Graduate lawyer salary: award rates vs the national minimum wage

What is a graduate lawyer salary?

A graduate lawyer salary is the pay a law graduate receives while completing their practical legal training (PLT) in a law firm before being admitted to practice. Under the Legal Services Award 2020, a law graduate is classified as a Level 5 employee. This classification sets a minimum pay floor that is higher than the national minimum wage but still below the average full-time adult earnings.

From 1 July 2026, the award minimum for a Level 5 law graduate is $1,291.80 per week or $33.99 per hour. Annualised over 52 weeks, that comes to about $67,174. To put that in perspective, the national line on the Salary Index – full-time adult ordinary-time earnings – is $108,352 (index 100). So the award minimum sits at an index of 62.0, meaning it is 38% below the national benchmark.

Awards versus the national minimum wage

The national minimum wage from 1 July 2026 is $26.44 per hour, or $52,255 annualised (index 48.2). The graduate lawyer award rate is 29% higher than the national minimum wage. This is typical of many modern awards that set minimums above the national floor for specific occupations. The award also includes penalty rates, overtime, and allowances that the national minimum wage does not.

However, the award is only a floor. Many law firms, especially in Sydney, Melbourne, and Brisbane, pay graduate lawyers significantly more – sometimes $70,000 to $85,000 – to attract talent. The states page shows that New South Wales has an index of 101.2 and Victoria 98.0, so location matters. A graduate lawyer in Sydney might earn above the award but still below the state average.

Who is covered by the Legal Services Award?

The award covers employers in the legal services industry and their employees in classifications listed in Schedule A. A law graduate is defined as someone who has completed a law degree and is undertaking a period of training to meet admission requirements. They are not yet admitted to practice. The Fair Work Ombudsman clarifies that law graduates are covered by the award when working in a private law firm. However, employers in Aboriginal legal services or community legal centres are not covered.

Once a graduate is admitted as a lawyer, they become award-free. That means their salary is negotiated individually, and the only legal minimum is the national minimum wage. In practice, admitted lawyers earn well above that, but the shift from award coverage to individual negotiation is an important distinction.

How the salary index applies

The Salary Index compares any annual gross salary to the national line of $108,352 (index 100). For a graduate lawyer on the award minimum:

• Annual salary: $67,174
• Index: 67,174 ÷ 108,352 × 100 = 62.0

This is lower than the Professional, Scientific and Technical services industry index of 114.7, which includes many higher-paid legal roles. It is also below the national average for all industries (100). But it is above the Retail trade index (75.9) and Accommodation and food services (72.5).

If a graduate lawyer earns $75,000, the index rises to 69.2. At $85,000, it is 78.5. These figures help benchmark where a salary sits against the broader economy.

Superannuation and tax considerations

From 1 July 2026, the superannuation guarantee is 12% on top of salary, up to a maximum contribution base of $270,830. For a graduate on the award minimum, that adds about $8,061 in employer super contributions annually. The award also specifies that employers must contribute to a fund such as Legalsuper or AustralianSuper unless the employee chooses another.

For tax, a resident graduate earning $67,174 in 2026–27 would pay:

• Nil on the first $18,200
• 15% on the next $26,800 ($4,020)
• 30% on the remaining $22,174 ($6,652)
• Plus 2% Medicare levy ($1,343) Total tax and Medicare: about $12,015, leaving a take-home of roughly $55,159 (excluding HELP repayments or salary sacrifice).

Where to find more information

The pay guides page links to Fair Work Ombudsman resources, including the Legal Services Award pay guide. You can also check the industries page for comparisons with other sectors. If you are negotiating a graduate lawyer salary, remember that the award is the minimum – your skills, the firm’s size, and location all influence the final offer.

Summary

A graduate lawyer salary under the Legal Services Award is $1,291.80 per week (index 62.0). This is above the national minimum wage but below the national average. The award provides a safety net, but many graduates earn more. Once admitted, lawyers move outside award coverage and into individual agreements. Understanding the award versus the national minimum wage helps you know your rights and benchmark your pay.