Mechanical Engineering Salary: Awards vs National Minimum Wage

What is a mechanical engineering salary?

When people ask about a 'mechanical engineering salary', they usually want to know what a mechanical engineer earns in Australia. The answer is not straightforward because official data does not give a single figure. The Australian Bureau of Statistics and Jobs and Skills Australia do not publish median weekly earnings for mechanical engineers. That means any number you see online is an estimate, not a government statistic.

This guide explains what we do know from public sources and how to use the Salary Index to compare a mechanical engineering salary against the national line. The writing angle here is awards versus the national minimum wage, because that is the legal floor for pay in Australia.

The national line and the index

The Salary Index sets 100 as full-time adult ordinary-time earnings. According to the Australian Bureau of Statistics, that figure was $2,083.70 per week in May 2026, annualised to $108,352. Men averaged $2,181 per week and women $1,934.50. The national minimum wage from 1 July 2026 is $26.44 per hour, or $1,004.90 per week, annualised $52,255. That gives an index of 48.2.

A mechanical engineering salary sits well above that floor. How far above depends on the industry, experience, and whether the engineer is covered by an award or an enterprise agreement.

What the data says about mechanical engineers

Jobs and Skills Australia reports that there are 22,900 mechanical engineers employed in Australia. 90% work full-time, averaging 43 hours per week. The median age is 38, and only 7% are women. The main industries are Professional, Scientific and Technical Services (25.7%), Manufacturing, and Mining.

The industries page on the Salary Index shows benchmarks for these sectors. Professional, Scientific and Technical Services has an index of 114.7, meaning average earnings of about $124,300 annually. Mining has an index of 154.7, or about $167,600 annually. Manufacturing is not listed separately, but it would likely sit between retail and professional services.

A mechanical engineer working in a professional services firm might earn around index 115. One in mining could earn index 155 or higher. These are rough estimates based on industry averages, not the occupation itself.

Awards versus the national minimum wage

The national minimum wage is the legal minimum for all employees not covered by an award or agreement. But most mechanical engineers are covered by a modern award or an enterprise agreement. The Fair Work Commission's Modern Awards Pay Database includes classifications for related roles, such as engineering professionals under the Professional Employees Award. That award sets minimum rates higher than the national minimum wage.

For example, an entry-level professional engineer under that award might start at around $25.74 per hour (the entry-level award floor mentioned in the on-site reference). That is above the national minimum wage of $26.44? Actually $25.74 is slightly below $26.44, but the award floor is for juniors or trainees? The on-site reference says 'Entry-level award floor: $25.74/hr' which is below the national minimum wage. That seems odd, but it may be for a specific classification. The national minimum wage is $26.44, so any award rate must be at least that. The Fair Work Commission ensures award rates are not below the national minimum wage. So the entry-level award floor likely applies to a different classification or is outdated. The key point is that mechanical engineers are rarely paid at the minimum; they are usually on higher rates.

Many mechanical engineers are covered by enterprise agreements that set pay above award. Individual arrangements are also common. According to the Australian Bureau of Statistics, 38.5% of all employees have their pay set by individual arrangement, and 34.6% by collective agreement. For professionals, individual arrangements are even more common.

Using the Salary Index to compare

If you have a specific mechanical engineering salary, you can compare it to the national line. Divide the annual gross salary by $108,352 and multiply by 100. For example, a salary of $130,000 gives an index of 120. That means it is 20% above the full-time adult ordinary-time earnings benchmark.

The how the index works page explains the calculation in detail. You can also see how different states compare. For instance, Western Australia has an index of 106.9, while Tasmania is 88.6. A mechanical engineer in WA might earn more than one in Tasmania, even in the same role.

Superannuation and tax

From 1 July 2026, the super guarantee is 12% on top of your salary, up to a maximum contribution base of $270,830. That means a mechanical engineer earning $130,000 would have $15,600 paid into super each year.

For tax, the 2026–27 resident rates (excluding Medicare) are: nil up to $18,200, 15% from $18,201 to $45,000, 30% from $45,001 to $135,000, 37% from $135,001 to $190,000, and 45% above $190,000. Medicare levy is 2%. So a mechanical engineer earning $130,000 would pay about $29,467 in tax plus $2,600 Medicare levy, leaving a take-home of roughly $97,933. This ignores HELP repayments, salary sacrifice, and the Medicare levy surcharge.

Where to find more

For award-specific pay rates, check the pay guides on the Salary Index. The Fair Work Commission also publishes the Modern Awards Pay Database, but you need to know which award applies to your role. The topics page covers other occupations and comparisons.

In summary, a mechanical engineering salary is not a single number. It varies by industry, location, and agreement. But it is almost always above the national minimum wage and often above the national line. Use the Salary Index to benchmark any figure you come across.