Current minimum wage Australia: what it is, how it compares, and what you take home after tax and super

What is the current minimum wage Australia?

The current minimum wage Australia from 1 July 2026 is $26.44 per hour, or $1004.90 per week. Annualised, that comes to $52,255. This figure is set by the Fair Work Commission and applies to adult employees who are not covered by a modern award or enterprise agreement. It is the legal pay floor – no employer can pay less than this for ordinary hours.

To put that in perspective, the national line on the Salary Index is 100, which represents full-time adult ordinary-time earnings of $108,352 per year. The minimum wage sits at index 48.2 – less than half the average. That gap reflects the role of the minimum wage as a safety net, not a benchmark for typical pay.

How the minimum wage is set

The Fair Work Commission reviews the national minimum wage each year. The 2026–27 increase was 4.75%, lifting the hourly rate from the previous $25.24. The Commission considers living costs, productivity, and the state of the labour market. The rate applies nationally, but some states have their own minimum wage orders for state-system employees – though in practice, the national rate is the effective floor for most workers.

Who gets the minimum wage?

Not everyone is on the minimum wage. Most employees are covered by a modern award, which sets higher minimum rates for specific industries and roles. For example, a retail assistant under the General Retail Industry Award earns more than the national minimum wage. The award floor for entry-level adult workers is $25.74 per hour, slightly below the national minimum – but awards typically have higher classifications. The national minimum wage is the ultimate backstop.

Junior workers get a percentage of the adult rate. For instance, a 16-year-old earns $12.51 per hour, and a 20-year-old earns $25.83 per hour. These percentages are set by the National Minimum Wage Order, though modern awards can specify different junior rates.

Casual employees receive a loading of 25% on top of the base rate, making the casual minimum wage $33.05 per hour. That loading compensates for the lack of paid leave.

Gross pay, super, and tax on the minimum wage

Understanding what you actually receive from the minimum wage means looking at gross pay, superannuation, and tax.

Gross pay

A full-time worker on the minimum wage earns $1004.90 per week before any deductions. That is the gross figure. Over a year, it totals $52,255.

Superannuation

From 1 July 2026, the super guarantee rate is 12% of ordinary time earnings. The employer pays this on top of the gross wage – it is not taken out of your pay. So for a minimum-wage worker, the employer contributes an extra $6,271 per year into a super fund. The maximum contribution base is $270,830, well above the minimum wage, so the full 12% applies.

Income tax

Using the 2026–27 resident tax rates (with the tax-free threshold), a minimum-wage earner pays:

• $0 on the first $18,200
• 15% on the next $26,800 (from $18,201 to $45,000) = $4,020
• 30% on the remaining $7,255 (from $45,001 to $52,255) = $2,176.50
• Total tax = $6,196.50

Plus the Medicare levy of 2% on all taxable income = $1,045.10

Total tax and Medicare = $7,241.60

Take-home pay

After tax and Medicare, the weekly take-home pay is about $836. That is $43,472 per year. This estimate ignores HELP repayments, salary sacrifice, or the Medicare levy surcharge. It also assumes you have claimed the tax-free threshold.

So while the gross minimum wage is $52,255, the amount you actually receive in your bank account is roughly $43,500. The super contribution is additional and not accessible until retirement.

How the minimum wage compares across states and industries

The Salary Index lets you compare pay across Australia. The national line is 100. The minimum wage is 48.2. But average earnings vary by state and industry.

State comparisons

• ACT has the highest index at 109.9 ($119,090 annualised)
• WA is 106.9 ($115,825)
• NSW is 101.2 ($109,658)
• VIC is 98.0 ($106,137)
• QLD is 97.9 ($106,064)
• NT is 95.2 ($103,173)
• SA is 94.6 ($102,450)
• TAS is 88.6 ($96,008)

A minimum-wage worker in Tasmania earns the same gross amount as one in the ACT, but the average Tasmanian worker earns less. The index helps you see where your pay sits relative to the local average.

Industry comparisons

• Mining index 154.7 – far above the national line
• Retail trade index 75.9 – below average
• Accommodation and food services index 72.5 – the lowest major industry
• Professional, scientific and technical index 114.7
• Education and training index 105.5
• Health care and social assistance index 97.8

Minimum-wage workers are most common in retail and hospitality, where industry averages are already below the national line. But even in those industries, most workers earn above the minimum due to award classifications and penalty rates.

What the minimum wage means for your pay

If you are paid exactly the national minimum wage, your index is 48.2. That is a useful benchmark. If you earn more, you can calculate your own index: divide your annual gross salary by $108,352 and multiply by 100. For example, a $70,000 salary gives an index of 64.6.

The minimum wage is not a target – it is a floor. Most award-covered jobs pay more, and many employers pay above award to attract staff. The pay guides on this site show typical rates for common roles.

A note on awards and enterprise agreements

Modern awards set minimum rates that are often higher than the national minimum wage. For example, the Hospitality Industry General Award has a base rate for a food and beverage attendant grade 1 of about $25.80 per hour (before the 2026 increase). Enterprise agreements can also set higher rates. Always check your award or agreement to see your legal minimum.