Minimum Wage 2026: $24.95/hr From 1 July

The current national minimum wage is $24.95 per hour or $948.00 per week for a full-time employee working 38 ordinary hours. This rate took effect on 1 July 2025 following the Fair Work Commission's Annual Wage Review 2024-25 decision, which delivered a 3.75% increase from the previous rate of $23.23 per hour. The national minimum wage is the absolute floor — no employee in Australia can legally be paid less than this amount (unless they are a junior employee, apprentice, or supported wage system employee with a permitted lower rate).

However, most Australian workers are covered by a modern award or enterprise agreement that sets higher minimum rates than the national minimum wage. Only about 0.7% of employees are actually paid the national minimum wage — but it functions as the baseline that influences all other wage rates in the economy.

For casual employees, the 25% casual loading is applied on top of the minimum rate, bringing the casual minimum to $31.19 per hour. This loading compensates for the absence of paid leave and other entitlements (and yes, this applies to casuals too).

The Fair Work Commission conducts an Annual Wage Review every year that sets the new national minimum wage and adjusts all modern award minimum rates. The 2025-26 Annual Wage Review is expected to follow this timeline: submissions open in March 2026, hearings take place in April-May 2026, the decision is handed down in June 2026, and the new rate takes effect from the first full pay period on or after 1 July 2026. The FWC considers several factors including the performance and competitiveness of the national economy, productivity, the cost of living (inflation), the needs of the low-paid, the principle of equal remuneration for work of equal value, and the impact on employment growth and business viability.

Based on current economic conditions — inflation tracking at approximately 3.2%, unemployment at 4.1%, and moderate GDP growth — economists are projecting an increase in the range of 3.0% to 4.0% for the 2026-27 year. A 3.5% increase would bring the minimum wage to approximately $26.39 per hour or $1,002.95 per week.

The actual figure will depend on economic data available at the time of the decision.

Casual employees receive the minimum wage plus a 25% casual loading, which compensates for the lack of paid annual leave, personal leave, redundancy pay, and notice of termination. When the minimum wage increases, the casual rate increases proportionally. At the current rate of $24.95 per hour, the casual minimum is $31.19 per hour.

If the minimum wage increases to approximately $26.39, the casual minimum would rise to approximately $32.99 per hour. This casual loading is applied to the base rate — not to penalty rates.

So if a casual worker is entitled to a Saturday penalty rate of 125% of the base, the calculation is: base rate x 1.25 x 1.25 (casual loading). However, under some awards, the casual loading is built into the penalty rate calculation differently — check your specific award for the correct method. It is also important to note that casual employees who have been employed for 12 months on a regular and systematic basis have the right to request conversion to permanent employment under the Fair Work Act. If converted, they would lose the 25% loading but gain access to paid leave, notice of termination, and redundancy entitlements.

So, the Annual Wage Review doesn't only set the national minimum wage — it also adjusts all minimum rates in the 121 modern awards covering the vast majority of Australian workers. When the FWC announces a percentage increase, that percentage is typically applied to all adult award classification rates. This means if you are covered by an award — such as the General Retail Industry Award, the Restaurant Industry Award, the Clerks-Private Sector Award, or any other modern award — your minimum rate will increase by the same percentage as the national minimum wage increase.

However, some Annual Wage Reviews have applied different increases to different award levels or implemented phased increases. The 2020 review during COVID-19, for example, staggered increases across different award groups.

To find your specific award rate after the increase, visit the Fair Work Ombudsman's Pay Calculator at calculate.fairwork.gov.au, select your award, classification level, and employment type. Your award rate is the minimum your employer must pay — many workers are paid above-award rates, but the award minimum still applies as a floor. If you are on a salary that was designed to absorb all award entitlements, check that your annualised salary still exceeds the updated award rate plus all applicable penalties and loadings.

After the new rate takes effect on 1 July, you should verify your pay has been updated. Check your first payslip after 1 July 2026 to confirm the new rate. The increase should apply from the first full pay period on or after 1 July — not from 1 July itself.

So if your pay period runs Monday to Sunday and 1 July falls on a Wednesday, the new rate applies from the following Monday. To check your entitlement, identify whether you're covered by a modern award (check your employment contract or ask your employer), then look up your classification level in the award, find the updated minimum rate on the Fair Work Ombudsman website (fairwork.gov.au/pay), and compare it to the hourly rate on your payslip.

For salaried employees covered by an award, you need to check that your annualised salary still satisfies the award. Calculate the total annual value of all minimum award entitlements (base rate for 38 hours, overtime, penalty rates, allowances, leave loading) and compare it to your salary. If your salary has fallen below this total, your employer must increase it. Keep records of your payslips showing the old and new rates to confirm the change has been applied.

If your employer fails to implement the minimum wage increase after 1 July, they're underpaying you in breach of the Fair Work Act. This isn't a grey area — failing to pay the minimum wage is a contravention that can attract penalties. Here is what to do.

• raise it with your employer or payroll department in writing. It may be an oversight, especially for small businesses
• if the employer doesn't respond or refuses to increase your pay, contact the Fair Work Ombudsman on 13 13 94 or lodge an online enquiry at fairwork.gov.au. The FWO can investigate and compel compliance
• you can recover underpaid wages going back up to 6 years

Send an email referencing the Annual Wage Review decision and asking when the new rate will be applied.

Calculate the shortfall for each pay period where you were underpaid and lodge a claim. Fourth, since 1 January 2025, intentional wage underpayment is a criminal offence carrying penalties of up to 10 years imprisonment for individuals and substantial fines for corporations.

This applies to deliberate and systematic underpayment — not honest mistakes. The FWO refers serious cases to the Commonwealth Director of Public Prosecutions.

Most employers will correct the issue once made aware of their obligation.

Use our Minimum Wage Calculator to check what you should be receiving.

A common misconception is that the national minimum wage is what most Australians earn. In reality, only about 0.7% of workers are paid the national minimum wage directly. The vast majority — around 23% of all employees — are paid according to one of the 121 modern awards, which set higher minimum rates based on industry and classification level.

For example, a Level 1 employee under the General Retail Industry Award 2020 earns $25.44 per hour (as of 1 July 2025), which is $1.34 above the national minimum wage. A Hospitality Grade 2 employee under the Restaurant Industry Award earns $25.51 per hour.

A Level 1 Administrative employee under the Clerks-Private Sector Award earns $25.78 per hour. These award rates are critical because they apply to specific industries and roles, and each has its own classification structure with incremental pay levels. When the FWC announces a percentage increase to the minimum wage, the same percentage is typically applied across all award classification levels. So a 3.75% increase does not just raise the floor — it lifts every single award rate in the country by the same proportion.

If you're unsure which award covers your role, use the Fair Work Ombudsman's Find My Award tool or our Award Finder to identify your correct classification and minimum rate.

Understanding what the minimum wage actually means in your pocket requires looking beyond the gross hourly rate. For a full-time worker on the national minimum wage of $24.95 per hour ($948.00 per week, $50,388.00 per year), here is the approximate take-home breakdown for 2025-26. Gross annual salary: $50,388.

Less income tax (including the tax-free threshold and Stage 3 rates): approximately $6,404. Less Medicare levy (2%): approximately $1,008.

Net take-home pay after tax: approximately $42,976 per year, or $1,653 per fortnight, or $826 per week. On top of this, your employer contributes 12% super ($6,047 per year) into your super fund.

If you have a HECS-HELP debt, repayments start at 1% of income once you earn above $54,435 (2025-26 threshold), so minimum wage earners are below the repayment threshold.

For casual workers on the minimum casual rate of $31.19 per hour working 38 hours per week, the gross annual equivalent is $63,026, but actual earnings will vary as casuals rarely work consistent full-time hours year-round.

A casual working 25 hours per week at $31.19 earns approximately $41,444 gross per year, with take-home pay of around $35,400 after tax. These figures help illustrate why the minimum wage increase — even a few percent — makes a meaningful difference to household budgets at these income levels.

Australia has a single national minimum wage set by the Fair Work Commission, which applies uniformly across all states and territories. There are no separate state or territory minimum wage rates for private sector employees covered by the national workplace relations system (which covers the vast majority of workers since the Work Choices and Fair Work reforms). However, there are some nuances worth understanding.

Western Australia maintains a separate state industrial relations system for some employees of non-constitutional corporations (typically unincorporated businesses). The WA minimum wage is set by the WA Industrial Relations Commission and is currently aligned closely with the national rate, but the two are technically independent.

Public sector employees in each state may be covered by state awards or enterprise agreements with different (usually higher) minimum rates. Additionally, the cost of living varies significantly by location — $24.95 per hour goes much further in regional Tasmania than in inner Sydney, where median rents alone can consume 50-60% of a minimum wage worker's take-home pay. This geographic disparity has led some economists to call for regional wage differentials, although no major party currently supports this proposal. For practical purposes, if you work for a Pty Ltd company or any incorporated business anywhere in Australia, the national minimum wage applies to you.

Several widespread misunderstandings about the minimum wage can leave workers worse off. First misconception: 'I'm on salary so the minimum wage doesn't apply to me.' Wrong — if you're covered by an award, your annual salary must exceed the total value of all award entitlements including base rates, penalties, overtime, allowances, and leave loading when annualised. Many salaried workers, particularly in hospitality, retail, and professional services, have been found to be underpaid once their hours and entitlements are properly calculated.

Second misconception: 'My employer can pay me less during a trial period.' No — there's no legal provision for a reduced trial wage. You must receive at least the minimum rate from day one.

Third misconception: 'Unpaid work experience is fine if I agreed to it.' Unpaid work is only lawful in very limited circumstances — primarily formal vocational placements and genuine volunteering for not-for-profit organisations. If you're performing productive work that benefits a business, you're likely entitled to at least the minimum wage regardless of what you 'agreed' to. Fourth misconception: 'Cash-in-hand workers are not covered.' All employees are covered by minimum wage laws regardless of how they're paid. Paying cash to avoid tax obligations is itself illegal and doesn't exempt the employer from paying the correct rate.

Fifth misconception: 'International students can be paid less.' Visa holders have exactly the same workplace rights as Australian citizens and permanent residents. Underpaying workers on visas is a serious offence that the FWO actively investigates.