Who is entitled to the new minimum wage rate?

The national minimum wage applies to award-free and agreement-free national-system employees. Most private-sector employees are in the national system. However, if you are covered by a modern award or enterprise agreement, your minimum pay is likely higher than the national minimum. Juniors, apprentices, trainees, and workers on supported wages may receive less than the adult rate.

How does superannuation affect my take-home pay?

The super guarantee requires your employer to pay an additional 12% of your ordinary time earnings into a super fund. This is on top of your base wage. For the 2025 national minimum of $948 per week, the employer would contribute an extra $113.76 per week to super. Your take-home pay is your wage minus tax and Medicare levy, not including super.

Is the minimum wage increase the same for casual workers?

Casual employees receive a casual loading of 25% on top of the base rate. For the 2025 national minimum, the casual rate is $31.19 per hour ($24.95 x 1.25). This loading compensates for not receiving paid leave entitlements.

Minimum wage increase 2025: what the new $24.95 rate means for your weekly pay

The national minimum wage rose to $24.95 per hour ($948 per week) from 1 July 2025, but many workers are covered by awards or agreements that set higher rates.

Minimum wage increase 2025: a new floor for Australian pay

The minimum wage increase 2025 took effect from 1 July 2025, lifting the national minimum to $24.95 per hour or $948 per week for a full-time adult employee. This guide explains how that rate fits into the broader pay landscape, what it means for your weekly packet after tax and super, and where you might be entitled to more.

The legal minimum and who it covers

The Fair Work Commission sets the national minimum wage each year. The Fair Work Ombudsman explains and enforces the rules. From 1 July 2025, the adult rate is $24.95 per hour (or $948 for 38 ordinary hours). This is the legal floor for award-free and agreement-free employees in the national system. Most private-sector workers are in the national system, but some state public sector and local government employees, and a few Western Australian sole traders and partnerships, are covered by state awards instead.

A modern award or enterprise agreement can require a higher rate than the national minimum. If you are covered by an award, check the classification that matches your role – it will likely pay more than $24.95. Similarly, an enterprise agreement negotiated between your employer and a union may set a higher minimum. The national minimum is a backstop, not a target.

Award rates and the 2025 increase

Modern award minimum wages also rose from the first full pay period on or after 1 July 2025. The increase was 4.75% for most award classifications, but the lowest ongoing classification in any award cannot sit under the national minimum of $24.95 per hour. Some awards have an introductory rate for the first six months of employment; that rate cannot fall below $24.95 either. If you are on an award, your actual hourly rate is likely higher than the national minimum.

Junior, apprentice, and supported wage rates

Not every worker receives the full adult rate. For award-free employees under 21, the national minimum is a percentage of the adult rate:

Under 16: 36.8% = $9.18 per hour
16: 47.3% = $11.80 per hour
17: 57.8% = $14.42 per hour
18: 68.3% = $17.04 per hour
19: 82.5% = $20.58 per hour
20: 97.7% = $24.37 per hour
21 and over: 100% = $24.95 per hour

Casual workers receive a 25% loading on top of these base rates. Apprentices and trainees who are award-free follow the Miscellaneous Award, not the junior percentages. Supported wages for employees with disability may also be lower, based on productivity assessments.

Your weekly packet: tax, Medicare, and super on top

Your take-home pay is not simply $948 a week. Your employer must also pay the super guarantee – 12% of your ordinary time earnings – into a super fund. That is an extra $113.76 per week on top of your wage. It does not come out of your pocket, but it is part of your total remuneration.

From your gross wage, the Australian Tax Office withholds income tax. For the 2025-26 income year, a single adult earning the national minimum of $948 per week ($49,296 annually) would pay roughly $5,867 in tax and $986 in Medicare levy (once annualised ordinary gross exceeds $30,000), leaving a weekly take-home of about $738. These figures assume the full tax-free threshold and no other offsets or deductions. The low-income tax offset and HELP repayments are not included here.

How the national minimum compares with average earnings

The Australian Bureau of Statistics (ABS) reported that in May 2026, full-time adult ordinary-time earnings averaged $2,083.70 per week, and all employees averaged $1,579.20 per week. The 2025 national minimum of $948 is well below those averages. This gap reflects the fact that many workers are covered by awards or agreements that pay more, and that the national minimum is designed as a safety net, not a typical wage.

Where to find more information

If you are unsure which pay floor applies to you, start with Which minimum wage applies to check your coverage. For detailed rates across awards and classifications, see our Rate tables. Remember, this guide provides orientation only – it is not a pay determination or legal advice. Always check the specific award or agreement that covers your job.

Frequently asked questions

We have answered three common questions above. For more, explore our Guides or Topics sections.