What Is a Salary Package? Awards vs National Minimum Wage in Australia

What Is a Salary Package?

A salary package is the total remuneration you receive from your employer. It typically includes your base salary, superannuation, and may also include bonuses, allowances, or non-cash benefits like a car or health insurance. In Australia, the term is often used in job advertisements and negotiations. But how does your salary package stack up against the national benchmark? The Salary Index uses full-time adult ordinary-time earnings as 100, which is $108,352 per year (based on $2,083.70 per week from the Australian Bureau of Statistics).

Awards vs the National Minimum Wage

When you hear about the national minimum wage, that is the legal floor for all employees not covered by an award or enterprise agreement. From 1 July 2026, it is $26.44 per hour, or $1,004.90 per week, annualised to $52,255. That gives an index of 48.2—well below the national line. Most workers, however, are covered by a modern award, which sets higher minimum rates for their industry or role. Award minima rose by 4.75% from 1 July 2026, and the entry-level award floor is $25.74 per hour. Some awards pay much more, especially for skilled trades or professional roles.

Your salary package should be compared to the relevant award or the national minimum wage to ensure you are being paid fairly. If your package is above the award, you are doing well. But remember, the salary index is a broader benchmark—it includes all full-time adults, not just those on awards. For example, the industries page shows that mining has an index of 154.7, while retail trade is 75.9 and accommodation and food services is 72.5.

How the Salary Index Works

The salary index is your yearly gross ordinary-time earnings divided by the national line ($108,352) times 100. So if you earn $80,000 a year, your index is about 73.8. If you earn $130,000, it is about 120.0. This helps you see where you sit relative to the average full-time worker. The index does not include superannuation, overtime, or bonuses—just ordinary-time earnings. When you negotiate a salary package, you might include super, but the index is a useful starting point.

Superannuation and Your Salary Package

From 1 July 2026, the super guarantee is 12% of your ordinary-time earnings, up to a maximum contribution base of $270,830. Your employer must pay this on top of your base salary. So if your salary package is advertised as $100,000 plus super, your total package is $112,000, but the salary index would use the $100,000 base. Always check whether a quoted figure includes super or not.

Casual Loading and Junior Rates

If you are a casual employee, your salary package should include a casual loading—typically 25% on top of the base rate. For the national minimum wage, that works out to $33.05 per hour. Junior rates are lower percentages of the adult rate. For example, a 16-year-old on the national minimum wage earns $12.51 per hour. Awards may set different junior rates, so check your specific award.

State and Industry Differences

Your salary package can vary significantly by state and industry. The states page shows that the ACT has the highest index at 109.9, while Tasmania is lowest at 88.6. If you work in professional, scientific and technical services, the index is 114.7—above the national line. In health care and social assistance, it is 97.8, slightly below. These benchmarks help you understand whether your salary package is competitive for your location and field.

Tax and Take-Home Pay

Your salary package is gross, but your take-home pay depends on tax. For 2026–27, resident tax rates (excluding Medicare) are: nil up to $18,200; 15% from $18,201 to $45,000; 30% from $45,001 to $135,000; 37% from $135,001 to $190,000; and 45% above $190,000. Plus a 2% Medicare levy. These estimates ignore HELP repayments, salary sacrifice, and the Medicare levy surcharge. To see how your salary package translates to take-home pay, use the pay guides or how the index works for more detail.

Putting It All Together

When you see a salary package, ask: does it include super? Is it above the award? How does it compare to the national line? The salary index gives you a quick answer. For example, a salary package of $70,000 base plus super gives an index of 64.6—below the national line but above the minimum wage. A package of $120,000 base gives an index of 110.8, above average. Use the topics page to explore more about awards, enterprise agreements, and how to negotiate your package.

Remember, the national minimum wage and award rates are legal minimums. Your salary package can be higher, and often is. The key is to know the benchmarks so you can advocate for fair pay.