What are salary expectations for award-covered workers compared to award-free workers?

Award-covered workers have salary expectations set by the modern award that applies to their industry or occupation. These rates are typically higher than the national minimum wage and include penalty rates, allowances, and overtime. Award-free workers (not covered by any award or agreement) are only entitled to the national minimum wage, which from 1 July 2026 is $26.44 per hour. However, most employees in Australia are covered by an award or enterprise agreement, so their salary expectations should be based on the relevant award classification.

Can an employer pay less than the national minimum wage if the employee agrees?

No. The national minimum wage is a legal floor. An employer cannot pay less than the minimum rate set by the applicable award or the national minimum wage, even with the employee's consent. Some exceptions apply for junior employees, apprentices, trainees, and workers with disability, where special rates apply. For award-free juniors, the rate is a percentage of the adult minimum based on age (e.g., under 16: $9.73/h, 18: $18.06/h). Always check the Fair Work Ombudsman's Pay and Conditions Tool for the correct rate.

How does superannuation affect salary expectations?

Superannuation is an employer contribution paid on top of an employee's ordinary time earnings. From 1 July 2026, the super guarantee rate is 12% and must be paid at the same time as wages (payday super). When discussing salary expectations, it's important to distinguish between the gross salary (before tax) and the total employment cost, which includes super. For example, an employee earning the national minimum wage of $1004.90 per week would also attract $120.59 in super, making the total cost to the employer $1125.49 per week.

Understanding Salary Expectations: Award Coverage vs Award-Free Rates in Australia

From 1 July 2026, the national minimum wage is $26.44 per hour or $1004.90 per week for award-free adult employees, but most workers are covered by awards or agreements that set higher rates.

Understanding salary expectations in Australia

When you start a new job or negotiate a pay rise, your salary expectations should be based on the legal minimums that apply to your situation. In Australia, the pay floor is not a single number for everyone. It depends on whether you are covered by a modern award, an enterprise agreement, or none at all. This guide explains how to separate the legal minimum from an award rate, a survey average, and a negotiated salary.

The legal minimum: award-free employees

For employees not covered by any award or registered agreement, the national minimum wage applies. From 1 July 2026, the Fair Work Commission set this at $26.44 per hour or $1004.90 per week for a 38-hour week. Casual employees receive a 25% loading, making the casual rate $33.05 per hour. However, not every worker must receive $26.44. Junior employees (under 21) have special rates: for example, a 17-year-old award-free junior earns $15.29 per hour, and a 20-year-old earns $25.84 per hour. Apprentices and trainees follow rates based on the Miscellaneous Award, not the junior percentages. Supported wages for employees with disability may also be lower.

Award coverage: the more common pay floor

Most Australian workers are covered by a modern award. Awards set minimum pay rates for specific industries or occupations, and these rates are almost always higher than the national minimum wage. From 1 July 2026, the Fair Work Commission increased minimum award wages by 4.75%. The lowest ongoing classification in any award cannot fall below the national minimum of $26.44 per hour. Some awards have introductory rates for new employees (limited to the first six months) that can be as low as $25.74 per hour or $978.10 per week. To find your correct award rate, use the Fair Work Ombudsman's Pay and Conditions Tool or check the award's classification structure.

Enterprise agreements and individual flexibility

If you are covered by an enterprise agreement, the base pay rate cannot be less than the rate in the relevant award. Agreements often include higher wages or other benefits. Salary expectations under an agreement should be checked against the agreement document, which is available on the Fair Work Commission website. Some employees negotiate individual flexibility arrangements that vary award or agreement terms, but the employee must be better off overall.

Survey averages vs. your situation

The Australian Bureau of Statistics (ABS) publishes average earnings data. In May 2026, full-time adult ordinary-time earnings averaged $2083.70 per week, while all employees (including part-time and casual) averaged $1579.20 per week. These figures are useful for benchmarking but are not a legal minimum. Your salary expectations should be based on the award or agreement that applies to your job, not on an average that may include higher-paid roles or different industries.

Superannuation: an employer cost on top

When discussing salary expectations, remember that superannuation is paid by the employer on top of your gross salary. From 1 July 2026, the super guarantee is 12% of ordinary time earnings. For example, an employee earning the national minimum wage of $1004.90 per week would also receive $120.59 in super, making the total remuneration $1125.49 per week. Always clarify whether a quoted salary includes or excludes super.

How to check your correct rate

Start by determining if you are covered by a modern award. The Fair Work Ombudsman provides a Which minimum wage applies tool to help you identify your award. Once you know your award, use the Rate tables to find the current minimum pay rates for your classification. If you are award-free, the national minimum wage applies, but check if you are a junior, apprentice, or trainee for the correct percentage.

Key takeaways

The national minimum wage from 1 July 2026 is $26.44 per hour ($1004.90 per week) for award-free adults.
Most workers are covered by an award or agreement that sets a higher rate.
Junior, apprentice, trainee, and supported wage employees may be paid less than the adult minimum.
Superannuation of 12% is paid on top of ordinary time earnings.
Survey averages from the ABS are for reference only; your legal minimum is determined by your award or the national minimum wage.

For more detailed explanations, see our Guides on award coverage and pay calculations. If you need to understand how the figures are derived, visit How the figures work.