Minimum wage 2025: how to compare job offers using the salary index

Minimum wage 2025 and comparing job offers

When you read a job ad, the first thing you look at is the pay. But how do you know if an offer is fair? The minimum wage 2025 is a useful starting point. It sets the legal floor for most employees, but many jobs pay above it. The Salary Index helps you see where a pay figure sits against the national line, where 100 is full-time adult ordinary-time earnings.

What was the minimum wage in 2025?

Our reference does not include the exact 2025 national minimum wage. The Fair Work Ombudsman announces a new rate each financial year. From 1 July 2026, the national minimum wage is $26.44 per hour, or $1004.90 per week, annualised to $52,255. That gives an index of 48.2. The 2025 rate would have been lower, likely around $25.25 per hour based on the 4.75% increase that took effect in July 2026. But this is an estimate. For the official 2025 figure, check the Fair Work Ombudsman website.

How the salary index works

The Salary Index compares any yearly gross pay to the national benchmark. The benchmark is $108,352 per year (based on ABS Average Weekly Earnings, May 2026). To calculate the index, divide the annual salary by $108,352 and multiply by 100. For example, a job paying $60,000 has an index of 55.4. A job paying $80,000 has an index of 73.8. The national line is 100. Anything above 100 is above average; below 100 is below average.

Using the index to compare offers

When you have two job offers, you can compare their index values. But remember: the index is a gross figure before tax and super. You also need to consider the industry and location. For instance, a retail job (industry index 75.9) typically pays less than a professional services job (index 114.7). Similarly, a job in Western Australia (state index 106.9) pays more than one in Tasmania (state index 88.6). The states and industries pages show these benchmarks.

Awards and the minimum wage

Many jobs are covered by modern awards, which set minimum pay rates higher than the national minimum wage. From 1 July 2026, award minima rose by 4.75%. The entry-level award floor is $25.74 per hour. If you are under 21, junior rates apply. For example, a 19-year-old gets $21.81 per hour under the national minimum wage order, but a specific award might set a different rate. Always check the relevant award on the Fair Work Ombudsman website.

Casual loading and super

If the job is casual, you should get a loading of at least 25% on top of the base rate. For the national minimum wage, that means $33.05 per hour. Superannuation is 12% from 1 July 2026, paid on top of your gross wage. The maximum super contribution base is $270,830. So if you earn above that, super is capped.

Tax and take-home pay

Your take-home pay depends on tax and the Medicare levy. For 2026–27, resident tax rates are: nil up to $18,200; 15% from $18,201 to $45,000; 30% to $135,000; 37% to $190,000; and 45% above. Plus a 2% Medicare levy. For a minimum wage earner ($52,255), the tax would be about $5,092 plus Medicare $1,045, leaving around $46,118. But this ignores HELP repayments, salary sacrifice, and the Medicare levy surcharge.

Real-world example

Imagine you see a job ad for a retail assistant in Queensland. The ad says $55,000 per year. The index is 50.8 (55,000 / 108,352 × 100). The retail industry index is 75.9, so this offer is below the industry average. Queensland’s state index is 97.9, so it’s also below the state average. But it is above the national minimum wage index of 48.2. Is it a good offer? It depends on the award. The General Retail Industry Award might set a higher minimum for your classification. Use the pay guides to check award rates.

Comparing offers across states

If you have an offer in New South Wales (index 101.2) and another in South Australia (index 94.6), the NSW offer is likely to be higher on average. But the actual pay might vary by role. The topics page has more on regional differences.

Summary

The minimum wage 2025 is a baseline, but most jobs pay more. Use the Salary Index to compare offers objectively. Remember to factor in awards, super, and location. For more details, see how the index works and the Salary Index homepage.