What is the minimum wage for someone working in salary packaging services?

There is no specific minimum wage for salary packaging services. If the employee is award-free and agreement-free, the national minimum wage applies: $26.44 per hour (or $33.05 casual) from 1 July 2026. If a modern award covers the role (e.g., Clerks Award, Professional Employees Award), the award rate applies and is usually higher. Always check the applicable award or agreement.

Does salary packaging affect the minimum wage I must pay my employees?

No. Salary packaging is a benefit arrangement that allows employees to sacrifice part of their pre-tax salary for certain benefits. It does not change the minimum wage or award rate that must be paid. The employer must still pay at least the legal minimum cash wage (before any salary sacrifice). Superannuation is paid on the ordinary time earnings, which may be reduced by salary sacrifice, but the minimum wage obligation remains.

Are employees who provide salary packaging services covered by an award?

It depends on the duties and industry. Many salary packaging roles fall under the Clerks Award (for clerical and administrative work) or the Professional Employees Award (for higher-skilled roles). If no award applies, the national minimum wage is the floor. Check the Fair Work Ombudsman's award finder or seek professional advice to determine coverage.

Salary packaging services: award coverage and minimum wage rates

The legal minimum for employees providing salary packaging services is the national minimum wage of $26.44 per hour from 1 July 2026, unless a modern award or enterprise agreement sets a higher rate.

Salary packaging services and the minimum wage

Salary packaging services refer to the administration and management of salary sacrifice arrangements, often provided by specialist firms or in-house HR departments. Employees in these roles handle tasks such as calculating benefit limits, processing deductions, and ensuring compliance with tax rules. While the work itself does not have a dedicated wage rate in the Fair Work system, the pay floor is set by the national minimum wage or an applicable modern award.

The legal minimum for award-free employees

If an employee providing salary packaging services is not covered by a modern award or enterprise agreement, the national minimum wage applies. From 1 July 2026, the adult rate is $26.44 per hour, $1,004.90 per week for a 38‑hour week. Casual employees receive a 25% loading, making the casual rate $33.05 per hour. Superannuation of 12% is paid on top of ordinary time earnings.

Junior employees (under 21) have lower minimum rates based on age. For example, a 19‑year‑old award‑free junior earns $21.82 per hour (casual $27.28). Apprentices and trainees have their own rates under the Miscellaneous Award.

Award coverage for salary packaging roles

Many salary packaging positions involve clerical, administrative, or professional duties. The Clerks Award covers employees performing clerical work, including data entry, record keeping, and customer service. The Professional Employees Award may apply if the role requires a degree and involves higher‑level analysis or management. Both awards set minimum wages above the national minimum for most classifications.

From the first full pay period on or after 1 July 2026, modern award minimum wages rise by 4.75%. However, the lowest ongoing classification cannot fall below the national minimum of $26.44 per hour. An introductory rate (first six months) is capped at $25.74 per hour or $978.10 per week.

Enterprise agreements and individual flexibility

An enterprise agreement can set higher rates than the award or national minimum. Some salary packaging providers may have agreements that include additional benefits or different pay structures. Individual flexibility arrangements can also vary award conditions, but the employee must be better off overall.

How salary packaging interacts with pay

Salary packaging itself does not reduce the minimum wage obligation. The employee must receive at least the legal minimum cash wage (or award rate) before any salary sacrifice deductions. Superannuation is calculated on the employee’s ordinary time earnings, which may be reduced by salary sacrifice, but the employer must still meet the super guarantee of 12% on the reduced amount (subject to maximum contribution base).

Comparing with average earnings

The ABS May 2026 survey reports full‑time adult ordinary‑time earnings of $2,083.70 per week, and all employees average total earnings of $1,579.20 per week. These figures are much higher than the national minimum, reflecting that most salary packaging roles are likely paid above the floor. However, this site does not have a specific market rate for salary packaging services. Employers should check relevant awards or conduct their own salary surveys.

Summary

Award‑free employees: National minimum wage $26.44/h (adult) from 1 July 2026.
Award‑covered employees: Higher award rate applies; check the Clerks or Professional Employees Award.
Enterprise agreements: Can set higher rates.
Super: 12% on top of ordinary time earnings.
Salary packaging: Does not reduce minimum wage obligations.

For more details, see Which minimum wage applies and Rate tables. Also refer to Guides for award coverage.

Frequently asked questions

(FAQs are listed in the JSON above.)

Important note

This information is for orientation only. It is not a pay determination or legal advice. Always verify the applicable award or agreement with the Fair Work Ombudsman or a qualified professional.