The new minimum wage: $26.44 per hour from 1 July 2026

What is the new minimum wage?

The new minimum wage in Australia from 1 July 2026 is $26.44 per hour for a full-time adult employee. That works out to $1,004.90 per week, or $52,255 a year. The Fair Work Ombudsman sets this rate after the annual wage review, and it applies to employees not covered by a modern award or enterprise agreement.

If you’re a casual worker, you get a loading on top – typically 25%, which brings the casual minimum to $33.05 per hour. Junior workers (under 21) receive a percentage of the adult rate, ranging from $9.73 for under-16s to $25.83 for 20-year-olds. Modern awards can set different junior rates, so always check the relevant award.

Where the new minimum wage sits on the Salary Index

The Salary Index compares gross annual pay to the national line of full-time adult ordinary-time earnings. That line is $108,352 a year (based on ABS Average Weekly Earnings, May 2026). The new minimum wage annualised at $52,255 gives an index of 48.2. In plain terms, someone on the minimum earns about half of what the typical full-time adult worker earns.

To put that in perspective, the index for retail trade is 75.9, and for accommodation and food services it’s 72.5. Both industries often pay above the minimum but still well below the national average. On the other end, mining sits at 154.7 and professional services at 114.7. The new minimum wage is the floor, but most award-covered roles pay more.

Gross pay, super, and tax on the new minimum wage

Let’s look at a concrete example. A full-time employee working 38 hours a week on the new minimum wage earns $52,255 gross. From 1 July 2026, the super guarantee rate is 12% of ordinary time earnings. That means your employer must add $6,270.60 to your super account each year. The super contribution is not part of your take-home pay – it’s extra money for your retirement.

Now for tax. Using the 2026–27 resident tax rates (with the tax-free threshold and a flat 2% Medicare levy), the tax on $52,255 is roughly $11,255. That leaves about $41,000 take-home. This estimate ignores HELP debts, salary sacrifice, the Medicare levy reduction, and the Medicare levy surcharge. Your actual take-home may differ.

How state and industry indices compare

The national minimum wage is the same across Australia, but average earnings vary by state. For example, the states page shows Western Australia at 106.9 ($115,825 annualised) and Tasmania at 88.6 ($96,008). A minimum wage worker in WA earns the same gross as one in TAS, but the local average is higher in WA. That doesn’t change the minimum itself, but it affects how your pay relative to others around you.

Similarly, industries like health care and social assistance has an index of 97.8, close to the national line. Education and training is 105.5. The new minimum wage is far below those, but many workers in those industries are covered by awards that pay above the minimum.

Understanding the new minimum wage and awards

The new minimum wage is the legal floor, but most employees are covered by a modern award. Award rates are generally higher. For example, the entry-level award floor from 1 July 2026 is $25.74 per hour – already above the minimum. The 2026 wage review increased award minima by 4.75%. So while the new minimum wage is $26.44, many award classifications start higher.

If you’re on a registered agreement or individual contract, it must still meet the minimum. The pay guides can help you find the correct rate for your award.

Take-home pay and the new minimum wage

When people ask “what will I actually get?”, they often mean after tax and super. The gross figure is $52,255. Super adds $6,270.60 to your retirement savings. Tax and Medicare take about $11,255. So your bank account gets around $41,000 over the year. That’s about $788 per week after tax.

Remember, if you’re a casual, your hourly rate is higher, but you don’t get paid leave. The casual loading compensates for that. The new minimum wage for casuals is $33.05 per hour, which annualised (if you worked full-time hours) would be $65,338 gross. But casual work is often irregular.

Why the new minimum wage matters for the index

The how the index works page explains that the index is a ratio of your gross annual pay to the national line. For the new minimum wage, that ratio is 48.2. It’s a useful benchmark to see where your pay stands relative to the average. If your pay is above the minimum, your index will be higher. For example, a retail worker on $60,000 has an index of 55.4.

The new minimum wage is the starting point. Most Australians earn more, but for those on the minimum, the index shows the gap. It’s a reminder that the minimum is not a living wage in many parts of the country, especially in high-cost states like NSW (index 101.2) and ACT (109.9).

Final thoughts on the new minimum wage

The new minimum wage from July 2026 is $26.44 per hour. It’s the floor set by the Fair Work Ombudsman after considering the economy and living costs. While it’s a 4.75% increase on the previous award minima, it still sits at less than half the national average earnings. Understanding your gross pay, super, and tax helps you see the full picture. Use the Salary Index to compare your own pay, or check topics for more guides on Australian wages.