The Fair Work Minimum Wage Across States and Industries

The Fair Work Minimum Wage Explained

The Fair Work minimum wage is the legal floor for pay in Australia. From 1 July 2026 it is $26.44 per hour, $1004.90 per week, or $52,255 annualised. On the Salary Index, that gives a score of 48.2 – meaning the minimum wage is just under half of the national full-time adult ordinary-time earnings benchmark of $108,352 (index 100). This gap shows how far the minimum sits from the average Australian wage.

But the minimum wage is not the whole story. Where you live and what industry you work in can change how that pay compares to others around you. The Fair Work Ombudsman sets the national minimum, but modern awards and enterprise agreements often set higher rates for specific jobs. The how the index works page explains how we calculate these comparisons.

State Differences

Even though the national minimum wage is the same in every state, average earnings differ. The state indices from the Australian Bureau of Statistics show the gap:

• New South Wales index 101.2 (annualised $109,658)
• Victoria index 98 ($106,137)
• Queensland index 97.9 ($106,064)
• South Australia index 94.6 ($102,450)
• Western Australia index 106.9 ($115,825)
• Tasmania index 88.6 ($96,008)
• Northern Territory index 95.2 ($103,173)
• Australian Capital Territory index 109.9 ($119,090)

A worker on the minimum wage in Western Australia earns $26.44 an hour, but the average full-time worker in WA earns about $115,825 a year. That means the minimum wage is a much smaller slice of the local average than it is in Tasmania, where the average is lower. In practical terms, a minimum-wage earner in Tasmania is closer to the state average than one in WA. This matters when comparing cost of living and bargaining power.

Junior rates also vary by state only through the national minimum. The Fair Work National Minimum Wage Order sets percentages for under-21s: for example, a 17-year-old gets $15.28 per hour. But a modern award can set different junior rates, so always check your award. See our states page for more detail on each region.

Industry Differences

Industry is an even bigger factor. The national minimum wage applies across all industries, but most sectors have awards that set higher floors. The industry indices from the ABS show how far above or below the national line each sector sits:

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

A retail worker on the minimum wage is much closer to the industry average (75.9) than a mining worker, whose industry average is 154.7. In fact, the minimum wage is below the retail industry average, but retail awards often pay above the national minimum. For example, the General Retail Industry Award 2020 has a minimum hourly rate of around $25.74 for an entry-level adult (the award floor), which is slightly below the national minimum – but most retail employees are classified at higher levels.

Similarly, accommodation and food services has a low industry index (72.5), meaning many workers in that sector earn near the minimum. But again, the Hospitality Industry General Award sets rates above the national minimum for most classifications. The Fair Work Ombudsman provides pay guides for each award.

Awards, Super, and Tax

Awards are legally binding documents that set minimum pay and conditions for specific industries or occupations. The national minimum wage is the fallback for anyone not covered by an award or agreement. From 1 July 2026, award minima rose by 4.75%, bringing the entry-level adult award floor to $25.74 per hour. Many awards have higher rates for experienced workers.

Superannuation is also part of your total remuneration. The super guarantee is 12% from 1 July 2026, up to a maximum contribution base of $270,830. On the minimum wage of $52,255, that adds $6,270.60 in super, bringing total compensation to $58,525.60. But super is not included in the Salary Index, which uses gross ordinary-time earnings.

Tax affects take-home pay. For a resident earning the minimum wage of $52,255 in 2026–27, the tax (excluding Medicare) is:

• Nil on first $18,200
• 15% on the next $26,800 ($4,020)
• 30% on the remaining $7,255 ($2,176.50) Total tax $6,196.50, plus 2% Medicare levy ($1,045.10), leaving about $45,013.40 take-home. This is a rough estimate – it ignores HELP repayments, salary sacrifice, and the Medicare levy surcharge. For more on how tax interacts with the index, see our topics page.

How the Salary Index Helps

The Salary Index lets you compare any pay figure to the national line of 100. For the Fair Work minimum wage, the index is 48.2 – well below the average. But if you work in mining, your pay might be closer to 154.7. If you work in retail, it might be around 75.9. The index is a benchmark, not a quote for your specific job. Always check your award or agreement for your correct rate.

Understanding where your pay sits on the index can help you negotiate or plan your career. For example, a minimum-wage worker in Tasmania (state index 88.6) might feel closer to the local average than a minimum-wage worker in WA (state index 106.9). Similarly, moving from retail to professional services could lift your pay from near the industry average of 75.9 to 114.7 – a significant jump.

The Fair Work minimum wage is the floor, but your actual pay depends on your award, your state, and your industry. Use the Salary Index to see where you stand.