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Minimum Wage Australia Per Hour: How It Compares to the National Average

At $26.44 per hour, the national minimum wage is about half the full-time average of $108,352 per year.

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

Minimum Wage Australia Per Hour: Your Guide

If you are wondering about the minimum wage Australia per hour, the current national rate is $26.44. That figure, set by Fair Work from 1 July 2026, applies to most adult employees not covered by an award or registered agreement. On a standard 38-hour week, it comes to $1,004.90 per week, or about $52,255 per year before tax. This article puts that number in context against the national full-time average, the medians, and what you might actually take home.

What Is the National Minimum Wage?

The national minimum wage is the legal floor for pay in Australia. From 1 July 2026, Fair Work set it at $26.44 per hour. Award minimums also rose by 4.75 per cent at the same time, meaning many workers covered by awards earn more than the national minimum. The rate is reviewed annually by the Fair Work Commission, which considers economic conditions, living standards, and the needs of low-paid workers.

How the Minimum Wage Compares to the National Average

The national full-time adult ordinary-time average, as measured by the ABS Average Weekly Earnings for May 2026, is $2,083.70 per week, or about $108,352 per year. That means the minimum wage sits at roughly 48 per cent of the average. The full-time median, from the ABS Employee Earnings survey of August 2025, is about $90,532 per year, while the all-employees median (including part-time and casual) is about $74,100. So the minimum wage is well below both the average and the median, reflecting its role as a safety net rather than a typical wage.

To see where your own salary falls on the same scale, you can place a salary on the line and compare it to the national full-time average.

Take-Home Pay for a Minimum Wage Earner

A gross annual salary of $52,255 puts you in the 30 per cent tax bracket for 2026–27, but only the portion above $45,000 is taxed at that rate. Here is a rough take-home calculation:

  • Tax-free threshold: $0 to $18,200 – no tax.
  • 15 per cent on the next $26,800 (from $18,201 to $45,000) = $4,020.
  • 30 per cent on the remaining $7,255 (from $45,001 to $52,255) = $2,176.50.
  • Total income tax: $6,196.50.
  • Medicare levy: 2 per cent of $52,255 = $1,045.10.
  • Total deductions: $7,241.60.
  • Approximate take-home: $45,013.40 per year, or about $866 per week.

This is a basic estimate. It does not include the low-income tax offset, which could reduce tax further, or any Medicare levy reductions for low-income earners. For a more precise figure, use the ATO’s tax calculator or speak to a tax professional.

State by State: Average Earnings vs Minimum Wage

The national minimum wage is the same everywhere in Australia, but average earnings vary significantly by state and territory. The ABS Average Weekly Earnings for May 2026 show these full-time averages:

  • Australian Capital Territory: $119,090
  • Western Australia: $115,825
  • New South Wales: $109,658
  • Victoria: $106,137
  • Queensland: $106,064
  • Northern Territory: $103,173
  • South Australia: $102,450
  • Tasmania: $96,008

In every state, the minimum wage is well below the local average. The gap is widest in the ACT and Western Australia, where average earnings are more than double the minimum. For a detailed breakdown, see our page on states and territories.

Award Wages and Other Minimums

Many employees are covered by awards that set higher minimum rates than the national minimum wage. For example, the Hospitality Industry General Award or the Retail Award have specific pay rates for different classifications. The 4.75 per cent increase that applied from 1 July 2026 also lifted those award rates. If you are unsure which award applies to your job, check with Fair Work or your employer. The national minimum wage is the fallback for anyone not covered by an award or agreement.

Putting It All Together

The minimum wage Australia per hour of $26.44 provides a baseline for the lowest-paid workers. Compared to the national full-time average of $108,352, it is about half. After tax and Medicare, a full-time minimum wage earner takes home roughly $45,000 per year. That is enough to cover basic living costs in many areas, but it leaves little room for savings or unexpected expenses. If you want to see how your own pay compares, use our tool to place a salary on the line and see the distance from the average.

For more information on how these figures are set and what they mean, visit our guides and how the figures are set pages.

Questions

What is the current minimum wage in Australia per hour?

From 1 July 2026, the national minimum wage is $26.44 per hour, based on a 38-hour week. That works out to $1,004.90 per week or about $52,255 per year before tax.

How does the minimum wage compare to the national average salary?

The national full-time adult ordinary-time average is $2,083.70 per week or about $108,352 per year (ABS Average Weekly Earnings, May 2026). The minimum wage is roughly 48 per cent of that average. The full-time median is about $90,532, and the all-employees median is about $74,100 (ABS Employee Earnings, August 2025).

What is the take-home pay for someone on the minimum wage?

Using the 2026–27 tax rates, a minimum-wage earner on $52,255 would pay about $6,197 in income tax plus the 2 per cent Medicare levy ($1,045), leaving roughly $45,013 per year, or about $866 per week. This is before any tax offsets or reductions.

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