Upcoming Employment Law Changes – July 2026

Increase to Minimum Wages

From 1 July 2026:

• the National Minimum Wage will increase to $26.44 per hour (or $1,004.90 per week); and
• Modern Award rates will increase by 4.75%.

In their decision, the Fair Work Commission’s Annual Wage Review Expert Panel concluded that “regrettably” a larger increase to Modern Award rates was “not practicable or responsible in the current uncertain circumstances” when considering relevant factors, ¹ including the Middle East conflict. While the increased Modern Award rates do not close the gap with the Consumer Price Index (CPI), it should mean that those employees are no worse off than they were on 1 July 2025.

‘Payday Super’

From 1 July 2026 businesses will be required to pay superannuation guarantee contributions each ‘payday’ – i.e. at the same time as the employee is paid their wages.

Under the new rules, employees should receive the contributions in their fund within 7 business days of their payday (with some exceptions). The mandatory superannuation guarantee percentage rate will remain at 12%, however the contribution will be calculated based on ‘Qualifying Earnings’ which include ordinary time earnings, commissions, and other amounts.

Payday super is a dramatic change from employer’s current obligations to pay superannuation on a quarterly basis and could impact a business’ cashflow if a business is not prepared. Additional charges may apply if superannuation contributions are paid late.

Paid Parental Leave Changes

From 1 July 2026 the Government Parental Leave Pay will increase from 24 to 26 weeks (130 days), based on a 5-day work week and paid at minimum wage rates. This update will apply to employees taking the Government paid parental leave for the birth or adoption of a child from 1 July 2026.

There will also be an increase in days reserved for partners to ‘share’ while taking Government Parental Leave Pay (15 days to 20 days).

Restrictions on NDAs for Workplace Sexual Harassment

From 1 July 2026 employers and other parties will be restricted from entering into Non-Disclosure Agreements (NDA’s) in relation to workplace sexual harassment connected to Victoria.

Parties will only be able to enter into NDAs when certain criteria are met:

• the complainant requests to enter into an NDA;
• it is the complainant’s express wish and preference to do so;
• the complainant is given a copy of the workplace non-disclosure agreement information statement;
• the complainant is given at least 21 days to review the NDA; and
• the complainants’ employer, the respondent and/or a person acting on behalf of the complainant’s employer or the respondent has not exerted undue influence or pressure on the complainant. ²

Even if properly entered into, an NDA will be unable to prevent a complainant from disclosing ‘material information’ to certain parties (permitted disclosures).

Next Steps

We recommend:

• Businesses review their employee’s wages and ensure they are ready to implement the increases to the National Minimum Wage, minimum rates under Modern Awards (where relevant) and have processes and procedures set up to smoothly transition to the Payday Super changes. In light of the Federal Court’s “Woolworths decision” last year,³ employers need to be careful when using set-off clauses in employment agreements and ensure employees are appropriately paid in each individual pay cycle.
• Employers with employees affected by the increased Government Paid Parental Leave pay period account for the increased period when employing fixed term employees for maternity/paternity leave cover.
• Businesses review and update their settlement deed templates and processes and procedures to comply with the NDA restrictions for workplace sexual harassment.

If you have any questions or want practical guidance on how to prepare for the upcoming changes, please contact us to discuss how we can assist you and your business.