27 March 2026
Modern Award Rates 2025–26 — Complete Reference
A complete reference guide to Modern Award minimum wages and penalty rates for Australia in 2025–26, including the national minimum wage and key industry awards.
Modern Awards and the National Minimum Wage
Australia's Modern Award system sets minimum employment conditions for specific industries and occupations. There are 121 Modern Awards, covering most private sector employees. The National Employment Standards (NES) provide a safety net of 11 conditions that apply to all employees regardless of award.
The Fair Work Commission conducts an Annual Wage Review each year. Increases are typically effective from the first full pay period on or after 1 July.
National Minimum Wage 2025–26
The National Minimum Wage (NMW) is the base rate for employees not covered by a Modern Award or enterprise agreement. It is set annually by the Fair Work Commission.
Important: The NMW applies to a small subset of employees. Most employees are covered by a Modern Award, which sets rates above the NMW for specific classifications. Always check the applicable award for your employees.
Note: Specific rates for 2025–26 should be confirmed directly from the Fair Work Commission at fairwork.gov.au, as rates change annually on 1 July.
Key Modern Awards and penalty rates
The following awards cover the majority of Australian SMBs. Rates shown are indicative for 2025–26 — confirm current rates at fairwork.gov.au or in ERNVO's built-in award engine.
Restaurant Industry Award 2020
Covers full-service restaurants, cafes, and catering businesses.
| Day/time | Rate |
|---|---|
| Ordinary time (Mon–Fri) | 100% (base rate) |
| Saturday | 125% |
| Sunday | 150% |
| Public holiday | 225% |
| Overtime (first 2 hours) | 150% |
| Overtime (after 2 hours) | 200% |
| Evening work (after 9pm) | See award clause |
General Retail Industry Award 2020
Covers most retail businesses — shops, supermarkets, hardware, specialty retail.
| Day/time | Rate |
|---|---|
| Monday–Friday (ordinary) | 100% |
| Saturday | 125% |
| Sunday | 200% |
| Public holiday | 225% |
| Evening penalty (Mon–Fri after 6pm) | See award clause |
Hospitality Industry (General) Award 2020
Covers hotels, accommodation, fast food, and related hospitality businesses.
| Day/time | Rate |
|---|---|
| Monday–Friday (ordinary) | 100% |
| Saturday | 125% |
| Sunday | 175% |
| Public holiday | 250% |
Clerks — Private Sector Award 2020
Covers administrative and clerical employees across many industries.
This award has limited penalty rates. Overtime applies at 150% (first 3 hours) and 200% thereafter. Saturday work is 150%, Sunday 200%.
Building and Construction General On-Site Award 2020
Covers construction workers on commercial and residential construction sites.
Includes industry-specific allowances: tool allowance, dirty work allowance, height allowance, and others. Penalty rates apply on Saturday (150%) and Sunday (200%).
Casual loading
Casual employees receive a 25% loading on their base hourly rate in lieu of paid leave entitlements. This applies across most Modern Awards. The casual loading is paid on top of the ordinary rate and any penalty rates.
Example: A casual employee working Sunday under the Hospitality Award earns 175% × 125% = approximately 219% of the ordinary rate (award-dependent — check the specific award clause).
Annual Wage Review process
The Fair Work Commission reviews minimum wages annually. The review typically:
- Considers economic conditions, inflation, and cost of living
- Applies an increase to the National Minimum Wage and Modern Award minimum rates
- Takes effect from the first full pay period on or after 1 July
Failing to apply the new rates from 1 July is an underpayment, regardless of whether the employer was aware of the review outcome. Set up payroll software alerts, subscribe to Fair Work updates, or use software that applies rate updates automatically.
How ERNVO applies award rates
ERNVO's Modern Award engine calculates penalty rates, casual loadings, and overtime automatically — based on the employee's award classification and their actual hours worked. When the Annual Wage Review takes effect, ERNVO updates all award rates and flags employees whose rates are affected.
Current coverage: 18 key Modern Awards, including Restaurant, Hospitality (General), General Retail, Clerks, Building and Construction, and more.
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