The minimum wage for an 18 year old is $18.06 per hour

What is the minimum wage for an 18 year old?

When you read a job ad offering a rate for an 18-year-old, the first thing to know is the legal floor. The minimum wage for an 18 year old in Australia is $18.06 per hour under the national minimum wage order. That figure comes from applying the junior percentage (68.3% of the adult national minimum wage of $26.44) set by the Fair Work Commission. But that’s only the starting point. Most young workers are covered by a modern award, and awards often set higher junior rates. The Salary Index helps you see where any pay figure sits against the national line.

How the Salary Index works

The Salary Index compares a yearly gross pay to the national benchmark of full-time adult ordinary-time earnings. That benchmark is $108,352 per year (based on ABS Average Weekly Earnings, May 2026). Your index is (your annual gross ÷ $108,352) × 100. So a full-time 18-year-old earning $18.06 per hour for 38 hours a week, 52 weeks a year, earns about $35,700. That gives an index of roughly 33 – well below the national line of 100. For context, the adult national minimum wage has an index of 48.2. The index is a quick way to compare offers across industries and states.

Reading a job ad: what to look for

Imagine you see two ads. One is for a casual role at a café under the Hospitality Industry General Award. The other is a permanent part-time job at a retail store under the General Retail Industry Award. Both say “18-year-old wanted”. The café might offer the national minimum of $18.06 as the base, but the retail award could have a junior rate of $19.50 or more. Always check the award coverage. Use the Salary Index to see how each offer compares to the national average. A rate of $19.50 per hour annualises to about $38,500, giving an index of 35.5 – still low but better than the floor.

Junior rates and awards

The national minimum wage for an 18-year-old is $18.06, but modern awards can set different junior percentages. For example, the Hospitality Award often uses a percentage of the adult award rate. Some awards have junior rates that are higher than the national minimum for 18-year-olds. Others, like the Fast Food Industry Award, have specific junior rates that may be lower. The Fair Work Ombudsman’s Pay Calculator is the best tool to check the exact rate for your award classification. Remember, the award rate is the minimum; employers can pay more.

State differences

While the national minimum wage applies across Australia, states have their own minimum wage orders for employees not covered by an award. The states page shows how each state’s overall earnings compare. For example, the ACT has an index of 109.9, meaning average full-time earnings are about 10% above the national line. Tasmania’s index is 88.6. But for an 18-year-old on the junior rate, the state index doesn’t directly affect the minimum – it’s more about the overall pay environment. If you’re comparing offers in different states, the state index can give you a sense of local earning power.

Industry context

Your industry matters a lot. The industries page shows that Mining has an index of 154.7, while Retail trade is 75.9 and Accommodation and food services is 72.5. An 18-year-old in retail or hospitality is likely to earn near the junior minimum, whereas in professional services the pay might be higher. When you see a job ad, check the industry benchmark. If the offer is in an industry with a low-index industry, the offer might still be reasonable for that sector.

Super and tax

Super guarantee is 12% from 1 July 2026, paid on top of your gross earnings. So on $35,700, your employer adds $4,284 to your super account. Tax for 2026-27: the first $18,200 is tax-free, then 15% up to $45,000. A full-time 18-year-old earning $35,700 pays about $2,625 in tax plus the 2% Medicare levy. Take-home pay would be roughly $32,000 after tax and Medicare. Casual loading (25%) adds about $4.52 per hour, making the casual minimum $22.58 – but that’s still a base rate before penalties.

Comparing offers with the index

Let’s say you have two offers: one at $20 per hour (permanent) and another at $22 per hour (casual). Annualise both: $20 × 38 × 52 = $39,520 (index 36.5); $22 × 38 × 52 = $43,472 (index 40.1). The casual rate includes loading, so the base is $17.60 – which is below the junior minimum. That’s a red flag. Always check if the advertised rate is base or all-inclusive. Use the how the index works page to calculate your own index.

Final tips

• The minimum wage for an 18 year old is $18.06 per hour, but awards often set higher rates.
• Always check the award coverage using the Fair Work Ombudsman website.
• Casual loading is separate – don’t confuse base rate with casual rate.
• Use the Salary Index to see where an offer sits relative to the national average.
• Consider super, tax, and penalties when comparing total compensation.

For more on specific pay rates, see the topics page. And remember, the national minimum wage is a floor, not a ceiling. Many employers pay above it to attract young workers.