under the decision:
- The lowest ongoing award rate must be at least $1,004.90 per week or $26.44 per hour.
- Entry-level rates applying to the first six months (or less) of employment must be at least $978.10 per week or $25.74 per hour.
What Does This Mean for Salon and Spa Businesses?
For salon owners, spa operators, and beauty businesses employing staff under modern awards, now is the time to review your employment arrangements and prepare for the upcoming changes.
Businesses should consider:
Review Employee Pay Rates
Ensure all employees are being paid in accordance with the updated award rates from July onwards.
Check Award Classifications
Confirm team members are classified at the correct level based on their role, qualifications, and responsibilities.
Plan for Increased Wage Costs
Review budgets and forecast labour expenses to accommodate the wage increase.
Update Payroll Systems
Make sure payroll software and processes are updated before the changes take effect.
Review Employment Documentation
Take the opportunity to review employment contracts, onboarding documents, and workplace policies to ensure they remain current and compliant.
Staying Compliant
Fair Work Australia is currently updating its award rates, pay calculators, and compliance resources to reflect the new wage decision. An updated Fair Work Information Statement will also be released from 1 July 2026 and must be provided to all new employees during onboarding.
For salon and spa businesses, regular reviews of pay rates and employee classifications can help avoid costly compliance issues while ensuring staff are paid correctly.
Need Support?
Whether you’re reviewing your current team structure, planning future hires, or navigating award classifications, National Salon & Spa Recruitment can help connect you with industry professionals and provide guidance to support your workforce planning.
Stay tuned for further updates as more award-specific information becomes available.
