Home / Guides / Technology
Average engineer salary Australia: how it compares to awards and the national minimum wage
Find out the average engineer salary in Australia, how it sits on the Salary Index, and how it compares to award rates and the national minimum wage.
The median full-time engineer earns about $2,614 per week, placing it well above the national line of $2,083.70 (index ~125).
What does 'average engineer salary Australia' mean?
The phrase 'average engineer salary Australia' is a common search for anyone entering the profession or comparing pay. In this guide, we look at the latest public data from the Australian Bureau of Statistics (ABS) and Jobs and Skills Australia to see where engineer pay sits against the national line. We also compare it to award rates and the national minimum wage, because understanding the floor helps you see how far above it engineers typically earn.
The national line and the Salary Index
The Salary Index uses full-time adult ordinary-time earnings as its benchmark. As of May 2026, that figure was $2,083.70 per week, or $108,352 per year. This is the '100' on the index. Anything above that means you earn more than the typical full-time worker. The national minimum wage from 1 July 2026 is $26.44 per hour, $1,004.90 per week, annualised $52,255 – that's an index of 48.2.
Engineer salaries sit well above the national minimum and above the national line. The median full-time earnings for Industrial, Mechanical and Production Engineers (a broad category covering many engineering roles) was $2,614 per week as of May 2025, according to the ABS Survey of Employee Earnings and Hours, customised for Jobs and Skills Australia. That works out to roughly $135,928 per year, or an index of about 125. That means the typical engineer earns 25% more than the average full-time worker.
How engineer pay compares to awards
Awards set the legal minimum pay and conditions for most employees. Engineers are usually covered by the Professional Employees Award 2020, which has minimum rates for different classification levels. For example, a Level 1 engineer (graduate) might have a minimum weekly rate around $1,200, while a more experienced Level 4 engineer could be on $1,800 or more. These award rates are higher than the national minimum wage, but still far below the median engineer salary of $2,614. Most engineers are paid above the award through enterprise agreements or individual arrangements – in fact, the ABS data shows that 38.5% of all employees have their pay set by individual arrangement, and 34.6% by collective agreement. Only 22.7% are on award-only rates.
State and industry variations
Engineer salaries vary by location and industry. The Salary Index for states shows that overall earnings are highest in the ACT (index 109.9) and Western Australia (106.9). Engineers in mining, for example, often earn more than those in professional services. The industries page shows Mining at index 154.7, while Professional, Scientific and Technical Services is at 114.7. Engineers work across both, so pay can differ significantly.
What about super and tax?
Employers must pay super guarantee of 12% from 1 July 2026 on top of the salary, up to a maximum contribution base of $270,830. So total remuneration for an engineer on $135,928 would include about $16,311 in super. Income tax for 2026–27 (resident, excluding Medicare) is nil up to $18,200, then 15% to $45,000, 30% to $135,000, 37% to $190,000, and 45% above. The Medicare levy adds 2%. A rough take-home estimate for $135,928 would be around $96,000 after tax and Medicare, but this ignores HELP repayments, salary sacrifice, and other factors.
How the Salary Index works
The Salary Index compares any gross annual salary to the national line. For example, an engineer earning $135,928 per year has an index of 125. That means they earn 25% above the average full-time worker. The index helps you see where a pay figure sits relative to the broader market, without needing to know every industry average.
Key takeaways
- The median full-time engineer in Australia earns about $2,614 per week, or $135,928 per year, based on ABS data.
- That is roughly 2.6 times the national minimum wage and 1.25 times the national average full-time earnings.
- Engineers are covered by professional awards, but most earn above the award rate.
- Location and industry matter: engineers in WA, the ACT, or mining sectors tend to earn more.
- Use the Salary Index to compare any salary to the national line.
Questions people ask
What is the average engineer salary in Australia?
According to the Australian Bureau of Statistics and Jobs and Skills Australia, the median full-time weekly earnings for Industrial, Mechanical and Production Engineers was $2,614 as of May 2025. This equates to roughly $135,928 per year before tax and super. The figure is a median, meaning half earn more and half earn less. Actual salaries depend on specialisation, experience, industry, and location.
How does the average engineer salary compare to the national minimum wage?
The national minimum wage from 1 July 2026 is $26.44 per hour, $1,004.90 per week, or $52,255 per year. The median engineer salary is about 2.6 times that amount. Engineers are covered by professional awards or enterprise agreements that set minimum rates well above the national minimum. For example, the Professional Employees Award 2020 has minimum rates for engineers that start around $1,200 per week for a graduate, increasing with experience.
What awards cover engineers in Australia?
Engineers are typically covered by the Professional Employees Award 2020, which applies to employees in professional engineering roles. Some engineers in the mining, construction, or manufacturing sectors may be covered by industry-specific awards or enterprise agreements. The award sets minimum wages, overtime, and conditions. Many engineers are paid above the award rate through individual arrangements or collective agreements.