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What Is the Australian Minimum Wage? A State and Industry Comparison
Find out what the Australian minimum wage is in 2026, how it compares to the national average, and how it varies by state and industry.
The national minimum wage from 1 July 2026 is $26.44 per hour, $1004.90 per week, annualised $52,255, giving a Salary Index of 48.2—meaning it is about half the full-time adult ordinary-time earnings benchmark.
What is the Australian minimum wage?
The Australian minimum wage is the legal minimum pay that most employees must receive. From 1 July 2026, the national minimum wage is $26.44 per hour, $1004.90 per week (based on a 38-hour week), and $52,255 per year. On the Salary Index, where 100 equals full-time adult ordinary-time earnings ($108,352 annualised), the minimum wage sits at 48.2—just under half the national benchmark.
This figure applies to adult employees who are not covered by a modern award or registered agreement. If you are covered by an award, your minimum pay is likely higher. For example, the entry-level award floor from 1 July 2026 is $25.74 per hour, but many award classifications pay more.
State differences in context
While the national minimum wage is the same across Australia, the cost of living and average earnings vary by state. The states page shows how each territory compares to the national line:
- ACT: index 109.9 (annualised $119,090)
- WA: index 106.9 ($115,825)
- NSW: index 101.2 ($109,658)
- VIC: index 98.0 ($106,137)
- QLD: index 97.9 ($106,064)
- NT: index 95.2 ($103,173)
- SA: index 94.6 ($102,450)
- TAS: index 88.6 ($96,008)
A worker on the national minimum wage in Tasmania earns about 54% of the state average, while in the ACT they earn only 44% of the state average. This means the minimum wage goes further in lower-cost states, but the gap to local average pay is narrower.
Industry differences
Different industries have very different pay levels. The industries page shows indices such as:
- Mining: 154.7 (well above the national line)
- Professional, scientific and technical: 114.7
- Education and training: 105.5
- Health care and social assistance: 97.8
- Retail trade: 75.9
- Accommodation and food services: 72.5
Industries like retail and hospitality have many workers on or near the minimum wage, while mining and professional services pay far more. The national minimum wage ensures a baseline, but award rates in these industries often set higher floors. For example, the Hospitality Industry (General) Award has rates above the national minimum for most classifications.
How the index works
The Salary Index compares your yearly gross pay to the national line of 100. For the minimum wage, the calculation is:
(Annual minimum wage ÷ National line) × 100 = ($52,255 ÷ $108,352) × 100 ≈ 48.2
This means the minimum wage is 48.2% of the average full-time adult ordinary-time earnings. You can use this index to see where any pay figure sits relative to the national benchmark.
Junior and casual rates
Junior employees (under 21) are paid a percentage of the adult minimum wage. 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
These are based on the adult rate of $26.44 multiplied by the percentages used in National Minimum Wage Orders. Modern awards may set different junior rates.
Casual employees receive a 25% loading on top of the minimum wage, making the casual minimum $33.05 per hour. This loading compensates for not receiving paid leave entitlements.
Superannuation and tax
Employers must pay superannuation guarantee of 12% on top of the minimum wage (from 1 July 2026). The maximum contribution base is $270,830 per year. For a full-time minimum wage earner, super contributions would be about $6,270 per year.
Income tax for 2026–27 (resident, excluding Medicare) is:
- Nil up to $18,200
- 15% from $18,201 to $45,000
- 30% from $45,001 to $135,000
- 37% from $135,001 to $190,000
- 45% above $190,000
Plus a 2% Medicare levy. A minimum wage earner ($52,255) would pay about $6,400 in tax plus Medicare, leaving a take-home of roughly $45,855 per year (ignoring HELP, salary sacrifice, or the Medicare levy surcharge).
Awards and enterprise agreements
The national minimum wage is a safety net. Most employees are covered by a modern award that sets higher minimum pay for their occupation or industry. From 1 July 2026, award rates rose by 4.75%. For example, the General Retail Industry Award has a Level 1 rate of about $25.80 per hour for adults, slightly above the national minimum.
Enterprise agreements can also set pay above award rates. The national minimum wage only applies if no other instrument covers the employee.
Why it matters
Knowing the Australian minimum wage helps you understand the floor for pay in the country. It is a key reference point for workers, employers, and policymakers. When comparing pay across states or industries, the minimum wage shows the baseline from which all other wages grow. Use the Salary Index to explore how different roles and regions compare to the national line.
For more detailed pay guides, see the pay guides section. If you want to see how your state or industry stacks up, visit the states and industries pages.
Questions people ask
What is the current Australian minimum wage per hour?
From 1 July 2026, the national minimum wage is $26.44 per hour, or $1004.90 per week (38 hours). This is the legal minimum for adult employees not covered by an award or agreement. Casual employees receive at least a 25% loading, making the casual minimum $33.05 per hour. Junior rates are lower, based on age percentages set by the Fair Work Ombudsman.
How does the minimum wage differ between Australian states?
The national minimum wage is the same across all states, but average earnings vary. For example, the ACT has an index of 109.9 (annualised $119,090), while Tasmania is 88.6 ($96,008). This means a worker on the minimum wage in Tasmania is closer to the state average than one in the ACT, where the cost of living is higher. State indices reflect overall pay levels, not the minimum itself.
Why does the minimum wage matter for different industries?
The national minimum wage is a floor, but most industries have modern awards that set higher pay. For instance, the Accommodation and food services industry index is 72.5, meaning many workers earn near the minimum. In contrast, Mining has an index of 154.7, well above the national line. The minimum wage ensures a baseline, but industry awards and enterprise agreements often lift pay significantly.