What is the minimum wage in Australia? Gross pay, super and tax explained

What is the minimum wage in Australia?

The national minimum wage is the legal floor for pay in Australia. From 1 July 2026, it is $26.44 per hour, $1,004.90 per week, or $52,255 per year before tax. This rate is set by the Fair Work Ombudsman after the annual wage review and applies to adult employees who are not covered by a modern award or enterprise agreement.

On the Salary Index, where 100 equals full‑time adult ordinary‑time earnings of $108,352 per year, the minimum wage sits at index 48.2. That means it is just under half the national average – a reminder of how far the minimum is from the typical full‑time salary.

How the minimum wage compares on the Salary Index

The Salary Index compares any gross yearly pay to the national line. For the minimum wage:

$52,255 ÷ $108,352 × 100 = 48.2

This index figure helps you see the gap between the legal minimum and what the Australian Bureau of Statistics reports as the average full‑time adult ordinary‑time earnings. For context, the states with the lowest average indices – Tasmania at 88.6 and South Australia at 94.6 – are still well above the minimum wage. Even the industries with the lowest indices, such as accommodation and food services (72.5) and retail trade (75.9), pay more on average than the minimum.

Gross pay, super, and tax on the minimum wage

Let’s break down what the minimum wage means in practice.

Gross pay

• Weekly: $1,004.90
• Yearly: $52,255

Superannuation From 1 July 2026, the super guarantee is 12% of ordinary‑time earnings. Your employer pays this on top of your wage, so the total cost to them is $58,525.60 per year. The super goes into your fund and is not part of your take‑home pay.

Tax and Medicare For a resident in 2026–27 using the tax‑free threshold:

• Tax‑free: $0 on the first $18,200
• 15% on the next $26,800 (up to $45,000): $4,020
• 30% on the remaining $7,255: $2,176.50
• Total tax: $6,196.50
• Medicare levy (2% of $52,255): $1,045.10
• Total deductions: $7,241.60
• Estimated take‑home: $45,013.40 per year

This is a rough estimate. It ignores HELP repayments, salary sacrifice, the Medicare levy surcharge, and any tax offsets. Your actual take‑home may be different.

Junior rates and award minimums

Not everyone gets the adult minimum wage. Junior workers under 21 receive a percentage based on age:

• 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

These are the adult minimum wage multiplied by the percentages in the National Minimum Wage Order. A modern award can set different junior rates, sometimes higher.

Also, most employees are covered by a modern award, which sets a higher minimum. The entry‑level award floor from 1 July 2026 is $25.74 per hour – still below the national minimum? Actually, the national minimum is $26.44, so the award floor is slightly lower, but award rates typically increase with skill level. Always check your pay guides to see the correct rate for your job.

State and industry context

The minimum wage is a national standard, but average earnings vary by state. For example, Western Australia has an index of 106.9 ($115,825 annualised), while Tasmania is 88.6 ($96,008). The minimum wage of $52,255 is below every state average, which is expected – it is the floor, not the norm.

In industries like mining (index 154.7) or professional services (114.7), the gap is huge. In retail (75.9) or hospitality (72.5), the average is still about 50% above the minimum. That shows how many workers in those sectors earn above the legal minimum through awards or agreements.

Key takeaways

• The national minimum wage is $26.44/hr, $1,004.90/wk, $52,255/yr – index 48.2.
• Super guarantee of 12% adds $6,270.60/yr paid by your employer.
• After tax and Medicare, a resident takes home roughly $45,013/yr.
• Junior rates, casual loading, and modern awards can change what you actually earn.
• For more detail on how the index works, see how the index works.

If you are unsure whether your pay meets the minimum, check your award or agreement. The Fair Work Ombudsman provides free resources, and you can compare your pay using the topics section on this site.