Aus Minimum Wage: How It Compares Across States and Industries

What is the aus minimum wage?

The aus minimum wage is the legal minimum hourly rate that most adult employees in Australia must be paid. From 1 July 2026, it is $26.44 per hour, which works out to $1,004.90 per week (based on a 38-hour week) and $52,255 per year. On the Salary Index, where 100 represents full-time adult ordinary-time earnings of $108,352, the national minimum wage sits at index 48.2 — less than half the national line.

This rate is set by the Fair Work Ombudsman and applies to employees not covered by a modern award or registered agreement. If you’re a casual worker, you get a 25% loading, making the casual minimum $33.05 per hour.

How state differences affect the minimum wage

While the aus minimum wage is the same dollar amount everywhere in Australia, its real value differs by state because average earnings vary. The states page shows how each state’s typical full-time wage compares to the national line:

• ACT: index 109.9 ($119,090) — the highest average earnings
• WA: index 106.9 ($115,825)
• NSW: index 101.2 ($109,658)
• VIC: index 98 ($106,137)
• QLD: index 97.9 ($106,064)
• NT: index 95.2 ($103,173)
• SA: index 94.6 ($102,450)
• TAS: index 88.6 ($96,008) — the lowest average earnings

A minimum wage earner in Tasmania, where the average wage is lower, may find their pay closer to the local norm than someone in the ACT, where average earnings are much higher. But the minimum wage itself doesn’t change — it’s a national floor.

Industry differences and the minimum wage

Most people earning the aus minimum wage work in industries where award rates are low. The industries page shows how different sectors compare to the national line:

• Mining: index 154.7 — well above average, rarely near the minimum
• Professional, scientific and technical: index 114.7
• Education and training: index 105.5
• Health care and social assistance: index 97.8 — close to the national line
• Retail trade: index 75.9 — often pays award rates just above the minimum
• Accommodation and food services: index 72.5 — the lowest average, where many workers earn near the minimum

If you work in retail or hospitality, your award might set a rate only slightly above the national minimum wage. For example, the entry-level award floor from 1 July 2026 is $25.74 per hour (index ~47.5). Many hospitality and retail classifications pay between $26 and $30 per hour.

How the index works for minimum wage

The how the index works page explains that the Salary Index compares yearly gross ordinary-time earnings to the national line. For the minimum wage:

• Annualised minimum wage: $52,255
• National line: $108,352
• Index = ($52,255 / $108,352) × 100 = 48.2

This means someone on the minimum wage earns about 48% of what the average full-time adult earns. It’s a useful benchmark to see how far the safety net is from typical pay.

Junior and training rates

The aus minimum wage also has junior rates for employees under 21. These are percentages of the adult rate, set by the National Minimum Wage Order:

• 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 always check your award.

Superannuation and tax on the minimum wage

From 1 July 2026, the super guarantee is 12%, paid on top of your wage. For a minimum wage earner on $52,255, that’s an extra $6,270.60 into super each year, up to the maximum contribution base of $270,830.

For tax, a resident earning only the minimum wage would pay:

• Nil on the first $18,200
• 15% on the next $26,800 ($18,201 to $45,000) = $4,020
• 30% on the remaining $7,255 ($45,001 to $52,255) = $2,176.50
• Plus 2% Medicare levy on all taxable income = $1,045.10
• Total tax and Medicare: approximately $7,241.60
• Take-home pay: about $45,013 per year or $865 per week

This is a rough estimate; it ignores HELP repayments, salary sacrifice, and the Medicare levy surcharge. Use the ATO’s tax calculator for your situation.

Why the minimum wage matters

The aus minimum wage is a safety net. It ensures that even the lowest-paid workers get a basic standard of living. But because it’s a national figure, it doesn’t account for cost-of-living differences between states or industries. That’s why the Salary Index is useful — it shows how any pay figure compares to the national line, helping you understand where you stand relative to the average.

If you’re on an award, your pay is likely higher than the minimum. Check your award on the Fair Work Ombudsman website or use the pay guides for your industry. And remember, the minimum wage is before tax and super — your take-home will be less, but your super is extra.

Summary

The aus minimum wage of $26.44/hr (index 48.2) is the same across Australia, but its real value varies by state and industry. In high-earning states like the ACT and WA, it’s further behind the local average. In low-earning industries like hospitality, it’s closer to the norm. Use the Salary Index to compare any pay figure to the national line, and always check your award for your correct rate.