Part time minimum wage in Australia: rates, super and tax explained

Part time minimum wage in Australia

The term "part time minimum wage" refers to the lowest hourly rate that a part-time employee can legally be paid in Australia. Under the Fair Work Act, part-time workers are entitled to the same minimum hourly rate as full-time employees, applied on a pro-rata basis for the hours they work. This rate is set by the national minimum wage or by a modern award if one covers the job.

Current national minimum wage (2026-27)

From 1 July 2026, the national minimum wage is $26.44 per hour. For a full-time worker (38 hours per week), this equals $1,004.90 per week or $52,255 per year. On the Salary Index, where 100 represents full-time adult ordinary-time earnings of $108,352, the national minimum wage sits at an index of 48.2. This means a full-time minimum wage earner makes about half the national average.

For a part-time worker, the same hourly rate applies. For example, a part-time employee working 20 hours per week at the national minimum wage earns $528.80 per week in gross wages. Annualised, that's $27,497.60, giving an index of approximately 25.4. That figure is well below the national line, reflecting the lower hours.

Junior rates for part-time workers

If you are under 21, a lower minimum wage may apply. The Fair Work Ombudsman sets junior percentages of the adult national minimum wage. For 2026-27, the hourly rates are:

• 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 rates apply to both full-time and part-time employees unless a modern award specifies a different junior rate. Always check your award or agreement.

Casual loading for part-time casuals

Part-time employees who are casual (not entitled to paid leave) receive a casual loading, usually 25% on top of the minimum wage. For the national minimum wage, that works out to $33.05 per hour. Casual loading is meant to compensate for the lack of sick leave and annual leave.

Super guarantee for part-time workers

Employers must pay super guarantee contributions for part-time employees who earn $450 or more in a month (note: this threshold may be removed from 1 July 2026 – check current rules). The super rate is 12% of ordinary time earnings from 1 July 2026. Super is paid in addition to wages, so a part-time worker on the minimum wage also receives super contributions. For example, on $528.80 weekly wages, the employer adds $63.46 in super. This money goes into a super fund and is not available until retirement.

Tax on part-time minimum wage

Part-time workers pay income tax and the Medicare levy on their earnings. For the 2026-27 financial year, the tax-free threshold is $18,200. A part-time worker earning $27,497.60 would pay:

• Tax on $9,297.60 at 15% = $1,394.64
• Medicare levy at 2% on total income = $549.95 Total tax and Medicare: about $1,944.59 per year, leaving a take-home pay of around $25,553. This is a rough estimate; actual tax may vary with deductions, HELP repayments, or the Medicare levy surcharge.

How awards affect part-time minimum wage

Many part-time workers are covered by a modern award, which sets a minimum wage higher than the national minimum. For example, the Retail Award or Hospitality Award often has higher base rates. If you work in retail, your minimum hourly rate might be $28 or more. Always check your award via the Fair Work Ombudsman. The pay guides on this site can help you find award rates for your industry.

State and industry context

The national minimum wage applies across all states and territories. However, the cost of living varies. For instance, the states page shows that Western Australia has an index of 106.9 (above the national line), while Tasmania is 88.6. A part-time minimum wage earner in WA may find it harder to cover living costs despite the same hourly rate. Similarly, industries like retail trade (index 75.9) and accommodation and food services (72.5) have average earnings well below the national line, meaning many part-time workers in those sectors earn close to the minimum.

Example: part-time worker in hospitality

Consider a 20-year-old working part-time as a waiter in a café, covered by the Hospitality Industry (General) Award. The award rate for a Level 1 employee is typically above the national minimum. If the award rate is $27.50 per hour, then for 20 hours per week, gross wages are $550.00 per week. Super at 12% adds $66.00 per week. After tax, the worker might take home about $480 per week. This is still below the national average but above the bare minimum.

How the Salary Index helps

The how the index works page explains that the index compares your gross annual earnings to the national line of $108,352. For a part-time minimum wage earner, the index is low – often between 25 and 50 depending on hours. This is a useful benchmark to see where your pay sits relative to the broader workforce.

Key takeaways

• The part time minimum wage is the same hourly rate as the full-time national minimum wage.
• Junior rates apply for under 21s.
• Casual part-time workers get a 25% loading.
• Super guarantee (12%) is paid on top of wages.
• Tax is withheld from each pay, with a tax-free threshold of $18,200.
• Always check your award or agreement, as it may set a higher minimum.

For more detailed information, explore the topics section or use the pay guides to find your industry rate.