Minimum award wages rose from July 2026. Perth hairdressers comparing employment with independence should update the employee side of the numbers before deciding to leave.
Abby's take
What this means for the industry — and for independents
Industry impact. The 2026 Annual Wage Review changed the minimum employment baseline across modern awards, including the Hair and Beauty Industry Award, affecting salon payroll and career comparisons.
For freelancers. A hairdresser can make independence look artificially attractive by comparing gross freelance sales with an outdated employee number, so the employee side needs to be current first.
My take. The useful comparison starts with what the employee role is worth today, not what it paid last year. Then compare that package with conservative freelance profit and cash flow rather than with headline service turnover.
What I'd do next
- Check your current Hair and Beauty Award classification and use Fair Work's current pay tools instead of an old screenshot or remembered rate.
- Record ordinary pay, regular commission, penalties and allowances separately, then include employer super and paid leave in the employee package.
- Build the freelance side from completed appointments and subtract products, workspace, software, merchant fees, insurance and unpaid administration.
- Get workplace advice if the classification, contract or pay arrangement is unclear before using the number for a major career decision.
Watch-out. Award coverage, classifications, junior rates, penalties and allowances depend on the role and hours worked. This is general information, not employment or legal advice.
What changed from 1 July 2026
Fair Work says minimum award wages increased by 4.75 per cent from the first full pay period starting on or after 1 July 2026. Its 2026 Annual Wage Review specifically uses the Hair and Beauty Award in an example of when the new rates begin.
Rebuild the employee baseline
Use recent payslips and record ordinary wages, regular commission, penalties, allowances, employer super and paid leave. If the salon pays above award, use the real package rather than reducing it to the minimum.
Compare like with like
Freelance revenue arrives before products, workspace, software, payment processing, insurance and unpaid administration are covered. Compare employee package value with freelance operating profit, not with gross service sales.
Official sources available by 16 September 2026
Fair Work Ombudsman, Minimum wages increase from 1 July 2026, published 28 May 2026: https://www.fairwork.gov.au/about-us/workplace-laws/annual-wage-review/annual-wage-review-2026
Fair Work Ombudsman, Hair and Beauty Industry Award 2020 [MA000005]: https://awards.fairwork.gov.au/MA000005.html
Compare the current job with the business you would actually run
Use current employment numbers and a conservative freelance scenario so the decision is based on like-for-like value.
Use the income calculatorDisclaimer: General business and employment information only. Award coverage and entitlements depend on the individual role. Check current Fair Work guidance.
Common questions
Did Hair and Beauty Award minimum wages increase in July 2026?
Yes. Fair Work says minimum award wages increased by 4.75 per cent from the first full pay period starting on or after 1 July 2026.
Can I use one hourly rate for every hairdresser?
No. Classification, age, employment type, hours, penalties and allowances can change the applicable minimum.
Does the wage increase decide whether chair rental is better?
No. It changes the employment baseline. Compare the complete employee package with realistic freelance profit, cash flow, control and risk.
Next step at The Beauty Basement
Update the baseline before changing the business model
A current employee package and a conservative freelance forecast make the trade-off between security, control, cost and upside easier to see.
Keep going — related resources