Base salary in Australia: how awards and the national minimum wage set your minimum pay

What is base salary in Australia?

Base salary in Australia is the minimum rate of pay an employee receives for their ordinary hours of work, before any extras like penalty rates, allowances, overtime, or superannuation. It is the foundation of your pay, and it is set by either a modern award, an enterprise agreement, or the national minimum wage. Understanding where your base salary sits against the national line helps you see if you are being paid fairly.

For most employees, the base salary is determined by the modern award that covers their industry or occupation. Awards are legally enforceable documents that set minimum pay rates and conditions. The Fair Work Ombudsman provides pay guides that list the current minimum rates for each award classification. If you are covered by an enterprise agreement, that agreement must not provide a base rate lower than the award that would otherwise apply. The Fair Work Commission explains that if an enterprise agreement undercuts the award base rate, the agreement is treated as if it pays the award rate.

Employees not covered by any award or registered agreement are entitled to the national minimum wage. From 1 July 2026, that is $26.44 per hour or $1004.90 per week, annualising to $52,255. On the Salary Index, that gives a reading of 48.2 – well below the national line of 100, which represents full-time adult ordinary-time earnings of $108,352 per year.

Awards versus the national minimum wage

The national minimum wage is the absolute floor. However, most awards set higher base rates. For example, the Vehicle Repair, Services and Retail Award has a minimum weekly wage for a tradesperson that is higher than the national minimum wage. The Fair Work Ombudsman notes that some awards contain introductory rates that may be below the national minimum wage, but those rates only apply for a limited time. Once an employee progresses, the rate must meet or exceed the national minimum.

Award minima rose by 4.75% from 1 July 2026. This means base salaries under awards increased, while the national minimum wage also rose. The gap between award rates and the national minimum can be significant depending on the industry. For instance, the industries page shows that Mining has an index of 154.7, while Accommodation and Food Services is only 72.5. Base salaries in those industries reflect the different award rates.

How to find your base salary

To determine your correct base salary, first check if you are covered by a modern award. The Fair Work Ombudsman’s Pay and Conditions Tool can help. If you are award-covered, look up the pay guide for your award. Your base salary will be the minimum rate for your classification level. If you are on an enterprise agreement, compare its base rate to the award rate – the higher of the two applies.

For junior employees, the national minimum wage order sets percentage-based rates. For example, a 16-year-old gets $12.51 per hour, and a 20-year-old gets $25.83 per hour. Awards may have different junior rates, so always check the specific award.

Base salary and the Salary Index

The how the index works page explains that the Salary Index compares your gross yearly ordinary-time earnings to the national line of 100. Base salary is a key component of that figure. If your base salary is exactly the national minimum wage, your index is 48.2. If you are in an industry like Education and Training (index 105.5), your base salary is likely above the national line. State differences also matter: Western Australia has an index of 106.9, while Tasmania is 88.6.

Remember, base salary is not your take-home pay. From that amount, your employer must deduct tax (using the 2026–27 resident rates: nil up to $18,200, then 15%, 30%, 37%, and 45% above $190,000) plus a 2% Medicare levy. Superannuation of 12% is paid on top of your base salary, not deducted from it.

Key takeaways

• Base salary in Australia is the minimum you must be paid for ordinary hours.
• Awards set the base for most employees; the national minimum wage is the fallback.
• Enterprise agreements cannot go below the award base rate.
• The Salary Index helps you see where your base salary sits relative to the national average.
• Always check the relevant pay guides or use the Fair Work Ombudsman’s tools to confirm your correct rate.

If you suspect your base salary is wrong, start by identifying your award or agreement. The Fair Work Ombudsman and Fair Work Commission are the official sources for pay rates. Your base salary is your starting point – understanding it ensures you are paid what you are legally entitled to.