Builder Salary in Australia: Awards vs National Minimum Wage

What does “builder salary” mean?

When people search for “builder salary” they usually want to know what a person working in building and construction can expect to earn. The term covers a wide range of jobs: from a builder’s labourer on a residential site to a qualified carpenter or a site supervisor. This guide focuses on the award-covered side of building work and how it compares to the national minimum wage. The Salary Index measures where a pay figure sits against the national line, where 100 equals full-time adult ordinary-time earnings of $2,083.70 per week ($108,352 a year) according to the Australian Bureau of Statistics.

Awards set the floor for builder pay

Most employees in the building industry are covered by a modern award. The main one is the Building and Construction General On-site Award 2020. It sets minimum hourly rates, allowances, penalty rates, and overtime for workers like builder’s labourers, doggers, scaffolders, and crane operators. The Fair Work Commission updates these rates each year after the Annual Wage Review. From 1 July 2026, award minimums rose by 4.75%.

The national minimum wage, by contrast, is the legal floor for employees not covered by an award or agreement. From 1 July 2026 it is $26.44 per hour, or $1,004.90 per week ($52,255 a year). That gives an index of 48.2 – less than half the national line. But very few builders are paid that little, because the award rates are higher. For example, a builder’s labourer at the lowest classification under the Building Award would earn more than the national minimum wage. The exact rate depends on the classification level and any industry allowances.

The Fair Work Commission’s Modern Awards Pay Database contains the full set of classification rates. You can look up the specific rate for a builder’s labourer or other construction role. The database is updated after each wage review and includes wage-related allowances and penalty rates.

Where does the construction industry sit on the index?

The ABS Average Weekly Earnings survey for May 2026 gives the construction industry average for full-time adult ordinary-time earnings as $1,985.30 per week. Annualised, that is about $103,236, which works out to an index of 95.3. That is slightly below the national line of 100. But this average includes everyone in construction – managers, engineers, tradespeople, and labourers. A builder’s labourer, who performs routine tasks like loading materials, digging, and assisting trades, is likely to earn less than that average.

Jobs and Skills Australia publishes occupation profiles, and for Builder’s Labourers (ANZSCO 821111) the median weekly earnings are listed as N/A. That means the data is not reliable enough to publish, often because the sample size is too small or the standard error is too high. So we cannot give a precise index for a builder’s labourer from that source.

What about casual builders?

Many building workers are employed casually, especially labourers. Casual employees get a loading on top of the base rate – typically 25% under most awards. The national minimum wage casual rate from 1 July 2026 is $33.05 per hour. Award casual loadings are built into the classification rates in the Modern Awards Pay Database. A casual builder’s labourer would earn the award rate plus the casual loading, which can push the hourly rate well above $30.

Super and tax considerations

From 1 July 2026, the super guarantee is 12% on top of gross wages, up to the maximum contribution base of $270,830. So a builder earning $70,000 a year would have an extra $8,400 paid into super. That is not included in the Salary Index, which measures gross ordinary-time earnings only.

For tax, a resident builder earning $70,000 in 2026–27 would pay about $11,067 in income tax plus the 2% Medicare levy, assuming the tax-free threshold. Take-home pay would be roughly $57,433, or about $1,104 per week. The index for that gross salary would be 64.6 – well below the national line, but typical for an entry-level or junior builder’s labourer.

State differences

Builder pay can vary by state because of different award allowances, market conditions, and cost of living. The ABS state averages for all industries show New South Wales at index 101.2, Victoria at 98, Queensland at 97.9, South Australia at 94.6, Western Australia at 106.9, Tasmania at 88.6, the Northern Territory at 95.2, and the ACT at 109.9. Construction-specific state data is not in the on-site reference, but the general state indexes give a sense of where wages are higher or lower. For example, a builder in Western Australia might earn more than one in Tasmania because of the mining and resources sector pulling up wages.

Awards versus the national minimum wage: the key difference

The national minimum wage is a safety net for the few workers not covered by an award. In building, almost every employee is covered by an award or an enterprise agreement. That means the real floor for a builder’s salary is the award rate, not the national minimum wage. The award rate is higher, and it includes things like industry allowances (for working at heights, using tools, etc.) and penalty rates for overtime or weekend work.

For example, a builder’s labourer working full-time under the Building Award might earn around $28–$30 per hour at the entry level, depending on the classification. That works out to about $1,120–$1,200 per week, or $58,240–$62,400 a year. The index for that range is 53.7–57.6. Still below the national line, but well above the national minimum wage index of 48.2.

Experienced workers in higher classifications – such as a qualified carpenter or a leading hand – can earn significantly more, potentially pushing the index above 100. The construction industry average of 95.3 suggests that many building workers are close to the national line, but labourers tend to be on the lower end.

Where to find more information

For award rates, check the Fair Work Commission’s pay guides or the Modern Awards Pay Database. For industry averages, the ABS Average Weekly Earnings report is the best source. The Salary Index lets you compare any gross annual salary to the national line. If you are a builder or an employer, remember that award rates are minimums – many builders are paid above the award, especially in strong labour markets.

Final thoughts on builder salary

“Builder salary” is not a single number. It depends on the specific role, the award classification, experience, location, and whether the worker is casual or permanent. The national minimum wage is only relevant for the tiny minority not covered by an award. For most builders, the award sets the real floor, and that floor is higher than the national minimum. The construction industry average gives a rough benchmark of index 95, but individual builder’s labourers are likely below that. If you want a precise figure, look up the classification in the Building and Construction General On-site Award and multiply by hours worked.