What is the current national minimum wage?

From the first full pay period on or after 1 July 2026, the adult national minimum wage is $26.44 per hour or $1,004.90 per week for a 38-hour week. Casual employees receive a loading of 25%, making the casual rate $33.05 per hour. These rates are set by the Fair Work Commission and apply to award-free and agreement-free national-system employees.

How does salary sacrifice affect my super guarantee?

Salary sacrifice contributions are generally included in your ordinary time earnings (OTE), so your employer must still pay the super guarantee of 12% on that amount. Using a super salary sacrifice calculator can help you estimate the impact on your take-home pay and super balance, but it does not reduce the super your employer is required to pay.

Super Salary Sacrifice Calculator: Compare Your Hourly Rate to the Legal Minimum

Q: Can my award rate be higher than the national minimum?

Yes. Modern awards and enterprise agreements often set minimum rates above the national minimum wage. For example, the lowest ongoing classification in a modern award cannot fall below $26.44 per hour, but many classifications are higher. Always check your award or agreement to see if a higher rate applies.

The adult national minimum wage from 1 July 2026 is $26.44 per hour or $1,004.90 per week, with super guarantee of 12% paid on top.

Super Salary Sacrifice Calculator: A Practical Check Against the Minimum Wage

If you are using a super salary sacrifice calculator to work out how much you could put into your super before tax, it helps to first know the legal pay floor that applies to you. This guide explains how to compare your hourly or weekly rate with Australia's minimum wage, award rates, and average earnings, so you can make an informed decision about salary sacrifice.

The Legal Minimum: What You Must Be Paid

The Fair Work Commission sets the national minimum wage. From the first full pay period on or after 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. This is the absolute floor for award-free and agreement-free national-system employees. However, not everyone is entitled to the full adult rate:

Juniors (under 21) receive a percentage of the adult rate. For example, a 16-year-old gets 47.3% ($12.51 per hour) and a 20-year-old gets 97.7% ($25.84 per hour).
Apprentices and trainees follow rates in the Miscellaneous Award, not the junior percentages.
Introductory award rates apply to new employees in some awards for the first six months, at $25.74 per hour.
Supported wages for employees with disability may be lower under a supported wage system.

Remember, super guarantee of 12% is paid by your employer on top of these rates. When you use a super salary sacrifice calculator, the amount you sacrifice comes from your pre-tax salary, but your employer still calculates super on your ordinary time earnings (which includes the sacrificed amount).

Award Rates and Enterprise Agreements: Often Higher

Most employees are covered by a modern award or an enterprise agreement. These documents set minimum rates for specific industries and occupations, and they are almost always higher than the national minimum. For example, the lowest ongoing classification in a modern award cannot fall below $26.44 per hour, but many awards start at $27 or $28 per hour. If you are covered by an award or agreement, that rate is your legal minimum—not the national minimum. The Fair Work Ombudsman explains and enforces these obligations.

To check your award rate, see the Rate tables on this site or visit the Fair Work Ombudsman's website. If you are award-free and agreement-free, the national minimum applies.

How Your Pay Compares to the Average

The Australian Bureau of Statistics (ABS) publishes average earnings figures. In May 2026, full-time adult ordinary-time earnings averaged $2,083.70 per week, while all employees (including part-time and casual) averaged $1,579.20 per week. These are not minimums—they reflect what people actually earn, including overtime and higher-paid roles. If your rate is below these averages, it does not mean you are underpaid, but it can give you a benchmark when negotiating or considering salary sacrifice.

Using a Super Salary Sacrifice Calculator

A super salary sacrifice calculator helps you estimate the tax savings and super balance growth when you divert part of your pre-tax salary into super. To use it effectively, you need to know:

Your hourly or annual salary (before sacrifice).
Whether you are covered by an award that sets a higher minimum.
Your super guarantee (12% on OTE).
Your tax rate (including the Medicare levy of 2% once your ordinary gross exceeds $30,000, and the low-income tax offset phase-in).

Remember, salary sacrifice reduces your taxable income but does not reduce the super your employer must pay on your OTE. The calculator will show you the net effect on your take-home pay and your super balance over time.

Practical Steps to Check Your Rate

Find your legal minimum. Start with the Which minimum wage applies guide to determine if you are covered by an award, agreement, or the national minimum.
Compare your hourly rate. If you are award-free and over 21, your rate must be at least $26.44 per hour (or the casual equivalent). If you are under an award, check the specific classification.
Consider super. Your employer must pay 12% super on your ordinary time earnings. This is separate from any salary sacrifice you choose to make.
Use a calculator. Input your salary, sacrifice amount, and tax details to see the impact. This site does not host a calculator, but many reputable financial institutions and the ATO provide one.

Final Notes

This guide is for orientation only. It is not a pay determination, tax advice, or legal advice. Always consult the Fair Work Ombudsman for enforcement questions and the ATO for tax matters. For more details on how figures are derived, see How the figures work.