Is a salary the same as an hourly wage?

Not exactly. A salary is a fixed annual amount paid regardless of hours worked, while an hourly wage is paid per hour. In Australia, many awards and agreements use an annualised salary arrangement, but the underlying minimum is still based on an hourly rate. The national minimum wage is expressed as both an hourly rate ($26.44) and a weekly rate ($1,004.90 for 38 hours).

Does the national minimum wage include superannuation?

No. The national minimum wage is the gross pay before tax. Superannuation is an employer payment on top of ordinary time earnings. From 1 July 2026, the super guarantee is 12% of ordinary time earnings, paid at the same time as wages under the new payday super rules.

Can I be paid less than the national minimum wage?

Only if you are covered by a modern award or enterprise agreement that sets a lower introductory rate (limited to the first 6 months) or if you are a junior, apprentice, trainee, or an employee with a disability. For example, award‑free juniors under 21 have special national minimum wages based on age. Always check your award or agreement first – it may require a higher rate.

What is a salary in Australia? Understanding pay floors, award rates, and the national minimum wage

From 1 July 2026, the national minimum wage for award‑free adult employees is $26.44 per hour or $1,004.90 per week, but awards and agreements can set higher rates, and juniors, apprentices, and trainees may be paid less.

What is a salary in Australia?

When Australians ask “what is a salary”, they are usually trying to work out the minimum they should be paid and how that compares with the legal pay floor. A salary is a fixed annual amount of pay, often expressed as a yearly figure, that an employer agrees to give an employee in return for their work. Unlike an hourly wage, a salary does not vary with the number of hours worked each week, though most salaried roles still have an implied hourly rate based on a 38‑hour ordinary week.

The legal minimum: the national minimum wage

The Fair Work Commission sets the national minimum wage each year after its Annual Wage Review. From 1 July 2026, the national minimum wage for adult employees not covered by an award or registered agreement is $26.44 per hour or $1,004.90 per week (based on 38 ordinary hours). Casual employees get a 25% loading, making the casual rate $33.05 per hour.

This is the absolute floor. Most employees, however, are covered by a modern award or an enterprise agreement, and those documents usually set higher minimum rates. The Fair Work Ombudsman explains and enforces these rules, but does not set them.

Award rates and negotiated salaries

A modern award applies to a specific industry or occupation and sets minimum pay rates, penalty rates, and allowances. From the first full pay period on or after 1 July 2026, award minimum wages increased by 4.75%, but the lowest ongoing classification cannot fall below the national minimum ($26.44/h or $1,004.90/week). Introductory rates (for the first 6 months) cannot be less than $25.74/h or $978.10/week.

A negotiated salary is whatever you and your employer agree on, provided it is at least the award or national minimum. Many professionals, managers, and administrative staff earn well above the floor. According to the Australian Bureau of Statistics (May 2026), full‑time adult ordinary‑time earnings averaged $2,083.70 per week – more than double the national minimum.

Superannuation: an employer payment on top

When discussing pay, remember that superannuation is an additional cost for employers. From 1 July 2026, the super guarantee is 12% of ordinary time earnings, and employers must pay it at the same time as wages (payday super). So a salary of $1,004.90 per week actually costs the employer about $1,125.49 once super is included.

Who can be paid less than the national minimum?

Certain groups have special rates:

Junior employees (under 21) who are award‑free: percentages of the adult rate apply (e.g., under 16: $9.73/h; 16: $12.51/h; 17: $15.29/h; 18: $18.06/h; 19: $21.82/h; 20: $25.84/h).
Apprentices and trainees follow the Miscellaneous Award rates, not the junior percentages.
Employees with a disability may have a supported wage based on their productivity.

If you are covered by an award or agreement, always check that document first – it may require a higher rate than the national minimum.

How to find your correct pay floor

Start by identifying whether you are covered by a modern award. Use the Fair Work Ombudsman’s Pay and Conditions Tool or check the award coverage clause. If you are award‑free and agreement‑free, the national minimum wage applies. If you are on an enterprise agreement, the base rate cannot be less than the relevant award rate.

For more detail, see our Which minimum wage applies page and our Rate tables for current award and junior rates.

Key distinctions

Legal minimum (set by Fair Work Commission) vs. survey average (ABS earnings data).
Award rate (industry‑specific floor) vs. negotiated salary (what you actually earn).
Gross pay (before tax) vs. net pay (after tax and Medicare).
Ordinary time earnings (base pay) vs. total earnings (including overtime, bonuses, allowances).

Understanding these differences helps you answer “what is a salary” with confidence and ensures you are not being underpaid.

Disclaimer: This article is for general orientation only. It is not a pay determination, tax advice, or legal advice. Always consult your award, agreement, or a qualified professional for your specific situation.

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