Tram driver salary Melbourne: award minimums and what to expect

Tram driver salary Melbourne: award minimums and what they mean

When searching for a **tram driver salary Melbourne, it's easy to confuse the legal minimum with a typical salary survey, an award rate, or a negotiated salary. Here's how to separate them.

The legal minimum under the Passenger Vehicle Transportation Award 2020

Tram drivers in Melbourne are covered by the Passenger Vehicle Transportation Award 2020 (MA000063), which applies to employers in the passenger vehicle transportation industry, including electric tramway and light rail. The Fair Work Commission sets the award rates, and the Fair Work Ombudsman explains and enforces them.

From the first full pay period on or after 1 July 2026, the minimum weekly and hourly rates for adult employees are:

• Grade 1: $1,038.80 per week / $27.34 per hour
• Grade 2: $1,062.90 / $27.97
• Grade 3: $1,122.80 / $29.55
• Grade 4: $1,162.40 / $30.59
• Grade 5: $1,226.30 / $32.27
• Grade 6: $1,280.50 / $33.70

The classification that applies to a tram driver depends on the work performed. For example, a driver operating a light rail vehicle in sole charge would likely be at Grade 3 or 4. Junior employees under 19 years receive a percentage of the adult rate, but if they are 18 or older and in sole charge of the vehicle, they must be paid the adult rate.

How the national minimum wage compares

The national minimum wage from 1 July 2026 is $26.44 per hour ($1,004.90 per week) for an adult award-free employee. Award rates are higher than the national minimum. The award also has an introductory rate for the first six months of $25.74 per hour, but that is below the award minimums for tram drivers.

Enterprise agreements and actual salaries

Most tram drivers in Melbourne are employed by Yarra Trams under an enterprise agreement. Those agreements typically set higher base rates, plus shift penalties, weekend loadings, and allowances. The award rate is only the floor. If you are covered by an enterprise agreement, that agreement sets the minimum, and it must be higher than the award overall.

Superannuation is on top

When discussing a tram driver salary Melbourne, remember that superannuation guarantee contributions are paid by the employer on top of the salary. From 1 July 2026, the super rate is 12% of ordinary time earnings. So a Grade 4 driver earning $30.59 per hour would also have an additional $3.67 per hour contributed to super.

ABS average earnings

The Australian Bureau of Statistics (ABS) May 2026 survey shows full-time adult ordinary-time earnings for all employees is $2,083.70 per week. This is a broad average, not specific to tram drivers. It can be useful as a benchmark, but actual tram driver salaries may be lower or higher depending on experience and agreements.

What this means for your search

If you are looking for a tram driver salary Melbourne, the award minimum is between $27.34 and $33.70 per hour, but the real figure you will be offered is likely higher under an enterprise agreement. Always check the applicable award or agreement. For more details, see Which minimum wage applies and Rate tables.

Three FAQs

What is the minimum hourly rate for a tram driver in Melbourne? Under the Passenger Vehicle Transportation Award 2020 (MA000063), the minimum hourly rate for an adult employee ranges from $27.34 (Grade 1) to $33.70 (Grade 6). The specific grade depends on the duties performed. For example, a tram driver operating a light rail vehicle would typically fall under Grade 3 or 4, meaning at least $29.55 or $30.59 per hour from the first full pay period on or after 1 July 2026.

Is the award rate the same as what Yarra Trams pays? No. The award sets the legal minimum. Most tram drivers in Melbourne are employed under an enterprise agreement negotiated between Yarra Trams and the relevant union. Those agreements usually provide higher base rates, penalty rates, and allowances. You can check the Fair Work Commission's agreement database or ask your employer for a copy of the applicable enterprise agreement. Does superannuation count as part of the tram driver salary? No. Superannuation guarantee contributions are paid by the employer on top of the salary. From 1 July 2026, the super guarantee rate is 12% of ordinary time earnings. If a tram driver earns $30.59 per hour (Grade 4), the employer must also contribute an additional $3.67 per hour to the employee's super fund. The salary figure quoted in job ads usually exclude super.

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