Home / Guides / States and cities

What Is the Average Salary in Sydney? A Guide to Pay, Awards and the National Minimum Wage

Find out the average salary in Sydney based on the national index, how awards compare to the minimum wage, and what it means for your take-home pay.

The average salary in Sydney is uncertain, but the NSW index of 101.2 suggests it is slightly above the national line of $108,352 per year.

What Is the Average Salary in Sydney?

When people ask about the average salary in Sydney, they usually want a ballpark figure for full-time work. The most reliable benchmark is the national index from the Australian Bureau of Statistics, which sets the line at 100 for full-time adult ordinary-time earnings. For New South Wales, the index sits at 101.2, which annualises to about $109,658. That is slightly above the national average of $108,352. But this is a state-wide figure – Sydney itself may be higher or lower depending on the industry and role. Because we do not have a precise Sydney-only index, the exact average salary in Sydney is uncertain, but it is reasonable to say it is close to the NSW benchmark.

How the Salary Index Works

The Salary Index compares yearly gross pay to the national line. A score of 100 means you earn exactly the national average. The NSW index of 101.2 means typical full-time earnings in the state are 1.2% above that line. For comparison, the national minimum wage from 1 July 2026 is $26.44 per hour, or $52,255 per year, which gives an index of 48.2 – less than half the average. How the index works is explained in more detail on our site.

Awards Versus the National Minimum Wage

A key part of understanding the average salary in Sydney is knowing the difference between award wages and the national minimum wage. The national minimum wage is the legal floor for all employees. But most workers in Sydney are covered by a modern award that sets higher minimum rates for their industry or occupation. For example, the Retail Award might set a rate of $28 per hour for a full-time sales assistant, while the Hospitality Award could set $27 per hour for a food and beverage attendant. These award rates are higher than the national minimum wage of $26.44 per hour.

Why Awards Matter for the Average Salary in Sydney

Because awards set the minimum, the average salary in Sydney is pulled upward by award-covered roles. However, many employers pay above award to attract and retain staff. In professional services, the Professional, Scientific and Professional Index is 114.7, well above the state average. In retail (index 75.9) and hospitality (index 72.5), the average is lower. So the average salary in Sydney depends heavily on which industry you are in. The pay guides on our site break down award rates for different roles.

Real Example: A Retail Worker in Sydney

Imagine a full-time retail employee in Sydney covered by the General Retail Industry Award. The award minimum for a Level 1 adult employee is around $28.50 per hour. That works out to about $57,000 per year. That is above the national minimum wage but still below the NSW average of $109,658. The award also includes penalty rates for weekends and public holidays. If the employer pays the award minimum, the worker earns less than the average salary in Sydney is lower than the state average. But many retailers pay above award, so the actual average for retail workers is lower than the award minimum. This is why the average salary in Sydney is a mix of award-covered and above-award workers.

Super and Tax on the Average Salary in Sydney

On the NSW average of $109,658, your employer must pay 12% super guarantee from 1 July 2026, adding $13,159 to your super account. Your take-home pay after tax (2026-27 rates) is about $80,918, including the 2% Medicare levy. If you earn the national minimum wage ($52,255), your take-home is around $42,000. The difference shows how the average salary in Sydney gives you more disposable income, but also higher tax and super contributions.

Other Factors That Affect the Average Salary in Sydney

  • **Industry: Professional services push the average up; retail and hospitality pull it down. The average salary in Sydney is not a single number for everyone.
  • **Experience and qualifications: Senior roles pay more than the average.
  • **Employer size: Large firms often pay above award.
  • **Location within Sydney: City centre vs suburbs can differ.

Summary

The average salary in Sydney is uncertain but likely around $109,658 based on the NSW index. Awards set higher minimums than the national minimum wage, and many workers earn above award. The states page shows how NSW compares to other states. For a deeper dive into how the index is calculated, see how the index works. If you are negotiating pay, remember that the average salary in Sydney is a benchmark, not a guarantee. Check your award or agreement to know your minimum entitlement.

Questions people ask

How does the average salary in Sydney compare to the national minimum wage?

The average salary in Sydney is not a single figure, but the NSW index of 101.2 means typical full-time earnings are about 1.2% above the national line of $108,352 per year. The national minimum wage is $52,255 per year (index 48.2), so the average in Sydney is roughly double that. However, many workers in Sydney are covered by awards that set higher minimums than the national minimum wage, and market rates often exceed awards.

What is the difference between an award wage and the national minimum wage in Sydney?

The national minimum wage ($26.44/hr) is the legal floor for all employees not covered by an award. A modern award sets higher minimum pay rates for specific industries and roles. For example, a retail employee in Sydney might have an award rate above $30/hr, while a hospitality worker under the Hospitality Award could earn more than $28/hr. Awards also include penalty rates, allowances, and conditions. The average salary in Sydney is influenced by these award minima, but many employers pay above award to attract talent.

How much tax and super will I pay on the average salary in Sydney?

On an average salary in Sydney of around $109,658 (NSW index), your 2026-27 tax (excluding Medicare) would be about $26,547, plus the 2% Medicare levy ($2,193), leaving roughly $80,918 take-home. Your employer must pay 12% super guarantee on top, adding about $13,159 to your retirement savings. These are estimates and ignore HELP debts, salary sacrifice or the Medicare levy surcharge. Award wages and the national minimum wage have lower tax and super amounts.

100

Salary index

Around the national line

Min 48.2
100 100
ACT 109.9
Mine 154.7
  • In the account — Tax and Medicare estimate
  • Super on top — 12% employer super
  • Ordinary hour — If spread over 38 hours

Related guides

  1. —
    What a salary sacrifice car means for your pay under awards and the national minimum wage

    Learn how a salary sacrifice car arrangement works in Australia, including its effect on award rates, the national minimum wage, superannuation, and tax. Understand the rules.

  2. 100
    What is salary? Awards, the national minimum wage and where your pay sits on the index

    Understand what salary means in Australia, how it relates to awards and the national minimum wage, and where your pay sits on the Salary Index.

  3. —
    Average Salary Australia by Age: How Awards and the National Minimum Wage Shape Pay

    Understand average salary in Australia by age, including junior rates under the national minimum wage and modern awards. See how the Salary Index benchmarks pay.

  4. 97.8
    QLD Health Salary Packaging: What It Means for Your Pay Under Awards and the National Minimum Wage

    Understand QLD Health salary packaging and how it interacts with modern awards and the national minimum wage. Learn how salary packaging affects your take-home pay and where your g