EOR & Compliance Digest, June 29: July 1 Wage Rises Hit Australia, the US and the Netherlands
July 1 is a hard deadline this year, not a soft one. The Australia award wage rise leads a wave of pay and classification changes across four countries. Most of them hit payroll the moment your next pay run opens. So if you employ anyone in Australia, the United States, Canada or the Netherlands, you have a short window to act. Specifically, you need to update rates, super timing and contractor rules. Here is what changed, who it affects, and what to do before the first July pay period closes.
Australia Award Wage Rise Takes Effect July 1
The Fair Work Commission’s 2026 Annual Wage Review handed down a 4.75% lift to national minimum and modern award rates. It applies from the first full pay period starting on or after 1 July 2026. As a result, the national minimum wage moves from $24.95 to $26.44 an hour, or from $948.00 to $1,004.90 a week before tax. For context, that is a bigger jump than the 3.50% granted in 2025. (Source: Fair Work Ombudsman)
The Commission says the decision directly affects about 21% of Australian employees. Many are part-time or casual, and they cluster in retail, hospitality, healthcare and support roles. It also confirmed a staged phase-out of the lowest C13 award classification, which lifts the minimum to the higher C12 level. In turn, the lowest-paid workers get extra targeted increases this year. (Source: Coleman Greig)
What changed for payroll and super
The wage rise is only half the July 1 story for Australia. From the same date, “payday super” also begins. Employers must now pay superannuation contributions within seven days of each payday. Previously, the cycle was quarterly. The reform touches around 19 million super accounts. Because the wage rise and the super change land together, your Australia payroll setup needs both updates before July. (Source: SBS News)
What to do this week
First, confirm your payroll provider or employer of record has coded the new $26.44 floor. Second, check that super is set to release within seven days of payday, not quarterly. Finally, review any entry-level rates. The first six months of employment must now sit at $25.74 an hour or above. Miss the first pay period and you create back-pay exposure. So the Australia award wage rise belongs at the top of this week’s list.
US Cities Lift Minimum Pay Floors From July 1
The United States has no single national change. But a cluster of state and local minimums also rise on 1 July 2026. For example, Chicago moves to $17.05 an hour for employers with four or more staff, Washington D.C. climbs to $18.40, and Alaska reaches $14.00. Meanwhile California’s healthcare floor goes to $25.00 for large hospital systems and $23.00 for many other covered facilities. (Source: Fisher Phillips)
So what? If you run a distributed US team, your exposure is local, not federal. Like the Australia award wage rise, these floors take effect on July 1. For instance, a remote worker in Chicago, unincorporated Los Angeles County or D.C. can trigger a higher rate. That holds even when your headquarters sits in a low-wage state. Review every employee’s work location against the new US salary structure rules before the July run. (Source: National Law Review)
Canada’s Minimum Wage Map Keeps Shifting
Canada spreads its 2026 increases across the calendar. As a result, multi-province payroll is a moving target. The federal minimum wage already rose to $18.15 on April 1. British Columbia went to $18.25 on June 1. Then Ontario lifts to $17.95 on October 1, with Manitoba at $16.40 the same day. Alberta, by contrast, stays at $15.00. (Source: Littler)
Action required? Yes, but on a rolling basis. Employers must pay the higher of the federal or provincial rate. So a single Ontario hire in October changes your numbers again. For the full picture, our guide to labour laws in Canada maps each rate. It also covers the Canada payroll rules behind them. (Source: Government of Canada)
Netherlands Narrows Transition Pay and Adds Conduct Rules
The Netherlands also has a 1 July 2026 deadline. From that date, only small employers with fewer than 25 staff stay eligible for UWV reimbursement of the statutory transition payment. In addition, organisations with ten or more employees are expected to adopt a formal code of conduct against undesirable behaviour. A separate worker-classification law, the Wet VBAR, is also expected around July. It would introduce a legal presumption of employee status below roughly €36 an hour. (Source: CMS Law-Now)
So what? If you employ 25 or more people in the Netherlands, budget for the full transition payment from July. Review your Netherlands employment law obligations now. This matters especially if you classify Dutch contractors near that €36 threshold. (Source: Houthoff)
Quick Hits
- Germany: the statutory minimum wage rose to €13.90 an hour on January 1, its largest-ever jump. The mini-job ceiling now sits near €603, and a further rise to €14.60 is set for 2027. (Source: IamExpat)
- Ireland: the national minimum wage is €14.15 an hour since January 1. In addition, employers must publish salary ranges in job ads from June 2026 under the EU Pay Transparency Directive. (Source: Citizens Information)
- United States: new federal immigration provisions add higher, often non-waivable employer fees for work-visa filings. So check sponsorship budgets before your next hire. (Source: Jackson Lewis)
Action Items Before Your First July Pay Run
If you hire in Australia: code the new $26.44 minimum into payroll. Then switch super to within seven days of payday, and check entry-level rates clear $25.74. The Australia award wage rise applies from the first full pay period on or after July 1, so timing matters.
If you hire in the United States: map each remote worker to their city and county rate. Confirm Chicago, D.C., Alaska and California healthcare staff move to the new floors on July 1.
If you hire in Canada: set calendar reminders for the October 1 Ontario and Manitoba increases. Also confirm British Columbia’s June 1 rate is already live in payroll.
If you hire in the Netherlands: if you have 25 or more staff, plan for transition payments without UWV support. In addition, draft the required code of conduct if you employ ten or more people.
Where Asanify Fits
Tracking four countries’ pay floors, super timing and classification rules by hand is how mistakes slip into a pay run. Asanify’s Global HRMS and employer of record service keep multi-country payroll, tax and compliance current. So a July 1 rate change updates once and applies everywhere you hire. If this mid-year wave has you rechecking your setup, it is worth a look.
FAQ: Australia Award Wage Rise and Mid-2026 Pay Changes
Who does the Australia award wage rise affect?
It affects employees paid at the national minimum wage or a modern award rate, about 21.1% of the Australian workforce. The new $26.44 rate applies from the first full pay period on or after 1 July 2026. Employees already paid above award rates are not automatically entitled to the increase.
When do the July 1 US minimum wage increases apply?
Most take effect on 1 July 2026 in the specific city, county or state that set them. Examples include Chicago, Washington D.C., Alaska and parts of California. There is no federal change on that date, so employers should apply the rate for each worker’s actual location.
Does an employer of record handle these wage changes automatically?
A good employer of record updates statutory pay rates, payroll tax and contribution timing for you on the effective date. Still, you should confirm the change was applied to your first affected pay run. Misclassified or under-paid staff remain a legal risk even when a provider runs the payroll.
How often do these pay and compliance rules change?
Minimum wage and award rates usually reset once a year, often between January and July. By contrast, classification and tax rules can change with less notice. A per-country compliance calendar, reviewed monthly, is the safest way to avoid a missed deadline.
Not to be considered as tax, legal, financial or HR advice. Regulations change over time so please consult a lawyer, accountant or Labour Law expert for specific guidance.
