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Au minimum wage explained: awards vs the national minimum wage
Learn about the au minimum wage, its index value of 48.2, and how modern awards often set higher pay. Understand the national pay floor and award comparisons.
The national minimum wage sits at an index of 48.2, well below the full-time adult ordinary-time earnings benchmark of 100.
Au minimum wage: the national pay floor
The term "au minimum wage" refers to the national minimum wage set by the Fair Work Commission each year. As of 1 July 2026, it is $26.44 per hour, $1004.90 per week, or $52,255 annually. On the Salary Index, where 100 equals full-time adult ordinary-time earnings of $108,352, the national minimum wage sits at an index of 48.2. That means a full-time worker on the minimum wage earns less than half the national benchmark.
How the national minimum wage works
The national minimum wage is the legal minimum pay for employees who are not covered by a modern award or enterprise agreement. It applies across all states and territories. For casual workers, a loading of at least 25% is added, bringing the casual rate to $33.05 per hour. The Fair Work Ombudsman enforces these rates.
Junior employees have their own minimum rates based on age. Under the national minimum wage order, a 16-year-old earns $12.51 per hour, an 18-year-old $18.06, and a 20-year-old $25.83. These are calculated as percentages of the adult rate. However, modern awards can set different junior rates, so it's important to check the relevant award.
Awards versus the national minimum wage
Most Australian workers are covered by a modern award that sets minimum pay and conditions for their industry or occupation. Award rates are generally higher than the national minimum wage. For example, the industries page shows that the retail trade index is 75.9 and accommodation and food services is 72.5 – both well above the national minimum wage index of 48.2. Even so, these industries pay below the overall average.
Some awards have entry-level rates that are lower than the national minimum wage. The reference shows an entry-level award floor of $25.74 per hour. In such cases, the national minimum wage overrides, so the worker must be paid at least $26.44. This safety net ensures no adult employee falls below the national floor.
Award minima rose by 4.75% from 1 July 2026, matching the increase in the national minimum wage. But awards also include penalty rates for weekends, public holidays, and overtime, plus allowances for specific tasks. The national minimum wage does not include these extras.
Where the national minimum wage fits in the broader pay picture
The how the index works page explains that the Salary Index compares gross annual ordinary-time earnings to the national line. The national minimum wage index of 48.2 is far below the average. By contrast, the mining industry index is 154.7, and professional services is 114.7. Even the lowest state index, Tasmania at 88.6, is nearly double the minimum wage index.
This gap reflects the reality that the national minimum wage is a floor, not a target. Most full-time workers earn more, either through award rates, enterprise agreements, or individual contracts. The national minimum wage primarily protects the most vulnerable workers, such as those in small businesses or industries without strong award coverage.
Tax and super on the minimum wage
For a resident earning the national minimum wage of $52,255, the 2026–27 tax (excluding Medicare) is calculated as: nil on the first $18,200, then 15% on the next $26,800 (to $45,000), and 30% on the remaining $7,255. That gives a tax of $4,020 plus $2,176.50 = $6,196.50. Add the 2% Medicare levy ($1,045.10) for total tax of about $7,242. Take-home pay is roughly $45,013 per year, or $865 per week.
Superannuation guarantee contributions are 12% from 1 July 2026, paid by the employer on top of gross wages. That adds $6,270.60 to the employee's super account, but it is not included in take-home pay.
Why the au minimum wage matters
Understanding the au minimum wage helps you know your rights. If you are not covered by an award, your employer must pay at least this amount. If you are under an award, check that your base rate is not lower than the national minimum wage. For juniors, compare the award junior rate with the national minimum wage junior rate – the higher one applies.
The national minimum wage is reviewed annually by the Fair Work Commission, taking into account economic conditions and the needs of low-paid workers. It remains a crucial benchmark for pay equity in Australia.
For more details on how pay compares across industries and states, visit the states page or explore pay guides for specific occupations.
Questions people ask
What is the current au minimum wage?
As of 1 July 2026, the national minimum wage is $26.44 per hour, $1004.90 per week, or $52,255 per year. This is the minimum pay for employees not covered by a modern award or enterprise agreement. It applies to all states and territories.
How does the national minimum wage compare to award rates?
Modern awards often set higher minimum rates than the national minimum wage. For example, the retail trade industry index is 75.9, while the national minimum wage index is 48.2. However, some award entry-level rates can be lower than the national minimum wage; in that case the national minimum wage overrides. Awards also include penalty rates, loadings, and allowances.
Are there different minimum wages for junior employees?
Yes. The national minimum wage order sets junior percentages of the adult rate. For example, an 18-year-old earns $18.06 per hour (68.3% of the adult rate). However, modern awards can set different junior rates, which may be higher or lower than the national minimum wage percentages. Always check the applicable award.