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What is the minimum wage in Australia in 2026?
The national minimum wage in Australia from 1 July 2026 is $26.44 per hour, $1004.90 per week, annualised $52,255. See how it compares on the Salary Index.
The national minimum wage sits at index 48.2, well below the national line of 100 (full-time adult ordinary-time earnings).
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 (before tax). This figure is set by the Fair Work Ombudsman after the annual wage review. If you are a casual employee, you also get a 25% loading, making the minimum $33.05 per hour.
On the Salary Index, the national minimum wage sits at 48.2. That means it is just under half of the national line of 100, which represents full-time adult ordinary-time earnings of $108,352 per year (ABS Average Weekly Earnings, May 2026). In plain terms, a person earning the minimum wage takes home about half of what the average full-time worker earns.
Who gets the minimum wage?
Not everyone is entitled to the national minimum wage. It applies only to employees who are not covered by a modern award or enterprise agreement. In practice, most workers are covered by an award that sets a higher minimum rate for their job. For example, the Retail Trade award pays more than the national minimum for most classifications. The entry-level award floor is $25.74 per hour, which is slightly below the national minimum wage, but award rates usually increase with skill level and experience.
If you work in an industry with a low industry index, such as Accommodation and food services (index 72.5) or Retail trade (index 75.9), you are more likely to be paid close to the minimum wage. In contrast, industries like Mining (index 154.7) pay well above it.
Junior rates and other variations
Younger workers get a lower minimum wage. The national minimum wage order sets junior percentages based on age:
- Under 16: $9.73 per hour
- 16 years: $12.51 per hour
- 17 years: $15.28 per hour
- 18 years: $18.06 per hour
- 19 years: $21.81 per hour
- 20 years: $25.83 per hour
These rates are calculated as a percentage of the adult minimum wage. However, a modern award can set a different junior rate, so always check your award. For more details, see our pay guides or topics page.
How the minimum wage compares across states
Your location also affects typical pay. The states page shows how each state’s average earnings compare to the national line. For example:
- Western Australia: index 106.9 ($115,825 annualised)
- Australian Capital Territory: index 109.9 ($119,090)
- Tasmania: index 88.6 ($96,008)
A worker on the minimum wage in Tasmania earns the same dollar amount as one in WA, but the local average is lower, so the minimum wage goes further relative to local earnings. The national minimum wage is the same across the country, but award rates can vary slightly by state if a state-specific award applies.
Tax and super on the minimum wage
From 1 July 2026, the super guarantee is 12%. On a minimum wage of $52,255, that means an extra $6,270.60 goes into your super fund each year, up to the maximum contribution base of $270,830.
For income tax, the 2026–27 resident rates (excluding Medicare) are:
- $0 – $18,200: nil
- $18,201 – $45,000: 15%
- $45,001 – $135,000: 30%
- $135,001 – $190,000: 37%
- Over $190,000: 45%
Plus a 2% Medicare levy. On $52,255, your estimated tax (including Medicare) is about $6,800, leaving a take-home of roughly $45,455. This ignores HELP repayments, salary sacrifice, or the Medicare levy surcharge.
What the salary index tells you
The Salary Index is a simple way to see where any pay figure sits against the national line. You calculate it as: (yearly gross pay ÷ $108,352) × 100. For the minimum wage: ($52,255 ÷ $108,352) × 100 = 48.2. That means the minimum wage is 48.2% of the national average.
If you earn more than the minimum wage, your index will be higher. For example, a retail worker on the award rate might have an index around 75, while a professional on $120,000 has an index of 110.8.
Key takeaways
The minimum wage in Australia is a safety net, not a typical wage. Most workers earn more because awards, enterprise agreements, or market rates push pay above the legal floor. If you are unsure what you should be paid, check your award on the Fair Work Ombudsman website or use our pay guides to find the right rate for your job.
Remember: the national minimum wage changes each year, usually on 1 July. The figures here are from 1 July 2026. Always check the latest rates from the Fair Work Ombudsman.
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 (before tax). Casual employees get a 25% loading, making it $33.05 per hour. These rates are set by the Fair Work Ombudsman and apply to employees not covered by an award or agreement.
How does the minimum wage compare to average earnings?
The national minimum wage has a Salary Index of 48.2, meaning it is just under half of the national line of 100 (full-time adult ordinary-time earnings of $108,352 per year). Most workers earn more than the minimum wage because awards and agreements typically set higher rates. For example, the retail trade industry index is 75.9, and professional services is 114.7.
Do all workers get the minimum wage?
No. The national minimum wage applies only to employees who are not covered by a modern award or enterprise agreement. Most workers are covered by an award that sets a higher minimum rate for their classification. Junior employees, apprentices, and trainees have separate minimum rates. For example, a 16-year-old worker gets $12.51 per hour under the national minimum wage order, but their award may set a different rate.