Minimum wage aussie: the national floor at index 48.2

What does 'minimum wage aussie' mean?

When Australians talk about the 'minimum wage aussie', they usually mean the national minimum wage set by the Fair Work Commission. As of 1 July 2026, that rate is $26.44 per hour, $1004.90 per week for a full-time adult worker. On the Salary Index, where 100 represents full-time adult ordinary-time earnings of $108,352 per year, the minimum wage scores 48.2. That means a full-time worker earning the minimum wage takes home about half the national benchmark before tax.

How the index works

The Salary Index is a simple way to see how any pay figure compares to the national line. You take the yearly gross pay, divide by the national line ($108,352), times 100. For the minimum wage, $52,255 divided by $108,352 times 100 equals 48.2. This puts the minimum wage well below the average – it's designed as a safety net, not a living wage for most.

Where it sits on the salary index

The national minimum wage index 48.2 is far below the national line. For context, the mining industry index 154.7, retail trade 75.9, accommodation and food 72.5. So a minimum wage worker earns about two-thirds of the average retail worker's pay.

Award rates and higher pay

Most Australian workers are covered by a modern award or enterprise agreement that pays more than the national minimum wage. The entry-level award floor is $25.74 per hour, but the national minimum wage is the legal minimum for all adult employees not covered by an award. Many awards set higher rates for specific classifications.

Junior rates

For junior employees, the national minimum wage has lower percentages. For example, a 16-year-old earns $12.51 per hour, 17-year-old $15.28, 18-year-old $18.06, 19-year-old $21.81, 20-year-old $25.83. These are based on the National Minimum Wage Order percentages, but modern awards can set different junior rates.

Casual loading

Casual employees get a 25% loading on the minimum wage, making it $33.05 per hour. That annualises to about $66,000, giving an index of roughly 60.3.

Super and tax

Super guarantee is 12% from 1 July 2026. On the minimum wage, that's an extra $6,270 per year into super. For tax, a resident with the tax-free threshold pays about $6,196 in income tax plus $1,045 Medicare levy, leaving take-home of about $45,013 per year ($865 per week). But the index is based on gross ordinary-time earnings, so we stick to gross.

State comparisons

The national minimum wage applies across Australia, but state indices show how average earnings vary. For example, NSW index 101.2, VIC 98, WA 106.9, TAS 88.6. A minimum wage earner in Tasmania would have the same gross pay but face a different cost of living.

How the minimum wage is set

The Fair Work Commission reviews the national minimum wage each year. The 2026 increase was 4.75% on award minima, and the national minimum wage was adjusted accordingly. The Commission considers economic conditions, living standards, and the needs of the low-paid.

Using the Salary Index

To see how your pay compares, use the Salary Index tool. For more on award rates, see our pay guides. State-by-state comparisons are available on our states page. Learn more about how the index works and explore topics for other pay benchmarks.

Key takeaways

• The national minimum wage is $26.44/hr, index 48.2.
• It's less than half the national line of 100.
• Many workers earn more under awards or agreements.
• Junior and casual rates differ.
• The index is a gross benchmark, not take-home.