What is the Australian minimum wage for 2025?

From 1 July 2025 the national minimum wage is $24.95 per hour or $948.00 per week for a full-time adult employee who is award-free and agreement-free. Casual employees receive a 25% loading, bringing the casual rate to $31.19 per hour (calculated, not a published figure). These rates apply to national-system employees. Most private-sector workers are covered, but some state-system employees may have different minimums.

Does the 2025 minimum wage apply to all workers?

No. The national minimum wage is the legal floor only for employees not covered by a modern award or enterprise agreement. If you are covered by an award, the award rate applies and is usually higher. Juniors, apprentices, trainees, and supported-wage employees can be paid less than the adult rate. For award-free juniors, the Fair Work Ombudsman sets percentage-based rates (e.g., 36.8% for under 16). Always check your award or agreement first.

How does the 2025 minimum wage compare to average earnings?

The 2025 national minimum wage of $948 per week is well below the ABS average of $1,579 per week for all employees (May 2026). The average full-time adult ordinary-time earnings are even higher at $2,083.70 per week. This gap shows that the minimum wage is a safety net, not a typical wage. Many workers earn above the minimum through awards, enterprise agreements, or individual negotiation.

Australian Minimum Wage 2025: Which Pay Floor Applies and What People Often Get Wrong

The national minimum wage from 1 July 2025 is $24.95 per hour or $948.00 per week for adult award-free employees.

Which pay floor applies in 2025?

The australian minimum wage 2025 is the legal minimum hourly rate that must be paid to adult employees who are not covered by a modern award or enterprise agreement. From 1 July 2025, that rate is $24.95 per hour or $948.00 per week for a 38‑hour week. This figure is set by the Fair Work Commission and enforced by the Fair Work Ombudsman. It applies to national‑system employees – the vast majority of private‑sector workers in Australia.

But the national minimum wage is only one part of the picture. Many people assume every worker must receive at least $24.95 an hour, but that is not correct. Juniors, apprentices, trainees, and employees on introductory award rates can be paid less. For example, an award‑free 16‑year‑old receives 47.3% of the adult rate, or about $12.51 per hour. Supported wages for employees with disability may also be lower. Always check whether a modern award or enterprise agreement covers you – if it does, the award or agreement rate is the legal minimum, and it is almost always higher than the national minimum.

Separating the legal minimum from other figures

It is easy to confuse the national minimum wage with survey averages or award rates. The ABS average weekly earnings for all employees (May 2026) is $1,579.20 – far above the $948 minimum. That average includes overtime, bonuses, and higher‑paid occupations. The full‑time adult ordinary‑time earnings average is even higher at $2,083.70 per week. These are not legal floors; they are statistical benchmarks.

Modern award rates are also different. From the first full pay period on or after 1 July 2026, award minimum wages rise by 4.75%, but the lowest ongoing classification cannot fall below the national minimum. Some awards have introductory rates for the first six months, which in 2026 will be $25.74 per hour. For 2025, the award backstop remains the national minimum of $24.95 per hour. If you are award‑free, the national minimum is your floor. If you are covered by an award, the award rate is your floor – and it may be higher.

Superannuation is on top

When discussing pay, remember that the superannuation guarantee is an employer payment on top of ordinary time earnings. From 1 July 2025, the super rate is 12% of ordinary time earnings. So if you earn $24.95 per hour, your employer must also contribute $2.994 per hour into your super fund. This is not deducted from your wage; it is an additional cost to the employer. The national minimum wage figures quoted here do not include super.

What about negotiated salaries?

A negotiated salary can be above or below the national minimum, but it cannot fall below the legal floor. If you are award‑free, your salary must be at least $24.95 per hour (or the weekly equivalent). If you are covered by an award, your salary must meet the award rate. Enterprise agreements can set different rates, but they must pass the “better off overall test” compared to the relevant award. The national minimum is the ultimate safety net.

Looking ahead to 2026

The Fair Work Commission has announced that from 1 July 2026 the national minimum wage will rise to $26.44 per hour ($1,004.90 per week). Casual employees will receive $33.05 per hour (including the 25% loading). Award‑free junior rates will also increase proportionally. These changes are already known, so if you are planning budgets or contracts for 2026, use the new figures.

For more detail on which minimum applies to you, see Which minimum wage applies or browse the Rate tables. The Guides section also explains how to find your award and check your pay.

Common misunderstandings

“The minimum wage is $26.44 an hour.” That is the rate from 1 July 2026, not 2025. For 2025 the rate is $24.95.
“Every worker must get the adult minimum.” No – juniors, apprentices, and trainees can be paid less. Award rates also vary.
“The Fair Work Ombudsman sets the minimum wage.” No – the Fair Work Commission sets it; the Ombudsman explains and enforces it.
“Super is part of my wage.” No – super is an employer contribution on top of your wage.

If you are unsure about your pay, check your award or agreement first. The national minimum wage is a backstop, not a target. Most employees are entitled to more.