What is the Australia minimum wage for 2025?

From 1 July 2025, the national minimum wage is $24.95 per hour or $948 per week for a full-time adult employee (38 hours). This rate applies to award-free and agreement-free national system employees. Casual employees receive a 25% loading, making the casual minimum $31.19 per hour. Note that this rate increases to $26.44 per hour from 1 July 2026.

Does the minimum wage apply to all Australian workers?

No. The national minimum wage is a legal floor for employees not covered by a modern award or enterprise agreement. Most employees are covered by an award that sets higher minimum rates. Juniors, apprentices, trainees, and employees with disability may be paid less than the adult minimum under specific provisions. Always check the applicable award or agreement first.

How does the 2025 minimum wage compare to the 2026 rate?

The Fair Work Commission announced a 4.75% increase for award wages effective 1 July 2026, raising the national minimum wage from $24.95 to $26.44 per hour. The 2025-26 rate is $24.95, so the 2026-27 rate will be $1.49 higher per hour. Employers should plan for this increase and ensure compliance with superannuation guarantee obligations (12% from 1 July 2025).

Australia Minimum Wage 2025: Understanding the Pay Floor and Common Confusions

The national minimum wage for 2025-26 is $24.95 per hour or $948 per week for a full-time adult employee, before tax and excluding superannuation.

Introduction

The phrase "australia minimum wage 2025" often leads to confusion because there is not one single rate that applies to every worker. The national minimum wage set by the Fair Work Commission is a legal floor, but most employees are covered by a modern award or an enterprise agreement that requires a higher rate. This guide explains the 2025-26 national minimum wage, who it applies to, and common mistakes people make when comparing pay rates.

The 2025 National Minimum Wage Rate

From 1 July 2025, the adult national minimum wage is $24.95 per hour or $948 per week for a 38-hour ordinary week. Casual employees receive a 25% loading, bringing the casual minimum to $31.19 per hour. These figures are before tax and do not include superannuation, which the employer must pay on top of ordinary time earnings at the rate of 12% (from 1 July 2025).

It is important to note that the rate rises again on 1 July 2026 to $26.44 per hour. The 2025-26 rate is the one that applies for the financial year starting 1 July 2025. If you are checking pay rates in mid-2026, you may need to use the newer figure.

Who Is Covered by the National Minimum Wage?

The national minimum wage applies to national-system employees who are not covered by a modern award or an enterprise agreement. Most private-sector employees in Australia are in the national system. However, some state public sector and local government employees, as well as some Western Australian sole traders and partnerships, are covered by state awards instead.

If you are award-free and agreement-free, your employer must pay you at least the national minimum wage. But if a modern award covers your job, the award rate is your minimum – and it is almost always higher than the national minimum. Enterprise agreements can also set higher rates. The national minimum is a backstop, not a target.

How Awards and Agreements Affect Pay

Modern awards contain minimum wages for each classification level. For example, the lowest ongoing classification in an award cannot fall below the national minimum wage. From 1 July 2026, award minimum wages rise by 4.75%, but the introductory rate (first six months in a job) cannot be less than $25.74 per hour or $978.10 per week. The national minimum wage for 2025-26 is $24.95, so award rates will be higher.

Enterprise agreements negotiated between employers and employees (or unions) can also set pay rates above the award or national minimum. Always check your award or agreement first. The Fair Work Ombudsman provides free resources to help you find the right rate.

Common Misunderstandings

A frequent mistake is assuming every worker must receive $24.95 per hour. In reality, junior employees, apprentices, trainees, and workers on introductory award rates can be paid less. For award-free juniors, the percentages range from 36.8% for under 16 ($9.73 per hour) to 97.7% for 20-year-olds ($25.84 per hour). Apprentice and trainee rates for award-free employees follow the Miscellaneous Award, not the junior percentages.

Another mix-up is confusing the national minimum wage with average earnings. According to the ABS, full-time adult ordinary-time earnings in May 2026 were $2,083.70 per week, and all employees average total earnings were $1,579.20 per week. The national minimum of $948 is well below these averages, which is expected for a legal floor.

Superannuation and Other Entitlements

Superannuation guarantee is an employer payment on top of ordinary time earnings. For the 2025-26 financial year, the rate is 12%. So an employee earning the national minimum wage of $948 per week would also receive $113.76 in super contributions (12% of $948). This is not deducted from the employee's pay; it is an additional cost for the employer.

Other entitlements such as leave, penalty rates, and allowances are set by awards or the National Employment Standards. The national minimum wage does not include these; they are separate obligations.

Conclusion

Understanding the "australia minimum wage 2025" means knowing that $24.95 per hour is the legal floor for award-free adults, but most workers are entitled to more under an award or agreement. Always check your coverage and use resources like Which minimum wage applies and Rate tables to find the correct rate for your situation. The Fair Work Ombudsman and the Fair Work Commission are the authoritative sources for pay rules in Australia.

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