How to Calculate Salary: Award Coverage vs Award-Free Rates

How to Calculate Salary: Award Coverage vs Award-Free Rates

To calculate salary, you first need to know whether you are covered by a modern award or not. This determines the minimum pay floor. The Fair Work Ombudsman explains that most employees are covered by a modern award that covers their industry or occupation. If you are not covered by an award or enterprise agreement, the national minimum wage applies. As of 1 July 2026, the national minimum wage is $26.44 per hour or $1004.90 per week. This is the gross pay before tax and before super.

Award Coverage and the National Minimum Wage

The Fair Work Commission sets the national minimum wage each year. The Fair Work Ombudsman provides tools to find your award. Most private-sector employees are in the national system and covered by a modern award. Award rates are generally higher than the national minimum. For example, the lowest ongoing classification in any award cannot be below $26.44 per hour or $1004.90 per week. Introductory rates for the first 6 months of employment cannot be below $25.74 per hour or $978.10 per week. These figures come from the Fair Work Ombudsman's annual wage review page.

Award Rates and the 2026 Increase

From 1 July 2026, minimum award wages increased by 4.75%. The Fair Work Ombudsman states that this increase applies from the first full pay period starting on or after 1 July 2026. The Modern Awards Pay Database, maintained by the Fair Work Commission, contains the calculated minimum rates of pay, allowances, overtime and penalty rates for each modern award. You can use this database to find the exact rate for your classification.

Award-Free Employees: Juniors, Apprentices, and Supported Wages

If you are not covered by an award, the national minimum wage applies. However, there are special rates for juniors, apprentices, trainees, and employees with disability. For award-free juniors, the following percentages of the adult national minimum apply:

• Under 16: 36.8% ($9.73 per hour, casual $12.16)
• 16: 47.3% ($12.51 per hour, casual $15.64)
• 17: 57.8% ($15.29 per hour, casual $19.11)
• 18: 68.3% ($18.06 per hour, casual $22.58)
• 19: 82.5% ($21.82 per hour, casual $27.28)
• 20: 97.7% ($25.84 per hour, casual $32.30)
• 21 and over: 100% ($26.44 per hour, casual $33.05)

Apprentices and trainees not covered by an award follow the National Training Wage schedule. Supported wages for employees with disability are also available.

How to Calculate Salary: Legal Minimum vs Average Earnings

The legal minimum is just the floor. Many employees earn more due to award rates, enterprise agreements, or individual negotiation. The Australian Bureau of Statistics (ABS) reported in May 2026 that full-time adult ordinary-time earnings averaged $2083.70 per week. All employees average total earnings were $1579.20 per week. These survey averages are much higher than the national minimum wage.

When you calculate salary, remember that superannuation guarantee is an employer payment on top of ordinary time earnings. From 1 July 2026, the super guarantee rate is 12%, and employers must pay it at the same time as wages (payday super).

For more details, see Which minimum wage applies, Rate tables, Guides, How the figures work, About this site, or Topics.

Important Notes

This site provides orientation only. It is not a pay determination, tax advice, or legal advice. The adult weekly national minimum is the published $1,004.90 figure. Multiplying $26.44 by 38 lands 18 cents lower because of rounding in the order. Casual weekly figures on this site are the published casual hourly rate times 38 ordinary hours, with no penalty rates. These national rates apply to national-system employees who are award-free and agreement-free. Some state public sector and local government employees, and some Western Australian sole traders and partnerships in the state system, are covered by state awards instead. A modern award or enterprise agreement can require a higher rate than the national minimum.