Marine engineer salary: how it compares to the national average

Marine engineer salary under the Seagoing Industry Award

Marine engineer salaries in Australia are primarily covered by the Seagoing Industry Award 2020, a Fair Work Commission modern award. The award sets out minimum pay for various classifications, including engineers on dry cargo vessels. The pay structure is unusual: instead of a standard weekly wage, employees receive an aggregate annual salary that includes a base component and an overtime component. This salary is calculated based on a work pattern of 10 hours per day, 7 days a week, for 27 weeks per year (70 hours per week).

For the 2026–27 period (after the 4.75% Annual Wage Review increase), the aggregate annual salaries for engineer classifications on vessels with up to 19,000 tonnes (AOV manning) are:

Third mate/Third engineer/Electrician: $100,505
Second mate/Second engineer/Electro-technical officer: $104,875
First mate/First engineer: $113,379
Chief engineer: $130,870

These figures come from the Fair Work Ombudsman's consolidated award. Salaries are slightly higher for vessels manned at 18 or below (e.g., Chief engineer $134,084). The award also lists minimum weekly rates (e.g., Chief engineer $1,718.80 per week), but these are reference rates; the actual pay is the aggregate annual salary.

How it compares to the national full-time average

The national full-time adult ordinary-time average earnings are $2,083.70 per week, or about $108,352 a year (ABS Average Weekly Earnings, May 2026, multiplied by 52). This is the benchmark used on this site. Place a salary on the line to see where any figure sits.

A Third engineer earning $100,505 is about $7,847 below the national average.
A Chief engineer earning $130,870 is about $22,518 above the national average.
The First engineer salary of $113,379 is about $5,027 above the national average.

For context, the full-time median (all occupations) is about $90,532, and the all-employees median is about $74,100 (ABS Employee earnings, August 2025). The national minimum wage from 1 July 2026 is $26.44 per hour, $1,004.90 per week, or about $52,255 a year on 38 hours.

State full-time averages vary: for example, Western Australia ($115,825) and the ACT ($119,090) are above the national average, while Tasmania ($96,008) is below. States and territories has more detail.

Reading the same pay as a year, a week, and an hour

Because the Seagoing Industry Award uses an aggregate annual salary for a non-standard work pattern, converting to a standard 38-hour week requires care. The award salary is earned over 27 weeks of work per year (70 hours/week) and 25 weeks of leave. If you divide the annual salary by 52 to get a weekly figure, that weekly amount is lower than what the employee actually receives during work periods. Similarly, dividing by 38 hours gives an hourly rate that understates the true hourly pay for the hours actually worked.

For a more meaningful comparison, calculate the effective hourly rate based on actual hours: 70 hours/week × 27 weeks = 1,890 hours per year. For a Chief engineer ($130,870), that is about $69.24 per hour. For a Third engineer ($100,505), about $53.18 per hour. These are well above the national minimum wage and also above the average hourly earnings implied by the national full-time average ($108,352 ÷ 52 ÷ 38 ≈ $54.80 per hour).

However, if you prefer to use the award's minimum weekly rate (which may be used for leave calculations), the hourly rate for a Chief engineer is $1,718.80 ÷ 38 = $45.23 per hour. This is lower than the national average hourly equivalent but still above the minimum wage.

What the figures mean for you

If you are a marine engineer paid under the Seagoing Industry Award, your aggregate annual salary is your total remuneration. The site's tool will convert it to a weekly figure (÷52) and an hourly figure (÷38) for comparison, but remember that your actual work pattern differs. The national average provides a benchmark: most engineer classifications sit close to or above the average, especially at senior levels. For more on how award rates are set, see How the figures are set.

Important: These are minimum award rates. Individual enterprise agreements or contracts may pay more. Always check your specific award or agreement for your exact classification and vessel type.

Questions

What is the average salary for a marine engineer in Australia?

There is no single average for all marine engineers. Under the Seagoing Industry Award, aggregate annual salaries (including overtime) for engineer classifications range from $100,505 for a Third mate/Third engineer to $130,870 for a Chief engineer on dry cargo vessels up to 19,000 tonnes. These salaries are based on a 70-hour week for 27 weeks per year. The national full-time adult ordinary-time average is $108,352 a year (ABS Average Weekly Earnings, May 2026).

How does a marine engineer's salary compare to the national average?

A Third engineer's aggregate salary of $100,505 is about 7% below the national full-time average of $108,352. A Chief engineer's salary of $130,870 is about 21% above. However, these award salaries include overtime and are based on a non-standard work pattern (70 hours/week for 27 weeks), so direct weekly comparisons on a 38-hour week are not straightforward. The national full-time median is about $90,532 (ABS Employee earnings, August 2025).

What factors affect a marine engineer's salary?

Under the Seagoing Industry Award, salary depends on classification (e.g., Third engineer, Second engineer, First engineer, Chief engineer), vessel manning (18 crew or AOV), and vessel type. The award also provides higher rates for vessels with larger crews. Experience and additional qualifications can lead to higher classifications. The national minimum wage from 1 July 2026 is $26.44 per hour, but award rates are higher.