Minimum adult wage Australia: how it compares across states and industries
The minimum adult wage Australia is $26.44 per hour from July 2026. See how this floor rate compares with average earnings by state and industry using the Salary Index.
The national minimum wage for adults sits at index 48.2, well below the full-time adult ordinary-time earnings benchmark of 100.
What is the minimum adult wage in Australia?
The minimum adult wage Australia refers to the national minimum wage set by the Fair Work Commission. From 1 July 2026, it is $26.44 per hour or $1,004.90 per week for a 38-hour week, annualising to $52,255. This rate applies to adult employees (21 years and over) who are not covered by a modern award or enterprise agreement. Most employees in Australia are covered by an award, which typically sets higher minimum rates. The Fair Work Ombudsman explains that the national minimum wage is the legal floor, and award-covered employees received a 4.75% increase from 1 July 2026, with the lowest ongoing award rate also at $26.44 per hour.
On the Salary Index, the national minimum wage scores 48.2 – meaning it is less than half of the full-time adult ordinary-time earnings benchmark of $108,352 (index 100). Casual employees on the national minimum wage get a 25% loading, making their minimum $33.05 per hour, which would index at about 60.3.
State differences in context
While the dollar amount of the minimum adult wage is the same nationwide, its purchasing power and relativity to local earnings vary. The states page shows average full-time earnings indices: NSW 101.2, VIC 98, QLD 97.9, SA 94.6, WA 106.9, TAS 88.6, NT 95.2, ACT 109.9. A worker on the national minimum wage in Tasmania (average $96,008) earns a wage that is a larger share of the state average than a worker in the ACT (average $119,090). However, the minimum wage itself does not change by state – it is a national standard. State indices are useful for comparing typical earnings, not minimum rates.
Industry differences and the minimum wage
Industries with lower average earnings tend to have more workers on or near the minimum wage. For example, Retail trade has an index of 75.9 and Accommodation and food services 72.5. In these sectors, award rates often start close to the national minimum. The Fair Work Commission sets special rates for juniors, apprentices, and employees with disability. Junior rates (award/agreement-free) are percentages of the adult rate: under 16 $9.73/hr, 16 $12.51/hr, 17 $15.28/hr, 18 $18.06/hr, 19 $21.81/hr, 20 $25.83/hr. Modern awards may set different junior rates.
In high-paying industries like Mining (index 154.7) or Professional services (114.7), the minimum wage is far below typical earnings. The index helps you see where a pay figure sits against the national line: how the index works explains that it is yearly gross divided by the national line times 100.
Practical considerations
- Awards and agreements: If you are covered by a modern award, your minimum wage is likely higher than the national minimum. Use the pay guides to check award rates.
- Superannuation: From 1 July 2026, the super guarantee is 12% on ordinary time earnings, up to a maximum contribution base of $270,830.
- Tax: Resident tax rates for 2026–27 (excluding Medicare) are: nil up to $18,200; 15% $18,201–$45,000; 30% $45,001–$135,000; 37% $135,001–$190,000; 45% above $190,000. Medicare levy is 2% (some exemptions apply).
- Casual loading: Award/agreement-free casuals must get at least 25% on top of the base rate.
The minimum adult wage Australia is a critical benchmark, but most workers earn above it. Use the Salary Index to compare any pay figure to the national average. For more on specific industries or states, see industries and states.
Questions people ask
How does the minimum adult wage compare across Australian states?
The national minimum wage is the same dollar amount across all states and territories: $26.44 per hour from July 2026. However, the Salary Index shows how that wage relates to local average earnings. For example, a worker on the national minimum wage in Tasmania (state index 88.6) earns about 48.2% of the national benchmark, but relative to the Tasmanian average of $96,008, their wage is a larger share. In the ACT (index 109.9), the same minimum wage is a smaller fraction of the local average. State indices reflect differences in average full-time earnings, not minimum wage rates.
How does the minimum adult wage compare across industries?
The national minimum wage is the legal floor for all industries, but many workers are covered by modern awards that set higher minimum rates. Industries with low average earnings, such as Retail trade (index 75.9) and Accommodation and food services (72.5), often have award rates close to the national minimum. In contrast, industries like Mining (index 154.7) pay well above the minimum. The Salary Index helps you see where a particular wage sits relative to the national line, regardless of industry.
What is the Salary Index for the minimum adult wage?
The national minimum wage of $52,255 per year (from July 2026) gives an index of 48.2 when compared to the national line of $108,352 (full-time adult ordinary-time earnings). This means the minimum wage is just under half of the benchmark. For a casual employee receiving the 25% loading ($33.05/hr, annualised ~$65,338), the index would be about 60.3. The index is a useful tool to gauge where any pay figure sits against the Australian average.