Queensland wage bill to rise $93 million following award increase

The Queensland Industrial Relations Commission has ordered a 4.75 per cent increase to award rates and allowances as part of the 2026 State Wage Case. This decision is expected to increase the state government’s wage bill by an additional $93 million during the 2026-27 financial year.

The pay rise will primarily affect specific awards used by staff in First Nations councils, Parents and Citizens Associations, and auxiliary firefighters. However, the increase is expected to impact the broader public sector because many collective agreements include clauses ensuring wages do not fall below the relevant award rates.

The ruling follows a recent credit rating downgrade for Queensland due to weaker budgetary performance. While the state had previously set aside $169 million to cover inflation-related cost-of-living adjustments, this new decision adds further pressure to the government’s $40 billion total wages bill.