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National Minimum Wage Australia: Where It Sits on the Salary Index
The national minimum wage in Australia is $26.44 per hour from July 2026. On the Salary Index it scores 48.2, well below the national average of 100. Compare with awards, states, a
The national minimum wage sits at index 48.2, meaning it is about half the full-time adult ordinary-time earnings benchmark of $108,352 per year.
What is the national minimum wage in Australia?
The national minimum wage is the legal floor for pay in Australia. From 1 July 2026, the Fair Work Commission set it at $26.44 per hour, which annualises to $52,255 for a full-time worker. This rate applies to adult employees who are not covered by a modern award or enterprise agreement. It is reviewed each year and adjusted to reflect living costs and economic conditions.
Junior workers receive a percentage of the adult rate. For example, a 17-year-old gets $15.28 per hour, and a 20-year-old gets $25.83 per hour. These percentages come from the National Minimum Wage Order, but a modern award can set different junior rates. Casual employees also get a 25% loading on top of the minimum wage, bringing the casual rate to $33.05 per hour.
Where does the national minimum wage sit on the Australian salary index?
The Salary Index measures gross annual ordinary-time earnings against a national line of 100. That line is $108,352 per year, based on the Australian Bureau of Statistics Average Weekly Earnings for May 2026. The national minimum wage of $52,255 gives an index of 48.2. This means a worker on the minimum wage earns less than half the national average.
To put it in context, every state and territory has a higher index than 48.2. The lowest is Tasmania at 88.6, followed by the Northern Territory at 95.2. Even the states with lower average earnings are still well above the minimum wage line. Similarly, major industries such as retail trade (index 75.9) and accommodation and food services (72.5) pay more on average than the minimum wage, because most workers are covered by awards with higher rates.
How do awards and superannuation affect the minimum wage?
Modern awards set minimum pay rates for specific industries and occupations. From 1 July 2026, award minima rose by 4.75%, and the entry-level award floor is $25.74 per hour. That is slightly below the national minimum wage, so the national minimum wage acts as a safety net for award-free workers. However, most award classifications pay more than the floor. For example, a retail employee level 1 might earn $27 per hour, and a hospitality worker grade 1 might earn $28 per hour.
Superannuation is separate. From 1 July 2026, the super guarantee is 12% of ordinary-time earnings, up to a maximum contribution base of $270,830. For a minimum-wage worker, the employer pays an extra $6,270 per year into super, making the total employment cost about $58,525. The super is not counted in the Salary Index, which only looks at gross ordinary-time earnings before tax and super.
What is the take-home pay on the national minimum wage?
Using the 2026–27 resident tax rates and a flat 2% Medicare levy, the estimated take-home pay for a full-year minimum-wage earner is around $44,000. The tax calculation is: no tax on the first $18,200, 15% on the next $26,800, and 30% on the remaining $7,255, plus $1,045 in Medicare. This ignores HELP repayments, salary sacrifice, the Medicare levy reduction, and the Medicare levy surcharge, which can change the final amount.
For a casual worker earning $33.05 per hour including loading, the annual gross pay would be about $65,300 (assuming 38 hours per week, 52 weeks). That gives an index of 60.3, still below the national line. However, casual loading is not counted in ordinary-time earnings for the index, so the official index for the national minimum wage remains 48.2.
How does the national minimum wage compare to other benchmarks?
The how the index works page explains that the index is a simple ratio: your gross annual ordinary-time earnings divided by $108,352, times 100. For the national minimum wage, that ratio is 48.2. By contrast, the mining industry index is 154.7, and professional services is 114.7. Even the health care and social assistance industry, which includes lower-paid roles, has an index of 97.8.
If you are covered by an award, your actual pay is likely higher than the national minimum wage. Check your award or enterprise agreement for the correct rate. The pay guides on this site can help you find typical pay ranges for your industry. Remember that the national minimum wage is a floor, not a target.
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Questions people ask
What is the national minimum wage in Australia?
The national minimum wage is the legal minimum hourly rate that most adult employees must be paid. From 1 July 2026 it is $26.44 per hour, which works out to $1,004.90 per week or $52,255 per year before tax. This rate is set by the Fair Work Commission after annual review. It applies to employees not covered by a registered award or enterprise agreement. Junior workers under 21 receive a percentage of the adult rate, ranging from $9.73/hr for under-16s to $25.83/hr for 20-year-olds.
How does the national minimum wage compare to the average Australian wage?
On the Salary Index, where 100 represents full-time adult ordinary-time earnings of $108,352 per year, the national minimum wage scores 48.2. That means it is less than half the national average. By comparison, the median full-time worker earns more than $80,000 per year. Even the lowest state index (Tasmania at 88.6) is well above the minimum wage index. Most award-covered jobs pay more than the national minimum wage; for example, the retail trade industry index is 75.9 and accommodation and food services is 72.5.
What is the take-home pay for someone on the national minimum wage?
For a full-year worker earning $52,255, the estimated take-home pay after tax and the 2% Medicare levy is about $44,000. This calculation uses the 2026–27 resident tax rates: no tax on the first $18,200, 15% on the next $26,800, and 30% on the remaining $7,255, plus $1,045 in Medicare. The actual amount can vary if the worker has HELP debt, salary sacrifice, or a Medicare levy surcharge. Superannuation of 12% is paid on top by the employer, so the total employment cost is around $58,525.