AFL salary cap 2025: how it compares with Australia's minimum wage
The AFL salary cap 2025 is a negotiated ceiling for club player payments, not a minimum wage floor. The national minimum wage from 1 July 2026 is $26.44 per hour or $1,004.90 per week for adult award-free employees.
AFL salary cap 2025: a negotiated ceiling, not a pay floor
When you hear about the AFL salary cap 2025, it’s easy to think it sets a wage standard. In reality, the AFL salary cap is a ceiling – a limit on the total player payments each club can make – agreed between the AFL and the AFL Players’ Association. It has nothing to do with the minimum wage that applies to most Australian workers. This guide explains the difference and shows you how to check your own pay against the legal floor.
The legal minimum: what the Fair Work Commission sets
Australia’s minimum wage is set each year by the Fair Work Commission after its Annual Wage Review. For 2025, the Commission decided on a 3.5% increase, bringing the national minimum wage to $24.95 per hour or $948 per week from 1 July 2025 . That rate applies to employees not covered by a modern award or enterprise agreement.
From 1 July 2026, the national minimum wage rises to $26.44 per hour ($1,004.90 per week) following a further 4.75% increase. Modern award minimum wages also rise by 4.75%, but the lowest ongoing classification in any award cannot fall below the national minimum. An introductory rate of $25.74 per hour ($978.10 per week) is allowed for the first six months .
Award rates and the AFL salary cap: two different worlds
Most employees – about 20.7% of the workforce, according to the Fair Work Commission – are paid under a modern award. Award rates vary by industry and occupation. For example, a retail employee or a hospitality worker has a specific minimum hourly rate set out in their award. Those rates are reviewed annually and cannot be undercut.
The AFL salary cap, by contrast, is a private contractual arrangement. It covers only AFL players, who are a tiny fraction of the workforce. The cap for 2025 is not published by any government agency; it is negotiated behind closed doors. If you are an AFL player, your club must stay within that cap, but your individual contract will almost certainly pay far more than the national minimum wage.
How your pay compares: a practical check
To see whether your hourly rate meets the legal minimum, follow these steps:
- Identify your award – Use the Fair Work Ombudsman’s Pay and Conditions Tool or check the coverage clause in your award.
- Find the correct classification – Awards have pay grades (e.g., Level 1, Level 2). Make sure you are using the right one for your duties.
- Check the base rate – From 1 July 2026, the lowest ongoing adult rate in any award is $26.44 per hour. If your award says less, the national minimum applies instead.
- Add casual loading – If you are a casual, you should receive at least a 25% loading on top of the base rate. For the national minimum, that’s $33.05 per hour.
- Remember super – Your employer must pay 12% super on your ordinary time earnings. That is on top of your hourly rate.
If you are award‑free and under 21, junior percentages apply. For example, a 17‑year‑old award‑free employee must get at least $15.29 per hour ($19.11 casual). Apprentice and trainee rates follow the Miscellaneous Award.
The gap between the minimum and average earnings
The national minimum wage is a safety net, not a living wage benchmark. According to the ABS, full‑time adult ordinary‑time earnings averaged $2,083.70 per week in May 2026 – more than double the national minimum. The AFL salary cap, while not a wage itself, reflects the high value placed on professional sport. But for the vast majority of workers, the relevant figure is the minimum set by the Commission.
Why the AFL salary cap doesn’t change your entitlements
Some workers worry that a high‑profile salary cap like the AFL’s might influence minimum wage decisions. It does not. The Fair Work Commission considers economic conditions, living standards, and the needs of low‑paid workers – not sports league caps. Your pay is protected by the national minimum wage, your award, or your enterprise agreement. Nothing in the AFL salary cap overrides those protections.
Need more help?
- Which minimum wage applies – a step‑by‑step guide to finding your correct pay floor.
- Rate tables – current and historical minimum wage rates for adults, juniors, and apprentices.
- How the figures work – explains how the Commission calculates increases and how we present them.
If you think you are being paid less than the legal minimum, contact the Fair Work Ombudsman. They can investigate and enforce compliance.
Questions people ask next
Does the AFL salary cap 2025 affect my minimum wage entitlements?
No. The AFL salary cap is a private agreement between the AFL and the AFL Players' Association that limits total player payments per club. It does not set a minimum wage for any worker. Your minimum pay is determined by the national minimum wage, a modern award, or an enterprise agreement – whichever applies to your job.
How can I check if my hourly rate meets the legal minimum?
First, find out if you are covered by a modern award (use the Fair Work Ombudsman's Pay and Conditions Tool). If you are award‑free, the national minimum wage applies: $26.44 per hour from 1 July 2026. If an award covers you, the lowest ongoing classification rate cannot be less than that, though an introductory rate of $25.74 per hour may apply for the first six months. Juniors, apprentices, and trainees have lower rates set by the award or the Miscellaneous Award.
What about superannuation – is it included in the AFL salary cap?
The AFL salary cap typically includes superannuation as part of the total player payment. For all employees, the super guarantee is 12% of ordinary time earnings, paid on top of the base wage. So if you earn the national minimum of $26.44 per hour, your employer must also pay $3.17 per hour into your super fund.
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