How the 2026 salary increase lands for Australian workers
If you are wondering where your pay sits against the national full-time average, the short answer is that the line moves depending on where you live and what award or agreement covers you. The national average is a useful benchmark, but your own salary increase in 2026 is shaped by state labour markets and the type of employment arrangement you are under.
The national picture: ABS Average Weekly Earnings
The Australian Bureau of Statistics (ABS) publishes Average Weekly Earnings twice a year, for May and November. The May 2026 release shows that full-time adult average weekly ordinary time earnings (seasonally adjusted) reached $2,083.70 per week, an annual increase of 3.7%. That works out to about $108,352 per year before tax. This is the figure that Average line uses as the national line.
Men’s full-time ordinary-time average was $2,181.00 per week ($113,412 per year) and women’s was $1,934.50 per week ($100,594 per year). The all-employees average total earnings (including part-time and casual) was $1,579.20 per week. These figures are averages, not medians. The full-time median from the ABS Employee Earnings survey (August 2025) is about $90,532 per year, and the all-employees median is about $74,100 per year. The median gives a better sense of what a typical worker earns, while the average is pulled up by higher earners.
State differences: why your location matters
The national average hides big differences between states and territories. According to the ABS May 2026 data, the full-time adult average weekly ordinary time earnings by state (original) are:
- New South Wales: $2,108.80 per week ($109,658 per year)
- Victoria: $2,041.10 per week ($106,137 per year)
- Queensland: $2,039.70 per week ($106,064 per year)
- South Australia: $1,970.20 per week ($102,450 per year)
- Western Australia: $2,227.40 per week ($115,825 per year)
- Tasmania: $1,846.30 per week ($96,008 per year)
- Northern Territory: $1,984.10 per week ($103,173 per year)
- Australian Capital Territory: $2,290.20 per week ($119,090 per year)
If you work in Western Australia or the ACT, your salary is likely well above the national line. In Tasmania or South Australia, it is below. These differences reflect industry mix, cost of living, and demand for labour. For a detailed breakdown of each state, see our States and territories page.
Award coverage and the minimum wage
A large proportion of Australian employees are covered by a modern award or an enterprise agreement. For these workers, the annual salary increase is largely determined by the Fair Work Commission’s Annual Wage Review. In 2026, the Commission announced a 4.75% increase to minimum award wages, effective from the first full pay period starting on or after 1 July 2026. The National Minimum Wage rose to $26.44 per hour, or $1,004.90 per week (about $52,255 per year on a 38-hour week).
If you are on an award, your minimum rate increased by 4.75%, but your actual pay may be higher if your employer pays above the award. Enterprise agreements must also ensure that base rates are not less than the relevant award rate, so many agreement-covered workers also received a boost. The high income threshold for unfair dismissal increased to $190,100 from 1 July 2026.
Award coverage is common in industries such as retail, hospitality, healthcare, and manufacturing. If you work in one of these sectors, your salary increase is tied to the Commission’s decision, not to market movements. That is why your personal increase may differ from the national average, which includes executives and high-earning professionals.
Medians vs averages: which one matters for you?
The national full-time average of $108,352 is higher than what most full-time workers actually earn. The full-time median of about $90,532 is a better indicator of the middle of the pack. The all-employees median of $74,100 includes part-time and casual workers. If you are comparing your salary, consider using the median for your occupation or industry. Our Job medians and Industry medians pages can help you find a more relevant benchmark.
Tax and take-home pay
Your salary increase in 2026 will also be affected by the tax brackets for 2026–27. The resident 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; and 45% on income above $190,000. The Medicare levy of 2% applies before any reductions. So a $5,000 gross increase may net less after tax, depending on your bracket.
Putting it all together
The national line of $108,352 per year is a useful starting point, but your actual salary increase in 2026 depends on where you work, what award or agreement covers you, and whether your employer pays above the minimum. Use the tools on this site to Place a salary on the line and see how your pay compares to the national average, state averages, and industry medians. Remember that the ABS figures are averages, not guarantees, and that the Fair Work Commission sets the floor for millions of workers.
For more detail on how the figures are calculated, see How the figures are set.