Minimum Wage in Australia: Rates, Trends & Compliance

What Is the Minimum Wage in Australia?

In Australia, the national minimum wage is set by the Fair Work Commission and is updated annually, typically on July 1st. From 1 July 2025, the new National Minimum Wage is AUD 24.95 per hour, which translates to approximately AUD 948 per 38-hour week 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 workers who aren’t covered by a specific award or enterprise agreement. The Fair Work Commission reviews the minimum wage each year, and this rate is subject to changes in line with economic conditions, inflation, and employment trends.

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Average vs Reasonable vs Typical Minimum Wages

Average Minimum Wage: The national minimum wage is AUD 24.95 per hour from 1 July 2025. This marks a 3.5% increase from the previous hourly minimum wage of AUD 23.23. This is an average wage rate for employees working under a national minimum wage and does not include industry-specific variations.

Reasonable Minimum Wage: This is a wage rate that would be considered fair to live on and is generally in line with the national minimum wage. It ensures workers are paid enough to cover basic living expenses. For most workers, the national minimum wage meets or exceeds what is considered reasonable for essential living needs.

Typical Minimum Wage: For workers employed under specific awards, their minimum wages may differ. Some industries, like retail or hospitality, have set minimum wages under the relevant industry award, which can sometimes be slightly higher than the national minimum wage due to skills or hours worked. These wages vary depending on experience, job role, 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

   
• Chief Executive Officers (CEOs): CEOs in Australia typically earn AUD 100,000 to AUD 500,000 per year depending on the size of the company. However, this salary is far above the minimum wage.
   
• Doctors: A junior doctor may earn around AUD 60 to AUD 80 per hour depending on experience. Senior medical specialists can earn significantly higher.
   
• Lawyers: Lawyers can expect a minimum wage of around AUD 50 to AUD 60 per hour depending on experience and the sector of employment.
   
• Engineers: Engineers typically earn AUD 35 to AUD 45 per hour as an entry-level wage.

Factors Influencing Minimum Wage in Australia

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 180,000 per year. Additionally, employers must contribute to the Superannuation Guarantee (currently 10.5% 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.