Graduate engineer salary: how to read a job ad and compare offers

What is a graduate engineer salary?

When you see a job ad for a graduate engineer, the advertised figure is usually the annual gross salary before tax and super. But how do you know if that number is fair? The Salary Index helps by comparing any pay figure to the national line: full-time adult ordinary-time earnings of $108,352 per year (index 100). A graduate engineer salary of $70,000, for example, would have an index of 64.6. That tells you it's about 35% below the national average – which is typical for entry-level professional roles.

Where to find the award minimum

The first place to check is the Professional Employees Award [MA000065], which covers degree-qualified engineers, scientists, and IT professionals. The Fair Work Ombudsman provides a pay guide for this award that lists minimum hourly rates, allowances, and penalty rates. The award minima increased by 4.75% from 1 July 2026 (on-site reference). However, the search results do not give a specific rate for a "graduate engineer" classification. You need to download the pay guide or use the Pay and Conditions Tool on the Fair Work Ombudsman website to find the exact classification that matches your role.

Reading a job ad with the index

Let's say an ad offers $75,000 for a graduate engineer. Divide $75,000 by $108,352 and multiply by 100 to get an index of 69.2. That's below the national line, but above the national minimum wage index of 48.2. Compare this to the industry index for Professional, Scientific and Technical Services, which is 114.7 – that's the average for all workers in that industry, not just graduates. Your graduate salary will naturally be lower than the industry average.

State indices also matter. If the job is in Western Australia (index 106.9), a $75,000 salary is relatively lower against the state average than in Tasmania (index 88.6). Use the states page to see how your offer stacks up locally.

Beyond the base salary

A job ad might list "plus super" or "plus 12% super". From 1 July 2026, the super guarantee is 12% on earnings up to $270,830. So a $75,000 salary means an extra $9,000 into your super fund. That's not take-home pay, but it's part of your total remuneration.

Tax is another factor. Using 2026–27 rates (excluding Medicare), a $75,000 salary would have an estimated tax of about $12,967 plus 2% Medicare levy, leaving around $60,533 take-home. If you have HELP debt, the repayment will reduce that further. The how the index works page explains the difference between gross and net.

Comparing multiple offers

When you have two graduate engineer offers, use the index to compare them on the same scale. Offer A: $72,000 (index 66.4). Offer B: $78,000 (index 72.0). The difference is 5.6 index points, which is about $6,000 per year. But also consider location: if Offer A is in NSW (index 101.2) and Offer B is in Victoria (index 98.0), the cost of living might narrow the gap. Check the industries page for sector benchmarks.

What the search didn't find

The web search for "graduate engineer salary" using Fair Work Ombudsman and Fair Work Commission sources did not return a single published figure for graduate engineers. The Professional Employees Award pay guide is the authoritative source, but it wasn't directly quoted in the search results. That means you need to look up the specific classification yourself. The Fair Work Commission's Modern Awards Pay Database (2026) contains the calculated minimum rates for all awards, including the Professional Employees Award, but the data is in spreadsheets that require interpretation.

Common pitfalls

• Assuming the award rate is the market rate: Many graduate engineers are paid above the award, especially in mining, IT, or engineering consulting. The award is a floor, not a ceiling.
• Ignoring casual loading: If the role is casual, the ad might include the 25% loading. The on-site reference gives a casual loading example of $33.05/hr. Make sure you're comparing like with like.
• Forgetting junior rates: If you're under 21, the award may allow a lower junior percentage. The national minimum wage junior rates range from $9.73/hr (under 16) to $25.83/hr (20 years). But many graduate roles are for 21+.

Putting it together

A graduate engineer salary is an entry point. Use the index to see where it sits against the national line, check the award minimum via the pay guides, and factor in super and tax. The topics page has more on comparing job offers. Remember: the index is a benchmark, not a promise. Your actual pay will depend on your employer, industry, and negotiation.

FAQs

What is the minimum pay for a graduate engineer under the Professional Employees Award?

The search results do not provide a specific minimum rate for a graduate engineer classification. The Fair Work Ombudsman publishes a pay guide for the Professional Employees Award [MA000065] that lists minimum rates for each classification level. You can download the guide from the pay guides page. The award covers engineers with a degree or equivalent experience, but the exact rate depends on the classification level and any applicable allowances.

How does a graduate engineer salary compare to the national average?

The national full-time adult ordinary-time earnings are $108,352 per year (index 100). A graduate engineer salary of, say, $70,000 would have an index of 64.6, meaning it is about 35% below the national line. However, engineering salaries typically rise quickly with experience. You can compare offers using the Salary Index, which divides yearly gross pay by the national line and multiplies by 100.

What about superannuation and tax for a graduate engineer?

From 1 July 2026, the super guarantee is 12% on earnings up to $270,830. So on a $70,000 salary, your employer must contribute $8,400 to super. For tax, using 2026–27 rates (excluding Medicare), the first $18,200 is tax-free, then 15% up to $45,000, and 30% up to $135,000. A $70,000 salary would have an estimated tax of about $11,467 plus 2% Medicare levy, leaving take-home around $56,000. See how the index works for more on gross vs net.