Minimum Wage Rates Australia: Gross Pay, Super, and Tax Explained

What Are Minimum Wage Rates in Australia?

Minimum wage rates Australia set the legal floor for pay. The national minimum wage is the base rate for employees not covered by a modern award or enterprise agreement. From 1 July 2026, the rate is $26.44 per hour, $1,004.90 per week, or $52,255 per year. This figure is set by the Fair Work Commission after annual review. On the Salary Index, where 100 equals full-time adult ordinary-time earnings of $108,352, the national minimum wage sits at 48.2 — less than half the national benchmark.

How the National Minimum Wage Compares

The index helps you see where a pay rate falls against the national line. For example, the national minimum wage index of 48.2 means a worker on this rate earns about 48% of the average full-time adult ordinary-time earnings. By contrast, the average worker in mining has an index of 154.7, while retail trade sits at 75.9. You can explore more in our industries section.

Gross Pay, Super, and Tax: The Full Picture

When you hear "minimum wage rates Australia", it usually refers to gross pay before deductions. But your actual financial position depends on superannuation and tax.

Superannuation (Super)

Employers must pay super guarantee of 12% on top of your ordinary time earnings, from 1 July 2026. For a full-time worker on the national minimum wage ($52,255), that's an extra $6,270.60 per year into your super fund. The maximum contribution base is $270,830, so most minimum-wage workers won't hit that cap. Super is not deducted from your pay — it's an additional cost for the employer.

Tax and Medicare

Resident tax rates for 2026–27 are progressive:

• Nil on the first $18,200
• 15% on income from $18,201 to $45,000
• 30% on $45,001 to $135,000
• 37% on $135,001 to $190,000
• 45% above $190,000

Plus a 2% Medicare levy on your taxable income. For a minimum-wage earner ($52,255), the tax is roughly:

• $0 on first $18,200
• 15% on $26,800 = $4,020
• 30% on $7,255 = $2,176.50
• Total tax: $6,196.50
• Medicare levy: $1,045.10
• Take-home pay: about $45,013 per year (or $866 per week).

This estimate assumes you claim the tax-free threshold and ignore HELP loans, Medicare levy reduction, or surcharge.

Junior and Award Minimum Rates

Minimum wage rates Australia also include junior rates for employees under 21. The national minimum wage order sets these percentages:

Age	Hourly rate
Under 16	$9.73
16 years	$12.51
17 years	$15.28
18 years	$18.06
19 years	$21.81
20 years	$25.83

These are the adult national minimum wage multiplied by the percentages used in National Minimum Wage Orders. However, a modern award can set a different junior rate. Always check your pay guides for your specific award.

Award Floors

Most Australian workers are covered by a modern award, which sets minimum pay rates higher than the national minimum wage. The entry-level award floor from 1 July 2026 is $25.74 per hour — still below the national minimum wage, but many awards have higher classifications. Awards rose by 4.75% from 1 July 2026. If you're on an award, your minimum rate may be higher than $26.44.

Casual Loading

Casual employees get a loading to compensate for lack of paid leave. The national minimum wage casual loading is 25%, making the casual rate $33.05 per hour. Awards may have different loadings.

State and Industry Differences

The Salary Index shows how average pay varies by state and industry. For example:

• Western Australia has an index of 106.9 (annualised $115,825)
• Tasmania has an index of 88.6 ($96,008)
• ACT has the highest at 109.9 ($119,090)

These are averages, not minimum rates. But they show that where you live and work affects typical earnings.

Key Takeaways

• The national minimum wage is $26.44/hr, index 48.2.
• Super is 12% on top, not deducted.
• Tax and Medicare reduce gross pay by roughly $7,242 for a full-time minimum-wage earner.
• Awards and junior rates may set different floors.

For more context, see how the index works or explore topics.

FAQs

What is the current national minimum wage in Australia?

From 1 July 2026, the national minimum wage is $26.44 per hour, $1,004.90 per week, or $52,255 per year. This applies to adult employees not covered by an award or agreement. Junior rates are lower percentages of this adult rate.

How does superannuation affect minimum wage earnings?

Super guarantee is 12% of your ordinary time earnings, paid by your employer on top of your gross wage. For a full-time worker on the national minimum wage ($52,255), the employer must contribute an extra $6,270.60 per year into your super fund, subject to the maximum contribution base.

What is the take-home pay after tax for someone on the national minimum wage?

A resident earning $52,255 in 2026–27 pays no tax on the first $18,200, then 15% on the next $26,800, then 30% on the remaining $7,255. The tax is about $4,020 plus $1,045 Medicare levy (2%), so take-home is roughly $47,190 per year. This excludes HELP or other deductions.