This member update has been prepared in partnership with GIQ HR Essential Business Partner, UPP HR, to help greenlife businesses understand the implications of the Fair Work Commission’s 2026 Annual Wage Review decision.
The Fair Work Commission (FWC) has handed down its Annual Wage Review decision, announcing increases to minimum wages and award rates that will impact businesses across the greenlife industry from 1 July 2026.
The Commission has sought to balance a range of economic factors, including cost-of-living pressures, inflation, productivity, fuel prices and broader economic conditions, in determining this year’s increase.
National Minimum Wage
Employees paid the National Minimum Wage will receive a 6% increase.
New National Minimum Wage rates:
Modern Award Employees
Employees covered by a Modern Award will receive a 4.75% increase to their relevant classification rates. The updated award rates will apply from the first full pay period on or after 1 July 2026.
Many greenlife businesses pay employees “above award” and may assume these increases do not apply to them. However, employers should take this opportunity to review their current pay structures and ensure they remain compliant.
If an employee’s current rate remains above the new minimum award rate for their classification level, there may be no requirement to increase their wage.
However, if the new award rate exceeds what the employee is currently being paid, employers must increase their wage to at least meet the new minimum entitlement.
The critical first step is ensuring employees have been correctly classified under the relevant award.
One of the most common issues identified by workplace relations specialists is businesses believing they pay above award rates without first confirming:
Classification levels should not be treated as a “set and forget” exercise. As employees gain skills, responsibilities or experience, their classification level may change over time.
Depending on the nature of your business and workforce, relevant awards may include:
Employers should review employee classifications and compare current rates against the updated award rates once published.
Businesses engaging employees on piece rates should remember that the Horticulture Award includes requirements relating to the minimum hourly rate for pieceworkers.
Employers should review their arrangements carefully to ensure compliance with minimum wage obligations. More information is available through the Fair Work Ombudsman website.
Workplace compliance remains a critical business responsibility.
Recent reforms have strengthened penalties for deliberate underpayment of wages, making it more important than ever for employers to understand award coverage, employee classifications and minimum pay obligations.
Business owners and individuals involved in payroll administration should ensure they understand their obligations and take steps to verify compliance ahead of the 1 July implementation date.
When Might an Increase Not Be Required?
There may be circumstances where businesses are not required to pass on the wage increase, including where:
Businesses should seek professional advice if they are unsure of their obligations.
Through GIQ’s partnership with UPP HR, eligible members have access to expert HR and workplace relations support to help navigate wage compliance requirements, award interpretation and employee classification matters.
If you are unsure which award applies to your employees, whether classifications are correct, or how these changes affect your business, contact the GIQ team or access your member HR support services through UPP HR.
Not yet a GIQ member? This is one of the many benefits available through membership, helping businesses stay compliant, reduce risk and make informed employment decisions.
UPP HR is GIQ’s HR Essential Business Partner, providing practical workplace relations and human resources support to small and medium-sized businesses. Led by founder Sarah Winwood and supported by a team of experienced HR consultants, UPP HR helps businesses navigate compliance, performance management and workforce development with confidence.
This article provides general information only and should not be relied upon as legal advice. Businesses should seek professional advice specific to their circumstances.
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