Australian Minimum Wage 2025-26: Rates, Awards & What Employers Must Pay

The national minimum wage (NMW) is the legislated minimum hourly rate for employees not covered by a modern award or enterprise agreement. From 1 July 2025, the national minimum wage is:

The annualised figure of approximately $47,627 assumes 52 weeks of full-time work at 38 hours per week. In practice, after PAYG income tax withholding and the 2% Medicare Levy, a full-time minimum wage worker takes home approximately $43,300 per year — or around $833 per week. You can calculate the exact after-tax figure using the salary calculator on this site.

The Fair Work Commission typically announces the outcome of its annual wage review in June, with the new rate taking effect on 1 July each year. The Commission considers factors including inflation (CPI), productivity growth, the needs of low-paid workers, and the impact on employer costs and employment levels.

The national minimum wage applies to employees who are not covered by a modern award or registered enterprise agreement. In practice, the overwhelming majority of Australian workers in award-reliant industries are covered by one of more than 100 modern awards — industry and occupation-specific instruments that set minimum wages and conditions tailored to each sector.

Award minimum wages are generally higher than the NMW and depend on the employee's classification level and years of experience. For example:

• A Grade 1 aged care worker under the Aged Care Award starts above the NMW.
• A Level 1 hospitality worker under the Hospitality Industry (General) Award receives award-specific rates that vary by shift type.
• A Retail Industry Award employee receives higher rates for evening and weekend shifts via embedded penalty rates.

To find the award that applies to your job, use the Fair Work Commission's award search tool at fairwork.gov.au. Employers must pay at least the award minimum — paying less is a serious breach of the Fair Work Act.

Casual employees are not entitled to paid annual leave, paid sick leave, or advance notice of termination. To compensate for these missing entitlements, casual employees must be paid a minimum 25% casual loading on top of the base hourly rate.

At the national minimum wage, this means a casual employee earns at least:

Many modern awards specify a higher casual loading for particular classifications or industries. The 25% rate is the legal minimum — your award may entitle you to more. If you are unsure whether you are being paid correctly as a casual, the Fair Work Ombudsman's Pay Calculator can verify your entitlements.

Beyond the base hourly rate, most award-covered employees are entitled to penalty ratesfor work performed outside standard hours:

• Saturday work: typically 125% to 150% of the ordinary rate depending on the award
• Sunday work: typically 150% to 200% of the ordinary rate
• Public holidays: typically 225% to 250% of the ordinary rate (double time and a quarter)
• Overtime: the first two or three hours at 150%, then 200% for subsequent hours

Penalty rates are a significant component of income for workers in hospitality, retail, and healthcare, where shift work and weekend rosters are standard. Employers cannot opt out of paying award penalty rates unless they have a registered enterprise agreement that provides an overall better deal for employees.

While the NMW applies only to employees without award coverage, the lowest award rates are found in industries where entry-level roles are common. Workers in the following sectors frequently earn close to the minimum:

• Hospitality: cafes, restaurants, hotels (Hospitality Industry General Award)
• Retail: supermarkets, clothing, general retail (General Retail Industry Award)
• Cleaning and property services: commercial and residential cleaning roles
• Aged care and disability support: entry-level support worker roles
• Fast food: quick service restaurants (Fast Food Industry Award)

Workers in these sectors should be particularly vigilant about wage theft. The Fair Work Ombudsman investigates wage underpayment claims and employers found in breach of the Act face significant civil penalties. Workers who suspect underpayment can report it confidentially at fairwork.gov.au.

Paying an employee below the applicable minimum wage — whether the NMW or an award rate — is a serious breach of the Fair Work Act 2009. Consequences for non-compliant employers include:

• A legal obligation to back-pay all underpaid wages plus interest
• Civil penalties of up to $16,500 per contravention for individuals and $82,500 for corporations (higher for serious contraventions)
• Public naming by the Fair Work Ombudsman
• Enforceable undertakings, court orders, and injunctions

Wage theft has become a major enforcement focus for the Fair Work Ombudsman. Large-scale underpayment cases — particularly in franchising and the hospitality sector — have resulted in tens of millions of dollars in back-pay orders and considerable reputational damage for employers. Since 2024, intentional wage theft is also a criminal offence for corporations in most states.