What is base salary and how is it different from total remuneration?

Base salary is the gross amount an employee earns before tax, superannuation, and any bonuses or allowances. In Australia, it is the ordinary-time earnings for the job, excluding penalty rates, overtime, and the super guarantee (which is paid on top). Total remuneration includes base salary plus super, bonuses, and other benefits.

Does the super guarantee apply to my base salary?

Yes. The super guarantee (currently 12% of ordinary time earnings) is paid by your employer on top of your base salary. It is not deducted from your base pay. For award-free employees, the national minimum wage of $26.44 per hour means the employer must also contribute $3.17 per hour into super.

What Is Base Salary? Award Coverage vs Award-Free Rates in Australia

Q: If I am covered by an award, is my base salary the same as the national minimum wage?

Not necessarily. Awards set minimum pay rates for specific industries or occupations, and these rates are often higher than the national minimum wage. For example, the lowest ongoing classification in a modern award cannot be less than $26.44 per hour as of 1 July 2026, but many award rates exceed that. Check your award via the Fair Work Ombudsman's Pay and Conditions Tool.

As of 1 July 2026, the national minimum wage for award-free adult employees is $26.44 per hour or $1,004.90 per week, with casual loading of 25% ($33.05 per hour).

What Is Base Salary? The Starting Point for Australian Pay

When Australians ask "what is base salary," they are usually trying to separate the legal minimum from the amount they can expect to negotiate. Base salary is the gross pay before tax, superannuation, penalties, or bonuses. It is the ordinary-time earnings for the job, typically based on a 38-hour week. Understanding this figure is the first step to knowing whether you are being paid correctly.

Legal Minimum vs Award Rates vs Survey Averages

Australia has multiple pay floors. The national minimum wage, set by the Fair Work Commission, applies only to employees not covered by a modern award or enterprise agreement. As of 1 July 2026, that rate is $26.44 per hour or $1,004.90 per week for an adult. Casual employees receive a 25% loading, making it $33.05 per hour. The Fair Work Ombudsman explains that most employees are actually covered by an award, which sets higher minimums for their industry or occupation. For example, the lowest ongoing classification in a modern award cannot fall below the national minimum, but many award rates are higher. Introductory rates in some awards are lower for the first six months—$25.74 per hour or $978.10 per week from 1 July 2026.

Award-free employees have different rules for juniors. A 16-year-old award-free worker is entitled to 47.3% of the adult rate, or $12.51 per hour ($15.64 casual). Apprentices and trainees follow rates based on the Miscellaneous Award, not the junior percentages. Enterprise agreements can also set rates, but they must pass the better-off-overall test compared to the relevant award.

Beyond the legal minimum, survey averages give a sense of typical pay. The Australian Bureau of Statistics reported in May 2026 that full-time adult ordinary-time earnings averaged $2,083.70 per week. That is more than double the national minimum, reflecting the fact that most workers are covered by awards or agreements that pay above the floor, and many have negotiated higher salaries.

How Superannuation Fits In

Base salary is the figure used to calculate the super guarantee. Employers must pay 12% of ordinary time earnings into a super fund on top of the base salary. For an award-free adult on the national minimum, that adds $3.17 per hour or $120.59 per week. This is not deducted from the base—it is an additional cost to the employer. When comparing job offers, always check whether the advertised salary includes super or is "base plus super."

Award Coverage vs Award-Free: Which Pay Floor Applies?

The first question is whether you are in the national system. Most private-sector employees are. Some state public sector and local government workers, and some Western Australian sole traders and partnerships, may be covered by state awards. If you are in the national system and covered by a modern award, that award sets your minimum base salary. If no award applies and no enterprise agreement covers you, the national minimum wage is your floor.

To find out, use the Which minimum wage applies guide or the Rate tables on this site. The Fair Work Ombudsman's Pay and Conditions Tool can also identify your award and its rates. Remember that awards can include penalty rates for weekends, evenings, and overtime, which are separate from base salary.

Negotiated Salaries and the Role of the Market

Once you know the legal minimum, your base salary can be higher through negotiation. Employers often advertise a salary range that reflects market rates, skill shortages, and company policy. The ABS average of $2,083.70 per week for full-time adults is a useful benchmark, but it includes all occupations and experience levels. Your actual base salary will depend on your industry, role, and location.

Common Misunderstandings

Some people think the national minimum wage applies to everyone. It does not. Juniors, apprentices, trainees, and employees on introductory award rates can be paid less. The Fair Work Commission sets the national minimum, but the Fair Work Ombudsman enforces it. Always check your specific situation.

Another confusion is between base salary and total package. Base salary excludes super, bonuses, and allowances. When a job ad says "$80,000 plus super," the base is $80,000 and the employer pays an additional $9,600 into super (at 12%). If the ad says "$80,000 package," that may include super, so the base is lower.

How This Site Can Help

We provide independent guides to help you understand your pay. See How the figures work for details on how we calculate rates, and Topics for more on awards, agreements, and casual loading. Our Guides section walks through common scenarios like starting a new job or checking your pay slip.

The Bottom Line

Base salary in Australia is the ordinary-time earnings before tax and super. The legal minimum for award-free adults is $26.44 per hour from 1 July 2026, but most workers are covered by awards or agreements that set higher rates. Super is paid on top. Always confirm whether you are award-free or award-covered, and use the tools available to check your minimum entitlement.