NSW Health Salary Packaging: How Your Hourly Rate Compares to the Award Floor
The award minimum for a Dental Technician Level 1 1st Year is $37.85 per hour, well above the national minimum of $26.44 per hour.
Understanding the NSW Health Salary Packaging Award and Your Pay Floor
If you work in NSW Health under the Health Professionals Salaries (State) Award 2025, you can use salary packaging to reduce your taxable income. The award covers dental technicians, health professionals, and other roles. The award sets minimum annual salaries. For example, a Dental Technician Level 1 1st Year gets $74,785 per year from the first full pay period on or after 1 July 2025. That works out to about $37.85 per hour (based on 38 ordinary hours a week. The national minimum wage from 1 July 2026 is $26.44 per hour. So the award floor is higher.
How Salary Packaging Works
The award allows you to sacrifice up to 100% of your salary to super or package benefits. The combined amount can be up to 100% of your salary. The fringe benefit tax exemption cap is $17,000 per year. Any amount above that is passed on to you. The packaged amount reduces your salary subject to PAYE tax. But for award entitlements like overtime, penalty rates, and leave, your salary is the award salary before packaging. So your base hourly rate for those calculations stays the same.
Comparing Your Hourly Rate
If you are paid under this award, your minimum hourly rate is the award rate for your classification. For a Dental Technician Level 1 1st Year, that is $37.85 per hour. That is well above the national minimum of $26.44. If you are paid less, check your classification. The award also includes allowances like the Dental Specialist Management Allowance. Your employer must pay the award rate or a higher enterprise agreement rate. Which minimum wage applies explains how to find your correct award.
Superannuation on Top
Your employer pays super on your award salary, not on the packaged amount. The super guarantee is 12% on top of ordinary time earnings. So if your award salary is $74,785, your employer pays $8,974.20 super per year. Salary packaging does not reduce that. Rate tables show how super adds to your total package.
Legal Minimum vs Award Rate
The national minimum wage is the legal floor for award-free employees. But most NSW Health employees are covered by an award. The award rate is the minimum for that classification. If you are not covered, you might be in the national system. The Fair Work Ombudsman explains the national minimum. The Fair Work Commission sets it. The award rate is higher. For award-free employees, the national minimum applies.
What If You Are Paid Less
If you think you are paid below the award rate, check your classification. The award has a backstop: the lowest ongoing classification cannot sit under the national minimum. But the award rates are higher. If you are a junior, apprentice, or trainee, different rates apply. The award has its own rates for trainees. For award-free juniors, the national junior percentages apply. The award may have higher rates. Guides helps you check your classification.
Final Check
Use your hourly rate to see if it is above the award rate. Divide your annual salary by 52 weeks and 38 hours. Compare to the award rate. If you are below, ask your employer. Your employer can set a higher rate. The award can set a higher rate. How the figures work explains how to calculate.
FAQs
How does salary packaging affect my take-home pay?
Salary packaging lets you use pre-tax dollars to pay for benefits like mortgage, rent, car loans or other benefits. This reduces your taxable income, so you pay less tax, so take-home pay increases. The award says the packaged amount reduces salary subject to PAYE tax. But for award entitlements like overtime, allowances, and leave, your salary is still the award salary before packaging. So your base hourly rate for penalty rates stays the same.
Is the award rate the same as the national minimum?
No. The national minimum wage from 1 July 2026 is $26.44 per hour or $1,004.90 per week. The NSW Health Professionals Award sets higher minimum rates. For example, a Dental Technician Level 1 1st Year gets $74,785 per year, which is about $37.85 per hour. The award rate is the legal minimum for employees covered by that award. If your enterprise agreement or contract says a higher rate, that applies.
Does salary packaging reduce my superannuation?
No. The award says that for superannuation purposes, your salary is the award salary from Clause 2, not the packaged amount. So your employer must pay the 12% super guarantee on the full award salary. If you also salary sacrifice to super, that extra contribution is on top of the full salary. Your super contributions are based on salary before packaging. So your super guarantee not reduced by packaging.
Questions people ask next
How does salary packaging affect my take-home pay?
Salary packaging lets you use pre-tax dollars to pay for benefits like mortgage, rent, car loans, or other benefits. This reduces your taxable income, so you pay less tax, so your take-home pay increases. The award says the packaged amount reduces salary subject to PAYE tax. But for award entitlements like overtime, allowances, and leave, your salary is still the award salary before packaging. So your base hourly rate for penalty rates stays the same.
Is the award rate the same as the national minimum?
No. The national minimum wage from 1 July 2026 is $26.44 per hour or $1,004.90 per week. The NSW Health Professionals Award sets higher minimum rates. For example, a Dental Technician Level 1 1st Year gets $74,785 per year, which is about $37.85 per hour. The award rate is the legal minimum for employees covered by that award. If your enterprise agreement or contract says a higher rate, that applies.
Does salary packaging reduce my superannuation?
No. The award says that for superannuation purposes, your salary is the award salary from Clause 2, not the packaged amount. So your employer must pay the 12% super guarantee on the full award salary. If you also salary sacrifice to super, that extra contribution is on top of the full salary. Your super contributions are based on the salary before packaging. So your super guarantee is not reduced by packaging.
Related guides
- Salary Packaging NSW Health: Understanding Your Pay Floor and Award Rates
The national minimum wage is $26.44/h, but NSW Health professionals are covered by a state award with higher rates; salary packaging can reduce taxable income but does not affect the award entitlement.
- Salary sacrifice vs salary packaging: Which Australian pay floor applies and what people mix up
The national minimum wage is $26.44 per hour from 1 July 2026, but salary sacrifice arrangements do not reduce this obligation.
- Qld Health Salary Packaging and the Minimum Wage: What You Need to Know
The national minimum wage is $26.44 per hour from 1 July 2026, but salary packaging is a separate benefit that can reduce taxable income; the legal floor remains unchanged.
- Salary Packaging in the Health Industry: Award Coverage vs Award-Free Minimum Rates
The legal minimum for award-free adult workers in the health industry is $26.44 per hour or $1,004.90 per week, but most health workers are covered by awards with higher rates.