How does the national minimum wage compare to award rates?

The national minimum wage is the legal floor for employees not covered by a modern award or enterprise agreement. Most workers are covered by a modern award, which sets minimum pay rates that are often higher than the national minimum. From 1 July 2026, award minimum wages increased by 4.75%, but the lowest ongoing classification cannot fall below $26.44 per hour or $1,004.90 per week. Introductory rates (first 6 months) cannot be less than $25.74 per hour or $978.10 per week.

Is superannuation included in gross salary?

No. The superannuation guarantee (12% from 1 July 2026) is paid by your employer on top of your gross salary. It is not part of your gross salary or your take-home pay. Your gross salary is the amount used to calculate tax and Medicare, and it appears on your payslip before deductions.

What Is Gross Salary? Understanding Your Pay Packet in Australia

Q: What is gross salary?

Gross salary is the total amount an employee earns before any deductions are taken out. It includes base pay, overtime, bonuses, and allowances. It does not include the superannuation guarantee, which your employer pays on top of your gross salary. Your net pay (take-home pay) is what remains after tax, Medicare levy, and other deductions are subtracted.

From 1 July 2026, the national minimum wage is $26.44 per hour or $1,004.90 per week for award-free adult employees, but most workers are covered by a modern award that sets a higher rate.

What Is Gross Salary? The Starting Point of Your Pay

When you see a job advertised at $70,000 a year, that figure is your gross salary – the total amount your employer agrees to pay you before any deductions. Understanding what is gross salary is essential for comparing job offers, budgeting, and knowing your legal entitlements. In Australia, gross salary is the base for calculating income tax, the Medicare levy, and other deductions, while the superannuation guarantee is paid on top.

The Legal Minimum: National Minimum Wage vs Award Rates

Australia’s pay system has several layers. The national minimum wage is set by the Fair Work Commission and applies only to employees who are not covered by a modern award or enterprise agreement. From 1 July 2026, that rate is $26.44 per hour or $1,004.90 per week for a 38-hour week. However, the Fair Work Ombudsman explains that most employees are covered by a modern award, which sets higher minimum rates for specific industries and occupations. If you are award-covered, your minimum gross salary is the award rate, not the national minimum.

Award rates increased by 4.75% from 1 July 2026, with a backstop: the lowest ongoing classification cannot fall below the national minimum ($26.44/h), and any introductory rate limited to the first 6 months cannot fall below $25.74/h or $978.10 per week. Enterprise agreements can also set higher rates, but never lower than the relevant award.

For award-free junior employees (under 21), the national minimum wage is reduced by age-based percentages. For example, a 17-year-old award-free junior earns 57.8% of the adult rate: $15.29 per hour, or $19.11 per hour as a casual (including the 25% casual loading). Apprentices and trainees have their own special rates under the Miscellaneous Award.

Average Earnings: How Does Your Gross Salary Compare?

The Australian Bureau of Statistics (ABS) publishes average weekly earnings to show what typical Australian workers earn. In May 2026, full-time adult ordinary-time earnings averaged $2,083.70 per week. That is more than double the national minimum wage. All employees (including part-time and casual) averaged $1,579.20 per week. These averages include overtime and bonuses, but they highlight the wide range of gross salaries across the economy.

From Gross to Net: Tax, Medicare, and Super

Your gross salary is not what lands in your bank account. From it, your employer withholds Pay As You Go (PAYG) tax based on the tax tables. For the 2026-27 financial year, resident tax rates (with full tax-free threshold) are:

$0 – $18,200: nil
$18,201 – $45,000: 16c for each $1 over $18,200
$45,001 – $135,000: $4,288 plus 30c for each $1 over $45,000
and higher brackets above.

Once your annual gross salary exceeds $30,000, you also pay the Medicare levy of 2% on your taxable income. Using the national minimum wage as an example: $1,004.90 per week gross equals $52,254.80 per year. After tax (approx. $6,464) and Medicare (approx. $1,045), the weekly take-home would be around $860. This is an estimate; your actual net pay depends on your individual circumstances, including the low-income tax offset, HELP repayments, salary sacrifice, and the Medicare levy surcharge.

Superannuation is separate. Your employer must pay 12% of your ordinary time earnings into a super fund on top of your gross salary. So if your gross salary is $52,254.80, your employer contributes an additional $6,270.58 to super. That money is not part of your gross salary or your take-home pay – it is invested for your retirement.

Why Understanding Gross Salary Matters

Knowing what is gross salary helps you:

Compare job offers accurately (always compare gross figures, but factor in super and benefits)
Check that your pay meets the legal minimum (use the Fair Work Ombudsman’s [Pay and Conditions Tool)
Budget for tax and savings (your net pay will be lower than gross)
Understand your payslip and negotiate effectively

If you are covered by an award or agreement, your minimum gross salary is the rate in that document. The national minimum is only the fallback for award-free workers. For more detail on which pay floor applies to you, see our guide Which minimum wage applies. You can also explore Rate tables for current award and junior rates.

Gross Salary vs Total Employment Cost

Employers often think in terms of total employment cost: gross salary plus super, payroll tax, workers’ compensation, and other on-costs. As an employee, your gross salary is your share before those extras. When you see a salary package advertised as “$80,000 + super”, the gross salary is $80,000 and super (12% = $9,600) is on top, making the total package $89,600.

Key Takeaways

Gross salary is your pay before deductions; super is paid on top.
The national minimum wage ($26.44/h from 1 July 2026) applies only to award-free employees.
Most workers are covered by a modern award with higher minimum rates.
Average full-time earnings ($2,083.70/week) are much higher than the minimum.
Tax and Medicare reduce gross salary to net pay; super is additional.

For a deeper look at how the figures are calculated, visit How the figures work. And if you need to check your specific award or agreement, the Fair Work Ombudsman’s website has free tools and guides.

This article provides general information only. It is not tax or legal advice. Always consult a qualified professional for your situation.