What's the salary? How to read your pay against the Australian salary index

What's the salary? Understanding the Australian salary index

When someone asks "what's the salary?", they usually want to know how a pay figure stacks up against typical earnings. The Australian salary index gives you a clear answer: it compares any gross yearly ordinary-time wage to the national line of $108,352 (index 100). This number comes from the ABS Average Weekly Earnings survey for full-time adult workers, updated to May 2026. Whether you're checking a job offer, negotiating a raise, or planning your career, the index helps you see where your pay sits.

How the salary index works

The index is simple: divide your annual gross ordinary-time earnings by $108,352 and multiply by 100. The result is your personal index number. For example, if you earn $60,000 a year, your index is about 55.4 – well below the national average. If you earn $130,000, your index is about 120.0, meaning you earn 20% more than the typical full-time adult. The index is a benchmark, not a target. It reflects ordinary-time earnings only, so overtime, bonuses, and casual loadings aren't included.

Where the national minimum wage sits

From 1 July 2026, the national minimum wage is $26.44 per hour, or $1,004.90 per week, annualised to $52,255. That gives an index of 48.2 – less than half the national average. Most modern awards pay above this minimum. For instance, the entry-level award floor is $25.74 per hour, but many classifications are higher. The Fair Work Ombudsman publishes pay guides for each award, so always check the award that covers your role.

State-by-state differences

Earnings vary significantly across Australia. The states page on Salary Index breaks down each region. New South Wales has an index of 101.2 (annualised $109,658), while Victoria is 98.0 ($106,137). Queensland sits at 97.9 ($106,064), South Australia at 94.6 ($102,450), and Western Australia at 106.9 ($115,825). Tasmania is the lowest at 88.6 ($96,008), and the Northern Territory is 95.2 ($103,173). The Australian Capital Territory leads at 109.9 ($119,090). These differences reflect local economies, industry mix, and cost of living. If you're comparing a job in Perth versus Hobart, the index helps you see the real gap.

Industry benchmarks

Your industry matters even more than your state. Industries on Salary Index show the range. Mining tops the list at 154.7, reflecting high wages for fly-in-fly-out and remote work. Professional, scientific and technical services index 114.7, and Education and training is 105.5. Health care and social assistance is 97.8, close to the national line. At the lower end, Retail trade is 75.9, and Accommodation and food services is 72.5. These indices are averages; individual roles within an industry can vary widely. For example, a retail manager might earn above the retail average, while a sales assistant earns below.

Using the index for your pay check

To get a realistic picture, start with your gross annual ordinary-time earnings. If you're paid hourly, multiply your hourly rate by 38 hours (full-time) and by 52 weeks. Then divide by $108,352 and multiply by 100. Suppose you're a registered nurse under the Nurses Award. The award rate for a Level 1 nurse might be around $38 per hour, giving an annual salary of about $75,088 and an index of 69.3. That's below the national average but typical for the health care industry. If you work in a hospital with enterprise agreements, your actual pay could be higher.

Tax and super considerations

When you see a salary figure, remember it's gross. From 1 July 2026, the super guarantee is 12% on earnings up to the maximum contribution base of $270,830. Your employer must pay this on top of your ordinary-time earnings. For tax, the 2026–27 resident rates (excluding Medicare) are: nil up to $18,200, 15% on the next $26,800, 30% up to $135,000, 37% up to $190,000, and 45% above. Plus a 2% Medicare levy. A take-home estimate for a $80,000 earner (with tax-free threshold and Medicare only: about $18,200 tax-free, then 15% on $26,800, then 30% on the rest – roughly $12,000 tax plus Medicare – leaves about $66,000 after tax and Medicare. But this ignores HELP, salary sacrifice, or surcharges.

Common questions about the salary index

People often ask how the index works when they see a figure like 100. It's a relative measure, not a living wage or a poverty line. The national minimum wage index of 48.2 shows how far below the average it sits. Award rates are higher but still often below 100. For example, the casual loading (25% on minimum wage) gives $33.05 per hour, annualised about $65,300, index 60.3. Junior rates are lower: a 19-year-old on the national minimum gets $21.81 per hour, index about 39.8. Modern awards can set different junior rates, so check your award.

Putting it all together

When you next hear "what's the salary?", think of the index. It's a quick way to gauge if a pay offer is fair relative to the national line. Use the Salary Index, pay guides, and topics to explore more. Remember, the index is a benchmark for full-time adult ordinary-time earnings. If you work part-time or casually, your actual earnings will differ. But the index still gives context: a part-time role paying $40,000 a year has an index of 36.9 – below the national minimum wage index, which is a red flag unless you're working fewer hours.

Final thoughts

The salary index isn't a judgment – it's a tool. It helps you compare apples to apples across states, industries, and time. The ABS updates the average earnings periodically, so the index moves. For now, 100 equals $108,352. Whether you're above or below, understanding where you sit is the first step to making informed career decisions.