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Minimum wage Australia per hour: what it means when you compare job offers

Understand the national minimum wage per hour in Australia, how it compares to award rates, and what a job ad's pay figure means on the Salary Index.

The national minimum wage is $26.44 per hour, giving an index of 48.2, well below the national line of 100.

Minimum wage Australia per hour: what it means when you compare job offers

When you see a job ad quoting an hourly rate, the first question is often: is this at least the minimum wage? In Australia, the national minimum wage is the legal floor for adult employees not covered by an award or agreement. As of 1 July 2026, that figure is $26.44 per hour. On the Salary Index, where 100 represents full-time adult ordinary-time earnings ($108,352 per year), the national minimum wage scores 48.2. That means someone earning the minimum wage takes home about half the national benchmark.

How to use the minimum wage when comparing offers

The national minimum wage is a starting point, not a target. Most jobs fall under a modern award that sets a higher minimum for that industry or role. For example, the retail trade industry has an index of 75.9, meaning the average retail worker earns about three-quarters of the national line. Accommodation and food services sits even lower at 72.5. If you see a job ad offering $26.44 per hour in hospitality, check the award – you might be entitled to more.

When comparing offers, annualise the hourly rate (multiply by 38 hours per week and 52 weeks) and compare it to the national line. An offer of $30 per hour annualises to $59,280, which gives an index of about 54.7. That’s still below the national average but above the minimum. Use the pay guides to see typical rates for your industry.

Award rates and the minimum wage

Award rates are set by the Fair Work Ombudsman and vary by industry and classification. The entry-level award floor is $25.74 per hour, slightly below the national minimum wage. However, most award classifications pay more. For example, a retail employee Level 1 might earn $27.50 per hour, while a hospitality worker Level 2 could earn $28.90. Always check the relevant award before accepting a job.

Junior rates are lower. Under the national minimum wage order, a 16-year-old earns $12.51 per hour, and a 20-year-old earns $25.83 per hour. But awards can set different junior rates, so read the fine print in the job ad.

Casual loading and superannuation

If the job is casual, the ad should include a loading – typically 25% on top of the base rate. For the national minimum wage, that’s $33.05 per hour. The loading compensates for not receiving paid leave. Superannuation is also mandatory: from 1 July 2026, the super guarantee is 12% of ordinary time earnings, up to a maximum contribution base of $270,830. So a $26.44 per hour job also attracts $3.17 per hour in super, paid into your fund.

State and industry differences

Where you work matters. The states page shows that Western Australia has an index of 106.9, while Tasmania is 88.6. A minimum wage earner in WA might be closer to the state average than one in TAS. Similarly, industries like mining (index 154.7) pay far above the minimum, while retail (75.9) and accommodation (72.5) are below the national line.

Tax and take-home pay

From the national minimum wage of $52,255 per year, a resident using the tax-free threshold pays about $6,033 in tax (excluding Medicare) plus a 2% Medicare levy ($1,045). That leaves roughly $45,177 take-home pay, or about $22.88 per hour after tax. But this ignores HELP debts, salary sacrifice, and other deductions. Always factor in tax when comparing offers.

The bottom line

The national minimum wage per hour is $26.44, but most jobs pay more under awards. When reading a job ad, check the award classification, casual loading, and super. Use the how the index works guide to convert any annual salary to an index number and see where it sits against the national line. That way, you can compare offers on a level playing field.

Questions people ask

What is the current minimum wage in Australia per hour?

From 1 July 2026, the national minimum wage is $26.44 per hour for adult employees. This equates to $1,004.90 per week or $52,255 per year. On the Salary Index, where 100 is full-time adult ordinary-time earnings, the national minimum wage sits at 48.2.

How does the minimum wage compare to award rates?

Award rates are often higher than the national minimum wage. For example, the entry-level award floor is $25.74 per hour, but many classifications in awards like retail or hospitality pay more. The national minimum wage is the legal minimum, but most employees are covered by an award that sets a higher minimum.

What is the casual loading on the minimum wage?

Casual employees receive a loading on top of the base rate to compensate for lack of paid leave. For the national minimum wage, a typical casual loading of 25% gives $33.05 per hour. Awards may specify different loading percentages.

100

Salary index

Around the national line

Min 48.2
100 100
ACT 109.9
Mine 154.7
  • In the account — Tax and Medicare estimate
  • Super on top — 12% employer super
  • Ordinary hour — If spread over 38 hours

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