Who gets the minimum wage increase from 1 July 2026?

The increase applies to national-system employees who are award-free and agreement-free. If you are covered by a modern award or enterprise agreement, your minimum pay may be higher than the national minimum, and the award or agreement will specify the applicable rate. Some state-system employees (e.g., in Western Australia) are covered by state awards instead.

How does the minimum wage compare to the average wage?

The national minimum wage of $1,004.90 per week is about 48% of the full-time adult average ordinary-time earnings of $2,083.70 per week (ABS May 2026). It is also about 64% of the all-employees average total earnings of $1,579.20 per week. These comparisons show that the minimum wage is a floor, not a typical wage.

Do juniors and apprentices get the full $26.44 per hour?

No. Award-free junior employees receive a percentage of the adult rate based on age – for example, under 16 years old: $9.73 per hour. Apprentices and trainees who are award-free are covered by the Miscellaneous Award, not the junior percentages, and have their own progressive rates. Always check the specific award or agreement that applies to you.

Minimum wage increases 2026: what the new weekly packet means after tax and super

From 1 July 2026, the national minimum wage is $26.44 per hour or $1,004.90 per week for a full-time adult employee, with superannuation guarantee of 12% on top.

Minimum wage increases 2026: a new pay floor

From the first full pay period on or after 1 July 2026, the national minimum wage rises to $26.44 per hour or $1,004.90 per week for a full-time adult employee. This is the legal minimum pay that must be received by award-free and agreement-free employees in the national system. The Fair Work Commission sets this rate after its annual review, and the Fair Work Ombudsman explains and enforces it.

The weekly packet: gross, net, and super on top

When we talk about the weekly packet, it helps to separate three layers: the gross wage, the amount you actually take home after tax and Medicare, and the superannuation that your employer pays on top.

Gross wage: $1,004.90 per week for a full-time adult working 38 ordinary hours. If you are a casual employee, the national minimum casual rate is $33.05 per hour (including the 25% casual loading), which works out to $1,255.90 per week for 38 hours.

Take-home pay after tax and Medicare: The gross $1,004.90 per week equals about $52,255 per year. Using the 2026-27 resident tax rates with the full tax-free threshold, and estimating Medicare at 2% once annualised ordinary gross exceeds $30,000, the net weekly amount will be lower. The exact figure depends on your individual circumstances – including the low-income tax offset, HELP repayments, and salary sacrifice – but the take-home is significantly less than the gross. For a rough idea, a single worker with no other income might keep around $800–$850 per week after tax and Medicare, but this is an estimate only. Use the ATO’s tax calculator for a precise result.

Superannuation on top: The super guarantee requires your employer to pay an additional 12% of your ordinary time earnings into a super fund. This is not deducted from your wage; it is paid on top. For a full-time minimum wage worker, that means an extra $120.59 per week (12% of $1,004.90) going towards your retirement savings. The super is not part of your take-home pay but is a valuable benefit.

How the minimum wage compares with average earnings

The Australian Bureau of Statistics (ABS) reported in May 2026 that full-time adult average ordinary-time earnings were $2,083.70 per week. The national minimum wage is therefore about 48% of that average. When including all employees (part-time and casual), the average total earnings were $1,579.20 per week, making the minimum wage about 64% of that figure. These comparisons show that the minimum wage is a floor, not a typical wage. Most employees earn more because they are covered by a modern award or enterprise agreement that sets higher rates, or because they negotiate above-minimum salaries.

Award rates and the backstop

Modern award minimum wages also rise by 4.75% from the first full pay period on or after 1 July 2026. However, the lowest ongoing classification in any award cannot fall below the national minimum of $26.44 per hour or $1,004.90 per week. Awards also have an introductory rate (for the first six months) that cannot go below $25.74 per hour or $978.10 per week. If you are covered by an award, check your specific classification – it is likely higher than the national minimum.

Who gets less than the adult rate?

Not every worker receives $26.44 per hour. Award-free junior employees are paid a percentage of the adult rate based on age:

Under 16: $9.73 per hour (casual $12.16)
16 years: $12.51 per hour (casual $15.64)
17 years: $15.29 per hour (casual $19.11)
18 years: $18.06 per hour (casual $22.58)
19 years: $21.82 per hour (casual $27.28)
20 years: $25.84 per hour (casual $32.30)
21 and over: $26.44 per hour (casual $33.05)

Apprentices and trainees who are award-free follow the Miscellaneous Award rates, not the junior percentages. Supported wages for employees with disability may also be lower under a supported wage system.

Understanding your pay floor

If you are unsure which rate applies to you, start by checking whether you are covered by a modern award or an enterprise agreement. Most private-sector employees are in the national system and are covered by an award. If you are truly award-free and agreement-free, the national minimum wage is your legal floor. For more detail, see Which minimum wage applies or browse the Rate tables on this site.

Remember that the figures on this page are for orientation only. They are not a pay determination, tax advice, or legal advice. Always consult the Fair Work Ombudsman or a qualified professional for your specific situation.

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