What is the minimum wage au in 2026? Compare job offers using the salary index

Understanding the minimum wage au

When you see a job ad that mentions a pay rate, the first thing to check is whether it meets the legal floor. The minimum wage au is the national minimum wage set by the Fair Work Ombudsman. From 1 July 2026, that rate is $26.44 per hour, $1004.90 per week, or $52,255 per year before tax. That figure is the baseline for most employees who aren’t covered by a modern award or enterprise agreement.

But the minimum wage is only part of the story. To really compare offers, you need to see where a pay figure sits against the national line. That’s where the Salary Index comes in. The index takes a yearly gross salary and divides it by the full-time adult ordinary-time earnings benchmark – $108,352 per year (index 100) – then multiplies by 100. So the national minimum wage of $52,255 gives an index of 48.2. That means it’s just under half the average full-time salary.

Using the salary index to compare offers

Let’s say you’re reading a job ad that offers $70,000 a year. Divide $70,000 by $108,352 and multiply by 100 – you get an index of about 64.6. That’s above the minimum wage index but still below the national average. If another ad offers $90,000, the index is 83.1, getting closer to the line. The index helps you see at a glance whether an offer is low, average, or high compared to the broader market.

You can also compare offers across states and industries using the same benchmark. For example, the average full-time worker in Western Australia earns an index of 106.9 (annualised $115,825), while in Tasmania it’s 88.6 ($96,008). So a job paying $70,000 in WA might be well below the state average, whereas the same salary in Tasmania is closer to the local norm. Check the states page for more detail.

Industries vary even more. Mining has an index of 154.7, while retail trade sits at 75.9 and accommodation and food services at 72.5. If you’re comparing a retail job at $55,000 (index 50.8) with a mining job at $100,000 (index 92.3), the index makes the difference clear. You can explore more on the industries page.

Reading job ads: what to look for

When you scan a job ad, note whether the rate is hourly, weekly, or annual. If it’s an hourly rate, compare it to the national minimum wage of $26.44. Anything above that is legal, but check if the role is covered by a modern award – awards often set higher minimums. The entry-level award floor is $25.74 per hour, slightly below the national minimum wage, but most awards have higher rates for experienced workers.

Casual roles are common. The ad might say $33.05 per hour. That’s the national minimum wage plus a 25% casual loading. But remember, the loading is meant to compensate for lack of paid leave. If you see a casual rate below $33.05, it might still be above the base minimum wage, but you should check whether the loading is included.

Junior rates apply if you’re under 21. The national minimum wage order sets percentages: under 16 gets $9.73 per hour, 16 years $12.51, 17 years $15.28, 18 years $18.06, 19 years $21.81, 20 years $25.83. However, a modern award can set different junior rates, so always check the award that covers your job.

Take-home pay and super

Once you’ve compared offers using the index, think about what you’ll actually take home. The national minimum wage of $52,255 is before tax and the Medicare levy. For 2026–27, the tax rates are: nil up to $18,200, then 15% up to $45,000, 30% up to $135,000, 37% up to $190,000, and 45% above that. Plus a 2% Medicare levy. So on $52,255, your tax would be roughly $5,092 plus $1,045 Medicare levy, leaving about $46,118. That’s a rough estimate – it ignores HELP repayments, salary sacrifice, and the Medicare levy surcharge.

Superannuation is also important. From 1 July 2026, the super guarantee is 12% of your ordinary-time earnings, up to a maximum contribution base of $270,830. So on $52,255, your employer would add $6,270.60 to your super account. That’s not part of your take-home pay, but it’s part of your total compensation. When comparing offers, consider the super contribution as well.

Putting it all together

The minimum wage au is the starting point, but the salary index gives you context. A job at $60,000 (index 55.4) is above the minimum but still below average. A job at $80,000 (index 73.8) is closer to the middle. And a job at $110,000 (index 101.5) is just above the national line. Use the index to see how an offer stacks up against the state and industry averages. For a deeper explanation of how the index is calculated, see how the index works.

Remember, the national minimum wage is a floor, not a target. Many jobs pay well above it, especially in high-index industries like mining or professional services. But if you’re starting out or in a low-paying sector, the minimum wage is your safety net. Always check the relevant award or agreement – the Fair Work Ombudsman website has pay guides for most industries. And when you’re comparing offers, the salary index is your best tool for seeing the big picture.