If I am covered by an award, can I be paid less than the national minimum wage?

No. The Fair Work Ombudsman states that award minimum wages cannot fall below the national minimum wage for ongoing adult employees. Some awards have introductory rates that are lower for the first six months, but from 1 July 2026 those rates cannot be less than $25.74 per hour or $978.10 per week. After that period, the full award rate applies, which must be at least the national minimum.

How do junior pay rates work for award-free employees?

Award-free employees under 21 are entitled to a percentage of the adult national minimum wage. For example, a 17-year-old gets 57.8% ($15.29 per hour) and a 20-year-old gets 97.7% ($25.84 per hour). Casual juniors also receive the 25% casual loading on top. These rates are set by the Fair Work Commission's National Minimum Wage Order.

Does the national minimum wage include superannuation?

No. The national minimum wage is the base rate before tax. Employers must also pay the superannuation guarantee, which is 12% of ordinary time earnings from 1 July 2026, on top of the minimum wage. For a full-time award-free adult earning $1,004.90 per week, the employer adds $120.59 in super.

Roosters salary cap breach: understanding award coverage versus award-free minimum wages

From 1 July 2026, the national minimum wage for award-free adult employees is $26.44 per hour or $1,004.90 per week, with a casual loading of 25% taking it to $33.05 per hour.

Roosters salary cap breach and your pay floor

Recent discussions about the roosters salary cap breach have drawn attention to how pay rules work in Australia. While that case involves a sporting club's compliance, the principles for most employees are clearer. Your minimum wage depends on whether you are covered by a modern award, an enterprise agreement, or no award at all. This guide explains the difference between award coverage and award-free rates, and how to know which floor applies to you.

The national minimum wage for award-free employees

If you are not covered by any award or registered agreement, the national minimum wage set by the Fair Work Commission applies. From 1 July 2026, that rate is $26.44 per hour or $1,004.90 per week for a 38-hour week. Casual employees receive a 25% loading, making it $33.05 per hour. This is the legal minimum before tax. On top of that, your employer must pay the superannuation guarantee of 12% of your ordinary time earnings.

However, not every award-free worker gets the full adult rate. Junior employees (under 21) receive a percentage based on age. For example, a 16-year-old gets 47.3% ($12.51 per hour) and a 19-year-old gets 82.5% ($21.82 per hour). Apprentices and trainees have their own special rates under the Miscellaneous Award. Employees with a disability that affects productivity may have a percentage rate set by the Commission.

Award coverage sets a higher floor

Most Australian employees are covered by a modern award that applies to their industry or occupation. Awards set minimum pay rates that are often higher than the national minimum wage. For example, the Hospitality Industry General Award has higher rates for certain classifications. The Fair Work Ombudsman provides a Pay and Conditions Tool to check your award's rates.

From the first full pay period on or after 1 July 2026, modern award minimum wages rose by 4.75%. The lowest ongoing classification in any award cannot be less than the national minimum of $26.44 per hour. Some awards have introductory rates for new employees, but those are limited to the first six months and cannot fall below $25.74 per hour or $978.10 per week.

Enterprise agreements and individual contracts

If you are covered by an enterprise agreement, that document sets your minimum pay and conditions. It must pass the better-off overall test, meaning you cannot be worse off than the relevant award. Individual contracts can also set pay above the award or national minimum, but they cannot undercut it. A negotiated salary may include loadings for overtime or other conditions, but the base hourly rate must still meet the legal minimum.

How the figures compare

The national minimum wage is a floor, not a target. The ABS May 2026 survey shows full-time adult average ordinary-time earnings of $2,083.70 per week, more than double the minimum. That average includes many workers on award rates above the minimum, as well as those on enterprise agreements or individual contracts. Understanding which pay floor applies to you is the first step to ensuring you are paid correctly.

For more detail, see our Which minimum wage applies guide and the Rate tables for award-free junior and casual rates.

Superannuation is on top

Whenever discussing pay, remember that super is an employer payment on top of your gross wage. The super guarantee is 12% from 1 July 2026, calculated on ordinary time earnings. For an award-free adult on the national minimum, that adds $120.59 per week to your retirement savings.

Final note on the roosters salary cap breach

The roosters salary cap breach case involves specific rules for NRL clubs, not general employment law. For most workers, the key is knowing whether you are award-covered or award-free. Use the Fair Work Ombudsman's tools or check your award on the Fair Work Commission's website. If you are unsure, your employer should tell you which award applies. The national minimum wage is your safety net, but your award or agreement may give you more.

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