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.