Understanding the TSMIT Salary: How It Compares to Award Rates and the National Minimum Wage

What is the TSMIT salary?

The TSMIT salary – the Temporary Skilled Migration Income Threshold – is a minimum annual pay requirement for employers who sponsor overseas workers through Australia’s skilled migration program. From 1 July 2025, the TSMIT is $76,515 per year, plus superannuation (the super guarantee is 12% on top of ordinary time earnings). This threshold applies to visas such as the subclass 482 Skills in Demand visa and is set by the Department of Home Affairs, not by the Fair Work Commission.

It is important to understand that the TSMIT is not a general pay floor for all workers. It sits alongside the national minimum wage, modern award rates, and enterprise agreements. Each of these applies to different groups of employees, and the TSMIT only affects sponsored migrants.

How the TSMIT compares to other pay floors

The national minimum wage

The Fair Work Commission sets the national minimum wage each year. From 1 July 2026, the national minimum wage is $26.44 per hour, or $1,004.90 per week for a 38-hour week. Casual employees get a 25% loading, making the casual rate $33.05 per hour. These rates apply to award-free and agreement-free employees in the national system. However, juniors, apprentices, trainees, and employees on introductory award rates may be paid less.

The TSMIT of $76,515 per year works out to about $1,471 per week – well above the national minimum. This means that a sponsored worker must be paid significantly more than the legal minimum for most other workers.

Modern award rates

Most Australian employees are covered by a modern award, which sets minimum pay rates for their industry or occupation. Award rates are often structured by classification and experience. According to a migration advice website , the gap between award rates and the TSMIT can be substantial. For example:

• Carpenter: estimated award rate $30.42/hour ($60,319/year) vs TSMIT $76,515 – a difference of $16,196.
• Motor mechanic: $25.03/hour ($49,600/year) vs TSMIT – a difference of $26,915.
• Chef: $24.92/hour ($49,380/year) vs TSMIT – a difference of $27,135.

These figures are indicative and vary by specific award, location, and experience beyond one year. The key point is that the TSMIT can be much higher than the award rate for the same occupation, creating a challenge for employers who want to sponsor a worker but must pay above the market rate.

Enterprise agreements

Some workplaces have an enterprise agreement that sets pay and conditions. If an enterprise agreement covers an employee, the minimum pay is whatever the agreement says, provided it passes the Better Off Overall Test. The TSMIT does not override an enterprise agreement; the sponsored worker must be paid the higher of the TSMIT or the agreement rate.

Why the gap matters

The difference between award rates and the TSMIT can make it difficult for employers to sponsor skilled migrants in occupations where the market salary is below the threshold. The Fair Work Ombudsman explains that award rates are the legal minimum for most employees, but the TSMIT imposes a higher floor for sponsored workers. This can lead to situations where an employer has proven a genuine labour shortage through Labour Market Testing, yet cannot afford to pay the TSMIT.

For example, a small hospitality business might need a cook. The Hospitality Award rate for a cook with one year of experience is around $23.93 per hour ($47,400 per year), but the TSMIT requires $76,515. The employer would have to pay over $29,000 above the award rate to sponsor someone. This can make sponsorship unviable, even when local workers are unavailable.

What about superannuation?

All pay discussions in Australia should include superannuation. The super guarantee is 12% of ordinary time earnings, paid by the employer on top of the salary. For the TSMIT, the $76,515 is the base salary; super is additional. For the national minimum wage, super is also paid on top. The Fair Work Ombudsman and the Australian Taxation Office provide guidance on super obligations.

Which pay floor applies to you?

If you are an Australian citizen, permanent resident, or hold a visa that does not require sponsorship, your minimum pay is determined by:

• A modern award (if your industry or occupation is covered)
• An enterprise agreement (if your workplace has one)
• The national minimum wage (if no award or agreement applies)

If you are a sponsored skilled migrant, your employer must pay you at least the TSMIT salary, plus super. However, if your award or agreement rate is higher than the TSMIT, you must receive that higher rate.

For more details, see Which minimum wage applies and Rate tables on this site.

The role of the Fair Work Commission and Fair Work Ombudsman

The Fair Work Commission sets the national minimum wage and reviews award rates each year. The Fair Work Ombudsman enforces compliance and provides tools like the Pay and Conditions Calculator. Neither body sets the TSMIT; that is a migration policy decision.

The ABS May 2026 data shows full-time adult ordinary-time earnings of $2,083.70 per week, which is well above both the national minimum and the TSMIT weekly equivalent. This highlights that the TSMIT is not an average salary but a minimum threshold for sponsored workers.

Conclusion

The TSMIT salary is a specific requirement for sponsored skilled migrants, separate from Australia’s broader wage system. While the national minimum wage and award rates set the floor for most workers, the TSMIT imposes a higher floor for visa holders. Understanding the difference is crucial for employers and workers navigating the skilled migration program.

For further reading, visit Guides and Topics on this site.