Average Australian salary: how awards compare with the national minimum wage

What does 'average Australian salary' really mean?

When people ask about the average Australian salary, they are usually after a single number that tells them where their pay sits. The most widely used benchmark comes from the Australian Bureau of Statistics (ABS) Average Weekly Earnings survey. As of May 2026, full-time adult ordinary-time earnings were $2,083.70 per week, or $108,352 a year. That figure is the centre of the Salary Index – we call it index 100.

But the average Australian salary is not the same as what most people earn. It is an average of full-time adults, which means it is pulled up by high earners in mining, finance, and professional services. It also excludes part-time and casual workers, who make up a big slice of the workforce. The median weekly earnings for all employees in August 2025 were $1,425, or about $74,100 a year. That is a more realistic middle point.

The national minimum wage: the floor

The national minimum wage is the legal minimum for employees not covered by a modern award or enterprise agreement. From 1 July 2026, it is $26.44 per hour, $1,004.90 per week, or $52,255 a year. On the Salary Index, that is 48.2 – less than half the average. The Fair Work Commission reviews the minimum wage each year. In 2026, it increased by 4.75%, the same as the increase for award wages.

Many people assume the average Australian salary is close to the minimum wage, but that is not the case. The average is more than double the minimum. Why? Because most employees are covered by a modern award or a registered agreement that sets higher rates. For example, a full-time retail worker under the General Retail Industry Award might earn around $25–$28 per hour depending on their classification, which is above the national minimum but still below the average.

Awards: the real pay rules for most workers

Modern awards set minimum wages for specific industries and occupations. They are legally binding and cover about 40% of Australian employees. Awards are updated each year, often in line with the national minimum wage decision. The 2026 increase of 4.75% applied to most award rates.

Award rates vary widely. A hospitality worker under the Hospitality Industry (General) Award might earn a base rate of around $26–$30 per hour, while a professional under the Professional Employees Award could earn $35–$45 per hour. These rates are still below the average Australian salary, but they are a safety net. Many workers earn above award rates through enterprise bargaining or individual agreements.

Where the average Australian salary sits on the index

The Salary Index makes it easy to compare any salary to the national line. Here are some key benchmarks:

• National average (index 100): $108,352 per year
• National minimum wage (index 48.2): $52,255 per year
• Men's average (index 104.7): $113,412 per year (based on $2,181 per week)
• Women's average (index 92.9): $100,594 per year (based on $1,934.50 per week)

State and territory averages also differ. Western Australia has the highest state index at 106.9 ($115,825), while Tasmania is lowest at 88.6 ($96,008). You can explore more on our states page.

Industry differences: why the average is not the whole story

The average Australian salary is heavily influenced by a few high-paying industries. Mining leads at index 154.7 ($167,600), followed by Information media and telecommunications at 130.3 ($141,133). At the other end, Accommodation and food services sits at 72.5 ($78,555) and Retail trade at 75.9 ($82,240). These industry averages include both award-covered and above-award workers. See our industries page for the full list.

If you work in a low-paying industry, your salary may be well below the national average even if you are on an award rate. That does not mean you are underpaid – it reflects the industry's typical earnings. The index helps you see where you stand relative to your industry's average.

Awards versus the national minimum wage: a practical example

Consider a 25-year-old full-time retail sales assistant in New South Wales. Under the General Retail Industry Award, the minimum weekly wage for a Level 1 employee is about $950 (depending on the classification). That is below the national average of $2,083.70 but above the national minimum wage of $1,004.90. If the same worker moves to a mining job in Western Australia, they could earn $3,224 per week – well above the average.

This shows how awards and the minimum wage interact. The national minimum wage is the absolute floor. Awards raise that floor for specific jobs. Enterprise agreements and individual arrangements can push pay even higher. The average Australian salary reflects the mix of all these arrangements.

How to use the Salary Index for your own pay

To find your personal index, divide your gross annual salary by $108,352 and multiply by 100. For example, if you earn $80,000, your index is 73.8. That tells you that you earn about 74% of the full-time adult average. You can then compare with state and industry benchmarks. Our pay guides explain how to interpret your index.

Remember, the index uses gross ordinary-time earnings. It does not include superannuation (12% from 1 July 2026), overtime, or bonuses. It also ignores tax. For a resident earning $80,000 in 2026–27, the tax (including Medicare levy) would be about $16,867, leaving a take-home of $63,133. The national minimum wage earner would take home about $41,804 after tax.

The bottom line

The average Australian salary is a useful benchmark, but it is not a target. It is a statistical average that masks huge variation by industry, state, and gender. The national minimum wage is a safety net, while awards set higher minimums for many workers. If you want to know where your pay sits, the Salary Index gives you a clear number. Start by checking your index against the national line, then explore by topics to see how your situation compares.