What is gross salary and how is it different from take-home pay?

Gross salary is the total amount you earn before any deductions. It includes your base wage, penalty rates, allowances, and overtime. From this amount, your employer withholds tax (PAYG) and any other authorised deductions. Your take-home pay (net salary) is what remains after tax and other deductions. The legal minimum wage and award rates are always expressed as gross amounts.

How do I know if I'm covered by an award or the national minimum wage?

Most employees in Australia are covered by a modern award that applies to their industry or occupation. You can check using the Fair Work Ombudsman's Pay and Conditions Tool or by reading the coverage clause in the relevant award. If no award or registered agreement applies to you, then the national minimum wage set by the Fair Work Commission is your legal floor. Award rates are generally higher than the national minimum, so it's important to identify the correct award.

Does the national minimum wage apply to casual employees?

Yes, but casual employees covered by the national minimum wage (award-free) are entitled to a casual loading of 25% on top of the base rate. From 1 July 2026, that means a minimum of $33.05 per hour. If you are covered by an award, the casual loading may be different (often also 25% but check your award). Remember that superannuation is paid on top of your gross salary, including the casual loading.

Gross Salary Check: How Your Hourly Rate Compares to the National Minimum Wage

From 1 July 2026, the national minimum wage is $26.44 per hour or $1,004.90 per week for award-free adult employees, but most workers are covered by a modern award that may set a higher rate.

Gross Salary and the Legal Minimum

Your gross salary is the amount you earn before tax and other deductions. It is the figure used to check whether you are being paid at least the legal minimum. In Australia, the legal minimum depends on whether you are covered by a modern award, an enterprise agreement, or neither.

The National Minimum Wage (award-free employees)

The Fair Work Commission sets the national minimum wage each year. From 1 July 2026, the rate is $26.44 per hour or $1,004.90 per week for a 38-hour week. This applies to adult employees in the national system who are not covered by any award or registered agreement. Casual employees in this group receive a 25% loading, making the minimum $33.05 per hour.

However, not everyone receives the full adult rate. Junior employees (under 21), apprentices, trainees, and employees with a disability may be paid a lower special national minimum wage. For example, a 17-year-old award-free junior is entitled to 57.8% of the adult rate, or $15.29 per hour (casual $19.11). These percentages are set by the National Minimum Wage Order.

Award and Agreement Rates

Most employees are covered by a modern award. Awards set minimum pay rates for each classification, and these are often higher than the national minimum. From 1 July 2026, award minimum wages increased by 4.75%, but the lowest ongoing classification in any award cannot fall below the national minimum ($26.44/h). Introductory rates (for the first six months) have a floor of $25.74 per hour or $978.10 per week.

If you are covered by an enterprise agreement, your base pay rate cannot be less than the award rate that would otherwise apply. Always check your award or agreement first – it is your legal minimum.

How Your Gross Salary Compares to Averages

The Australian Bureau of Statistics (ABS) surveys employer-reported earnings. In May 2026, full-time adult ordinary-time earnings averaged $2,083.70 per week, or about $54.83 per hour. That is roughly double the national minimum. The average for all employees (including part-time and casual) was $1,579.20 per week.

These averages include overtime, bonuses, and penalty rates. They are useful benchmarks, but they are not legal minimums. Your gross salary may be above or below these figures depending on your industry, role, and experience.

Superannuation Is Paid on Top

Remember that your gross salary is the base for calculating superannuation. From 1 July 2026, employers must pay the super guarantee (12% of ordinary time earnings) on top of your gross salary, not deducted from it. So if your gross salary is $26.44 per hour, your employer contributes an additional $3.17 per hour to your super fund. This is separate from your take-home pay.

Practical Check: Is Your Hourly Rate Above the Floor?

To check your gross salary against the legal minimum:

Find your hourly rate (if salaried, divide your weekly gross by your ordinary hours).
Identify whether you are award-free or covered by an award/agreement.
Compare your rate to the relevant minimum – either the national minimum or the award classification rate.
If you are casual, add the casual loading to the minimum before comparing.

If your rate is below the minimum, your employer may be underpaying you. You can use the Fair Work Ombudsman's Pay and Conditions Tool to calculate the correct rate for your award. For award-free employees, the Rate tables page shows the full set of junior and special rates.

When a Higher Rate Applies

A modern award or enterprise agreement can set a rate higher than the national minimum. Many do. Your gross salary must meet the highest applicable minimum – whether that is from an award, agreement, or the national minimum. Negotiated salaries above the minimum are common, but the legal floor is non-negotiable.

Key Points to Remember

Gross salary is before tax and super.
The national minimum is $26.44/h for award-free adults (casual $33.05/h).
Awards and agreements usually set higher rates.
Juniors, apprentices, and trainees have lower minimums.
Super is paid on top of your gross salary.
Use the Guides section for more detail on how to calculate your entitlements.

Understanding your gross salary and how it compares to the legal minimum is the first step to ensuring you are paid correctly. If in doubt, check your award or contact the Fair Work Ombudsman for advice.