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Minimum Wage in Australia: How It Compares Across States and Industries
Learn how the minimum wage in Australia sits at an index of 48.2 and varies by state and industry, with state indices from 88.6 to 109.9 and industry indices from 72.5 to 154.7.
The national minimum wage sits at an index of 48.2, well below the national line of 100, but state and industry benchmarks show wide variation.
Minimum Wage in Australia: State and Industry Differences
The national minimum wage in Australia is the legal floor for pay, but it’s only part of the picture. From 1 July 2026, the rate is $26.44 per hour, or $1,004.90 per week, which works out to $52,255 a year. 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 it’s less than half the national benchmark. But how does that compare across states and industries? The answer reveals big differences in what people actually earn.
State Benchmarks: Where You Live Matters
While the national minimum wage is the same everywhere, average earnings vary by state. The states page shows indices from Tasmania at 88.6 to the ACT at 109.9. For example, Western Australia has an index of 106.9, reflecting higher average pay, partly due to mining. Victoria is at 98, close to the national line. These indices are based on ABS Average Weekly Earnings data and show typical full-time adult ordinary-time earnings, not minimum wages. So even if you’re on the minimum wage, your state’s overall pay level affects the local cost of living and job market.
Industry Benchmarks: Some Sectors Pay Far Above Minimum
Industry differences are even starker. The industries page shows Mining at 154.7, well above the national line, while Retail Trade is at 75.9 and Accommodation and Food Services at 72.5. Professional, Scientific and Technical Services sits at 114.7, and Health Care and Social Assistance at 97.8. These indices are gross ordinary-time benchmarks, not minimum wages. But they show the spread: a worker on the national minimum wage in retail is earning far less than the industry average, while someone in mining on an award rate might be closer to the industry benchmark.
How the Index Works
The Salary Index compares yearly gross pay to the national line. For the minimum wage: $52,255 divided by $108,352, times 100, equals 48.2. That’s a clear way to see how far below the average the legal floor sits. For a state like Tasmania, the index of 88.6 means average earnings are about 11% below the national line. For an industry like Accommodation and Food Services, the index of 72.5 means average earnings are 27.5% below the national line. This helps you understand where your pay fits relative to the broader economy. For more details, see how the index works.
Award Rates and the Minimum Wage
Most Australian workers are covered by a modern award, which sets minimum pay rates higher than the national minimum wage. For example, the entry-level award floor from 1 July 2026 is $25.74 per hour, but many award classifications pay more. Award minima rose by 4.75% from 1 July 2026. If you’re on an award, your minimum pay is likely above the national minimum wage. Check your award on the Fair Work Ombudsman website or use pay guides to find the correct rate.
Junior and Casual Rates
Junior workers (under 21) get a percentage of the adult national minimum wage. For example, a 16-year-old gets $12.51 per hour, a 19-year-old gets $21.81 per hour. These percentages are set by the National Minimum Wage Order, but modern awards can set different junior rates. Casual workers get a 25% loading on the national minimum wage, making it $33.05 per hour. This loading compensates for lack of paid leave.
Tax and Super
From 1 July 2026, the super guarantee is 12%, paid on top of wages up to a maximum contribution base of $270,830. For a minimum wage worker earning $52,255, super adds about $6,270 per year. Tax for 2026–27: no tax on the first $18,200, then 15% up to $45,000, 30% up to $135,000, and so on. Medicare levy is 2%. A minimum wage earner would pay roughly $5,092 in tax plus $1,045 Medicare levy, leaving about $46,118 take-home (excluding HELP or other deductions).
Why State and Industry Differences Matter
Even though the legal minimum wage is uniform, the real value of that wage depends on where you live and what industry you work in. In a high-index state like the ACT, the cost of living may be higher, but average earnings are also higher. In a low-index industry like Accommodation and Food Services, many workers are on award rates close to the minimum, so the index of 72.5 reflects that reality. Understanding these differences helps you negotiate pay or choose a career path. For more on industry benchmarks, see topics.
Summary
The national minimum wage in Australia is $26.44 per hour, index 48.2. State indices range from 88.6 to 109.9, and industry indices from 72.5 to 154.7. While the minimum wage is a floor, most workers are covered by awards that pay more. Use the Salary Index to compare your pay against the national line, and check state and industry benchmarks to see where you stand.
Questions people ask
What is the minimum wage in Australia for 2026?
From 1 July 2026, the national minimum wage is $26.44 per hour, $1,004.90 per week, or $52,255 per year. This is set by the Fair Work Ombudsman and applies to employees not covered by an award or agreement. Casual employees receive a 25% loading, making the casual rate $33.05 per hour. Junior workers receive a percentage of the adult rate based on age.
How does the minimum wage vary by state?
The national minimum wage is the same across all states and territories, but average earnings differ. The Salary Index shows state benchmarks: ACT 109.9, WA 106.9, NSW 101.2, VIC 98, QLD 97.9, NT 95.2, SA 94.6, TAS 88.6. These reflect typical full-time adult ordinary-time earnings, not minimum wages. Some states have higher cost of living, but the legal minimum wage is uniform.
Do industry awards affect the minimum wage?
Yes. Modern awards set minimum wages for specific industries and occupations, and these are often higher than the national minimum wage. For example, the Retail Award has higher rates for certain classifications. The entry-level award floor is $25.74 per hour, but most award rates exceed that. Always check the relevant award or agreement for your role.