How do I calculate my take-home pay from my gross salary?

Start with your gross weekly or annual salary. Deduct income tax using the 2026-27 resident rates with the full tax-free threshold (up to $18,200 tax-free, then progressive rates up to 45% for income over $190,000). Add an estimated 2% Medicare levy once your annualised ordinary gross exceeds $30,000. This model ignores the low income tax offset, HELP repayments, salary sacrifice, and the Medicare levy surcharge. For a precise figure, use the ATO's tax withheld calculator or speak to a tax professional.

Does the national minimum wage include superannuation?

No. The national minimum wage is the base rate paid to the employee. Superannuation (the super guarantee) is paid by the employer on top of ordinary time earnings, currently at 12% from 1 July 2026. For example, an employee earning the adult minimum of $1,004.90 per week would also receive an additional $120.59 in super, making the total employer cost $1,125.49 per week.

Can my pay be lower than the national minimum wage?

Yes, in certain circumstances. Junior employees (under 21) who are award-free can be paid a percentage of the adult rate (e.g., 36.8% for under 16). Apprentices and trainees have their own rates under the Miscellaneous Award. Some modern awards have introductory rates for the first six months (minimum $25.74 per hour from 1 July 2026). Supported wages for employees with disability may also apply. Always check your award or enterprise agreement first, as it may set a higher minimum.

How to Calculate Salary After Tax: The Weekly Packet from Minimum Wage to Average Earnings

The adult national minimum wage from 1 July 2026 is $26.44 per hour or $1,004.90 per week, but award-free juniors, apprentices, and introductory rates can be lower.

How to calculate salary after tax from the national minimum wage

When you want to calculate salary after tax, the first step is knowing your gross pay. The national minimum wage from 1 July 2026 is $26.44 per hour or $1,004.90 per week for an adult employee not covered by an award or agreement. This is the legal floor set by the Fair Work Commission. The Fair Work Ombudsman explains and enforces it. But your actual pay may be higher if a modern award or enterprise agreement applies. Always check Which minimum wage applies for your situation.

Separating the legal minimum from other rates

The national minimum wage is not the same as an award rate, a survey average, or a negotiated salary. A modern award sets minimum wages for specific industries and occupations, and those rates are often higher than the national minimum. For example, the lowest ongoing classification in any award cannot fall below $26.44 per hour, but many award rates are above that. An enterprise agreement can also set higher rates. The ABS average full-time adult ordinary-time earnings for May 2026 was $2,083.70 per week – more than double the minimum. That average includes many workers on higher pay. When you calculate salary after tax, you need to use your actual gross pay, not a benchmark.

Superannuation is on top

Remember that the super guarantee is an employer payment on top of your ordinary time earnings. From 1 July 2026, the rate is 12%. So if you earn the minimum $1,004.90 per week, your employer must also contribute $120.59 to your super fund. That money is not part of your take-home pay, but it is part of your total remuneration. When you calculate salary after tax, you only consider the gross salary component, not the super.

Estimating tax and Medicare for the 2026-27 year

To calculate salary after tax for a full-time worker on the national minimum wage:

Gross weekly: $1,004.90
Annualised: $1,004.90 × 52 = $52,254.80
Tax-free threshold: first $18,200 tax-free
Tax on next $34,054.80 at 19% = $6,470.41
Plus Medicare levy at 2% on income over $30,000 (estimated $1,045.10, but the real low-income reduction uses ATO shade-in thresholds)
Estimated total deductions: around $7,515.51
Estimated weekly take-home: about $860 (before any offsets or surcharges)

This is a simplified model. It leaves out the low income tax offset, HELP repayments, salary sacrifice, and the Medicare levy surcharge. For a precise calculation, use the ATO's online tools or consult a tax agent. The figures here are for orientation only – not tax advice.

Award-free juniors and other lower rates

Not every worker receives $26.44 per hour. Award-free junior employees (under 21) are paid a percentage of the adult rate. For example, a 16-year-old gets 47.3% = $12.51 per hour (casual $15.64). Apprentices and trainees follow the Miscellaneous Award. Introductory rates in modern awards are limited to the first six months and cannot fall below $25.74 per hour. Supported wages for people with disability may also apply. Always check your specific situation. See our Rate tables for more details.

Comparing your after-tax pay to averages

The ABS average full-time adult ordinary-time earnings of $2,083.70 per week is a survey figure, not a legal requirement. If you earn that amount, your annual gross is about $108,352. After tax and Medicare (using the same simplified model), your weekly take-home might be around $1,500. That is well above the minimum wage take-home. But many workers earn less than the average. The key is to know your own gross pay and then apply the tax rates correctly.

What if you are covered by a state system?

Most private-sector employees are in the national system, but some state public sector and local government employees, plus some Western Australian sole traders and partnerships, are covered by state awards. The state minimum wage may differ. The Fair Work Commission sets the national minimum, but state tribunals set state minima. If you are unsure, check with the Fair Work Ombudsman or your state industrial relations body.

Final points on calculating salary after tax

To calculate salary after tax accurately:

Know your gross pay (hourly rate × hours worked, or weekly salary).
Check if a modern award or enterprise agreement applies – it may set a higher minimum.
Remember super is on top, not part of your take-home.
Use the 2026-27 tax rates and Medicare levy, but consider offsets and surcharges.
For a precise figure, use the ATO's tax withheld calculator.

This site provides orientation only. It is not a pay determination, tax advice, or legal advice. For authoritative information, refer to the Fair Work Ombudsman and the Australian Taxation Office. You can also explore our Guides for more on pay and conditions.