How to check your hourly rate against the Fair Work minimum wage

Checking your pay against the Fair Work minimum wage

If you want to know whether your hourly rate meets the legal minimum, the first step is understanding the Fair Work minimum wage. This is the national minimum wage set by the Fair Work Commission each year. From 1 July 2026, the adult rate is $26.44 per hour, or $1,004.90 per week for a 38-hour week. But this is only the starting point – your actual legal minimum may be different.

The legal floor vs other rates

The national minimum wage is the absolute floor for award-free employees in the national system. However, most Australian workers are covered by a modern award or an enterprise agreement, which can set higher minimum rates. For example, a retail award might require $28 per hour for a level 1 employee. Always check your award first. If you are award-free and agreement-free, the national minimum applies.

It’s important to separate the legal minimum from other figures. The Australian Bureau of Statistics (ABS) reports average weekly earnings. In May 2026, full-time adult ordinary-time earnings averaged $2,083.70 per week, and all employees averaged $1,579.20 per week. These are survey averages, not legal floors. Your pay could be above or below these averages and still be legal.

Superannuation is extra

Remember that the national minimum wage is the base rate. Your employer must also pay superannuation guarantee of 12% on top of your ordinary time earnings. So if you earn $26.44 per hour, your employer’s total cost is about $29.61 per hour including super. This is a separate payment to your super fund, not part of your take-home pay.

Who gets the full adult rate?

Not everyone receives $26.44 per hour. The Fair Work Commission allows lower rates for:

• Juniors (under 21): percentages based on age, e.g., 16-year-olds get 47.3% ($12.51/h), 20-year-olds get 97.7% ($25.84/h).
• Apprentices and trainees: rates follow the Miscellaneous Award, not the junior percentages.
• Introductory award rates: some awards have a lower rate for the first 6 months (minimum $25.74/h from 1 July 2026).
• Supported wages: for employees with disability.

If you are covered by an award, the award may have its own junior or introductory rates. Always check the specific award.

Casual vs permanent

If you are a casual employee, your hourly rate includes a 25% casual loading. The national minimum casual rate from 1 July 2026 is $33.05 per hour. This loading compensates for lack of paid leave. Your permanent equivalent would be $26.44. When comparing your casual rate to the minimum, use the casual rate.

Weekly equivalent and rounding

The adult weekly national minimum is published as $1,004.90. Multiplying $26.44 by 38 hours gives $1,004.72, an 18-cent difference due to rounding. The official weekly figure is the one to use for weekly comparisons.

History of increases

The national minimum wage has increased over recent years: $23.23 (2023), $24.10 (2024), $24.95 (2025), $26.44 (2026). These changes reflect the Fair Work Commission’s annual review.

State vs national system

Most private-sector employees are in the national system and covered by the national minimum wage. However, some state public sector and local government employees, and some Western Australian sole traders and partnerships, are in the state system and may be covered by state awards. In those cases, the state minimum wage may apply. Check with your state authority.

Using the ABS average for context

The ABS average weekly earnings give a sense of the broader market. The all-employees average of $1,579.20 per week is about 57% higher than the national minimum weekly of $1,004.90. This gap reflects that many workers earn above the minimum due to awards, agreements, or market rates. But the average is not a target or a legal requirement.

Negotiated salaries

If you are not covered by an award or agreement, your salary is negotiated between you and your employer. The only legal floor is the national minimum wage (or the applicable junior/apprentice rate). Your negotiated salary can be any amount above that floor. Super is additional.

How to do a practical check

1. Find your classification: Are you covered by a modern award? Use the Fair Work Ombudsman’s tool (not linked here) or check your employment contract.
2. Identify your base rate: Look at your payslip for the ordinary hourly rate (excluding penalties, allowances, overtime).
3. Compare to the floor: If you are award-free and adult, your rate must be at least $26.44/h. If you are a junior, use the percentage table.
4. Consider super: Your employer must pay 12% super on top of your ordinary time earnings. This is not deducted from your hourly rate.

For more detailed rate tables, see our Rate tables page. If you need guidance on which minimum applies to you, visit Which minimum wage applies for a step-by-step approach.

Award and agreement rates can be higher

Even if you are covered by an award, the award rate is a minimum. Your employer can pay more, and an enterprise agreement can set a higher rate. The national minimum wage is the backstop – no one can be paid less than that (except for the exceptions noted). But if your award says $27 per hour, that is your legal minimum, not $26.44.

This guide is for orientation only. It is not a pay determination, tax advice, or legal advice. For your specific situation, consult the Fair Work Ombudsman or a professional.

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