Minimum Wage Australia 2026: Where It Sits on the Salary Index

What is the minimum wage in Australia for 2026?

The national minimum wage from 1 July 2026 is $26.44 per hour, or $1,004.90 per week for a full‑time employee. Annualised, that comes to $52,255 before tax. This is the legal minimum pay for adult employees who are not covered by a modern award or registered agreement. The figure is set by the Fair Work Commission after its annual wage review.

On the Salary Index, which benchmarks gross annual earnings against the national full‑time adult ordinary‑time earnings of $108,352 (index 100), the minimum wage scores 48.2. That means a worker on the minimum earns roughly half the national average. For context, the average man earns index 104.7 ($2,181/week) and the average woman index 92.8 ($1,934.50/week), based on the ABS Average Weekly Earnings survey for May 2026.

How the minimum wage is structured

The national minimum wage applies to employees not covered by an award or agreement. It includes a casual loading of 25% for casual workers, bringing the casual minimum to $33.05 per hour. For permanent employees, the rate is $26.44. The Fair Work Ombudsman enforces these rates, and employers must pay at least the minimum.

Junior and apprentice rates

Junior employees (under 21) are entitled to a percentage of the adult minimum. The percentages are set by the National Minimum Wage Order. For 2026:

• Under 16: $9.73/hr
• 16 years: $12.51/hr
• 17 years: $15.28/hr
• 18 years: $18.06/hr
• 19 years: $21.81/hr
• 20 years: $25.83/hr

Note that modern awards may specify different junior rates, so always check the relevant award. Apprentices and trainees have their own minimum rates under awards or training agreements.

Award minimums

Most Australian employees are covered by a modern award, which sets minimum pay rates higher than the national minimum wage. From 1 July 2026, award minimums increased by 4.75%. The entry‑level award floor is $25.74 per hour, but many classifications pay more. For example, a retail employee level 1 might earn around $26–$28 per hour, while a hospitality employee grade 1 could be $27–$29. Always check your pay guides for the correct classification.

Superannuation and tax

From 1 July 2026, the super guarantee is 12% of ordinary time earnings, up from 11.5%. The maximum contribution base is $270,830 per quarter. So an employee earning the minimum wage of $52,255 would receive $6,270.60 in super contributions per year (before tax on contributions).

For tax, the 2026–27 resident rates (excluding Medicare) are:

• Nil on the first $18,200
• 15% on income from $18,201 to $45,000
• 30% on income from $45,001 to $135,000
• 37% on income from $135,001 to $190,000
• 45% on income above $190,000

Plus a 2% Medicare levy. A full‑time minimum wage earner ($52,255) would pay about $6,597 in income tax plus $1,045 in Medicare levy, leaving a take‑home of roughly $44,613 per year (ignoring HELP, salary sacrifice, or the Medicare levy surcharge).

How the minimum wage compares across states and industries

The national minimum wage is the same across Australia, but average earnings vary by state. The states page shows each state’s index relative to the national line. For example:

• ACT: index 109.9 ($119,090 annualised)
• WA: index 106.9 ($115,825)
• NSW: index 101.2 ($109,658)
• VIC: index 98.0 ($106,137)
• QLD: index 97.9 ($106,064)
• SA: index 94.6 ($102,450)
• NT: index 95.2 ($103,173)
• TAS: index 88.6 ($96,008)

A minimum wage earner in Tasmania, where average earnings are lower, may feel closer to the local average than one in the ACT. But the minimum itself is a national floor.

Industry also matters. The industries page shows that Mining has an index of 154.7, while Retail trade is 75.9 and Accommodation and food services is 72.5. Many workers in those lower‑index industries are on award rates near the minimum. For example, a hospitality worker on the minimum wage would be earning above the industry average index of 72.5? Actually, the minimum wage index of 48.2 is well below the industry average for accommodation and food services (72.5), meaning the average worker in that industry earns more than the minimum, but many are on award rates that are higher than the national minimum.

Understanding the Salary Index

The how the index works page explains that the Salary Index converts any gross annual salary into a number where 100 equals full‑time adult ordinary‑time earnings ($108,352 in May 2026). To calculate your own index, divide your yearly gross pay by $108,352 and multiply by 100. For the minimum wage: $52,255 ÷ $108,352 × 100 = 48.2.

This index helps you see where a pay figure sits against the national line, regardless of industry or location. It’s a benchmark, not a quote for a specific job.

Key takeaways

• The minimum wage Australia 2026 is $26.44/hr, $1,004.90/week, $52,255/year.
• Index 48.2 – about half the national average.
• Award rates are often higher; check your award.
• Super is 12% from July 2026.
• Take‑home after tax and Medicare is roughly $44,613 for a full‑time adult.
• Junior rates apply for under 21s.

For more on how pay compares across roles and regions, explore topics or use the Salary Index.