What is the difference between a salary and the minimum wage?

A salary is the total annual or weekly pay you receive for your work, often negotiated or set by an award or agreement. The minimum wage is the legal floor set by the Fair Work Commission. Most employees are covered by a modern award that requires a higher rate than the national minimum wage. Your salary must be at least the minimum wage that applies to you, but it can be higher.

How do I know if I am covered by an award or if I am award-free?

Most employees in Australia are covered by a modern award that applies to their industry or occupation. You can check using the Fair Work Ombudsman's Pay and Conditions Tool or by reading the coverage clause in the relevant award. If no award covers you and you are not covered by an enterprise agreement, you are award-free and the national minimum wage applies. Award-free employees include some managers, professionals, and certain casual workers.

Does my salary include superannuation?

No, superannuation is an employer payment on top of your salary. From 1 July 2026, the super guarantee is 12% of your ordinary time earnings. Your salary is the gross pay before tax, and your employer must also pay super into a nominated fund. The national minimum wage and award rates are also before super.

Understanding Your Salary: Award Coverage vs Award-Free Rates in Australia

From 1 July 2026, the national minimum wage for award-free adult employees is $26.44 per hour or $1,004.90 per week, but most salaries are higher under a modern award or enterprise agreement.

Salary and the minimum wage: what you need to know

When you hear the word "salary", it usually refers to the annual or weekly pay you receive for your work. In Australia, your salary must meet at least the legal minimum wage that applies to you. But the minimum wage is not a single number – it depends on whether you are covered by a modern award, an enterprise agreement, or are award-free. This guide explains how your salary compares to the legal floor and to average earnings.

Who sets the minimum wage?

The Fair Work Commission reviews and sets the national minimum wage each year. From 1 July 2026, the national minimum wage for adult employees not covered by an award or agreement is $26.44 per hour or $1,004.90 per week (based on 38 ordinary hours). The Fair Work Ombudsman explains and enforces these rates. If you are covered by a modern award, your minimum pay is set by that award, which is often higher than the national minimum.

Award coverage vs award-free rates

Most employees in Australia are covered by a modern award. Awards set minimum pay rates, penalty rates, and allowances for specific industries or occupations. From 1 July 2026, minimum award wages increased by 4.75%, but the lowest ongoing classification in any award cannot be less than $26.44 per hour or $1,004.90 per week. Some awards have introductory rates for new employees (limited to the first six months) that can be as low as $25.74 per hour or $978.10 per week.

If you are award-free (no award or enterprise agreement covers you), the national minimum wage applies. However, award-free employees may be entitled to different rates if they are juniors, apprentices, trainees, or have a disability. For example, a 17-year-old award-free junior is entitled to 57.8% of the national minimum wage, or $15.29 per hour ($19.11 casual). Casual employees receive a 25% loading on top of the base rate.

How does your salary compare to average earnings?

The Australian Bureau of Statistics (ABS) publishes average earnings figures. In May 2026, full-time adult ordinary-time earnings were $2,083.70 per week. The average total earnings for all employees (including part-time and casual) was $1,579.20 per week. These averages are much higher than the national minimum wage because they include higher-paid roles and overtime. Your salary may be above or below these averages depending on your industry, experience, and location.

Superannuation is on top

Remember that superannuation is an employer payment on top of your salary. From 1 July 2026, the super guarantee is 12% of your ordinary time earnings. So if your salary is $1,000 per week, your employer must also pay $120 into your super fund. The national minimum wage and award rates are all before super.

Negotiated salaries and enterprise agreements

If you are covered by an enterprise agreement, your salary must be at least the base rate in the relevant award. Many enterprise agreements provide higher pay than the award. If you are award-free and not covered by an agreement, you can negotiate your salary with your employer, but it cannot be less than the national minimum wage (or the special rate that applies to you).

For more details on which minimum wage applies to you, visit our Which minimum wage applies guide. You can also check Rate tables for current award and national minimum rates.

Key takeaways

The national minimum wage for award-free adults from 1 July 2026 is $26.44 per hour or $1,004.90 per week.
Most employees are covered by a modern award that sets a higher minimum.
Award minimums increased by 4.75% from 1 July 2026, with a backstop at the national minimum.
Juniors, apprentices, trainees, and supported employees may receive less than the adult rate.
Superannuation is paid on top of your salary at 12% from 1 July 2026.
Average full-time earnings are around $2,083 per week, well above the minimum.

Understanding your salary means knowing which pay floor applies and how your rate compares. Use the Fair Work Ombudsman's tools to check your award coverage, and always ensure your salary meets the legal minimum.

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