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Sydney average salary: how it compares to the national line
Find out where the Sydney average salary sits on the Australian salary index. Using NSW data, we estimate the index and explain what it means for your pay.
The Sydney average salary is estimated to be close to the NSW average of $109,658, giving an index of 101.2 – slightly above the national line of 100.
What is the Sydney average salary?
When people ask for the Sydney average salary, they usually want to know how a typical full-time worker in Australia’s largest city compares with the rest of the country. The Australian salary index, maintained by Salary Index, sets the national line at 100 – that’s the full-time adult ordinary-time earnings of $108,352 a year (based on the ABS Average Weekly Earnings, May 2026). For Sydney, the closest benchmark is the New South Wales state index of 101.2, which annualises to $109,658.
That means the Sydney average salary is roughly 1.2% above the national line. But it’s important to understand what this figure includes and what it leaves out. The index uses gross ordinary-time earnings before tax, super, and any overtime. It’s a benchmark, not a promise. Your own pay might be higher or lower depending on your industry, award, and experience.
How the salary index works
The index is simple: take your yearly gross ordinary-time earnings, divide by the national line ($108,352), and multiply by 100. If you earn exactly the national average, your index is 100. Earn more and your index goes above 100; earn less and it falls below. For example, a retail worker on the national minimum wage of $52,255 has an index of 48.2 – less than half the national line. A mining worker, with an industry index of 154.7, earns about 55% above the line.
Sydney’s index of 101.2 means the typical full-time worker there earns a little more than the national average. But that’s a state-wide figure. Sydney itself may be higher because it hosts many head offices, financial firms, and professional services. The states page breaks down each state’s index, and you can see that New South Wales sits just above Victoria (98) and well above Tasmania (88.6).
Where does Sydney sit compared to other states?
New South Wales is not the highest – that’s the Australian Capital Territory at 109.9 ($119,090) and Western Australia at 106.9 ($115,825). But Sydney is the engine room of NSW, and its average salary is likely closer to the ACT or WA than to the state average. The industries page shows that professional, scientific and technical services have an index of 114.7, and many of those jobs are concentrated in Sydney. Education and training (105.5) and health care (97.8) also have a strong Sydney presence.
If you work in retail or accommodation and food services, your Sydney salary will probably be below the state average. Those industries have indexes of 75.9 and 72.5 respectively. The national minimum wage from 1 July 2026 is $26.44 an hour, or $1,004.90 a week – that’s index 48.2. Even in Sydney, many workers in hospitality and retail are on award rates close to that floor.
What about awards, super and tax?
Awards set minimum pay for many jobs. The Fair Work Ombudsman publishes pay guides that list the minimum hourly rates for each classification. From 1 July 2026, award minima rose by 4.75%. For example, the entry-level award floor is $25.74 an hour. If you’re under 21, junior rates apply – a 19-year-old on the national minimum gets $21.81 an hour, and a 16-year-old gets $12.51.
Superannuation is 12% from 1 July 2026, up from 11.5%. That’s on top of your gross salary, but it’s not included in the salary index. The index only covers ordinary-time earnings, not the super guarantee. Tax for a resident in 2026–27 is progressive: nil up to $18,200, then 15% up to $45,000, 30% up to $135,000, 37% up to $190,000, and 45% above that. Plus a 2% Medicare levy. So a Sydney worker on $109,658 would pay roughly $26,000 in tax and Medicare, leaving about $83,600 take-home. That’s a rough estimate – it ignores HELP repayments, salary sacrifice, and the Medicare levy surcharge.
Why the Sydney average salary matters
Knowing where your pay sits on the index helps you compare yourself to the national line. If you’re below 100, you might want to check if your award rate has been updated or if you’re entitled to a higher classification. If you’re above, you’re in a strong position. The how the index works page explains the calculation in more detail.
Sydney’s average is a useful starting point, but it’s not the whole story. The index doesn’t tell you about cost of living, job security, or career progression. For that, you need to look at your industry and role. The topics page covers specific occupations and how they stack up.
A concrete example
Let’s say you’re a full-time marketing coordinator in Sydney. You earn $80,000 a year. Your index is (80,000 / 108,352) × 100 = 73.8. That’s well below the Sydney average of 101.2. But if you’re a senior software engineer on $150,000, your index is 138.4 – well above. The average masks a wide range. That’s why the index is best used as a benchmark, not a target.
Final thoughts
The Sydney average salary, as measured by the NSW index, is $109,658 – index 101.2. It’s a touch above the national line, reflecting the city’s economic strength. But individual pay varies enormously. Use the index to see where you stand, and check the pay guides if you think you’re being underpaid. Remember, the index is gross ordinary-time earnings – your take-home will be less after tax and Medicare, but your super is extra.
If you’re comparing job offers or negotiating a raise, the index gives you a neutral reference point. It’s not a target, but it’s a fair way to see if your salary is keeping up with the rest of the country.
Questions people ask
What is the Sydney average salary in 2026?
The exact Sydney average salary is not published separately, but the NSW average is $109,658 per year (index 101.2). Sydney, as the state's economic centre, likely has a similar or slightly higher figure. For a precise role, check the relevant award or industry guide.
How does the Sydney average salary compare to the national average?
The national average is $108,352 (index 100). Sydney's average is estimated at $109,658 (index 101.2), meaning it is about 1.2% above the national line. This is typical for a major city with a high concentration of professional and financial services.
Is the Sydney average salary affected by the cost of living?
The salary index measures gross ordinary-time earnings, not purchasing power. Sydney's higher housing and transport costs mean the same salary may go less far than in lower-index states like Tasmania (88.6). However, the index itself does not adjust for cost of living.