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What is the minimum wage in NSW? The national minimum wage applies across Australia, including NSW

The minimum wage in NSW is the national minimum wage of $26.44 per hour from 1 July 2026. Learn how it compares to the average NSW salary, plus super and tax implications.

The national minimum wage of $26.44/hr sits at index 48.2, well below the NSW average earnings index of 101.2.

What is the minimum wage in NSW?

When someone asks "what is the minimum wage in NSW", the short answer is that there is no separate NSW minimum wage. Australia uses a national minimum wage that applies to all states and territories, including New South Wales. From 1 July 2026, that rate is $26.44 per hour, $1,004.90 per week, or $52,255 per year before tax. This figure is set by the Fair Work Ombudsman after the annual wage review and is the legal floor for most employees not covered by a modern award or enterprise agreement.

How the minimum wage compares to average NSW earnings

The national minimum wage sits at an index of 48.2 on the Salary Index, where 100 equals full-time adult ordinary-time earnings of $108,352 per year. In contrast, the average NSW full-time worker earns an indexed 101.2, or about $109,658 annually. That means the minimum wage is roughly half of what the typical NSW employee takes home. For context, the states page shows NSW slightly above the national line, while other states like Tasmania (88.6) and Western Australia (106.9) vary significantly.

Gross pay, super, and tax on the minimum wage in NSW

Let’s break down what a full-time minimum-wage worker in NSW actually receives. Gross annual pay is $52,255. On top of that, employers must pay superannuation guarantee of 12% from 1 July 2026, which adds $6,270.60 to the total package (though that money goes into a super fund, not your pocket).

For tax, using the 2026–27 resident rates (excluding Medicare):

  • First $18,200: tax-free
  • Next $26,800 (up to $45,000): taxed at 15% = $4,020
  • Remaining $7,255 (up to $52,255): taxed at 30% = $2,176.50
  • Total income tax: $6,196.50
  • Plus Medicare levy of 2% on all taxable income: $1,045.10
  • Total deductions: $7,241.60
  • Estimated take-home pay: $45,013.40 per year (about $865 per week)

This is a rough estimate. It ignores HELP repayments, salary sacrifice, the Medicare levy reduction, or the Medicare levy surcharge. For a more precise calculation, use the ATO’s tax estimator.

Junior rates and casual loading

The national minimum wage also sets junior rates as a percentage of the adult rate. For example:

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

These apply in NSW unless a modern award specifies different junior percentages. Casual employees receive a 25% loading, making the casual minimum $33.05 per hour. Many hospitality and retail workers in NSW are casual and covered by awards that set higher base rates, so the actual wage may be above the minimum.

Awards and enterprise agreements

Most employees in NSW are not on the national minimum wage because they are covered by a modern award or a registered enterprise agreement. For instance, a retail worker in Sydney might earn $28–$30 per hour under the Retail Award, which is well above the minimum. The pay guides page explains how to find your award classification and check your correct rate.

Key takeaways

  • The minimum wage in NSW is the national minimum wage of $26.44/hr from 1 July 2026.
  • It sits at index 48.2, far below the NSW average of 101.2.
  • Super is 12% on top, and tax takes about $7,242 from the annual $52,255.
  • Always check your award or agreement first – most workers earn more.

For more on how the index works, see how the index works and explore related topics at topics.

Questions people ask

What is the current minimum wage in NSW?

The minimum wage in NSW is the national minimum wage set by the Fair Work Ombudsman. From 1 July 2026, it is $26.44 per hour, $1,004.90 per week, or $52,255 per year before tax. This rate applies to most employees in NSW who are not covered by a higher award or agreement.

How does the minimum wage in NSW compare to the average salary?

The average full-time adult ordinary-time earnings in NSW are $109,658 per year (index 101.2), while the national minimum wage is $52,255 per year (index 48.2). That means the minimum wage is about 48% of the NSW average, or roughly half.

Do junior rates and casual loading apply to the minimum wage in NSW?

Yes. Junior rates are based on the national minimum wage percentages: for example, a 17-year-old earns $15.28 per hour. Casual loading adds 25% to the base rate, making the casual minimum $33.05 per hour. However, modern awards can set different junior rates, so check the applicable award.

100

Salary index

Around the national line

Min 48.2
100 100
ACT 109.9
Mine 154.7
  • In the account — Tax and Medicare estimate
  • Super on top — 12% employer super
  • Ordinary hour — If spread over 38 hours

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