What is minimum wage Australia? State and industry differences explained

What is minimum wage Australia?

The national minimum wage is the legal floor for most employees in Australia. From 1 July 2026, it is $26.44 per hour, $1,004.90 per week, or $52,255 per year. On the Salary Index, that gives a score of 48.2 – meaning a full-time worker on the minimum earns about half the national line of $108,352 (index 100). Casual workers get a 25% loading, so $33.05 per hour.

This rate applies to employees not covered by a modern award or registered agreement. Most workers, however, are covered by an award that sets higher minimums. The entry-level award floor is $25.74 per hour, and award rates rose by 4.75% from 1 July 2026.

State differences in pay

Even though the national minimum wage is uniform, actual earnings vary significantly across states. The states page shows each state’s index relative to the national line:

• Australian Capital Territory – index 109.9 ($119,090 annualised)
• Western Australia – index 106.9 ($115,825)
• New South Wales – index 101.2 ($109,658)
• Victoria – index 98.0 ($106,137)
• Queensland – index 97.9 ($106,064)
• Northern Territory – index 95.2 ($103,173)
• South Australia – index 94.6 ($102,450)
• Tasmania – index 88.6 ($96,008)

These differences reflect industry composition, not a different minimum wage. For example, WA’s high index is driven by mining, while Tasmania’s lower index reflects a higher share of lower-paid industries like hospitality and retail.

Industry differences

Industry is the biggest factor in whether someone earns above the minimum. The industries page lists benchmarks:

• Mining – index 154.7 (well above the national line)
• Professional, scientific and technical – index 114.7
• Education and training – index 105.5
• Health care and social assistance – index 97.8
• Retail trade – index 75.9
• Accommodation and food services – index 72.5

A retail worker on the General Retail Industry Award might earn $27–$30 per hour, well above the national minimum but still below the national line. A mining worker on a site agreement could earn $50–$60 per hour. The national minimum wage is the floor, but most people earn more because of their award or agreement.

How awards and superannuation affect take-home pay

Modern awards set minimum pay rates for specific jobs and industries. They often include penalty rates, overtime, and allowances. The national minimum wage only applies if no award covers the job. Always check your award via the Fair Work Ombudsman.

Superannuation is 12% from 1 July 2026, paid on top of your gross wage. For a minimum-wage worker earning $52,255, the employer must contribute $6,270.60 to super. The maximum contribution base is $270,830.

Tax on the minimum wage

For a resident earning $52,255 in 2026–27, tax is calculated as:

• $0 on the first $18,200
• 15% on the next $26,800 ($4,020)
• 30% on the remaining $7,255 ($2,176.50)
• Plus 2% Medicare levy ($1,045.10)

Total tax and Medicare: about $7,241.60. Take-home pay is roughly $45,013 per year, or $865 per week. This ignores HELP repayments, salary sacrifice, or the Medicare levy surcharge.

Junior rates and casual loading

Junior employees (under 21) get a percentage of the adult national minimum wage. For example:

• Under 16: $9.73/hr
• 16 years: $12.51/hr
• 17 years: $15.28/hr
• 18 years: $18.06/hr
• 19 years: $21.81/hr
• 20 years: $25.83/hr

Modern awards may set different junior rates, so check the relevant award. Casual loading (25%) applies to the base rate, including for juniors.

How the Salary Index helps

The how the index works page explains that your yearly gross pay divided by the national line ($108,352) times 100 gives your index. A minimum-wage worker’s index is 48.2. That puts them well below the average, but many workers in retail or hospitality have indexes in the 70s or 80s. Use the index to compare your pay against the national benchmark.

For more detail on specific awards or industries, see the pay guides and topics pages.