Understanding the National Minimum Wage in Australia
The national minimum wage is the legal minimum pay for most employees in Australia who aren't covered by an award or agreement. It's set by Fair Work after an annual review. From 1 July 2026, the rate is $26.44 per hour, which works out to $1,004.90 per week and about $52,255 per year on a standard 38-hour week.
How It Compares to the Full-Time Average
The ABS Average Weekly Earnings for May 2026 puts the national full-time adult ordinary-time average at $2,083.70 per week, or roughly $108,352 per year. That means the minimum wage is about 48% of the average – a significant gap. The site's line represents that average, and you can place a salary on the line to see exactly where any pay sits relative to it.
For context, the full-time median wage is about $90,532, and the all-employees median (including part-time and casual) is about $74,100 (ABS Employee Earnings, August 2025). The minimum wage is well below both medians, reflecting that many workers earn above the legal floor.
Award Minimums and the 2026 Increase
Most Australian employees are covered by an award or enterprise agreement that sets higher minimum pay rates than the national minimum wage. From 1 July 2026, award minimums increased by 4.75%, following the Fair Work Commission's decision. This means award-reliant workers saw a larger percentage rise than the national minimum wage adjustment. The exact rate depends on your classification and industry.
Tax on the Minimum Wage
For the 2026–27 financial year, the tax-free threshold is $18,200. A minimum wage earner on $52,255 would pay:
- 15% on income between $18,201 and $45,000
- 30% on income between $45,001 and $135,000
- Plus the 2% Medicare levy (before any reductions)
After tax and Medicare, the take-home pay is roughly $44,000–$45,000, depending on your circumstances. The ATO provides the official rates.
State Comparisons
Full-time average earnings vary by state and territory, but all are well above the minimum wage. For example:
- Tasmania: $96,008 (lowest)
- South Australia: $102,450
- Victoria: $106,137
- Queensland: $106,064
- New South Wales: $109,658
- Northern Territory: $103,173
- Western Australia: $115,825
- Australian Capital Territory: $119,090 (highest)
These figures are from the ABS Average Weekly Earnings, May 2026. You can explore more in the states and territories section.
How the Figures Are Set
The national minimum wage is determined by the Fair Work Commission each financial year. The ABS collects earnings data through surveys of employers, publishing Average Weekly Earnings twice a year (May and November). Medians come from the ABS Employee Earnings and Hours survey, released annually. For a deeper look at the methodology, see how the figures are set.
What This Means for Your Pay
If you earn the minimum wage, your salary is about half the national full-time average. That's a useful benchmark when negotiating pay or considering a job change. The site lets you enter any yearly salary to see its weekly and hourly equivalents on a 38-hour week, plus the distance from the average. Use the line tool to compare your own pay.
Remember, the minimum wage is a floor – many workers earn more due to awards, enterprise agreements, or market rates. Always check your award or agreement for your correct minimum.