Millions of workers across Australia, including many Filipino-Australians employed in hospitality, aged care, retail, cleaning and other service industries, will receive a pay increase from July 1 following a new ruling by the Fair Work Commission.
The Commission announced a 4.75 per cent increase to minimum award wages, while the national minimum wage will rise by 5.97 per cent.
Under the new rates, the national minimum wage will increase from $24.95 to $26.44 per hour. For a full-time worker on a 38-hour week, this means weekly pay will rise from about $948 to $1,004.90 before tax — an increase of around $56 per week. The annual equivalent will exceed $52,000 for the first time.
The increase is expected to benefit about 2.8 to 3 million workers nationwide, particularly those working under modern awards. Modern awards are legally enforceable pay and condition standards covering different industries and occupations across Australia.
Many Filipino-Australians are employed in sectors heavily reliant on award wages, including aged care, disability support, childcare, hospitality, food services, security and cleaning. The decision is also expected to affect many newly arrived migrants and temporary residents working in entry-level and service-sector jobs.
The Fair Work Commission said the decision was aimed at helping low-paid workers recover some of the real wage losses caused by years of high inflation and rising living costs.
In its decision, the Commission acknowledged that many workers had experienced a decline in purchasing power since 2021 as the cost of essentials such as groceries, rent, electricity and transport continued to rise faster than wages.
The increase comes as inflation remains elevated at around 4.1 to 4.2 per cent, partly influenced by global economic instability and rising fuel costs linked to tensions in the Middle East.
Federal Treasurer Jim Chalmers welcomed the ruling, saying the government supported “sustainable real wage growth” for workers facing continuing cost-of-living pressures.
Unions also praised the outcome, although the Australian Council of Trade Unions had sought a larger six per cent increase for award workers. ACTU Secretary Sally McManus said many low-income households were still struggling to keep up with rising expenses.
Business groups, however, warned the wage increase could add pressure to already struggling small businesses, especially in hospitality, retail and tourism.
The Australian Chamber of Commerce and Industry estimated the decision could add billions of dollars in labour costs across the economy. Some economists also warned that higher wages could contribute to inflation if businesses pass increased costs on to consumers through higher prices.
Some analysts are now predicting the Reserve Bank of Australia could consider additional interest rate rises later this year if inflation remains stubbornly high.
For many workers, however, the increase offers at least some relief after several difficult years marked by rising rents, mortgage repayments, food prices and utility bills.
Monty, a Filipino-Australian casual hospitality worker living in Melbourne’s northeast, welcomed the announcement but said many working families are still struggling to keep up with everyday expenses.
“It may not be enough because of the rising cost of living, but it’s a welcome move,” she said.
She said increasing grocery prices, rent and utility bills continue to place pressure on many households, particularly workers relying on casual shifts and weekend work.
For migrant families, including many Filipino households balancing multiple jobs, remittances and growing living expenses in Australia, even a modest wage increase could help ease pressure on day-to-day budgets.
The new minimum wage and award rates will take effect from the first full pay period on or after July 1, 2026. Depending on payroll cycles, some workers may begin seeing the increase reflected in their payslips by mid-July.
Workers can check updated pay rates and award information through the Fair Work Ombudsman website.
