What Is the Minimum Wage in Melbourne? A Guide for Job Seekers

What the minimum wage means in Melbourne

If you are reading a job ad in Melbourne and wondering whether the pay is fair, the first benchmark is the national minimum wage. From 1 July 2026, the national minimum wage is $26.44 per hour, $1004.90 per week, or $52,255 per year (gross). On the Salary Index, where 100 equals full-time adult ordinary-time earnings of $108,352, the minimum wage sits at index 48.2 – less than half the national line.

Melbourne is in Victoria, and Victoria’s state index is 98 (annualised $106,137). That means the typical full-time worker in Victoria earns slightly below the national average. A job paying the minimum wage is therefore well below the typical Victorian salary. But the minimum wage is only the floor – many jobs in Melbourne pay more because they are covered by a modern award or an enterprise agreement.

How to read a job ad offering minimum wage

When you see a pay rate in a job ad, ask yourself: is this the national minimum wage, or is it a higher award rate? The Fair Work Ombudsman sets modern awards for most industries. For example, the Retail Award and the Hospitality Award have minimum rates above the national minimum wage. From 1 July 2026, award minima rose by 4.75%, so the entry-level award floor is now $25.74 per hour – actually slightly below the national minimum wage, but most award classifications are higher. Check the specific award that applies to the role.

If the ad says “casual”, the rate must include a casual loading of at least 25%. For the national minimum wage, that’s $33.05 per hour. Casual employees do not get paid leave, so the loading is meant to compensate for that.

Junior rates and trainees

Job ads for younger workers often quote junior rates. The national minimum wage order sets percentages for ages under 21. For example, a 17-year-old in Melbourne can be paid as little as $15.28 per hour (index 28.2). But a modern award can set a different junior rate – sometimes higher, sometimes lower. Always check the award. Trainees and apprentices have their own minimum rates under state or federal training wages.

Using the Salary Index to compare offers

The Salary Index helps you see where a pay figure sits against the national line. To calculate the index for any job offer, take the annual gross salary (excluding super) and divide it by $108,352, then multiply by 100. For example:

• Minimum wage: $52,255 ÷ $108,352 × 100 = 48.2
• Average Victorian full-time earnings: $106,137 ÷ $108,352 × 100 = 98
• A job paying $70,000: $70,000 ÷ $108,352 × 100 = 64.6

This gives you a quick sense of whether the offer is below, at, or above the typical pay in your state or industry. You can explore more on the states page to see how Victoria compares with other states.

What about super and tax?

Superannuation is on top of the salary. From 1 July 2026, the super guarantee is 12% of ordinary-time earnings, up to a maximum contribution base of $270,830. So if you earn the minimum wage of $52,255, your employer must also pay $6,270.60 into your super fund. That’s not included in the Salary Index, which uses gross ordinary-time earnings.

Tax is taken out of your pay. For 2026–27, a resident earning $52,255 would pay approximately $6,884 in income tax plus the 2% Medicare levy ($1,045), leaving a take-home of about $44,326. That’s a rough estimate – it ignores HELP repayments, salary sacrifice, or the Medicare levy surcharge. Use the how the index works page for more on the calculation.

How Melbourne compares to other cities

Melbourne’s state index of 98 is close to the national line but lower than Sydney (NSW index 101.2) and much lower than Canberra (ACT index 109.9). If you are comparing job offers across cities, the index helps you see the difference in typical pay. For example, a minimum-wage job in Melbourne (index 48.2) is the same as anywhere else in Australia, but the cost of living and average earnings vary. The industries page shows that some sectors, like retail (index 75.9) and accommodation and food services (index 72.5), pay well below the national average – so a minimum-wage job in those industries is not unusual.

Final tips for reading job ads

• Look for the award or agreement name in the ad. If it’s missing, ask the employer.
• Check whether the rate includes casual loading or is the base rate.
• Remember that the national minimum wage is a legal floor – you cannot be paid less unless you are a junior, apprentice, or trainee on a lawful rate.
• Use the Salary Index to put any offer in context. A job paying index 48.2 is the legal minimum; a job paying index 98 is around the Victorian average.

For more guidance, see the pay guides page, which explains how to find the correct award rate for your role. And if you are comparing multiple offers, the topics page has articles on negotiating salary and understanding your pay slip.

Remember: the figures here are benchmarks, not a quote for a specific job. Always verify the applicable award or agreement with the Fair Work Ombudsman or your employer.