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American minimum wage compared to the Australian full-time average

The American minimum wage is far below the Australian full-time average; the US federal rate of $7.25 per hour is less than a third of Australia's minimum wage.

This sits $56,097 under the Australian full-time average, about 51.8% below the line. The closest full-time state average is Tasmania. It is off the left edge of the ruler. This close-up only covers full-time state averages.

Week, hour, and a tax sketch

$1,005 a week · $26.44 an hour if spread over 38 hours

About $45,013 after resident income tax and a 2% Medicare levy.

2026–27 resident rates and a 2% Medicare levy. Not a tax assessment.Open the full line

American minimum wage versus the Australian full-time average

When readers ask about the "american minimum wage," they often want to know how it measures up against the Australian full-time average. This is a natural comparison for anyone considering work or relocation between the two countries. The short answer is that the US federal minimum wage is much lower than Australia's full-time average, and even lower than Australia's own minimum wage. But the full picture involves state-level variations, different labour market structures, and the way each country defines "minimum."

The American minimum wage: a patchwork of rates

The United States does not have a single minimum wage that applies nationwide. The federal minimum wage is $7.25 per hour, a rate that has been frozen since 2009. However, individual states, cities, and counties can set higher minimums. For example, as of 2026, Washington state has a minimum of $16.28 per hour, while many states in the South still follow the federal floor. Some cities like Seattle and San Francisco have rates above $18 per hour. This means the "american minimum wage" can vary widely depending on location. For the purpose of comparison, the federal rate of $7.25 per hour is the most commonly cited baseline.

Australia's full-time average: a much higher benchmark

The Australian full-time adult ordinary-time average, published by the ABS in its Average Weekly Earnings series for May 2026, stands at $2,083.70 per week. Multiplied by 52 weeks, that equals about $108,352 per year. This figure represents the average earnings of full-time employees, not the minimum. It is the line against which all salaries on this site are measured.

Australia also has a national minimum wage, set by Fair Work. From 1 July 2026, it is $26.44 per hour, or $1,004.90 per week on a 38-hour week, amounting to roughly $52,255 per year. This is more than three times the US federal minimum wage of $7.25 per hour. Even the lowest Australian award rates, which rose by 4.75% in the same period, are significantly higher than the US federal floor.

Putting the numbers side by side

To see where the american minimum wage sits against the Australian full-time average, consider the annual equivalents. A full-time worker earning the US federal minimum of $7.25 per hour for 40 hours a week, 52 weeks a year, would make about $15,080 per year. That is less than 14% of the Australian full-time average of $108,352. Even a US worker on a state minimum of $15 per hour would earn about $31,200 per year, still well below the Australian average.

Australia's full-time median, from the ABS Employee Earnings survey of August 2025, is about $90,532 per year. The all-employees median is about $74,100. Both are far above any US minimum wage scenario. The Australian minimum wage itself is more than three times the US federal rate, and the full-time average is more than seven times that rate.

State and territory differences in Australia

Australia's full-time averages also vary by state and territory, as shown in the ABS data. For instance, the Australian Capital Territory has the highest full-time average at about $119,090, while Tasmania has the lowest at $96,008. Western Australia, driven by mining, sits at $115,825. These figures are all well above any US minimum wage, even in high-cost US states.

For a detailed breakdown of how each state compares, see our States and territories page. You can also Place a salary on the line to see how any income measures up against the national full-time average.

Why the gap exists

The difference between the american minimum wage and Australian earnings reflects deeper economic and policy choices. Australia has a centralised wage-setting system through Fair Work, with annual reviews that consider living costs and productivity. The US relies on a federal minimum that is set by Congress and has not been raised since 2009. Many US states have stepped in, but the result is a fragmented landscape. Australia also has higher union density in some sectors and a stronger social safety net, which supports higher wage floors.

It is also worth noting that the Australian full-time average includes overtime and penalty rates for some workers, while the US minimum wage is a straight hourly rate. The cost of living differs between the two countries, though major Australian cities are comparable to expensive US cities.

What this means for your salary comparison

If you are using this site to compare a salary offer or your current pay, remember that the benchmark is the Australian full-time average. The american minimum wage is not directly comparable because it is a floor, not an average. However, the comparison shows how much higher Australian wages are at the lower end of the scale. Even the Australian minimum wage provides a standard of living that is difficult to achieve on the US federal minimum.

For more on how the figures are set, see our How the figures are set page. And for guides on interpreting salary data, visit our Guides section.

Summary

The american minimum wage, at the federal level of $7.25 per hour, is dramatically lower than the Australian full-time average of $108,352 per year. Even Australia's own minimum wage of $26.44 per hour is more than three times the US federal rate. While US state minimums can be higher, they still fall short of Australian benchmarks. This comparison highlights the strength of Australia's wage-setting system and the relatively high earnings of full-time workers in this country.

Questions

What is the American minimum wage?

The US federal minimum wage is $7.25 per hour, a rate that has not changed since 2009. However, many US states and cities set higher minimums, ranging from about $10 to over $16 per hour. There is no single national figure that applies everywhere.

How does the American minimum wage compare to the Australian full-time average?

The Australian full-time average, as measured by the ABS Average Weekly Earnings for May 2026, is about $108,352 per year. Even the Australian national minimum wage of $26.44 per hour (from 1 July 2026) is more than three times the US federal rate. The gap is even larger when comparing to the full-time average.

Why is the American minimum wage lower than Australia's?

Labour market structures differ. Australia has a system of awards and annual wage reviews by Fair Work, while the US relies on a federal floor with state-level adjustments. Cost of living, collective bargaining coverage, and social safety nets also play a role. The Australian minimum wage is set to provide a living wage, whereas the US federal rate has not kept pace with inflation.

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