What Is the Minimum Wage in Australia?
In Australia, the national minimum wage is set by the Fair Work Commission and is reviewed annually, typically taking effect on 1 July. As of January 2026, the current National Minimum Wage (introduced on 1 July 2025) is AUD 24.95 per hour, which is approximately AUD 948 per week based on a 38-hour workweek before tax. This represents a 3.5% increase from the previous minimum wage of AUD 23.23 per hour.
The national minimum wage applies to full-time, part-time, and casual employees who are not covered by a specific modern award or enterprise agreement. The Fair Work Commission conducts an annual review, and the rate may change in response to economic conditions, inflation, and employment trends.
Average vs Reasonable vs Typical Minimum Wages
When talking about minimum wages in Australia, it’s helpful to understand that not everyone is paid the same way. Some workers are covered by the national minimum wage, while others fall under industry awards or agreements that set different rates. Here’s how the terms usually break down:
Average Minimum Wage: The average minimum wage refers to the National Minimum Wage, which applies to employees who aren’t covered by a specific award or enterprise agreement. As of 2026, the current national minimum wage (set on 1 July 2025) is AUD 24.95 per hour, representing a 3.5% increase from the previous rate of AUD 23.23 per hour. This rate acts as the general legal baseline and doesn’t account for industry-specific variations.
Reasonable Minimum Wage: A reasonable minimum wage is the amount considered fair for meeting basic living costs, such as housing, food, utilities, and transport. In Australia, this concept is often closely aligned with the national minimum wage. For many workers, the national minimum wage is generally viewed as meeting or slightly exceeding what’s considered reasonable for covering essential living expenses, though this can vary depending on location and personal circumstances.
Typical Minimum Wage: Typical minimum wages often differ from the national minimum because many workers are covered by modern awards, which set pay rates by industry or occupation. For example, workers in sectors like retail, hospitality, and healthcare usually have minimum wages defined by their award, which may be higher than the national minimum depending on the role, experience level, and hours worked.
How Does Minimum Wage Apply to Different Workers In Australia?
The application of minimum wage laws is consistent across full-time, part-time, and casual workers in Australia, but there are some distinctions.
Full-Time Employee Wages
Full-time employees are entitled to the national minimum wage or the minimum rate set by their industry award or enterprise agreement, whichever is higher. Full-time employees typically work 38 hours a week.
Part-Time Employee Wages
Part-time employees are also entitled to the minimum wage, but their earnings are prorated based on the number of hours worked. Part-time workers may be paid a higher hourly rate if they are subject to a casual loading (typically 25%) to compensate for the lack of paid leave entitlements.
Interns and Trainees
Interns and trainees are entitled to the minimum wage if they are considered employees under the Fair Work Act. However, unpaid internships are allowed if they are part of an educational program or course. Trainees who are in an apprenticeship are paid according to specific apprentice wage rates, which are usually lower than the full minimum wage but increase with experience.
Expats
Expatriates working in Australia are subject to the same minimum wage laws as Australian citizens. There are no exceptions, and expats must comply with the applicable wage rates in line with the work they are doing. They are also entitled to the same benefits, including leave and superannuation, as local workers.
Minimum Wage for Top Paying Roles In Australia
Australia’s national minimum wage sets a legal floor, but for many high-skill and senior roles, it’s mostly a reference point rather than a real benchmark. Salaries in these roles are driven by experience, qualifications, industry demand, and company size – and they typically sit well above the minimum wage.
Here’s how that looks in practice for some top-paying roles in 2026:
- Chief Executive Officers (CEOs): CEOs in Australia earn far more than the minimum wage, with pay varying widely depending on the size and type of organisation. In 2026, CEOs typically earn between AUD 150,000 and AUD 500,000+ per year, with executives at large corporations often earning significantly more through bonuses and equity. For-profit CEOs generally earn more than those in the not-for-profit sector.
- Doctors: Doctors’ earnings are well above minimum wage due to the level of training and responsibility involved. In 2026, junior doctors commonly earn around AUD 65 to AUD 90 per hour, depending on experience and location. Senior medical specialists and psychiatrists often earn between AUD 220,000 and AUD 350,000 per year, with private practice incomes sometimes exceeding this range.
- Lawyers: Lawyers’ pay varies by experience, firm size, and practice area. As of 2026, early-career lawyers may earn the equivalent of AUD 50 to AUD 65 per hour, while more experienced legal professionals typically earn AUD 110,000 to AUD 220,000 per year. Partners and senior specialists can earn substantially more.
- Engineers: Engineers usually start well above the national minimum wage. In 2026, entry-level engineers typically earn AUD 38 to AUD 50 per hour, depending on discipline and location. Mining and petroleum engineers are among the highest paid, often earning AUD 160,000 to AUD 260,000 per year, while engineering managers commonly earn AUD 140,000 to AUD 190,000 annually.
Factors Influencing Minimum Wage in Australia
Australia’s minimum wage isn’t set in isolation. It’s shaped by a mix of industry rules, economic conditions, and government policy, all of which are reviewed regularly to ensure wages remain fair and sustainable. Below are the key factors that influence how minimum wage levels are determined and applied.
Industry-Specific Variations
Minimum wage laws in Australia can vary significantly depending on the industry. For example, retail workers covered by the General Retail Industry Award are paid different wages compared to workers in the construction or healthcare sectors. Some sectors also have higher rates of pay for casual employees to compensate for the lack of leave entitlements.
Economic Conditions
Economic conditions, including inflation, employment rates, and cost of living, play a significant role in determining the minimum wage. The Fair Work Commission reviews these factors annually when determining whether to raise the minimum wage.
Government Policies and Legislation
The Australian government regularly reviews wage policies, often in consultation with stakeholders, to ensure fairness and adequacy. The Fair Work Commission is responsible for setting minimum wage levels and is guided by both economic factors and community standards regarding a fair wage.
Tax Implications of Minimum Wage
For minimum wage earners, income tax is deducted at progressive rates, depending on income level. The highest tax rate applies to earnings above AUD 190,000 per year. Additionally, employers must contribute to the Superannuation Guarantee (currently 12% of earnings) for employees earning over AUD 450 per month.
Minimum Wage History and Trends in Australia
The minimum wage in Australia has steadily increased over the years, particularly after the implementation of the Fair Work Act in 2009. In recent years, the annual increases have been modest, reflecting inflationary pressures. There are discussions regarding a "living wage" in Australia, which is often higher than the minimum wage but is yet to be legislated.
How To Stay Compliant When Hiring in Australia With Playroll
Expanding your business internationally is exciting, but it comes with the challenge of understanding complex legal and payroll requirements. One of the hurdles is ensuring you comply with local minimum wage laws. Playroll makes this process easier by acting as your trusted Employer of Record:
- Scale Your Global Team: Legally hire and onboard employees in 180+ regions, ensuring full compliance with local labor laws, tax regulations, and statutory benefits.
- Pay Your Team Accurately: Your global workforce is always paid on time, and we ensure continuous compliance with local minimum wage and tax laws.
- Guaranteed Legal Compliance: Our comprehensive compliance checks and expertly crafted contracts guarantee your agreements meet local legal standards, including minimum wage laws, tax regulations, and benefits. This way, you can focus on growing your business without worrying about compliance risks.
Disclaimer
THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.


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