How a salary seeker can compare job offers using the salary index
Learn how the salary index helps a salary seeker compare job ad pay figures to national benchmarks, including super, tax, and award rates.
The salary index benchmarks gross full-time adult ordinary-time earnings at 100 ($108,352/year), so a salary seeker can see where an offer sits relative to the national line.
What a salary seeker needs to know when reading a job ad
Every salary seeker faces the same puzzle: a job ad says $85,000 plus super, another says $110,000 package, and a third lists an hourly rate of $45 casual. How do you know which one is a fair offer? The answer lies in a single benchmark: the salary index.
The salary index turns any pay figure into a number you can compare against the national line. An index of 100 equals the average full-time adult ordinary-time earnings, which the Australian Bureau of Statistics reported as $2,083.70 per week in May 2026, or $108,352 a year. If your offer has an index below 100, it sits below the national average; above 100, it is above.
How the salary index helps you compare offers
Let’s walk through a typical scenario. You see an ad for a full-time role at $95,000. Divide $95,000 by $108,352 and multiply by 100: you get an index of 87.7. That is below the national line, but it might still be competitive depending on your industry and location. For instance, the retail trade industry index is 75.9, so $95,000 would be well above the retail average. On the other hand, professional services have an index of 114.7, so $95,000 is below that sector’s average.
State matters too. A salary seeker in Western Australia sees an average index of 106.9, while Tasmania sits at 88.6. The same $95,000 offer would be below average in WA but above average in TAS. You can explore state benchmarks on our states page.
What about hourly rates? A casual job offering $35 per hour with a 25% loading means the base rate is $28. Annualise that: $28 × 38 hours × 52 weeks = $55,328, index 51.1. That is close to the national minimum wage index of 48.2. But if the role is covered by an award, the minimum might be higher. The Fair Work Ombudsman sets award rates that rose 4.75% from 1 July 2026. Always check the applicable award using their Pay and Conditions Tool.
Factoring in super, tax, and awards
A salary seeker must look beyond the gross figure. Super guarantee is 12% from 1 July 2026, paid on top of your salary. If an ad says $100,000 plus super, your total remuneration is $112,000. But the index uses gross ordinary-time earnings before super, so compare base salaries first. The pay guides from Fair Work Ombudsman list minimum rates including allowances and penalties.
Tax also changes the picture. For 2026–27, resident tax rates are: nil up to $18,200, then 15% to $45,000, 30% to $135,000, 37% to $190,000, and 45% above. Add the 2% Medicare levy. A salary of $80,000 (index 73.8) would have a take-home of about $62,500 after tax and Medicare, assuming no HELP or other deductions. A salary seeker can use the index to quickly see where an offer sits before diving into tax calculations.
Awards set the legal floor. Even if an ad offers a salary above the award, check that the classification matches your duties. For example, a retail employee classified as a Level 1 has a minimum hourly rate; if the ad offers a salary that works out below that rate when divided by hours, it may be underpaying. The industries page shows typical index ranges for sectors like health care (97.8) or education (105.5).
Using the index as a benchmark, not a quote
The salary index is a guide, not a promise. It reflects average ordinary-time earnings for full-time adults, not including overtime, penalties, or bonuses. A salary seeker in mining might see an index of 154.7, but that average includes many senior roles and shift allowances. Your individual offer could be lower or higher.
Also remember that the index is gross. Take-home pay depends on your tax situation. The national minimum wage of $26.44 per hour (index 48.2) gives a weekly take-home of about $830 after tax and Medicare for a single adult. Casual employees get a loading, so their effective index is higher.
For a deeper dive into how the index is calculated, see how the index works. And if you want to compare offers across different states or industries, our topics page has more resources.
Final thoughts for the salary seeker
When you read a job ad, start by annualising the pay. Then divide by $108,352 to get your index. Compare that index to the national line (100), your state average, and your industry average. Factor in super (12% on top), tax, and award minimums. This method turns a confusing set of numbers into a clear benchmark. Whether you are negotiating a raise or choosing between two offers, the salary index gives you a factual starting point.
Questions people ask
How do I compare a salary offer to the national average?
Annualise the offer (multiply weekly by 52, hourly by 38 hours x 52) and divide by $108,352 (index 100). For example, $80,000 gives an index of 73.8, meaning it is below the national full-time adult ordinary-time average. Use the [Salary Index](/) to see where your offer sits against state and industry benchmarks.
What is the salary index and how is it calculated?
The salary index sets full-time adult ordinary-time earnings at 100, based on the Australian Bureau of Statistics Average Weekly Earnings figure ($2,083.70/week, annualised $108,352 as of May 2026). Your yearly gross pay divided by that figure, times 100, gives your index. For more detail, see [how the index works](/method).
Should I include super when comparing salaries?
Super guarantee (12% from 1 July 2026) is paid on top of your gross salary, not deducted from it. When comparing offers, compare base salaries first; super is additional. The index uses gross ordinary-time earnings before super. Check if the ad states 'plus super' or 'including super'.