For millions of workers in Australia, payday is more than just a number on a piece of paper. It decides if rent is paid on time, groceries last until the end of the week, and savings seem possible. On February 28 , 2026, Australia’s minimum wage will go up. This is another important step in the country’s ongoing response to rising living costs and wage pressure.
After months of debate, submissions from unions and business groups, and rising worry about affordability across the country, the change has been made. Some workers see the change as long overdue, but many small businesses are getting ready for tighter margins in the coming year.
Find out what you need to know about the changes to the minimum wage in Australia starting on February 28 , 2026. Who will be affected and how they could change budgets and workplaces.
What Will Be Different After February 28 , 2026
The Fair Work Commission, Australia’s independent workplace relations body, made the decision after looking at economic data and public comments.
Some important changes are:
- The national minimum wage goes up for full-time, part-time, and casual workers.
- Higher hourly base rate, with proportional increases for award wages
- Casual loading stayed the same, but it was based on the new base rate.
- Rates for apprentices and trainees changed to match the new minimum.
- Compliance checks have been expanded to make sure that workers get paid correctly.
Starting on or after February 28 , 2026, the new rate will apply to the first full pay period. It will not apply to pay periods that have already happened.
Why the Minimum Wage Is Going Up
The Commission said that rising costs of living, especially for housing, energy, and food, were a factor. Inflation has slowed down compared to previous years, but basic costs are still much higher than they were before the pandemic.3,750 Back Pay Surprise—Check Your MyGov Before It Goes Away!
One Commissioner said, “Workers with the lowest incomes have the least ability to handle ongoing price pressures.” They also said that wage increases were needed to stop real earnings from going down even more.
How Much More Will the Minimum Wage Go Up?
The National Minimum Wage will go up to an estimated $ on February 28 , 2026.$24.95 an hour, up from $24.10Based on a 38-hour work week, that’s 948.10 a week.
This is about a 3.5% increase, which is meant to protect workers while also keeping businesses going.
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The same percentage will be added to award wages, which means that many workers who make more than the minimum will also get a rise.
The Real Stories Behind the Policy
Sarah McLean, who works in a café in regional Victoria, is cautiously hopeful about the change.
“Rent has gone up twice in two years, and groceries cost more every week,” she said. “It’s not a huge jump, but every extra dollar an hour helps.”1,800 Energy Relief Extended in 2026—But Only for These Australian Postcodes
Ahmed Khan, who runs a small cleaning business in Sydney, says that the rise will be hard for him.
“We want to pay our employees fairly, but our contracts don’t always go up at the same rate. It means changing budgets and sometimes passing costs on.
Government Announcements
A representative for the federal government said they were happy with the decision because it fit with their larger economic goals.
The spokesperson said, “Making sure Australians are paid fairly for their work is important for a strong economy.” “This rise helps workers who don’t make a lot of money while also understanding the stress that employers are under.”
The government stressed that wage reforms would go hand in hand with targeted help for small businesses.Confirmed: 2,950 Rent Assistance Boost in Australia in 2026? Who Wins Big
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Labour economists think that the change will directly or indirectly affect about 2.7 million Australian workers.
According to people who study the workplace:
- People with low incomes spend as much as 70% of their money on basic needs.
- For more than ten years, wages at the bottom have not kept up with housing costs.
- Small pay raises can help local economies by encouraging people to spend more.
Who gets the most out of it?
Workers in the following areas will feel the most effects:
- Store
- Lodging and hospitality
- Services for cleaning and upkeep
- Support for people with disabilities and the elderly
- Jobs for beginners and part-time workers
Younger people, immigrants, and women are more likely to work for minimum wage, so the change may also help close the gap between rich and poor.
Before and After 28 February 2026: Comparison
| Category | Before Feb 2026 | From 28 Feb 2026 |
|---|---|---|
| Minimum wage per hour | $24.10 | $24.95 |
| Full-time equivalent per year | $47,622 | $49,301 |
The numbers are just estimates and may change depending on the award.
What Employers Should Know
Employers need to make sure that payroll systems are updated on time and correctly.
Some of the most important tasks are:
- Updating pay rates starting with the first pay period that applies
- Carefully checking the award classifications
- Letting staff know about changes to their pay
- Keeping track of wages correctly
If you don’t follow the rules, you could face fines, back payments, and damage to your reputation.
What Employees Should Know
If you make the minimum wage or close to it:
- Look at your first pay stub after February 28 , 2026.
- Check your award and class again.
- Casual workers should see increases reflecting the new base rate
- If you’re not sure, talk to HR or a workplace adviser.
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