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Minimum wage increase 2026: how it compares to the national full-time average

The national minimum wage from 1 July 2026 is $26.44 per hour, or $52,255 a year on a 38-hour week, well below the national full-time average of $108,352.

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

The national full-time average and the minimum wage floor

The national full-time adult ordinary-time average, as measured by the ABS Average Weekly Earnings for May 2026, sits at $2,083.70 per week, or about $108,352 a year. This is the line that the Average site uses as its benchmark. By contrast, the national minimum wage from 1 July 2026 is $26.44 per hour, $1,004.90 per week, or $52,255 a year on a 38-hour week. That is less than half the full-time average. The gap is large because the average includes all full-time workers, many of whom are paid well above the minimum through awards, enterprise agreements, or market rates.

Fair Work sets the national minimum wage each year after reviewing economic conditions. For 2026, the increase was applied to both the minimum wage and award minimums, which rose by 4.75%. The national minimum wage applies to employees not covered by an award or agreement. Most workers, however, are covered by an award that sets a higher minimum rate for their occupation or industry.

Why state averages move off the national line

The national full-time average is a weighted average of all states and territories. But each state has its own full-time average, and these can differ significantly from the national figure. According to the ABS, the state full-time averages are:

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

These differences arise from the mix of industries in each state. Western Australia, for example, has a large mining sector that pays above-average wages, lifting its state average to $115,825. The ACT benefits from a high concentration of public-sector and professional jobs. Tasmania, with a smaller share of high-paying industries, has the lowest full-time average at $96,008. For a detailed breakdown, see the States and territories page.

How awards and enterprise agreements move pay above the minimum

The national minimum wage is a floor, but most full-time workers earn more because they are covered by an award or an enterprise agreement. Awards set minimum rates for specific occupations and industries, and these rates are typically higher than the national minimum wage. The 4.75% increase to award minimums from 1 July 2026 means that workers on awards will see their pay rise, but the exact amount depends on their classification.

Enterprise agreements can set rates even higher than awards, especially in sectors with strong union presence or labour shortages. The national full-time average of $108,352 reflects all these layers: minimum wage, award rates, and above-award payments. The median full-time salary is about $90,532, which is lower than the average because the average is pulled up by very high earners. For more on how these figures are compiled, see How the figures are set.

The gap between minimum and average

The distance between the minimum wage and the national full-time average is substantial. A full-time worker on the minimum wage earns about $52,255 a year, while the average full-time worker earns $108,352. That is a gap of more than $56,000. In high-average states like the ACT, the gap is even wider: the minimum wage is less than 44% of the ACT average. In Tasmania, the gap is narrower but still large.

This gap matters for workers trying to gauge where their pay sits relative to the national line. If you are on the minimum wage, you are well below the line. If you are on an award rate, you may be closer but still below the average unless you work in a high-paying classification or industry. The site's chart shows your position relative to the line, so you can see the distance in dollars and percentage terms.

Conclusion

The minimum wage increase for 2026 sets a new floor, but it does not change the fact that most full-time workers earn well above it. State averages vary due to industry mix and local conditions, and award rates provide a higher minimum for many occupations. Understanding where your pay sits against the national full-time average requires knowing not just the minimum wage but also your award, state, and industry. Use the Place a salary on the line tool to see how your own salary compares.

Questions

What is the national minimum wage increase for 2026?

From 1 July 2026, the national minimum wage is $26.44 per hour, $1,004.90 per week, or $52,255 per year on a 38-hour week. This is set by Fair Work. Award minimums also rose by 4.75% from the same date.

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

The national full-time average is $2,083.70 per week ($108,352 per year), so the minimum wage is about half that. Most full-time workers earn above the minimum due to awards, enterprise agreements, or market rates.

Why do state averages differ from the national line?

State full-time averages range from $96,008 in Tasmania to $119,090 in the ACT. Differences reflect industry mix, cost of living, and local labour market conditions. For example, Western Australia's mining sector lifts its average to $115,825.

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