What is the minimum wage in NSW? A salary index perspective

What is the minimum wage in NSW?

If you are asking “what is minimum wage in NSW”, the short answer is that it is the national minimum wage set by the Fair Work Commission. From 1 July 2026 that figure is $26.44 per hour, $1004.90 per week, or $52,255 per year. On the Salary Index, where 100 represents full-time adult ordinary-time earnings, the national minimum wage sits at 48.2. That means someone earning the minimum wage takes home less than half of the national benchmark.

How the national minimum wage applies in NSW

Australia uses a federal system for minimum wages, so the same national minimum wage applies in every state and territory, including New South Wales. There is no separate “NSW minimum wage”. The Fair Work Ombudsman enforces this floor, and it covers most employees in the national system. Some workers in NSW may be covered by a state award or a local government enterprise agreement, but those instruments almost always pay more than the national minimum.

Where the minimum wage sits on the salary index

The Salary Index compares a person’s gross annual earnings to the national line of $108,352 (index 100). For the national minimum wage:

• Annualised: $52,255
• Index: 52,255 ÷ 108,352 × 100 = 48.2

By contrast, the average full-time worker in NSW earns an annualised $109,658, giving an index of 101.2. This gap shows that the minimum wage is a safety net, not a typical wage. Many workers in retail, hospitality, and other industries earn above the minimum because of modern awards or enterprise agreements.

Awards and the minimum wage in NSW

Most employees in NSW are covered by a modern award that sets minimum pay rates higher than the national minimum wage. For example, the Retail Award and the Hospitality Award have their own classification rates. From 1 July 2026, award minimum wages rose by 4.75%. The entry-level award floor is now $25.74 per hour, just below the national minimum. However, most award classifications pay more than that floor.

If you work under an award, your minimum pay is the award rate, not the national minimum wage. Always check your award on the Fair Work Ombudsman website or use pay guides to find the correct rate.

Casual loading and superannuation

Casual employees in NSW get a 25% loading on top of the minimum hourly rate. For the national minimum wage, that means **$33.05 per hour. This loading is meant to compensate for not receiving paid leave entitlements like sick leave or annual leave.

From 1 July 2026, the super guarantee is **12% of ordinary-time earnings. For a minimum-wage worker, that adds about $6,270 per year extra into super (before tax). The maximum contribution base is $270,830. Super is not included in the salary index, which only gross ordinary-time earnings.

Tax and take-home pay for a minimum wage in NSW

Using 2026–27 resident tax rates (nil to $18,200, then 15% to $45,000, 30% to $135,000) plus the 2% Medicare levy, a full-time minimum-wage worker earning $52,255 per year:

• Tax on $52,255: first $18,200 tax-free, then $34,055 at 15% = $5,108.25
• Medicare levy: $52,255 × 2% = $1,045.10
• Total deductions: $6,153.35
• Estimated take-home: $46,101.65 per year

This is an estimate. It ignores HELP, salary sacrifice, the Medicare levy reduction, or the Medicare levy surcharge.

Junior minimum wage in NSW

Junior employees in NSW are entitled to a percentage of the adult national minimum wage. The Fair Work Commission sets these percentages:

• Under 16: $9.73/hr
• 16 years: $12.51/hr
• 16 years: $15.28/hr
• 17 years: $18.06/hr
• 18 years: $21.81/hr
• 19 years: $25.83/hr
• 20 years: $25.83/hr

These rates are the adult minimum multiplied by the percentages used in National Minimum Wage Orders. A modern award can set a different junior rate, so always check your award.

How NSW compares to other states

NSW has an index of 101.2, above the national line. Other states: VIC 98, QLD 97.9, SA 94.6, WA 106.9, TAS 88.6, NT 95.2, ACT 109.9. The minimum wage is a floor, not an average. For more state comparisons, see states.

Summary

The answer to “what is minimum wage in NSW” is the national minimum wage: $26.44 per hour, index 48.2. Most workers earn more because of awards, enterprise agreements, or market rates. Use the Salary Index to compare any pay figure to the national line.

Frequently asked questions

Is the minimum wage in NSW different from the national minimum wage? No. The minimum wage in NSW is the same as the national minimum wage set by the Fair Work Commission. From 1 July 2026 it is $26.44 per hour, $1004.90 per week, or $52,255 per year (index 48.2). Some state-based awards or local agreements may set higher rates, but the legal floor is uniform across Australia.

What is the minimum wage for juniors in NSW? Junior employees in NSW are entitled to a percentage of the adult national minimum wage based on age. From 1 July 2026 the hourly rates are: under 16 – $9.73; 16 years – $12.51; 17 years – $15.28; 18 years – $18.06; 19 years – $21.81; 20 years – $25.83. A modern award may specify different junior rates, so always check the applicable award.

How does the minimum wage compare to average earnings in NSW? The national minimum wage has an index of 48.2, meaning it is just under half of the national benchmark (100). In NSW, average full-time adult ordinary-time earnings are higher, with an index of 101.2 (annualised $109,658). This gap reflects that many workers earn above the minimum through awards, enterprise agreements, or market rates.