How Much Can I Salary Sacrifice? Understanding Your Pay Floor and Salary Sacrifice Limits

How Much Can I Salary Sacrifice? A Guide to Your Pay Floor

If you are asking "how much can I salary sacrifice", you are likely looking for a dollar figure that tells you the maximum you can put into super, a car, or other benefits through your employer. This site focuses on minimum wage rates, not salary sacrifice limits, but we can clarify how the legal pay floor interacts with salary sacrifice. The short answer: the amount you can salary sacrifice is not a single number set by wage law. It depends on the type of benefit, your employer’s policy, and tax rules from the ATO. However, your base pay must always stay above the national minimum wage or your applicable award rate.

The National Minimum Wage and Salary Sacrifice

From 1 July 2026, the adult national minimum wage is $26.44 per hour, or $1,004.90 per week for a 38-hour week. Casual employees receive a 25% loading, making the casual minimum $33.05 per hour. These figures come from the Fair Work Commission and are enforced by the Fair Work Ombudsman. If you are award-free and agreement-free, your employer cannot pay you less than this floor. Salary sacrifice is an arrangement where you agree to forgo part of your salary in exchange for a benefit. Your employer must still pay you at least the minimum wage before the sacrifice is taken. For example, if your base salary is $1,200 per week, you could sacrifice up to $195.10 per week without falling below the $1,004.90 floor. But that is not a limit set by wage law; it is a mathematical constraint.

Award Rates and Enterprise Agreements

Many employees are covered by a modern award or an enterprise agreement. These instruments often set higher minimum rates than the national minimum. For example, the award backstop from 1 July 2026 is $26.44 per hour ongoing, with an introductory rate of $25.74 per hour for the first six months. If your award rate is $28.00 per hour, your base pay must be at least that. Salary sacrifice cannot reduce your effective hourly rate below the award rate. Your employer must pay you the full award rate in cash or kind, but the sacrificed amount is a reduction in your take-home pay, not a reduction in the rate your employer records. Always check your award or agreement for the exact minimum.

How Salary Sacrifice Works in Practice

Salary sacrifice is common for superannuation, cars, laptops, and other benefits. The amount you can sacrifice is limited by:

• Employer policy: Your employer may set a maximum percentage or dollar amount.
• Tax rules: For super, the concessional contributions cap is $30,000 per year from 2026-27 (indexed). For other benefits, Fringe Benefits Tax (FBT) may apply, and some benefits have exemptions up to certain limits (e.g., portable electronic devices).
• Your base pay: As noted, you cannot sacrifice so much that your remaining cash pay falls below the minimum wage or award rate.

This site’s reference does not contain a specific figure for “how much can I salary sacrifice”. The legal floor is $26.44 per hour, but the maximum sacrifice amount is a separate matter. For precise limits, consult the ATO or your employer’s salary sacrifice policy.

Super Guarantee on Top

Super guarantee is an employer payment on top of your ordinary time earnings. From 1 July 2026, the rate is 12%. This is calculated on your base salary before any salary sacrifice. So if you sacrifice part of your salary into super, your employer still pays 12% on your original ordinary time earnings. For example, if your base salary is $60,000 per year, your employer must pay $7,200 in super regardless of how much you sacrifice into super yourself. Salary sacrifice into super is a separate contribution that comes from your pre-tax pay, and it counts towards your concessional cap.

Other Pay Floors: Juniors, Apprentices, and Supported Wages

Not every worker receives the full adult minimum. Award-free juniors have age-based percentages: under 16 get 36.8% ($9.73 per hour), 16 get 47.3% ($12.51), 17 get 57.8% ($15.29), 18 get 68.3% ($18.06), 19 get 82.5% ($21.82), 20 get 97.7% ($25.84), and 21+ get 100% ($26.44). Casual loadings apply on top. Apprentices and trainees have their own rates under the Miscellaneous Award. Supported wages for employees with disability may be lower. Salary sacrifice for these groups must still respect the applicable minimum. You cannot sacrifice so much that your cash pay drops below your legal minimum.

Where to Find More Information

For a full overview of which minimum applies to you, see Which minimum wage applies on this site. For detailed rate tables including award rates and historical figures, visit Rate tables. Remember that salary sacrifice limits are not published here; they are set by the ATO and your employer. Always seek professional advice if you are unsure.

Final Note

This guide is for orientation only. It is not a pay determination, tax advice, or legal advice. The Fair Work Commission sets the national minimum wage; the Fair Work Ombudsman explains and enforces it. The ATO administers salary sacrifice rules. If you need a precise answer to “how much can I salary sacrifice”, check your employer’s policy and the ATO’s caps for the specific benefit.

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