Marine Engineer Salary: Where It Sits on the Australian Salary Index

What is a marine engineer salary?

A marine engineer salary in Australia is typically governed by the Seagoing Industry Award 2020, which sets minimum aggregate annual salaries for engineers working on ships. The term "marine engineer salary" refers to the total compensation for controlling and maintaining a vessel's propulsion and mechanical systems. Because seagoing work involves irregular hours and extended periods away, the award uses an aggregate salary that includes an overtime component.

To understand where this pay sits on the Salary Index, we compare the annual gross ordinary-time earnings to the national line of $108,352 (index 100). The index helps you see if a role pays above or below the average full-time adult ordinary-time earnings.

Award rates for marine engineers

The Fair Work Ombudsman's Seagoing Industry Award 2020 lists minimum salaries for various classifications. For marine engineers, the relevant roles are chief engineer, first engineer, second engineer, and third engineer. The rates differ based on vessel manning (18 or AOV). Here are the aggregate annual salaries as of 1 July 2026:

• Chief engineer: $130,870 (AOV) to $134,084 (18 manning)
• First engineer: $113,379 (AOV) to $116,069 (18 manning)
• Second engineer: $104,875 (AOV) to $107,063 (18 manning)
• Third engineer: $100,505 (AOV) to $102,799 (18 manning)

These figures include an aggregate overtime component for a 70-hour week over 27 weeks per year. The ordinary-time component is lower, but the aggregate is the guaranteed annual pay.

How the marine engineer salary compares on the index

Using the national line of $108,352 (index 100), we can calculate approximate index values for these award rates:

• Chief engineer ($130,870): index ≈ 121
• First engineer ($113,379): index ≈ 105
• Second engineer ($104,875): index ≈ 97
• Third engineer ($100,505): index ≈ 93

Note that these are minimum rates. Actual marine engineer salaries may be higher, especially for experienced engineers or those on larger vessels. The index is based on ordinary-time earnings, so the aggregate salary overstates the ordinary-time component. However, it still gives a useful benchmark.

What the data says about marine engineer pay

Jobs and Skills Australia reports that median weekly earnings for marine engineers are not available (N/A). This is common for small occupations with fewer than 2,000 workers. The workforce is about 1,900, with a median age of 45 and 96% male. Average full-time hours are 55 per week, well above the all-occupations average of 44.

Because the award provides the only public salary benchmark, it's the best guide for understanding the marine engineer salary. The Fair Work Commission's Modern Awards Pay Database also confirms these rates.

Factors that affect marine engineer pay

• Vessel size and manning: Larger vessels or those with higher manning levels may pay more.
• Experience and rank: Moving from third engineer to chief engineer increases pay significantly.
• Employer agreements: Some employers pay above award rates.
• Location: While seagoing work is not tied to a state, the states index shows variations in general earnings, but marine engineers are often employed under federal awards.

Superannuation and tax considerations

Employers must pay superannuation guarantee of 12% on top of the salary (from 1 July 2026). So the total remuneration package for a chief engineer could be around $146,574 including super. Tax is calculated at resident rates: for 2026–27, income up to $18,200 is tax-free, then 15% up to $45,000, 30% up to $135,000, 37% up to $190,000, and 45% above. A 2% Medicare levy also applies.

How the salary index works

The Salary Index divides a role's annual gross ordinary-time earnings by the national line ($108,352) and multiplies by 100. For example, a chief engineer earning $130,870 gives an index of 121, meaning 21% above the national average. This helps you compare roles across industries and states.

Where to find more information

For detailed pay guides, see our pay guides section. If you're comparing engineering roles, check industries like mining (index 154.7) or professional services (index 114.7). For state comparisons, see states.

Final thoughts on marine engineer salary

The marine engineer salary under the award is generally above the national average, especially for senior ranks. However, the unique work pattern—long hours at sea—means the effective hourly rate may be closer to other trades. If you're considering this career, the award rates provide a solid starting point for negotiations.

FAQs

What is the starting salary for a marine engineer in Australia? Under the Seagoing Industry Award 2020, the minimum aggregate annual salary for a third engineer (entry-level officer) ranges from $100,505 to $102,799 depending on the vessel manning. This includes an overtime component for a 70-hour week. The ordinary-time component is lower, but the aggregate figure is the guaranteed annual pay for the role.

How does a marine engineer salary compare to other engineering roles? Marine engineer salaries under the award are generally higher than the national average for engineers in many industries. For example, a chief engineer's aggregate salary of around $130,000 gives an index of about 120, well above the national line of 100. However, the work pattern involves longer hours and time at sea, so the hourly rate may be comparable to other engineering roles.

Does the marine engineer salary include superannuation? No, the award rates are base salaries before superannuation. Employers must pay superannuation guarantee contributions of 12% on top of the salary (from 1 July 2026). So the total remuneration package is higher than the aggregate annual salary shown in the award.