RemServ Salary Packaging and the Australian Minimum Wage: What You Need to Know
The adult national minimum wage from 1 July 2026 is $26.44 per hour or $1,004.90 per week, but salary packaging through RemServ does not reduce this legal floor.
RemServ Salary Packaging and the Minimum Wage
RemServ is a provider of salary packaging services in Australia. Salary packaging (also known as salary sacrifice) allows you to reduce your taxable income by sacrificing part of your salary in exchange for benefits such as a car, electronic devices, or other goods. However, this does not affect the legal minimum wage obligation. The employer must still pay at least the legal minimum in ordinary time earnings. The Fair Work Commission sets the national minimum wage from 1 July 2026 is $26.44 per hour or $1,494.90 per week. The Fair Work Ombudsman enforces this minimum wage.
How the Legal Minimum Applies
The adult national minimum wage is $26.44 per hour, $1,004.90 per week from 1 July 2026. For casual employees, the rate includes a 25% loading: $33.05 per hour. These rates apply to national-system employees who are award-free and agreement-free. Most private-sector employees are in the national system. Some state public sector and local government employees, and some Western Australian sole traders and partnerships in the state system, are covered by state awards instead. A modern award or enterprise agreement can require a higher rate than the national minimum.
Salary Packaging and the Minimum Wage
RemServ salary packaging does not reduce the minimum wage obligation. The employer must still pay at least the legal floor in ordinary time earnings. Salary packaging is a separate arrangement that reduces your taxable income, not the gross wage. The Fair Work Ombudsman states that salary sacrifice cannot reduce the minimum wage entitlement. If your employer offers RemServ salary packaging, your base salary must still meet or exceed the relevant minimum wage.
Super Guarantee
Super guarantee is 12% on top of ordinary time earnings. This is paid on the salary before any salary packaging. RemServ salary packaging does not affect the super guarantee obligation. The employer must pay super on the full ordinary time earnings, not the salary after sacrifice.
Award and Agreement Rates
If you are covered by a modern award, the minimum rate may be higher than the national minimum. The lowest ongoing classification cannot sit under the national minimum. Introductory rates for the first 6 months are limited to $25.74 per hour or $978.10 per week. RemServ salary packaging does not change these award rates.
Junior and Apprentice Rates
For award-free employees under 21, the junior percentages apply. For example, a 16-year-old gets 47.3% of the adult rate: $12.51 per hour, casual $15.64. Apprentice and trainee rates for award-free employees follow the Miscellaneous Award, not the junior percentages. RemServ salary packaging does not alter these rates.
Average Earnings Comparison
The ABS May 2026 data shows full-time adult ordinary-time earnings of $2,083.70 per week, and all employees average total earnings of $1,579.20 per week. These are survey averages, not legal minimums. RemServ salary packaging can be used on salaries above the minimum, but the minimum wage is the floor.
Conclusion
RemServ salary packaging is a useful tool to reduce tax, but it does not change the legal minimum wage. Your employer must still pay at least the national minimum wage or the applicable award rate. For more details, see Which minimum wage applies and Rate tables.
Always check with the Fair Work Ombudsman for your specific situation.
For the published floors, see the rate tables and how the figures work.
Questions people ask next
Does RemServ salary packaging reduce my minimum wage entitlement?
No. Salary packaging (also called salary sacrifice) is an arrangement between you and your employer to forego part of your salary in exchange for benefits like a car or electronic devices. However, the employer must still pay at least the legal minimum wage in ordinary time earnings. The Fair Work Commission sets the national minimum wage, and a modern award or enterprise agreement can require a higher rate. Your RemServ salary packaging does not change that legal floor.
How does super guarantee apply when I use RemServ salary packaging?
Super guarantee is 12% on top of ordinary time earnings, paid on the salary before any salary packaging. RemServ salary packaging does not affect the super guarantee obligation. The employer must pay super on the salary before any salary sacrifice, so your take-home pay may be lower, but the legal minimum wage is still the base for super.
Can I use RemServ salary packaging if I am under 21?
Yes, but your minimum rate depends on your age. For award-free employees under 21, the junior percentages apply. For example, a 16-year-old adult national minimum wage 16 is $12.51 per hour casual $15.64. RemServ salary packaging does not change that. The employer must still pay at least the correct minimum for your age. The Fair Work Ombudsman explains these rates.
Related guides
- Salary sacrifice vs salary packaging: Which Australian pay floor applies and what people mix up
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- Smart Salary Packaging and the Minimum Wage: Award Coverage vs Award-Free Rates
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- Salary Packaging Australia: How It Interacts with Minimum Wage and Award Rates
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