Private Equity Salary: How the Minimum Wage and Tax Stack Up

Private Equity Salary: Understanding the Pay Floor and the Tax Take

The term "private equity salary" refers to the compensation earned by employees working in private equity firms in Australia. Unlike award-covered roles, private equity salaries are typically set by market forces, individual contracts, or enterprise agreements. However, every employee in Australia is entitled to a minimum pay floor, and understanding how that floor interacts with tax, super, and average earnings helps put any salary in perspective.

The Legal Minimum Wage

All employees in Australia are entitled to a minimum wage. The Fair Work Commission sets the national minimum wage each year, and the Fair Work Ombudsman explains and enforces it. As of 1 July 2026, the National Minimum Wage is $26.44 per hour or $1,004.90 per week for a 38-hour week. This applies to employees not covered by a modern award or registered agreement.

Most private equity employees are likely covered by a modern award, such as the Professional Employees Award, or by an enterprise agreement. From 1 July 2026, minimum award wages increased by 4.75%, with the lowest ongoing classification at least $26.44 per hour. Some introductory rates (limited to the first six months) can be as low as $25.74 per hour. Always check the applicable award or agreement, as it can set a higher rate than the national minimum.

It is important to note that not every worker must receive $26.44 per hour. Juniors, apprentices, trainees, and employees on supported wages may be paid less. For award-free juniors, rates range from $9.73 per hour (under 16) to $25.84 per hour (age 20).

How Private Equity Salaries Compare

Private equity salaries are generally well above the minimum wage. While no official average exists for the industry, the Australian Bureau of Statistics (ABS) reported in May 2026 that full-time adult ordinary-time earnings were $2,083.70 per week, and all employees averaged $1,579.20 per week. Private equity roles—especially at senior levels—often exceed these averages, but entry-level or support positions may be closer to market rates.

Because private equity is not a single occupation, salaries vary by role (analyst, associate, partner), firm size, and location. The Fair Work Ombudsman's Pay and Conditions Tool can help determine the minimum award rate for a specific job classification, but for most private equity employees, the actual salary is negotiated and set above any legal minimum.

The Weekly Packet: Tax, Medicare, and Super on Top

When discussing a private equity salary, it is essential to consider what you actually take home after tax and what your employer pays on top. Superannuation is an employer contribution of 12% (from 1 July 2026) on ordinary time earnings. This is not deducted from your salary but is an additional cost to your employer.

For example, if your private equity salary is $100,000 per year, your employer must pay $12,000 into your super fund. Your gross weekly pay would be about $1,923.08. After withholding tax (using 2026-27 resident rates with the full tax-free threshold) and an estimated 2% Medicare levy (once annualised ordinary gross exceeds $30,000), your net weekly pay would be lower. The exact amount depends on your total income, tax offsets, and any HELP repayment or salary sacrifice arrangements.

For a more detailed breakdown of how tax and super affect different pay levels, see our Rate tables and Guides.

Award Coverage and Enterprise Agreements

Private equity firms may be covered by the Professional Employees Award if they employ professionals such as accountants, lawyers, or analysts. However, many firms use enterprise agreements or individual contracts that set pay above the award. If an enterprise agreement applies, the base pay rate cannot be less than the relevant award rate. Always check your employment contract and any applicable agreement.

If you are unsure which award covers your role, use the Fair Work Ombudsman's online tools or consult Which minimum wage applies on this site.

Key Takeaways

• The national minimum wage is $26.44 per hour (from 1 July 2026), but private equity salaries are typically much higher and set by market rates.
• Award or enterprise agreement rates may apply and can be higher than the national minimum.
• Superannuation of 12% is paid on top of your salary by your employer.
• Tax and Medicare reduce your take-home pay; the exact amount depends on your total income and circumstances.
• No official average private equity salary exists, but ABS data provides a benchmark for full-time earnings.

For more information on how minimum wages are calculated and enforced, visit How the figures work and Topics.