Award Rates Are Rising and Wage Growth Has Caught Up to Prices

Award wages are moving for a large group of Australian workers. The Fair Work Commission's gender undervaluation review has lifted base rates across a set of priority Modern Awards, with the latest Health Services Award changes applying from the first full pay period starting on or after 1 April.

The increases come at a time when the gap between wages and prices is the narrowest it's been in over two years. Wages growth nationally is running at 3.4% annually, and underlying inflation (the measure the RBA watches most closely) has eased to 3.3%. After three years of pay falling behind prices, the momentum is shifting.

Who just got a pay rise

The Fair Work Ombudsman lists four priority awards in the review: the Health Services Award, the Children's Services Award, the Aboriginal and Torres Strait Islander Health Award, and the Pharmacy Award. The most recent Health Services Award change, covering dental assistants and pathology collectors, applies from the first full pay period starting on or after 1 April 2026.

Workers covered by those awards, most of them in female-dominated industries, are receiving increases under the Commission's gender undervaluation review. Health services support workers, aged care staff, and community sector employees are among those seeing base rates lift. The increases are staged, and the Commission is still considering further changes for health professionals under the Health Services Award.

The broader picture

Beyond the headline increases, the wage data is encouraging. The ABS Wage Price Index grew 3.4% in the year to December 2025, up from 3.2% a year earlier. Public sector wages rose 4.0%, and a higher proportion of jobs recorded a wage change in the quarter than the same period last year (21% compared to 16%).

SEEK data shows advertised salaries are also rising, particularly for people changing roles. In a labour market where unemployment sits at 4.1% and participation is near a record 66.9%, employers are competing for workers. That gives employees more room to negotiate than they've had in years.

For business owners, the picture is more nuanced. Higher wages mean higher costs, but they also signal a confident, spending workforce. Sectors like healthcare, construction, and technology are hiring aggressively, and businesses that invest in retaining good people now will be better positioned as the economy strengthens.

What to do

If you're on an award or minimum wage, check your most recent payslip to make sure the new rate has been applied. Fair Work's pay guides at fairwork.gov.au are the easiest way to verify.

If you haven't reviewed your salary in more than 12 months, this is a reasonable time. With unemployment at 4.1%, employers are more open to pay conversations than they were two years ago. Check what comparable roles are advertising for on SEEK or Indeed before starting that conversation.

For business owners, factor the new award rates into your payroll and cash flow forecasts now. The increases are modest individually, but they add up across a team, particularly in healthcare, community services, and hospitality where award coverage is highest.

And for everyone: three years of prices outpacing pay forced many Australians to cut back, defer plans, and absorb costs they'd normally push back on. As the gap narrows, it's worth reviewing your recurring expenses, renegotiating anything that's been on autopilot, and taking another look at whether plans you shelved in 2023 or 2024 now make more sense.

This article is general information only and is not financial advice.