The National Minimum Wage in Australia 2026
The national minimum wage for 2026 is set by Fair Work and takes effect from 1 July. For a full-time adult employee working 38 hours a week, the rate is $26.44 per hour, which works out to $1,004.90 per week and about $52,255 per year before tax. This figure is the legal minimum pay for employees who are not covered by a registered award or enterprise agreement.
Award minimums rose by 4.75% from the same date, meaning most workers under an award earn more than the national minimum wage. The exact amount depends on the classification level in the relevant award.
Where the Minimum Wage Sits Against the National Line
The national full-time adult ordinary-time average, as reported in the ABS Average Weekly Earnings for May 2026, is $2,083.70 per week or about $108,352 per year. This is the site's line – the benchmark for full-time pay across Australia. The minimum wage of $52,255 is roughly 48% of that average. In other words, someone earning the minimum wage is well below the national full-time average, though they may still be above the all-employees median of about $74,100 (ABS Employee Earnings, August 2025).
To see where your own salary sits on the line, use the Place a salary on the line tool.
Why a State or an Award Can Move the Figure Off the National Line
The national minimum wage is a floor, but actual pay can vary significantly by state, territory, or award. Here’s how.
State and Territory Full-Time Averages
Each state and territory has its own full-time average earnings, which reflect local industry mix, cost of living, and labour demand. The ABS Average Weekly Earnings for May 2026 gives these state full-time averages:
- New South Wales: about $109,658 per year
- Victoria: about $106,137
- Queensland: about $106,064
- South Australia: about $102,450
- Western Australia: about $115,825
- Tasmania: about $96,008
- Northern Territory: about $103,173
- Australian Capital Territory: about $119,090
All of these are well above the national minimum wage. However, a worker on the minimum wage in a low-average state like Tasmania ($96,008) is even further from the state average than a worker in the ACT ($119,090). Conversely, in Western Australia, where mining and resources push up average pay, the gap between the minimum wage and the state average is the largest.
For a deeper look at how your location compares, see the States and territories page.
Award Coverage and Enterprise Agreements
Most Australian employees are covered by a modern award or an enterprise agreement. Awards set minimum pay rates for specific industries and occupations, and these rates are almost always higher than the national minimum wage. From 1 July 2026, award minimums increased by 4.75%, so a worker on a retail award, for example, will have a higher hourly rate than $26.44.
Enterprise agreements negotiated between employers and employees (or unions) can set rates above the award. In some cases, agreements may include penalty rates, allowances, or overtime that push total earnings well above the national minimum.
Because awards and agreements are tied to specific jobs, the gap between the minimum wage and actual pay can be large. For instance, a full-time adult on a hospitality award might earn $27–$30 per hour, while a professional under a different award could earn $35–$40. To explore typical pay by occupation, visit the Job medians page.
The Role of the Tax System
While the minimum wage is a pre-tax figure, the amount a worker takes home depends on their tax bracket and the Medicare levy. For the 2026–27 income year, the tax rates are:
- Nil on the first $18,200
- 15% on income from $18,201 to $45,000
- 30% on income from $45,001 to $135,000
- 37% on income from $135,001 to $190,000
- 45% on income above $190,000
Plus a 2% Medicare levy (before any reductions). A full-time minimum wage earner on $52,255 would pay about $6,217 in tax plus $1,045 in Medicare levy, leaving a take-home of roughly $44,993 per year. That is still below the all-employees median of $74,100, but the gap narrows after tax.
How the Figures Are Set
The national minimum wage is determined by Fair Work after an annual review. The ABS provides the Average Weekly Earnings data twice a year (May and November), while the Employee Earnings survey gives medians every two years. All figures used on this site come from these official sources. For more on the methodology, see How the figures are set.
Summary
The minimum wage in Australia for 2026 is $26.44 per hour, or about $52,255 per year. It is a legal floor that sits well below the national full-time average of $108,352. However, most workers earn more due to award coverage, enterprise agreements, or state-specific conditions. Understanding where your pay falls relative to the national line – and to state and industry benchmarks – helps you see the full picture of your earnings.
For more context on how this site works, visit About this site.