Engineering salary in Australia: what to expect when comparing job offers

What does 'engineering salary' mean when reading a job ad?

When you search for an engineering job in Australia, you'll see salaries quoted in annual packages, hourly rates, or weekly figures. The term 'engineering salary' covers a wide range because engineering includes many specialisations—civil, mechanical, electrical, software, biomedical, and more. To make sense of an offer, you need a benchmark. That's where the Salary Index helps: it compares any gross annual salary to the national line of full-time adult ordinary-time earnings, which is $108,352 per year (index 100) based on the Australian Bureau of Statistics Average Weekly Earnings for May 2026.

Where does engineering sit on the index?

According to Jobs and Skills Australia, the median full-time weekly earnings for Other Engineering Professionals (ANZSCO 2339) is $2,649. That annualises to roughly $137,748, giving an index of about 127. This means the typical engineer earns 27% more than the national average full-time worker. The broader Professional, Scientific and Technical Services industry has an index of 114.7, confirming that engineering roles generally pay above the line.

But not all engineers are the same. A graduate engineer might start on a salary closer to $70,000–$80,000 (index 65–74), while a senior engineer in mining could earn $200,000+ (index 185+). The index helps you see where an offer falls on the spectrum.

Reading a job ad: what to look for

A job ad might say: "Senior Mechanical Engineer – $140,000 + super". To compare this to the national line, take the base salary (excluding super) and divide by $108,352, then multiply by 100. Here, $140,000 / $108,352 × 100 = 129. That's slightly above the median engineering index of 127. But check the state: if the job is in Western Australia, the state index is 106.9, meaning the local average is higher. Your $140,000 offer in WA might be closer to the local norm than in Tasmania (index 88.6).

Also look for the award or classification. Many engineers are covered by the Professional Employees Award 2020, which sets minimum rates. From 1 July 2026, award rates rose 4.75%. The Fair Work Commission's Modern Awards Pay Database lists classification rates. For example, a Level 1 engineer under that award might have a minimum weekly rate around $1,800 (index 86), but most employers pay above award.

Comparing offers using the index

Suppose you have two offers:

• Offer A: $120,000 base in Sydney (NSW index 101.2)
• Offer B: $130,000 base in Perth (WA index 106.9)

Index for A: 120,000 / 108,352 × 100 = 110.7 Index for B: 130,000 / 108,352 × 100 = 120.0

But adjust for state: Offer A is 110.7 vs NSW 101.2 (9.5 points above state average). Offer B is 120.0 vs WA 106.9 (13.1 points above state average). Offer B looks stronger relative to its local market. You can use the states page to see how each state compares.

What about super and tax?

From 1 July 2026, the super guarantee is 12% of your ordinary time earnings. If an ad says "$140,000 package including super", the base salary is $140,000 / 1.12 = $125,000. Use the base for the index. Tax is progressive: for 2026–27, rates are 0% up to $18,200, 15% to $45,000, 30% to $135,000, 37% to $190,000, and 45% above, plus a 2% Medicare levy. A $125,000 base salary would have a tax estimate of about $29,467 plus Medicare $2,500, leaving around $93,033 take-home. But the index focuses on gross earnings for comparison.

Industry and occupation variations

Engineering isn't a single industry. The industries page shows Mining has an index of 154.7, while Manufacturing is lower. Engineers in mining or resources often earn more than those in construction or local government. The ABS data shows that 94% of Other Engineering Professionals work full-time, averaging 42 hours per week. Median hourly earnings are $70, compared to $47 for all occupations. That's a 49% premium.

Using the index in your job search

When you see an engineering salary in a job ad, convert it to an index number. If it's below 100, it's below the national average full-time earnings. If it's above 127, it's above the typical engineer. But remember: the index is a benchmark, not a promise. Your experience, negotiation, and the specific role matter. Check how the index works for the full methodology.

Final thoughts

Engineering salaries in Australia are generally strong, with a median index around 127. But don't rely on averages alone. Use the index to compare offers across states and industries, factor in super and tax, and always check the relevant award if you're unsure about minimums. The pay guides section has more detail on specific awards and classifications.

FAQs

What is the average engineering salary in Australia?

For Other Engineering Professionals, the median full-time weekly earnings are $2,649, annualising to about $137,748 (index 127). This is from the ABS Survey of Employee Earnings and Hours (May 2025), cited by Jobs and Skills Australia.

How does superannuation affect my engineering salary comparison?

From 1 July 2026, super is 12% of ordinary time earnings. Compare base salaries (excluding super) using the index. A $120,000 base plus 12% super gives a total package of $134,400, but the index uses the base.

Should I use an award rate or a market salary for engineering?

Award rates set minimums, but most engineers are paid above award. Use the index to see where an offer sits relative to the national line, and check the Fair Work Commission's database for your classification if you need minimums.