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What is the minimum wage in Australia? Gross pay, super and tax explained
The national minimum wage in Australia from July 2026 is $26.44 per hour, $1004.90 per week. See how it compares on the Salary Index and what you take home after super and tax.
The national minimum wage sits at index 48.2, well below the full-time adult ordinary-time earnings benchmark of 100.
What is the minimum wage in Australia?
The national minimum wage is the legal floor for pay in Australia. From 1 July 2026, it is $26.44 per hour, $1004.90 per week, or $52,255 per year for a full-time adult worker. On the Salary Index, that figure scores 48.2 – meaning it is just under half of the full-time adult ordinary-time earnings benchmark of 100 ($108,352 per year). This gap shows how far the minimum sits below the average Australian wage.
Gross pay on the minimum wage
Your gross pay is what you earn before any deductions. For a full-time worker on the national minimum wage, that is $52,255 a year. But not everyone gets that rate. Modern awards set higher minimums for many industries. For example, the entry-level award floor is $25.74 per hour, which is slightly below the national minimum, but most award classifications pay more. The Fair Work Ombudsman publishes pay guides for each award. Casual workers get a 25% loading, taking the casual minimum to $33.05 per hour.
Junior rates are lower. The national minimum wage order sets percentages for workers under 21. For instance, a 16-year-old gets $12.51 per hour, and a 20-year-old gets $25.83 per hour. But a modern award can set different junior rates, so always check your award.
How superannuation adds to your pay
Superannuation is not part of your take-home pay, but it is a compulsory contribution your employer must make on top of your gross wage. From 1 July 2026, the super guarantee is 12% of your ordinary-time earnings. For someone on the national minimum wage, that is an extra $6,270.60 per year paid into your super fund. The maximum contribution base is $270,830, so the full 12% applies here. Over time, super builds your retirement savings. It is taxed in the fund at 15%, but that is separate from your personal income tax.
Tax on the minimum wage
Your take-home pay depends on tax. For the 2026-27 income year, a resident earning $52,255 uses the tax-free threshold of $18,200. The first $18,200 is tax-free. Then you pay 15% on the next $26,800 (from $18,201 to $45,000), which is $4,020. The remaining $7,255 (from $45,001 to $52,255) is taxed at 30%, adding $2,176.50. Plus the Medicare levy of 2% on your total income ($1,045.10). Total tax and Medicare: $7,241.60. Your take-home pay would be about $45,013.40 per year, or $865.64 per week. This estimate ignores HELP repayments, salary sacrifice, the Medicare levy surcharge, and other adjustments. Use the ATO’s tax calculator for your exact situation.
Where the minimum wage sits on the index
The Salary Index compares any gross annual pay to the national line of 100. The minimum wage’s index of 48.2 shows it is well below average. By state, the index varies: for example, NSW is 101.2, Victoria 98, Queensland 97.9, South Australia 94.6, Western Australia 106.9, Tasmania 88.6, Northern Territory 95.2, and ACT 109.9. See the states page for details. Industry also matters. The accommodation and food services industry has an index of 72.5, while mining is 154.7. The industries page breaks down these differences.
Award wages vs the national minimum
Most Australian workers are covered by a modern award, which sets minimum pay rates higher than the national minimum wage. From 1 July 2026, award minima rose by 4.75%. For example, a retail employee Level 1 might earn more than $26.44 per hour. Always check your award or enterprise agreement. The national minimum wage is the safety net for employees not covered by any award or agreement. If you are unsure, the Fair Work Ombudsman can help.
Gross pay, super, and tax: the full picture
When you see a salary figure, remember it is gross. Super is extra. Tax reduces what you take home. For a minimum-wage worker, the gross annual pay of $52,255 plus 12% super ($6,270.60) gives a total employment cost of $58,525.60. After tax and Medicare, you keep about $45,013.40. That is a take-home rate of 86% of gross. For higher earners, the percentage drops due to higher tax brackets.
Key takeaways
- The national minimum wage from 1 July 2026 is $26.44 per hour, index 48.2.
- Super guarantee is 12% on top, paid into your fund.
- Tax and Medicare reduce gross pay by roughly 14% at this level.
- Award rates and junior rates may differ.
- Use the Salary Index to compare any pay figure to the national benchmark.
The minimum wage is a starting point. Many workers earn more under awards or agreements. Understanding gross pay, super, and tax helps you see the real value of your wage.
Questions people ask
What is the current minimum wage in Australia?
From 1 July 2026, the national minimum wage is $26.44 per hour, $1004.90 per week, or $52,255 per year. This is the base rate for adult employees not covered by an award or agreement. Casual employees receive a 25% loading, making the casual minimum $33.05 per hour.
How does superannuation apply to the minimum wage?
Employers must pay superannuation guarantee of 12% on top of the minimum wage. For a full-time worker on the national minimum wage, that adds about $6,270.60 per year (12% of $52,255). Super is paid into a fund and is not part of take-home pay.
How much tax will I pay on the minimum wage?
For the 2026-27 income year, a resident earning $52,255 pays no tax on the first $18,200, then 15% on the next $26,800 ($4,020), and 30% on the remaining $7,255 ($2,176.50), plus 2% Medicare levy ($1,045.10). Total tax and Medicare about $7,241.60, leaving take-home pay around $45,013.40 per year. This ignores HELP, salary sacrifice, and other adjustments.