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Minimum wage increases 2026: How the new rate compares to the full-time average

The national minimum wage from 1 July 2026 is $52,255 a year, well below the 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

Minimum wage increases 2026: What the new rate means

The national minimum wage rises to $26.44 an hour from 1 July 2026. On a standard 38-hour week that works out to $1004.9 a week or about $52,255 a year before tax. Fair Work announced the increase as part of its annual wage review, with award minimums also rising by 4.75 per cent.

How the minimum wage sits against the full-time average

The national full-time adult ordinary-time average is $2083.7 a week, or $108,352 a year, according to the ABS Average Weekly Earnings for May 2026. That means the minimum wage is roughly 48 per cent of the average full-time salary. For someone earning the minimum, the gap to the average is about $56,097 a year.

The full-time median is lower than the average at $90,532 a year (ABS Employee earnings, August 2025). The all-employees median, which includes part-time and casual workers, is $74,100. Even against the median, the minimum wage is well behind.

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

The site's tool lets you see any salary as a yearly figure, a weekly amount, and an hourly rate based on a 38-hour week. For the minimum wage, the numbers are:

  • Yearly: $52,255
  • Weekly: $1004.9
  • Hourly: $26.44

You can Place a salary on the line to compare any pay against the national full-time average.

State differences

Full-time averages vary across Australia. The highest is the Australian Capital Territory at $119,090, followed by Western Australia at $115,825 and New South Wales at $109,658. The lowest is Tasmania at $96,008. The minimum wage is the same nationally, so its buying power differs by state. For more detail, see States and territories.

Tax on the minimum wage

For the 2026–27 financial year, the tax-free threshold is $18,200. The 15 per cent bracket applies up to $45,000, then 30 per cent up to $135,000. On $52,255, the tax would be roughly: nil on first $18,200, then 15% on $26,800 ($4,020), then 30% on $7,255 ($2,176.5), total $6,196.5, plus Medicare levy of 2% ($1,045.1), giving about $7,241.6 in tax and Medicare. Net pay would be around $45,013 a year.

Award minimums

Award-covered employees saw their minimum rates rise by 4.75 per cent from 1 July 2026. This is separate from the national minimum wage but follows the same annual review. Many workers on awards earn above the national minimum, but the percentage increase applies to their base rate.

Gender and the minimum wage

The full-time average for men is $113,412, and for women $100,594 (ABS Average Weekly Earnings, May 2026). Women are overrepresented in low-paid industries, so the minimum wage increase may have a greater impact on female workers. However, the minimum wage itself is gender-neutral.

How the figures are set

The national minimum wage is set by Fair Work after an annual review. The ABS publishes Average Weekly Earnings twice a year, for May and November. The full-time average used on this site is the May 2026 figure. For more on methodology, see How the figures are set.

Using the site's line

The line on this site represents the national full-time average of $108,352. Any salary you enter is shown as a yearly, weekly, and hourly figure, along with the distance above or below the line. For the minimum wage, the distance is about $56,097 below the line.

Who gets the minimum wage

The national minimum wage applies to employees who are not covered by an award or registered agreement. It is the base rate for adult workers. Award-covered employees have their own minimum rates, which are generally higher. The 2026 increase also raised award rates by 4.75 per cent.

Comparing to other benchmarks

The minimum wage is also well below the full-time median of $90,532 and the all-employees median of $74,100. It is about half the full-time average. For a single person, the tax on the minimum wage is modest, but for a family, the income may be supplemented by government payments.

Summary

The minimum wage increase for 2026 brings the hourly rate to $26.44, but it remains far below the full-time average of $108,352. Workers on the minimum may struggle to meet living costs in high-cost states. The site's line helps you see where any salary stands relative to the national benchmark.

Questions

What is the national minimum wage from 1 July 2026?

The national minimum wage is $26.44 an hour, $1004.9 a week, or about $52,255 a year on a 38-hour week, as set by Fair Work.

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

The full-time average is $108,352 a year (ABS Average Weekly Earnings, May 2026). The minimum wage is about 48% of that average.

Did award minimums also increase?

Yes, award minimums rose by 4.75% from 1 July 2026, as per Fair Work.

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