Does salary packaging through CBB reduce my minimum wage entitlement?

No. Salary packaging (including through CBB) is an arrangement where you sacrifice part of your pre-tax salary for benefits such as a car or electronic devices. However, the packaged salary must still equal or exceed the applicable minimum wage or award rate after the sacrifice. The Fair Work Ombudsman makes clear that salary sacrifice cannot reduce your pay below the legal floor. Your employer must still pay at least the national minimum wage or the relevant award rate, and superannuation is calculated on your ordinary time earnings before the sacrifice.

How does CBB salary packaging affect my super guarantee?

The super guarantee (currently 12% from 1 July 2026) is calculated on your ordinary time earnings, which are generally your gross salary before any salary sacrifice. Even if you use CBB salary packaging to reduce your taxable income, your employer must still pay super on the full amount of your ordinary time earnings. This is a common confusion: salary packaging lowers your take-home pay for tax purposes but does not reduce the super base.

Can an award or enterprise agreement override the national minimum when using CBB salary packaging?

Yes. A modern award or enterprise agreement can set a higher minimum rate than the national minimum wage. If you are covered by an award, your employer must pay at least the award rate, which may be above the national minimum. CBB salary packaging does not change that obligation. For award-free employees, the national minimum applies. Always check your specific award or agreement; the Fair Work Commission sets the national minimum, but the Ombudsman enforces it.

CBB Salary Packaging and the Australian Minimum Wage Floor

The national minimum wage is $26.44 per hour or $1,004.90 per week from 1 July 2026, but the reference does not contain a specific market rate for CBB salary packaging.

CBB Salary Packaging and the Australian Pay Floor

CBB salary packaging is a service that helps employees structure their pay to include pre-tax benefits such as cars, laptops, or additional super contributions. While salary packaging can reduce your taxable income, it does not change the fundamental obligation that your employer must pay you at least the legal minimum wage. This guide explains which pay floor applies and what people often mix up when salary packaging is involved.

The Legal Minimum Wage

From 1 July 2026, the national minimum wage is $26.44 per hour or $1,004.90 per week for adult employees not covered by an award or agreement. This rate is set by the Fair Work Commission. The Fair Work Ombudsman explains and enforces it. For casual employees, the minimum is $33.05 per hour (the national minimum plus a 25% casual loading). These figures apply to national-system employees who are award-free and agreement-free. Most private-sector employees are in the national system.

Importantly, the national minimum is a floor. A modern award or enterprise agreement can require a higher rate. For example, the lowest ongoing classification in a modern award cannot sit under $26.44 per hour, and an introductory rate (first six months) cannot sit under $25.74 per hour or $978.10 per week. Apprentice and trainee rates for award-free employees follow the Miscellaneous Award, not the junior percentages.

How CBB Salary Packaging Interacts with Minimum Pay

CBB salary packaging does not set a wage rate; it is a way to redirect part of your salary. The underlying wage must still meet the legal minimum. If your salary after packaging falls below $26.44 per hour (or the applicable award rate), your employer is breaking the law. The reference on this site does not contain a specific market rate for CBB salary packaging, so we cannot compare it to a survey average or negotiated figure. The legal floor is the only certain benchmark.

A common mix-up is thinking that salary packaging reduces the employer’s obligation to pay super. In fact, the super guarantee (12% from 1 July 2026) is paid on your ordinary time earnings before any salary sacrifice. So if you package $10,000 of your salary, your employer still pays super on that $10,000. Another mix-up is confusing the national minimum with an award rate. If you are covered by an award, your minimum wage is likely higher than the national minimum, and salary packaging cannot bring you below that award rate.

Separating Legal Minimum from Other Figures

The on-site reference provides several figures:

National minimum wage: $26.44/h, $1,004.90/week (adult, award-free).
Award backstop: Ongoing $26.44/h, introductory $25.74/h.
ABS May 2026 average earnings: Full-time adult ordinary-time earnings $2,083.70 per week; all employees average total earnings $1,579.20 per week. These are survey averages, not legal minimums.
Junior rates: Award-free juniors have percentage-based minimums (e.g., 18-year-old $18.06/h, 20-year-old $25.84/h).

CBB salary packaging is not a wage rate; it is a benefit arrangement. The legal minimum is the only figure that applies universally. If you are negotiating a salary with CBB packaging, you must ensure the base pay meets the floor. If you are on an award, check the specific classification. If you are on an enterprise agreement, the agreement rate applies (and must be higher than the award or national minimum).

Super and Salary Packaging

Remember that super is an employer payment on top of your ordinary time earnings. For a full-time adult on the national minimum, the employer must pay an additional 12% super, meaning total employment cost is at least $29.61 per hour ($26.44 + $3.17). Salary packaging does not reduce this obligation. The ATO treats salary sacrifice as part of your ordinary time earnings for super purposes.

Internal Resources

For more detail on which minimum wage applies to you, see Which minimum wage applies. To compare rates across awards and classifications, visit Rate tables.

Summary

CBB salary packaging is a useful tool for managing tax, but it does not change the legal minimum wage. The reference does not provide a specific CBB rate, so rely on the national minimum or your award/agreement. Always check your pay against the floor, and remember that super is calculated on pre-packaged earnings.

For the published floors, see the rate tables and how the figures work.