Average salary Melbourne: how Victoria compares to other states and industries

What does 'average salary Melbourne' really mean?

When people ask for the average salary Melbourne, they usually want a single number that sums up what a typical full-time worker earns in the city. Because the Australian Bureau of Statistics publishes state-level data rather than city-level figures, the best proxy is Victoria's average full-time adult ordinary-time earnings. According to the ABS Average Weekly Earnings (May 2026), Victoria sits at an index of 98, which annualises to $106,137. That is slightly below the national line of 100 ($108,352).

But a single number hides a lot. Your actual pay depends on your industry, your occupation, your experience, and whether you work under a modern award or an enterprise agreement. The Salary Index helps you compare any figure against the national benchmark. For example, if you earn $120,000, your index is about 111 – well above the Victorian average.

How Victoria compares to other states

Victoria's index of 98 puts it in the middle of the pack. New South Wales is at 101.2, Western Australia at 106.9, and the Australian Capital Territory at 109.9. On the lower end, Tasmania sits at 88.6 and South Australia at 94.6. The states page shows the full list.

So if you are comparing Melbourne to Perth, the difference is noticeable: WA's average is about $115,825, nearly $10,000 more than Victoria. That reflects the mining industry's weight in WA. In Melbourne, the economy is more diversified, with strong professional services, health care, and education sectors.

Industry differences within Melbourne

Even within the same city, industry can shift your salary dramatically. The national industry indices from the reference show:

• Mining: 154.7 (annualised ~$167,600)
• Professional, scientific and technical: 114.7 (~$124,300)
• Education and training: 105.5 (~$114,300)
• Health care and social assistance: 97.8 (~$106,000)
• Retail trade: 75.9 (~$82,200)
• Accommodation and food services: 72.5 (~$78,600)

Melbourne has a large professional services sector, so many workers in the CBD earn above the state average. Meanwhile, hospitality and retail workers – common in the inner suburbs and tourist areas – earn well below it. If you are looking at a specific role, check the industries page for more detail.

How the index works

The salary index is simple: take your yearly gross ordinary-time earnings, divide by the national line ($108,352), and multiply by 100. So if you earn $130,000, your index is about 120. The method page explains the calculation in full.

This index is a benchmark for full-time adult workers. It does not include overtime, bonuses, or part-time earnings. It also does not reflect what you actually take home – that depends on tax, super, and any deductions.

Tax and super on the average Melbourne salary

If you earn the Victorian average of $106,137, your 2026–27 tax (excluding Medicare) is roughly $22,361, plus a 2% Medicare levy of $2,123. That leaves about $81,650 in your pocket. Your employer also pays 12% superannuation guarantee on top, adding $12,736 to your super fund. The super guarantee is set to stay at 12% from 1 July 2026, with a maximum contribution base of $270,830.

Remember, award wages and the national minimum wage are lower. The national minimum wage from 1 July 2026 is $26.44 per hour, or $52,255 annualised (index 48.2). Most full-time workers earn above that, but the award floor matters for entry-level and junior roles. Junior rates are a percentage of the adult minimum, and modern awards can set different rates.

Putting it all together

When you search for average salary Melbourne, the most reliable answer is Victoria's state index of 98, or $106,137 per year. But always consider your industry and role. A software developer in Melbourne will likely earn more than a retail assistant, even though both live in the same city. Use the pay guides to check award minimums for your occupation, and remember that the salary index is a tool for comparison, not a guarantee.

If you want to see how your own pay stacks up, plug your salary into the index. You might find you are above or below the Victorian average – and that can help you negotiate or plan your next career move.