What is the difference between the national minimum wage and an award rate?

The national minimum wage is the legal floor for award-free and agreement-free employees. A modern award sets minimum pay and conditions for a specific industry or occupation, and its lowest ongoing classification cannot be less than the national minimum. Most employees are covered by an award, which usually provides a higher rate than the national minimum.

Can I be paid less than the national minimum wage if I am a junior or apprentice?

Yes, in certain circumstances. Award-free juniors have percentage-based minimums (e.g., under 16: 36.8% of the adult rate). Apprentices and trainees are covered by the Miscellaneous Award or their specific award, not the junior percentages. Always check if a modern award or enterprise agreement applies, as it may set different rates.

Does the national minimum wage include superannuation?

No. The national minimum wage is the base rate of pay. Superannuation is an additional payment that employers must contribute on top of ordinary time earnings. From 1 July 2026, the super guarantee rate is 12%. For example, an employee earning $26.44 per hour would also receive an extra $3.17 per hour in super contributions.

Minimum Wage Rates Australia: Award Coverage vs Award-Free Pay Floors

The adult national minimum wage from 1 July 2026 is $26.44 per hour or $1,004.90 per week, but most workers are covered by a modern award or enterprise agreement that sets a higher rate.

Minimum wage rates Australia: the legal floor and what it means for you

When searching for minimum wage rates Australia, it is important to understand that there is not one single figure that applies to every worker. The national minimum wage is the legal minimum for employees who are not covered by a modern award or enterprise agreement. From 1 July 2026, the adult rate 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 rate $33.05 per hour.

How the national minimum wage compares to other pay measures

The national minimum wage is a floor, not a target. The Australian Bureau of Statistics (ABS) reports that in May 2026, full-time adult ordinary-time earnings averaged $2,083.70 per week – more than double the minimum. Even the average total earnings for all employees, including part-time and casual, was $1,579.20 per week. These figures show that most Australians earn well above the legal minimum.

A modern award sets minimum pay rates for specific industries or occupations. The Fair Work Commission determines award rates each year. From the first full pay period on or after 1 July 2026, modern award minimum wages rise by 4.75%, but the lowest ongoing classification cannot fall below the national minimum. Some awards have introductory rates for new employees (limited to the first six months) that are set at $25.74 per hour or $978.10 per week.

Enterprise agreements can also set higher rates. A negotiated salary is a personal arrangement between an employer and employee, often above both the award and the national minimum. The key point is that the national minimum is only one part of the picture.

Superannuation: an employer cost on top

All employers must pay superannuation guarantee contributions on top of ordinary time earnings. From 1 July 2026, the rate is 12%. For an employee on the national minimum wage, that means an additional $3.17 per hour or $120.59 per week contributed to their super fund. This is not deducted from the employee's pay; it is an extra cost for the employer.

Who is covered by the national minimum wage?

The national minimum wage applies to national-system employees who are award-free and agreement-free. Most private-sector employees are in the national system. However, some state public sector and local government employees, and some Western Australian sole traders and partnerships, are covered by state awards instead. If you are unsure which system applies, check with the Fair Work Ombudsman.

Award-free junior rates

For award-free employees under 21, the national minimum wage is reduced by a percentage based on age:

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

These percentages do not apply if a modern award or enterprise agreement covers the employee. Apprentices and trainees have their own rates under the Miscellaneous Award.

Historical rates and future adjustments

The national minimum wage has increased over recent years:

1 July 2023: $23.23 per hour / $882.80 per week
1 July 2024: $24.10 per hour / $915.90 per week
1 July 2025: $24.95 per hour / $948.00 per week
1 July 2026: $26.44 per hour / $1,004.90 per week

These figures are set by the Fair Work Commission after its annual review. The Fair Work Ombudsman provides guidance and enforces compliance.

What this means for you

If you are award-free, the national minimum wage is your legal floor. If you are covered by a modern award, your minimum is the award rate (which is usually higher). An enterprise agreement can set an even higher rate. Always check which instrument applies to your employment. For more details, see Which minimum wage applies and browse the Rate tables on this site.

Important: This information is for orientation only. It is not a pay determination, tax advice, or legal advice. Always consult the Fair Work Ombudsman or a qualified professional for your specific situation.

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