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Petroleum engineer salary: awards versus the national minimum wage
Understand the petroleum engineer salary in Australia, how it compares to awards and the national minimum wage, and where it sits on the Salary Index.
Official median weekly earnings for petroleum engineers are not published, but indicative ranges and mining industry averages suggest an index well above 100.
What is a petroleum engineer salary?
A petroleum engineer designs and manages the exploration, drilling, and production of oil and gas resources. In Australia, the occupation is classified under ANZSCO 233612. The phrase petroleum engineer salary refers to the total cash compensation before tax and super for this role. Because petroleum engineers are a small, specialised group (about 2,400 employed nationally, according to Jobs and Skills Australia), official median earnings are not published by the Australian Bureau of Statistics. This guide explains where a petroleum engineer salary sits against the national minimum wage, modern awards, and the Salary Index.
Awards versus the national minimum wage
The national minimum wage from 1 July 2026 is $26.44 per hour, or $1,004.90 per week for a full-time adult employee. That annualises to $52,255 and gives an index of 48.2 on the Salary Index scale (where 100 equals full-time adult ordinary-time earnings of $108,352). Modern awards set higher minimum rates for many occupations. For example, the Professional Employees Award 2020 includes minimum salaries for professional engineers, but those rates are still far below typical petroleum engineer pay. Most petroleum engineers are employed under individual arrangements or enterprise agreements, not award classifications. The award floor is a safety net, not a benchmark for this role.
Where does a petroleum engineer salary sit on the index?
The Salary Index compares yearly gross ordinary-time earnings to the national line of $108,352. For petroleum engineers, the only official data point is the mining industry average weekly total cash earnings of $3,177.70 (ABS May 2025). That annualises to about $165,240, giving an index of 152.5. However, the mining industry average includes all roles from truck drivers to executives. A more targeted indicative range from.au suggests $110,000 to $240,000 per year. At $110,000 the index is 101.5; at $240,000 it is 221.5. Without an official median, the index for a typical petroleum engineer is likely well above 100, reflecting the high demand and specialised skills in oil and gas.
State and industry comparisons
Petroleum engineers work mainly in Western Australia, Queensland, and the Northern Territory, where mining and resources dominate. The state index for WA is 106.9 (annualised $115,825), for QLD 97.9 ($106,064), and for NT 95.2 ($103,173). A petroleum engineer in WA earning $180,000 would have an index of 166, well above the state average. The mining industry index is 154.7, confirming that resource-sector roles pay significantly more than the national line. For context, the retail trade index is 75.9 and accommodation and food services is 72.5.
How the national minimum wage and awards interact
The national minimum wage is the absolute floor. Modern awards set higher minimums for specific industries and occupations. For petroleum engineers, the relevant award could be the Professional Employees Award 2020, which from 1 July 2026 includes a 4.75% increase. But in practice, petroleum engineer salaries are set by market forces, project complexity, and experience. Entry-level graduates might start around $80,000–$90,000, while senior engineers with 10+ years can exceed $200,000. These figures are well above any award rate, so the award vs national minimum wage question is mostly academic for this occupation.
Tax and take-home pay
A petroleum engineer earning $180,000 in 2026–27 would pay tax according to the resident rates: nil on the first $18,200, 15% on the next $26,800, 30% on the next $90,000, and 37% on the remaining $45,000. That gives a tax estimate of about $47,000, plus the 2% Medicare levy ($3,600). Take-home pay would be roughly $129,400, excluding HELP repayments or salary sacrifice. Super guarantee of 12% adds $21,600 to the employer’s cost.
Summary
A petroleum engineer salary is not pinned to a single award or the national minimum wage. It is a market-driven professional salary that typically sits well above the national line. The Salary Index provides a consistent way to compare: a petroleum engineer earning $180,000 has an index of 166, meaning they earn 66% more than the full-time adult ordinary-time benchmark. For the most current pay data, refer to Salary Index, how the index works, and industries. You can also explore pay guides for related professional roles.
Questions people ask
What award covers petroleum engineers?
Petroleum engineers are professionals and are not typically covered by a single modern award. Many are employed under individual contracts or enterprise agreements. The Professional Employees Award 2020 may apply to some engineering roles, but it is not specific to petroleum engineering. The national minimum wage ($26.44 per hour from 1 July 2026) is the legal floor, but petroleum engineer salaries are almost always far above award rates.
How does superannuation apply to petroleum engineers?
Employers must pay the super guarantee of 12% (from 1 July 2026) on top of base salary, up to the maximum contribution base of $270,830 per year. For a petroleum engineer earning $180,000, the compulsory super contribution would be $21,600. Salary sacrifice arrangements can also be used.
How is the salary index calculated for petroleum engineers?
The Salary Index compares annual gross ordinary-time earnings to the national line of $108,352 (full-time adult ordinary-time earnings from ABS Average Weekly Earnings, May 2026). For example, a petroleum engineer earning $180,000 would have an index of 166 (180,000 ÷ 108,352 × 100). Because official median earnings are unavailable, the index is estimated using indicative ranges or industry averages.