What is OTE salary and why does it matter?

OTE stands for ordinary time earnings. It is the amount you are paid for your ordinary hours of work, including base pay, casual loading, shift penalties within ordinary hours, and commissions. The Australian Taxation Office uses OTE to calculate the minimum super guarantee contribution your employer must pay. As of 1 July 2026, the super guarantee is 12% of your OTE. OTE does not include overtime payments, provided ordinary hours are clearly defined in your award or agreement. Understanding your OTE helps you check that your employer is meeting super obligations.

Can my OTE salary be less than the national minimum wage?

If you are an award-free employee aged 21 or over, your OTE salary cannot be less than the national minimum wage of $26.44 per hour or $1,004.90 per week. However, junior employees (under 21), apprentices, trainees, and employees on introductory award rates may be paid less. For example, a 16-year-old award-free junior can be paid $12.51 per hour. Always check your applicable award or agreement, as it may set a higher minimum. The national minimum is a floor, not a target.

How does OTE salary differ from my award rate?

Your award rate is the minimum pay for your classification under a modern award, including penalty rates, allowances, and overtime. OTE salary is a subset of your total earnings used specifically for super guarantee calculations. Not everything in your award rate counts as OTE. For instance, overtime payments are not OTE if ordinary hours are clearly defined. Your award rate may also include expense-related allowances that are not OTE. Always read your award's provisions alongside the ATO's list of OTE guidelines to avoid confusion.

Understanding OTE Salary: How Ordinary Time Earnings Relate to Australia’s Minimum Wage Floors

The national minimum wage is $26.44 per hour or $1,004.90 per week (as of 1 July 2026), but most employees are covered by a modern award or agreement that sets a higher rate. OTE salary is the amount paid for ordinary hours and is used to calculate super guarantee contributions.

What is the Australian pay floor and what people mix up about OTE salary

When you hear "ote salary", it is easy to confuse the legal minimum with the average, the award rate, or a negotiated salary. The term "OTE salary" is a technical term from the Australian Taxation Office. It stands for ordinary time earnings. The Fair Work Ombudsman explains that the national minimum wage is $26.44 per hour or $1,004.90 per week, but most employees are covered by a modern award or agreement that sets a higher rate. The ABS May 2026 shows full-time adult ordinary time earnings average is $2,083.7 per week. That average is more than double the national minimum. But that is not your pay. Your OTE salary is the amount you are paid for ordinary hours. It is used to calculate super guarantee. The super guarantee is 12% on top of your OTE. That is an employer payment on top, not part of your take-home.

Legal minimum vs survey average vs award rate vs negotiated salary

The legal minimum is the national minimum wage set by the Fair Work Commission. The Fair Work Ombudsman enforces it. The national minimum is $26.44 per hour or $1,004.90 per week from 1 July 2026. That applies only to award-free and agreement-free employees. Most employees are covered by a modern award. The Fair Work Commission's Modern Awards Pay Database contains the calculated minimum rates of pay, allowances, overtime and penalty rates in modern awards. The database is updated after each annual wage review. The award rate for your classification may be higher than the national minimum. For example, the lowest ongoing classification in a modern award cannot sit under the national minimum, but introductory rates limited to the first six months can be $25.74 per hour or $978.10 per week. The survey average from the ABS is $2,083.7 per week for full-time adult ordinary time earnings. That is an average, not a floor. A negotiated salary is what you and your employer agree, which must be at least the award or national minimum. If you are covered by an enterprise agreement, check that agreement for the minimum pay rates. The Fair Work Commission's website lists enterprise agreements.

Super guarantee on OTE salary

The ATO's list of payments that are ordinary time earnings explains that OTE includes ordinary hours of work, casual loading, shift penalties (including public holiday penalties), piece rates for work during ordinary hours, and breach of break payments. Overtime payments are not OTE if ordinary hours are clearly identified. The super guarantee is 12% of your OTE. That is an employer payment on top of your salary. If you have a salary sacrifice arrangement, the sacrificed amount may still count as OTE if it would have been OTE if paid directly. Always check your award or agreement for any additional super obligations.

Which minimum wage applies to you?

To find your pay floor, first check if you are covered by a modern award. Use the Fair Work Ombudsman's Pay and Conditions Tool. If you are award-free, the national minimum applies. But juniors, apprentices, trainees, and employees with disability may have different rates. For award-free juniors, the percentages are: under 16: 36.8% ($9.73/h), 16: 47.3% ($12.51/h), 17: 57.8% ($15.29/h), 18: 68.3% ($18.06/h), 19: 82.5% ($21.82/h), 20: 97.7% ($25.84/h), 21 and over: 100% ($26.44/h). Casual loading is 25% on top. Apprentice and trainee rates for award-free employees follow the Miscellaneous Award, not the junior percentages. If you are covered by an enterprise agreement, that agreement sets the minimum. The Fair Work Commission approves registered agreements. They must not undercut the relevant award.

Common mix-ups

People often mix up the national minimum with the award rate. The national minimum is a backstop. Most employees are entitled to a higher award rate. Another mix-up is treating the ABS average as a target. The average full-time adult OTE is $2,083.7 per week, but many workers earn less. The average includes high earners. Your OTE salary may be lower. Also, people think super is part of their salary. Super is an employer payment on top. The 12% super guarantee is calculated on your OTE, not on your total package including super. Finally, some think overtime is OTE. It is not, if ordinary hours are clearly defined. The ATO's list makes that clear.

How to check your pay

Start with the Fair Work Ombudsman's Pay and Conditions Tool. It calculates minimum pay rates, penalties, and allowances for your award. Compare that with your payslip. Your OTE salary should be at least the minimum for your classification. If you are award-free, check the national minimum. If you are under 21, check the junior rates. If you are an apprentice, check the Miscellaneous Award rates. Remember that the modern award or enterprise agreement can set a higher rate than the national minimum. The Fair Work Commission's Modern Awards Pay Database is a resource for exploring data. Use it with caution: data extracts must be read in conjunction with the award provisions. If there is inconsistency, the award prevails.

Final note

This guide is 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. For your exact situation, consult the Fair Work Ombudsman or a qualified professional.

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