Who is entitled to the national minimum wage?

The national minimum wage applies to employees in the national system who are not covered by a modern award or an enterprise agreement. This includes award-free and agreement-free workers. Most employees, however, are covered by an award or agreement that sets a higher minimum rate. Juniors, apprentices, trainees, and employees with a disability may receive a lower special minimum wage.

How do I find the correct award rate for my job?

Use the Fair Work Ombudsman's Pay and Conditions Tool or check the coverage clause and classification definitions in the relevant modern award. The award will list minimum hourly rates, penalty rates, and allowances. If your award rate is below the national minimum wage, the national minimum applies instead (except for introductory rates limited to the first six months).

Does the national minimum wage include casual loading?

No. The national minimum wage of $26.44 per hour is the base rate for permanent employees. Casual employees covered by the national minimum wage receive an additional 25% loading, making the casual minimum $33.05 per hour. Award and agreement casual loadings may differ.

Salary Calculation in Australia: Which Pay Floor Applies and How to Compare

As of 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 an award or agreement that sets a higher rate.

Salary Calculation: Know Your Pay Floor

When you start a new job or review your pay, the first step in any salary calculation is identifying the legal minimum that applies to you. In Australia, the pay floor is not a single number — it depends on whether you are covered by a modern award, an enterprise agreement, or neither. Getting this right prevents underpayment and helps you negotiate from a fair baseline.

The National Minimum Wage

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 only to employees in the national system who are award-free and agreement-free. Most private-sector workers are in the national system, but some state public sector and local government employees, and some Western Australian sole traders and partnerships, are covered by state awards instead.

Importantly, not every worker must receive $26.44 per hour. Award-free juniors, apprentices, trainees, and employees with a disability have special minimum wages that can be lower. For example, a 16-year-old award-free junior receives $12.51 per hour (47.3% of the adult rate), and a casual junior receives $15.64 per hour including the 25% loading. Apprentice and trainee rates for award-free employees follow the Miscellaneous Award, not the junior percentages.

Award and Agreement Rates

Most employees are covered by a modern award or an enterprise agreement. From 1 July 2026, minimum award wages increased by 4.75%, but with a backstop: the lowest ongoing classification in any award cannot be less than the national minimum wage ($26.44 per hour or $1,004.90 per week). Introductory rates limited to the first six months cannot be less than $25.74 per hour or $978.10 per week.

If you are covered by an enterprise agreement, the base pay rate cannot be less than the base rate in the relevant award. Always check your agreement or award first — it will almost always set a higher rate than the national minimum.

How Salary Calculation Differs from Averages

A common mistake in salary calculation is confusing the legal minimum with survey averages. The Australian Bureau of Statistics (ABS) reported in May 2026 that full-time adult ordinary-time earnings averaged $2,083.70 per week — more than double the national minimum. All employees (including part-time and casual) averaged $1,579.20 per week. These averages include overtime, bonuses, and higher-paid occupations. They are not a pay floor and should not be used to benchmark minimum entitlements.

A negotiated salary is whatever you and your employer agree to, provided it is at or above the applicable minimum. An award or enterprise agreement can also require a higher rate than the national minimum.

Superannuation Is On Top

When discussing pay, remember that the superannuation guarantee is an employer payment on top of your salary. From 1 July 2026, employers must pay 12% of your ordinary time earnings into a super fund, and from that date they must pay it at the same time as your wages (payday super). This is not deducted from your take-home pay; it is an additional cost to the employer.

Practical Steps for Your Salary Calculation

Identify your award or agreement. Use the Fair Work Ombudsman's Pay and Conditions Tool or check your employment contract. If you are award-free, the national minimum wage applies.
Find the correct classification level. Awards have different pay rates for different job roles and experience levels.
Check for penalty rates and allowances. Weekend, evening, or overtime work attracts extra pay under most awards.
Compare with the national minimum. If your award rate is lower than $26.44 per hour (and it is not an introductory rate), the national minimum applies instead.
Add superannuation. Your employer must pay 12% on top of your ordinary time earnings.

For more details, see our Which minimum wage applies guide and Rate tables for current figures.

Common Misunderstandings

The national minimum is not a universal floor. Juniors, apprentices, trainees, and supported employees can be paid less.
Award rates can be higher than the national minimum. Most are.
Casual loading is separate. The national minimum for casuals is $33.05 per hour (including 25% loading), but award casual loadings may differ.
Salary calculation is not tax advice. The figures above are gross pay before tax. For information on PAYG withholding, visit the Australian Taxation Office.

Orientation Only

This guide provides general information only. It is not a pay determination, tax advice, or legal advice. Always refer to the Fair Work Ombudsman, the Fair Work Commission, or a qualified professional for your specific situation.

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