How much is the minimum wage in Australia? A guide to the national minimum wage and awards

How much is the minimum wage in Australia?

If you have ever asked how much is the minimum wage in australia, the straightforward answer is $26.44 per hour, or $1,004.90 per week, from 1 July 2026. That figure is the national minimum wage set by the Fair Work Commission. It applies to employees who are not covered by a modern award or an enterprise agreement. But for most Australian workers, the real minimum is higher because they are covered by an award that sets a higher rate.

Where does the minimum wage sit on the Salary Index?

The Salary Index measures pay against the national line of 100, which represents full-time adult ordinary-time earnings – $2,083.70 per week or $108,352 per year (ABS Average Weekly Earnings, May 2026). The national minimum wage annualises to $52,255, giving an index of 48.2. That means someone on the minimum wage earns about 48% of the average full-time earnings. For context, the index for retail trade is 75.9 and for accommodation and food services it is 72.5 – both well above the minimum wage floor.

National minimum wage versus award rates

The national minimum wage is a safety net. Most employees in Australia are covered by a modern award that sets minimum pay rates for their industry and job classification. Award rates are almost always higher than the national minimum wage. For example, the entry-level award floor – the lowest rate in any award – is $25.74 per hour, but that is still below the national minimum wage of $26.44. In practice, award classifications above entry level pay more. From 1 July 2026, award minima rose by 4.75%, so many award rates are now significantly above the national minimum.

If you are covered by an award, your minimum pay is the rate in that award, not the national minimum wage. You can find your award rate using pay guides on the Fair Work Ombudsman website. For workers not covered by any award or agreement, the national minimum wage is the legal floor.

Casual loading and superannuation

Casual employees get a loading on top of the base rate to compensate for not receiving paid leave. The typical casual loading is 25%. On the national minimum wage, that adds $6.61 per hour, making the casual rate $33.05 per hour. Award casual loadings can be different, so check your award.

Superannuation is also paid on top of wages. From 1 July 2026, the super guarantee is 12% of ordinary time earnings, up to a maximum contribution base of $270,830 per year. So an employer must pay at least 12% extra into your super fund on top of your wage.

Junior rates

Employees under 21 years may be paid a percentage of the adult national minimum wage. The current junior rates are:

• Under 16 years: $9.73 per hour
• 16 years: $12.51
• 17 years: $15.28
• 18 years: $18.06
• 19 years: $21.81
• 20 years: $25.83

These rates are based on the adult minimum wage of $26.44. However, a modern award can set different junior rates, often higher or with different age brackets. Always check the award that covers your job.

How the minimum wage varies by state and industry

The national minimum wage is the same across Australia, but average earnings differ by state and industry. The states page shows how each state compares to the national line. For example, Tasmania has an index of 88.6, meaning average earnings are below the national line, while the ACT is at 109.9, above the line. The national minimum wage of 48.2 is far below all state averages, highlighting that minimum wage workers earn much less than the typical full-time worker in every state.

Industry differences are even starker. The industries page shows mining at 154.7, while accommodation and food services is at 72.5. The national minimum wage sits at 48.2, well below even the lowest industry average. This reflects that many workers in low-paying industries are on award rates above the minimum, but still well below the national average.

Tax and take-home pay

If you earn the national minimum wage of $52,255 per year, your take-home pay depends on tax and the Medicare levy. For a resident using the tax-free threshold, the 2026–27 tax rates are:

• Nil on the first $18,200
• 15% on income from $18,201 to $45,000
• 30% on income from $45,001 to $135,000

On $52,255, the tax is approximately $5,476.50, plus the Medicare levy of 2% ($1,045.10), giving total deductions of about $6,521.60. That leaves take-home pay of around $45,733 per year, or $879 per week. This is a rough estimate and ignores HELP repayments, salary sacrifice, and the Medicare levy surcharge.

Why awards matter more than the national minimum wage

For most workers, the national minimum wage is not the rate you actually get paid. Awards set higher minimums, and many employers pay above award rates to attract staff. If you are in an industry like retail or hospitality, your award rate is likely above $26.44 per hour. For example, a retail employee Level 1 under the General Retail Industry Award earns more than the national minimum wage. Always check your award or enterprise agreement to know your legal minimum.

The how the index works page explains how we calculate the Salary Index. The national minimum wage index of 48.2 is a useful benchmark to see how the legal floor compares to average earnings. But for your personal situation, focus on the award or agreement that covers you.

Summary

The answer to how much is the minimum wage in australia is $26.44 per hour, $1,004.90 per week, or $52,255 per year. That gives an index of 48.2. However, most workers are covered by a modern award that pays more. Always check your award rate, and remember that casual loading, superannuation, and junior rates can change your actual pay. For more details, see our topics page on minimum wage and awards.