HomeGuidesMinimum wage

What is minimum wage in Australia and how does it compare to the average?

The national minimum wage sits well below the full-time average, at about $52,255 a year compared to $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

What is the minimum wage in Australia?

The national minimum wage is the legal floor for pay in Australia. From 1 July 2026, Fair Work set it at $26.44 an hour, which works out to $1004.90 a week or about $52,255 a year for a full-time employee working 38 hours. This rate applies to employees who are not covered by an award or enterprise agreement. Award minimums also increased by 4.75% from the same date, meaning most award-covered workers have a higher minimum than the national figure.

How the minimum wage sits against the full-time average

The ABS Average Weekly Earnings, May 2026, puts the national full-time adult ordinary-time average at $2083.70 a week, or about $108,352 a year. That is more than double the minimum wage. The full-time median, from the ABS Employee Earnings survey (August 2025), is about $90,532 a year, still far above the minimum. Even the all-employees median of about $74,100 is well above the minimum wage. So if you are earning the minimum wage, your pay is significantly below the typical full-time worker.

What would move your pay above or below the average?

Several factors can push your pay above or below the national full-time average. The most common is the award or agreement that covers your job. Most employees are under a modern award, which sets minimum pay rates higher than the national minimum wage. For example, a retail or hospitality award may set a base rate of $27 or $28 an hour. Enterprise agreements can go even higher. If you are covered by an award, your minimum is already above the national minimum, but still likely below the full-time average unless you have significant penalties, allowances, or overtime.

Another factor is your occupation. Some jobs have much higher median earnings. For instance, managers and professionals tend to earn well above the average, while sales and hospitality workers often earn below. You can check job medians to see where your role sits. Similarly, the industry you work in matters. Mining, IT, and finance typically pay above the average, while retail and accommodation pay below. See industry medians for details.

Your location also plays a role. State full-time averages vary: the Australian Capital Territory leads at about $119,090, while Tasmania is lowest at about $96,008. Western Australia ($115,825) and New South Wales ($109,658) are above the national average, while South Australia ($102,450) and Queensland ($106,064) are close. The states and territories page has the full breakdown. If you move to a higher-paying state, your pay may rise relative to the national average.

Hours and employment type matter too. The national full-time average is based on ordinary-time earnings for full-time adults. If you work part-time or casually, your hourly rate might be higher (casual loading) but your weekly pay lower. Overtime, shift penalties, and bonuses can push your pay above the average. Conversely, if you are on the minimum wage with no extras, you will stay well below.

The role of enterprise agreements and individual bargaining

Enterprise agreements negotiated between employers and employees (or unions) can set pay above award rates. Some agreements include annual increases tied to inflation or productivity. Individual bargaining, especially for higher-skilled roles, can also lift pay above the average. However, for minimum-wage workers, collective bargaining is rare, and most rely on award rates.

How tax affects take-home pay

While the gross salary is what we compare to the average, your take-home pay depends on tax. For 2026–27, the tax-free threshold is $18,200, then 15% up to $45,000, 30% up to $135,000, 37% up to $190,000, and 45% above that. Plus a 2% Medicare levy (before reductions). On the minimum wage of about $52,255, you would pay roughly $6,000 in tax plus Medicare, leaving about $46,000 take-home. That is still well below the average take-home of a full-time worker.

What if your pay is below the minimum wage?

If you are paid less than the national minimum wage or the relevant award rate, you may be entitled to back pay. Fair Work can investigate underpayment claims. You can also check your pay against the line on this site to see how you compare to the average.

Summary

The national minimum wage is a floor, not a target. Most workers earn above it, but many still fall below the full-time average of $108,352. Your pay relative to the average depends on your award, occupation, industry, location, and hours. To see where your salary sits, place a salary on the line and compare it to the national average, median, and minimum.

Questions

How is the national minimum wage set?

The national minimum wage is set by Fair Work each financial year. From 1 July 2026, the rate is $26.44 an hour, $1004.90 a week, or about $52,255 a year on a 38-hour week. Award minimums also rose by 4.75% from that date.

What is the difference between the minimum wage and award wages?

The national minimum wage is the base rate for employees not covered by an award or agreement. Award wages are higher minimum rates set for specific industries or occupations. Most employees are covered by an award, so their minimum pay is above the national minimum wage.

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

The ABS Average Weekly Earnings for May 2026 shows the national full-time adult ordinary-time average is $2083.70 a week, about $108,352 a year. The minimum wage is roughly half that. Even the full-time median of about $90,532 is well above the minimum.

Related guides