Minimum wage increase 2025: where it sits on the Australian salary index

Minimum wage increase 2025: where it sits on the salary index

The minimum wage increase 2025 was a key event for Australian workers, but where does that pay rate actually sit on the national salary index? The Salary Index measures gross annual pay against the national line of 100, which represents full-time adult ordinary-time earnings. For the most recent known minimum wage (from 1 July 2026), the index is 48.2 – meaning someone on the minimum earns less than half the average full-time worker.

What the index tells us

The index is simple: your yearly gross pay divided by the national line ($108,352 as of May 2026) times 100. A score of 100 means you earn the average. The national minimum wage annualised is $52,255, giving an index of 48.2. That puts it well below the line, alongside industries like retail trade (index 75.9) and accommodation and food services (index 72.5).

The 2025 increase in context

While we don't have the exact 2025 figure in our reference, the annual wage review by the Fair Work Ombudsman typically lifts the minimum wage from 1 July. The 2026 rate of $26.44 per hour reflects the outcome of those reviews. For a full-time worker, that's $1,004.90 per week. Compare that to the national average of $2,083.70 per week – a gap of more than $1,000.

How awards and super affect the picture

Many workers are covered by modern awards, which can set higher minimum rates. The entry-level award floor from July 2026 is $25.74 per hour, slightly below the national minimum. Award minima rose 4.75% from that date. Superannuation is also part of the package: from 1 July 2026, the super guarantee is 12% on top of your gross pay, up to a maximum contribution base of $270,830. So a minimum-wage earner gets an extra $6,270 in super each year.

Take-home pay example

Using the 2026–27 tax rates (with the tax-free threshold and 2% Medicare levy), a full-time minimum-wage worker earning $52,255 pays about $6,196 in income tax and $1,045 in Medicare levy. That leaves roughly $45,013 per year, or $865 per week. This ignores HELP repayments, salary sacrifice, or the Medicare levy surcharge.

Junior rates and casual loading

The national minimum wage also sets junior rates. For example, a 16-year-old earns $12.51 per hour, and a 20-year-old earns $25.83 per hour. These are percentages of the adult rate. Casual workers get a loading of 25%, so the casual minimum wage is $33.05 per hour. But remember, modern awards can set different junior rates.

How your state compares

Your location also matters. The states page shows how average earnings vary. For instance, Western Australia has an index of 106.9 (annualised $115,825), while Tasmania is 88.6 ($96,008). A minimum-wage worker in WA is even further behind the local average than in Tasmania.

What this means for you

If you're on the minimum wage, your index is 48.2 – well below the national line. That's typical for entry-level or unskilled roles. But many workers earn more through awards or enterprise agreements. To see where your own pay sits, use the how the index works guide. You can also explore pay guides for specific industries.

The bigger picture

The minimum wage increase 2025 was part of a long trend of annual adjustments. While the exact figure for that year isn't in our reference, the index position has remained consistently low. The national minimum wage is designed as a safety net, not a living wage. For a fuller comparison, check topics on wage inequality and award coverage.

Key takeaways

• The minimum wage index is 48.2, based on the 2026 rate of $26.44 per hour.
• That's less than half the national average of $108,352.
• Junior rates, casual loading, and super all affect your total package.
• State averages vary, so your local line may be higher or lower.

Understanding where your pay sits on the index helps you negotiate or plan your career. The minimum wage increase 2025 was a step, but the gap to the national line remains large.