What Is the Minimum Wage Per Hour in Australia? Gross Pay, Super, and Tax Explained

What Is the Minimum Wage Per Hour in Australia?

The minimum wage per hour in Australia is the legal minimum an employer must pay an employee who is not covered by a modern award or enterprise agreement. As of 1 July 2026, the national minimum wage is $26.44 per hour for an adult employee. This rate is set by the Fair Work Ombudsman after the annual wage review and applies across all states and territories.

The figure is a gross hourly rate before tax and superannuation. For casual workers, a 25% loading is added, bringing the minimum casual rate to $33.05 per hour. Junior employees (under 21) receive a percentage of the adult rate, ranging from $9.73 per hour for under 16s to $25.83 per hour for 20-year-olds. These junior rates are based on the National Minimum Wage Order, though some modern awards set different junior percentages.

How the Minimum Wage Sits on the Salary Index

The Salary Index measures gross annualised ordinary-time earnings against the national line of 100, which is set at $108,352 (ABS Average Weekly Earnings, May 2026). The national minimum wage annualised at $52,255 gives an index of 48.2 – meaning it is roughly half the average full-time adult earnings. This gap highlights that the minimum wage is a floor, not a typical wage. Many workers in industries such as retail (index 75.9) or accommodation and food services (index 72.5) earn above the minimum but still below the national average. By contrast, mining workers (index 154.7) earn well above.

Gross Pay, Super, and Tax on the Minimum Wage

Understanding your take-home pay from the minimum wage involves three components: gross pay, superannuation, and income tax.

Gross Pay

A full-time employee working 38 hours per week on $26.44 per hour earns $1,004.90 per week or $52,255 per year (assuming 52 weeks). This is the gross amount before any deductions. Part-time and casual workers are paid proportionally.

Superannuation

From 1 July 2026, the super guarantee is 12% of ordinary time earnings, paid by the employer on top of gross wages. For a minimum-wage worker, that adds $6,270.60 per year to the total employment cost, but the super is not part of the employee’s take-home pay – it goes into a super fund and is generally not accessible until retirement. The Salary Index uses gross ordinary-time earnings only, so super is not reflected in the index figure.

Tax and Medicare Levy

Using the 2026–27 resident tax rates (excluding the Medicare levy surcharge):

• Nil tax on the first $18,200
• 15% on income from $18,201 to $45,000
• 30% on income from $45,001 to $135,000
• Plus a flat 2% Medicare levy on all taxable income

For a gross income of $52,255:

• Tax on first $18,200: $0
• Tax on $18,201–$45,000 ($26,800): 15% = $4,020
• Tax on $45,001–$52,255 ($7,255): 30% = $2,176.50
• Total tax: $6,196.50
• Medicare levy (2% of $52,255): $1,045.10
• Total deductions: $7,241.60
• Estimated take-home pay: $45,013.40 per year (or about $865 per week)

This estimate ignores HELP debts, salary sacrifice, the Medicare levy reduction, and the Medicare levy surcharge. It also assumes the tax-free threshold is claimed.

Award Rates and the Minimum Wage Floor

Many employees are covered by a modern award, which sets minimum pay rates higher than the national minimum wage. For example, the entry-level award floor is $25.74 per hour – slightly below the national minimum, but most award classifications pay more. The Fair Work Ombudsman’s pay guides list the specific rates for each award. Always check the relevant award before relying on the national minimum wage.

Casual Loading

Casual employees receive a 25% loading on the minimum hourly rate to compensate for not receiving paid leave. That makes the minimum casual rate $33.05 per hour. The loading is included in the gross pay and is subject to tax and super.

Junior Rates

Junior employees (under 21) are entitled to a percentage of the adult minimum wage. The national minimum wage order sets these percentages, but a modern award can override them. For example, a 17-year-old on the national minimum earns $15.28 per hour (57.8% of $26.44). Always verify with the relevant award.

State and Industry Comparisons

The national minimum wage applies across Australia, but average earnings vary by state and industry. For instance, the states page shows that Western Australia has an index of 106.9 ($115,825 annualised), while Tasmania is 88.6 ($96,008). The minimum wage is the same everywhere, but the cost of living and typical wages differ.

In industries, the gap is even wider. Retail trade (index 75.9) and accommodation and food services (index 72.5) are closer to the minimum wage, while professional services (index 114.7) and mining (154.7) are far above. This shows that the minimum wage per hour in Australia is a safety net, not a reflection of market rates.

How the Index Works

The how the index works page explains that the Salary Index compares any gross annual salary to the national full-time adult ordinary-time earnings benchmark. A score of 100 means you earn the average; below 100 means below average. The minimum wage at 48.2 is well below average, which is expected for a legal floor.

Key Takeaways

• The national minimum wage per hour in Australia is $26.44 (adult) from 1 July 2026.
• Casual workers get $33.05 per hour including loading.
• Junior rates are lower; check the award.
• Gross annual pay of $52,255 results in an estimated take-home of about $45,013 after tax and Medicare.
• Super of 12% is paid on top, adding $6,270.60 to total employment cost.
• The minimum wage index of 48.2 shows it is roughly half the national average earnings.
• Always consult the relevant award or agreement, as many workers are entitled to more than the minimum.

For more detailed comparisons, see the topics page or explore state and industry data on this site.