Minimum Wage Aus: How to Compare Job Offers Using the Salary Index

What is the minimum wage aus?

When you're reading a job ad and comparing offers, the first thing to know is the legal floor. The minimum wage aus – the national minimum wage – is set by the Fair Work Ombudsman and updated each year. From 1 July 2026, it is $26.44 per hour, $1,004.90 per week (based on a 38-hour week), and $52,255 annualised. On the Salary Index, where 100 equals full-time adult ordinary-time earnings of $108,352, the national minimum wage sits at an index of 48.2.

That means a job paying exactly the minimum wage earns about half of what the typical full-time adult worker takes home. But in practice, very few jobs pay only the national minimum. Most roles are covered by a modern award or an enterprise agreement, which set higher minimum rates for that industry or occupation.

How to read a job ad with the minimum wage in mind

A job ad might list an hourly rate or an annual salary. To compare it against the national line, annualise the hourly rate: multiply by 38 hours and then by 52 weeks. For example, an ad offering $30 per hour gives an annualised salary of $59,280. Divide that by $108,352 and multiply by 100 to get an index of 54.7. That's above the minimum wage index (48.2) but still below many industry benchmarks.

Check the industry. The industries page shows that retail trade has an index of 75.9, accommodation and food services 72.5, and professional services 114.7. If you're comparing a retail job at $30/hr, the index of 54.7 is well below the retail average – meaning the offer is on the lower side for that sector. You might want to look up the relevant pay guides to see the award rate for your classification.

State differences matter

Where the job is located also affects the comparison. The states page shows that the average index varies: New South Wales is 101.2, Victoria 98.0, Queensland 97.9, South Australia 94.6, Western Australia 106.9, Tasmania 88.6, Northern Territory 95.2, and the Australian Capital Territory 109.9. A job in Tasmania at the national minimum wage (index 48.2) is much further below the state average (88.6) than the same job in the ACT (average 109.9). Use the state index to see if an offer is competitive locally.

Junior and casual rates

If the job ad is for a junior employee, the minimum wage is lower. The national minimum wage order sets percentages based on age: under 16 years $9.73/hr, 16 years $12.51/hr, 17 years $15.28/hr, 18 years $18.06/hr, 19 years $21.81/hr, and 20 years $25.83/hr. These are the adult minimum wage multiplied by the prescribed percentages. However, a modern award can set a different junior rate, so always check the award.

For casual jobs, the minimum wage includes a 25% loading. That means the casual minimum is $33.05 per hour. When comparing a casual offer, use the loaded rate to annualise and compare against the index.

Super and tax: what you actually take home

Superannuation is on top of the salary. From 1 July 2026, the super guarantee is 12% of ordinary earnings, up to a maximum contribution base of $270,830. So a job paying the minimum wage of $52,255 would also attract $6,270.60 in super (12% of $52,255). That money goes into your super fund, not your pocket now.

For tax, the 2026-27 resident rates (excluding Medicare) are: nil up to $18,200; 15% from $18,201 to $45,000; 30% from $45,001 to $135,000; 37% from $135,001 to $190,000; and 45% above $190,000. Plus a 2% Medicare levy. On the minimum wage of $52,255, your estimated tax (including Medicare) would be about $7,250, leaving a take-home of roughly $45,000. That's a simplified estimate – it ignores HELP repayments, salary sacrifice, and the Medicare levy surcharge.

How the index helps you compare offers

The how the index works page explains that the index is your annual gross salary divided by the national line ($108,352) times 100. It's a quick way to see where an offer sits relative to the average. For example:

• National minimum wage: index 48.2
• Retail trade average: index 75.9
• Professional services average: index 114.7
• Mining average: index 154.7

If you have two job offers – one in retail at $30/hr (index 54.7) and one in professional services at $35/hr (annualised $69,160, index 63.8) – the index shows both are below their industry averages. But the professional services offer is closer to its industry norm than the retail offer is to its norm. That context helps you negotiate or decide.

Always check the award

The national minimum wage is the floor, but most employees are covered by a modern award that sets higher minimum rates. For instance, the entry-level award floor is $25.74 per hour – but note that this is below the national minimum, so an award cannot actually pay that little. The award minima rose by 4.75% from 1 July 2026. If a job ad quotes a rate below the national minimum, it's likely illegal. Use the Fair Work Ombudsman's pay guides to find the correct award rate for your role.

Final thoughts

When you see a job ad, don't just look at the dollar figure. Annualise it, compare it to the Salary Index, check the industry and state benchmarks, and factor in super and tax. The minimum wage aus is a useful starting point, but the real comparison is against the national line and the typical pay in your field. Use the topics page for more guides on specific industries and roles.