What is the difference between base salary and total remuneration?

Base salary is the gross pay before tax and before employer superannuation contributions. Total remuneration includes base salary plus super, bonuses, allowances, and other benefits. In Australia, the super guarantee is 12% on top of ordinary time earnings, so an employer must pay at least 12% extra into your super fund on top of your base salary.

Does the national minimum wage apply if I'm covered by an award?

No. If you are covered by a modern award or enterprise agreement, the minimum pay rates in that award or agreement apply instead of the national minimum wage. Award rates are often higher. However, from 1 July 2026, the lowest ongoing classification in any award cannot be less than $26.44 per hour (the national minimum), and introductory rates limited to the first 6 months cannot be less than $25.74 per hour.

How does superannuation affect my base salary?

Superannuation is an employer contribution paid on top of your base salary. It does not reduce your base salary. From 1 July 2026, employers must pay super at the same time as wages (payday super). The super guarantee rate is 12% of your ordinary time earnings, so if your base salary is $50,000, your employer must contribute an extra $6,000 to your super fund annually.

Understanding Base Salary: Award Coverage vs Award-Free Rates in Australia

From 1 July 2026, the national minimum wage is $26.44 per hour ($1,004.90 per week) for award-free adult employees, but most workers are covered by a modern award or enterprise agreement that sets a higher base salary.

Understanding Base Salary in Australia

When you see a job advertisement quoting a "base salary", that figure represents the gross pay before tax and before any employer superannuation contributions. In Australia, the legal minimum for that base salary depends on whether you are covered by a modern award, an enterprise agreement, or are award-free. This guide explains how award coverage affects your base salary and how to compare it with the national minimum wage.

The Legal Minimum: National Minimum Wage

The Fair Work Commission sets the national minimum wage each year. As of 1 July 2026, the national minimum wage is $26.44 per hour or $1,004.90 per week for a 38-hour week . This rate applies only to employees who are not covered by a modern award or registered agreement (award-free employees). However, not every worker receives this amount. Junior employees (under 21), apprentices, trainees, and employees with a disability may be paid lower special national minimum wages. For example, an award-free 17-year-old is entitled to 57.8% of the adult rate, or $15.29 per hour.

Award Coverage: Higher Base Salaries Are Common

Most Australian employees are covered by a modern award or enterprise agreement. Awards are legal documents that set minimum pay rates, penalty rates, allowances, and conditions for specific industries or occupations. The Fair Work Ombudsman explains that awards cover many different industries and occupations, so it is important to identify the correct award . From 1 July 2026, minimum award wages increased by 4.75%, but the lowest ongoing classification in any award cannot fall below the national minimum wage of $26.44 per hour. Introductory rates (for the first 6 months or less) must be at least $25.74 per hour.

If you are covered by an enterprise agreement, that agreement sets your base salary, but it cannot be less than the base pay rate in the relevant award. Always check your award or agreement for the exact rate.

Separating Legal Minimums from Survey Averages and Negotiated Salaries

It is important to distinguish between the legal minimum, survey averages, award rates, and negotiated salaries. The legal minimum is the floor set by the Fair Work Commission. Award rates are the minimums for your industry or role, often higher than the national minimum. Survey averages, such as the ABS average weekly earnings, reflect what people actually earn, not what they must be paid. For example, the ABS May 2026 data shows full-time adult ordinary-time earnings of $2,083.70 per week, far above the national minimum. Negotiated salaries are agreed between you and your employer and can be above the award rate.

Superannuation: An Employer Payment on Top

Your base salary does not include superannuation. The super guarantee requires employers to pay 12% of your ordinary time earnings into a super fund on top of your base salary. So if your base salary is $50,000, your employer must contribute an extra $6,000 to your super. From 1 July 2026, employers must pay super at the same time as wages (payday super).

How to Find Your Correct Base Salary

To determine your minimum base salary, first check if you are covered by a modern award. Use the Fair Work Ombudsman's Pay and Conditions Tool or check the coverage clause in the award. If no award applies, the national minimum wage applies. If you are award-free, use Which minimum wage applies to confirm your classification. For detailed award rates, see Rate tables for a summary of common award rates.

Key Takeaways

The national minimum wage is $26.44/h for award-free adults; juniors, apprentices, trainees, and introductory rates can be lower. The Fair Work Commission sets the national minimum wage and award minimums increase from 1 July 2026. The Fair Work Ombudsman explains and enforces the minimum wage. Award or agreement can set a higher rate. Always check your award or agreement for your base salary.

Frequently Asked Questions

See the FAQs above for common questions about base salary, award coverage, and super.

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