Minimum wage UK vs Australia: State and industry differences explained

What is the minimum wage in Australia? A state and industry lens

If you've been searching for "minimum wage UK", you might be comparing how Australia stacks up. While this article focuses on Australian minimum wage, we'll use that keyword as a lens to explore how pay varies by state and industry here. The national minimum wage is a starting point, but actual earnings depend on where you work and what you do.

The national minimum wage as a baseline

From 1 July 2026, the National Minimum Wage is $26.44 per hour or $1004.90 per week for a 38-hour week, according to the Fair Work Ombudsman. This applies to employees not covered by a modern award or enterprise agreement. On the Salary Index, where 100 equals full-time adult ordinary-time earnings ($2,083.70 per week from the Australian Bureau of Statistics), the national minimum wage sits at index 48.2. That means someone on the minimum wage earns about half of the average full-time adult ordinary-time earnings.

But most Australian workers are covered by awards. The Fair Work Commission reviews award minimum wages each year; in 2026 they rose by 4.75%. Some awards have entry-level rates below the national minimum wage temporarily, but after a short period employees move to higher classifications.

State differences: where you live matters

State-level average earnings vary significantly. Using the on-site reference data, we can see the index for each state:

• Australian Capital Territory: index 109.9 ($119,090 annualised)
• Western Australia: index 106.9 ($115,825 annualised)
• New South Wales: index 101.2 ($109,658 annualised)
• Victoria: index 98 ($106,137 annualised)
• Queensland: index 97.9 ($106,064 annualised)
• Northern Territory: index 95.2 ($103,173 annualised)
• South Australia: index 94.6 ($102,450 annualised)
• Tasmania: index 88.6 ($96,008 annualised)

These are averages across all industries. A worker on the national minimum wage in Tasmania earns the same hourly rate as one in the ACT, but the overall earnings landscape differs. The states page on Salary Index breaks down each region further.

Industry differences: from mining to retail

Industry is a stronger driver of pay than location. The on-site reference shows:

• Mining: index 154.7 – well above the national line
• Professional, scientific and technical services: index 114.7
• Education and training: index 105.5
• Health care and social assistance: index 97.8
• Retail trade: index 75.9
• Accommodation and food services: index 72.5

A retail worker on the national minimum wage is at index 48.2, but many retail awards pay above that minimum. However, the industry average is still low. For example, a casual retail employee might get the national minimum wage plus 25% casual loading ($33.05/hr), but that's still below the industry average of index 75.9.

How the Salary Index works

The index is calculated as yearly gross pay divided by the national line. For full-time adult ordinary-time earnings, the line is $108,352 annualised. If you earn $52,255 (national minimum wage annualised), your index is 48.2. If you earn $115,825 (WA average), your index is 106.9. This helps you see where your pay sits relative to the typical full-time worker. Learn more about how the index works.

Practical examples

Consider a 20-year-old working casually in a café in Hobart. They are covered by the Hospitality Industry (General) Award. The award minimum for a Food and Beverage Attendant Level 1 is likely above the national minimum wage. But if they are junior, the rate is a percentage. The national junior rate for 20 years is $25.83/hr, but the award may set a different rate. Their actual take-home pay will also depend on super (12% from July 2026) and tax. For a resident, tax on $52,255 would be about $5,139 plus Medicare levy 2%, leaving around $45,000 net.

Compare that to a mining engineer in Western Australia on index 154.7. Their gross annual pay might be $167,000. Tax would be higher, but the index shows they earn 55% more than the national line.

Why the keyword "minimum wage UK"?

You might have come here searching for UK comparisons. While we don't have UK data in this search, the Australian system is different: we have a national minimum wage, plus awards, enterprise agreements, and state variations. The Fair Work Commission sets the national minimum wage annually. The Australian Bureau of Statistics provides earnings data that feeds into the index.

If you're an employer or employee trying to understand pay, start with the pay guides on Salary Index. They summarise award rates and help you see where a role sits on the index.

Caveats

The index figures are gross ordinary-time benchmarks. They are not a quote for a person, award classification, or job offer. Modern awards can pay more than the national minimum wage. Take-home figures are estimates using the tax-free threshold and 2% Medicare levy, but they ignore HELP repayments, salary sacrifice, and the Medicare levy surcharge. Always check the specific award or agreement for your situation.

Summary

The Australian minimum wage is $26.44/hr (index 48.2), but state and industry differences mean most workers earn more. Western Australia and the ACT have the highest average earnings, while Tasmania and the NT are lower. Mining and professional services pay well above the line; retail and hospitality pay below. Use the industries page to explore specific sectors, and the topics page for more on pay and conditions.