Minimum Wage in Australia: What You're Actually Entitled To

Who sets the minimum wage and when it changes🔗

The national minimum wage is set by the Fair Work Commission (FWC), an independent tribunal. Each year the FWC runs the Annual Wage Review, weighing the cost of living, economic conditions and the needs of low-paid workers before setting a new rate. Any increase takes effect from the first full pay period on or after 1 July. So if your pay week starts on a Wednesday and 1 July is a Tuesday, the new rate applies from that Wednesday, not announcement day. The rate changes every year, so a figure you read months ago may already be out of date.

The current national minimum wage🔗

From the increase effective 1 July 2026, the national minimum wage is $26.44 per hour or $1,004.90 per week for a standard 38-hour week. Casual employees who are award and agreement free get that plus a 25% casual loading (in place of paid leave), which worked out to about $33.05 per hour.

Here is the catch: the national minimum wage only applies to employees not covered by a modern award or enterprise agreement, which is a relatively small group. Most Australian workers are covered by an award.

Awards: why your real minimum is usually higher🔗

Most employees are covered by a modern award: a legal document setting minimum pay, penalty rates, overtime and allowances for an industry and job classification. Common ones include the General Retail Industry Award, the Hospitality Industry (General) Award, the Fast Food Industry Award and the Clerks Private Sector Award.

Award minimums are almost always higher than the national minimum, and they layer penalty rates (weekends, public holidays, late nights) and allowances on top. Enterprise agreements can go higher still, but must at minimum match the relevant award. The key point: if you work in retail, hospitality, fast food or most industries, your legal minimum is your award rate, not the national minimum.

Different rates: juniors, apprentices, supported wage🔗

• Junior employees (under 21) are usually paid a percentage of the adult rate for their award, rising with each year of age.
• Apprentices and trainees have their own scales set by their training contract and award, increasing as they progress.
• Employees with disability may be paid under the Supported Wage System, a proportion of the minimum reflecting assessed productive capacity, with a floor.

For all of these, the Fair Work Ombudsman pay calculator is the reliable place to find the exact rate. Do not guess.

How to find YOUR exact minimum wage🔗

The Fair Work Ombudsman runs a free official tool, the Pay and Conditions Tool (PACT), also called the pay calculator, updated after every Annual Wage Review. At calculate.fairwork.gov.au you select employee or employer, enter your industry and job type, choose your employment type, add your age if under 21, and it shows the minimum pay, penalty rates and allowances that apply. It takes a few minutes and covers weekend and public-holiday penalties, where a lot of underpayments hide. Do not rely on what a mate said or a job ad claimed: use the official tool. It also pairs well with knowing how to read your payslip.

What to do if you think you are being underpaid🔗

1. Check your rate on the Fair Work Ombudsman pay calculator (right award, classification and employment type).
2. Compare it to your payslip: base rate, penalty rates, allowances. Keep records.
3. Talk to your employer calmly and factually. Many underpayments are genuine mistakes.
4. Contact the Fair Work Ombudsman (13 13 94) if it is not resolved. They can investigate, mediate and help recover underpayments, generally going back up to six years.
5. Use the anonymous tip-off option if you are worried about your job or visa status.

❓ Frequently asked questions🔗

Keep reading🔗

• How to read your payslip in Australia
• Casual vs permanent employment: pay, super and entitlements
• Gross vs net income: what you actually take home
• The average salary in Australia