Melbourne Minimum Wage Rules - Phased Increases

Labor and Employment Victoria 3 Minutes Read ยท published February 11, 2026 Flag of Victoria

In Melbourne, Victoria the national minimum wage and phased increases are set and reviewed at the federal level, while the City of Melbourne may adopt living-wage requirements in procurement. Employers, workers and contractors should understand how federal wage settings interact with municipal contracting standards and where to report underpayments.

The national minimum wage is determined federally; local councils cannot set a lower statutory minimum.

Overview

Australia's national minimum wage and annual wage reviews are issued by the Fair Work Commission; municipal instruments may adopt higher living-wage standards for council employees and suppliers. For the statutory minimum and wage-review decisions see the Fair Work Commission official guidance and determinations Fair Work Commission - National Minimum Wage[1]. For enforcement, complaints and compliance processes see the Fair Work Ombudsman resources below Fair Work Ombudsman - Complaints and concerns[2].

Penalties & Enforcement

Responsibility and enforcement:

  • Enforcer: Fair Work Ombudsman handles investigations and compliance for national minimum wage matters; prosecution may be undertaken under the Fair Work Act.
  • Complaint pathway: complainants can lodge matters with the Fair Work Ombudsman online or by phone; see the official complaints page linked above Fair Work Ombudsman - Complaints and concerns[2].

Fine amounts and sanctions:

  • Fine amounts: not specified on the cited page for enforcement summaries; consult the Fair Work Act and the Ombudsman for statutory penalty amounts and civil remedies.
  • Escalation: first, repeat and continuing offence distinctions and ranges are not specified on the cited summary page.
  • Non-monetary sanctions: orders to repay unpaid wages, enforceable undertakings, injunctions or court actions may be used; exact measures depend on investigation outcomes and are case-specific.
If a council contract requires a living wage, contractors must meet that contractual requirement in addition to federal obligations.

Applications & Forms

How to report or apply:

  • The Fair Work Ombudsman provides an online complaint form and guidance for underpayment or breach reports; use the Ombudsman complaints page for submission and information on supporting evidence.
  • Deadlines: specific statutory time limits for commencing proceedings or seeking remedies are not specified on the Ombudsman summary page; check the relevant Act or seek legal advice for limitation periods.

Common Violations

  • Underpaying employees below the national minimum or applicable award rate.
  • Failing to pay penalty rates, overtime or leave entitlements required by an award or agreement.
  • Contractors breaching council living-wage procurement clauses when engaged by the City of Melbourne.

Action Steps

  • Check the current national minimum wage decision from the Fair Work Commission before payroll updates. Fair Work Commission - National Minimum Wage[1]
  • If you suspect underpayment, gather payslips, contracts and time records and lodge a complaint with the Fair Work Ombudsman.
  • If you are a contractor to the City of Melbourne, confirm any living-wage clause in the procurement documents and raise non-compliance with the council procurement contact listed in Resources.

FAQ

Does the City of Melbourne set the minimum wage?
No. The statutory national minimum wage is set by the Fair Work Commission; the council can require higher pay via contracts or procurement standards.
Who enforces minimum wage breaches in Melbourne?
The Fair Work Ombudsman enforces national minimum wage and award breaches; council enforcement applies to council contract terms where specified.
How do I report underpayment?
Collect payroll documents and lodge a complaint with the Fair Work Ombudsman using their online complaints process.

How-To

  1. Confirm the applicable rate: check the current national minimum wage and any award or agreement that applies to the role.
  2. Gather evidence: payslips, employment contract, time records and correspondence.
  3. Lodge a complaint with the Fair Work Ombudsman online and attach your evidence.
  4. If you are a council contractor, notify the City of Melbourne procurement contact if a contract living-wage clause is being breached.

Key Takeaways

  • National minimum wage decisions come from the Fair Work Commission; enforcement sits with the Fair Work Ombudsman.
  • City of Melbourne may require higher living-wage standards in procurement, creating contractual obligations above the statutory minimum.

Help and Support / Resources

  1. [1] Fair Work Commission - National Minimum Wage
  2. [2] Fair Work Ombudsman - Complaints and concerns

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