What's the minimum wage in Australia? A guide for comparing job offers

What is the national minimum wage?

When you search "what's the minimum wage in australia", you're asking about the legal floor for pay. From 1 July 2026, the national minimum wage is $26.44 per hour, $1,004.90 per week, or $52,255 per year. This figure comes from the Fair Work Ombudsman and is updated each year after the Annual Wage Review. It applies to employees who are not covered by a modern award or enterprise agreement.

To put that in perspective, the Salary Index benchmarks pay against full-time adult ordinary-time earnings, which is $108,352 per year (index 100). The minimum wage sits at index 48.2 – less than half the national line. That means if a job ad offers exactly the minimum wage, you're earning about 48% of what the average full-time adult earns.

How to compare a job offer against the minimum wage

When you're reading a job ad, the first thing to check is whether the offered rate is above or below the national minimum. Many ads will list an hourly rate or an annual salary. If the rate is $26.44 or higher, it meets the legal minimum. But that doesn't mean it's a fair offer for your skills and experience.

Use the Salary Index to convert the offered annual salary into an index number. For example, if a job pays $60,000 per year, divide by $108,352 and multiply by 100 to get an index of about 55.4. That's still below the national line but above the minimum wage index of 48.2. If the offer is $80,000, the index is about 73.8 – still below 100, but much closer to average earnings.

Remember that the national minimum wage is just a floor. Most jobs are covered by a modern award that sets higher minimum rates for that industry or occupation. For example, the retail award might require $27 per hour for a level 1 employee, while the hospitality award could be $28. Always check the relevant pay guides to see the legal minimum for your role.

The role of awards and enterprise agreements

Australia's system of awards and enterprise agreements means the minimum wage is rarely the actual wage you'll be paid. Modern awards cover specific industries and occupations, and they set minimum pay rates that are almost always above the national minimum. For instance, the entry-level award floor is $25.74 per hour – slightly below the national minimum? Actually, the national minimum is $26.44, so the award floor is lower? Wait, the reference says entry-level award floor $25.74/hr. That seems contradictory, but it's possible some awards have lower rates for entry-level classifications. However, the national minimum wage is the absolute floor; if an award rate is lower, the national minimum applies. So in practice, the national minimum wage is the safety net.

Enterprise agreements can also set pay rates, but they must pass the better off overall test. When comparing job offers, ask whether the role is covered by an award or an enterprise agreement. The employer should tell you the applicable rate. If they don't, you can look up the award on the Fair Work Ombudsman website.

State and industry variations

Your location and industry also affect typical pay. The states page shows how average earnings vary across Australia. For example, the ACT has an index of 109.9 (average $119,090), while Tasmania is 88.6 ($96,008). If you're comparing a job offer in Hobart versus Canberra, the same salary will feel different relative to local averages.

Industry matters even more. Industries like mining have an index of 154.7, while retail trade is 75.9 and accommodation and food services is 72.5. A job in retail paying $55,000 (index 50.8) is actually close to the industry average? No, retail average is 75.9, so $55,000 is below that. But it's above the minimum wage index of 48.2. The point is to use the index to see where an offer sits relative to the national line and the industry norm.

Using the Salary Index to benchmark offers

The how the index works page explains the calculation: take the yearly gross salary, divide by the national line ($108,352), and multiply by 100. This gives you a number that's easy to compare across jobs, industries, and states.

For example, a job ad offering $70,000 per year has an index of 64.6. That's above the minimum wage (48.2) but below the national average (100). If the same role in the same industry typically pays index 80, then $70,000 is below market. The index helps you see that without needing to memorise dollar figures.

When you read a job ad, also consider superannuation. From 1 July 2026, the super guarantee is 12%, so a $70,000 salary actually costs the employer $78,400 including super. Your take-home pay after tax (resident, with tax-free threshold and 2% Medicare levy) would be roughly $54,000 per year, depending on your circumstances. The topics section has more on tax and super.

What about casual and junior rates?

If the job ad is for a casual position, the minimum wage includes a 25% loading. That makes the casual minimum $33.05 per hour. Casual employees don't get paid leave, so the loading compensates for that. When comparing a casual offer to a permanent one, factor in the value of leave entitlements.

Junior rates apply to workers under 21. The national minimum wage order sets percentages: for example, a 17-year-old gets $15.28 per hour (about 58% of the adult rate). But a modern award can set different junior rates, so always check the specific award.

Final thoughts

Knowing "what's the minimum wage in australia" is the first step in evaluating any job offer. But it's just the floor. Use the Salary Index to see where an offer sits against the national line, check the relevant award or agreement, and consider your industry and location. That way you can make an informed decision about whether a pay figure is fair.

For more details, explore the Salary Index and pay guides to understand how your pay compares to the national benchmark.