Minimum Wage in Australia (2026): National Rate, Award Rates and How to Pay Correctly

If you employ staff in Australia, the minimum you can pay is set by the Fair Work Commission, not by you and the employee. Since the first full pay period on or after 1 July 2026, that floor is higher: the National Minimum Wage rose by about 6% and every modern award rate rose by 4.75%. This guide is for small business owners and managers. It explains the difference between the national minimum wage and award rates, the 2026 figures, casual loading and junior rates, how to find the right award, and what the increase costs in Australian dollars — with the record-keeping and underpayment rules that catch out small employers.

Quick answer

From the first full pay period starting on or after 1 July 2026, Australia's National Minimum Wage is A$26.44 an hour or A$1,004.90 a week for a 38-hour week. It applies to adults who aren't covered by an award or enterprise agreement. Most employees are covered by a modern award, whose minimum rates rose 4.75% on the same date — so check the award first.

• Casuals on the national minimum wage: at least A$33.05 an hour, including the 25% loading

• Lowest ongoing award rate now matches the NMW; entry-level C14 is A$25.74 an hour for up to six months

• Juniors are paid a percentage of the adult rate — from about A$9.73 an hour under 16

• Super guarantee of 12% is paid on top, within 7 business days of payday

The 2026 Annual Wage Review decision

Each year an expert panel of the Fair Work Commission reviews minimum wages under the Fair Work Act 2009. It hears from employer groups, unions and governments, looks at inflation, the economy, living standards and the needs of the low paid, and sets new rates that usually start on 1 July. The 2026 decision, cited as [2026] FWCFB 3500, was handed down on 2 June 2026.

It made two separate changes, which is why some pages quote different percentages:

• The National Minimum Wage rose from A$24.95 an hour to A$26.44 an hour an hour — an increase of about 5.97%, or A$56.90 a week for a full-time adult.
• Modern award minimum rates rose by 4.75%.

The national minimum wage rose faster because the Commission aligned it with the lowest award rate for ongoing work. The Commission also began phasing out the C13 classification, so that C12 becomes the lowest ongoing level in the awards that use the metal-industry-style classification scale. The C14 level, for genuinely entry-level employees in their first six months, moved to A$25.74 an hour (A$978.10 a week). After six months, those employees must move up.

The new rates apply from the first full pay period that starts on or after 1 July 2026. If your fortnightly pay period started on 25 June, the old rates applied until it ended and the new rates started with the next period. Pay guides for each award show the rounded rates you should use.

National minimum wage vs award rates

The National Minimum Wage is a safety net for a minority of workers. It applies to adult employees in the national workplace relations system who are award and agreement-free — not covered by any modern award or registered enterprise agreement. Some managers and professionals in industries without an award fall into this group, but it's less common than many owners think.

Modern awards cover most employees in most industries: hospitality, retail, clerical work, building and construction, hair and beauty, cleaning, manufacturing and many more. There are more than 100 of them. Each sets minimum rates for a range of classifications, plus casual loadings, overtime, penalty rates for evenings, weekends and public holidays, allowances and rules on rostering and breaks. The award rate for an employee's classification is their legal minimum, and it's almost always above the national minimum wage.

An enterprise agreement registered with the Commission replaces the award for the employees it covers, but its base rates can never fall below the award's base rates or the national minimum wage. If you have an older agreement, check that its rates haven't been overtaken by the 1 July increase — if they have, you must pay at least the new award base rate.

Who is in the national system?

Almost all private-sector employers are in the national system. The exception is Western Australia, where sole traders, partnerships, some trusts and other employers that aren't companies fall under the WA state system, which sets its own minimum wage through the WA Industrial Relations Commission. A Pty Ltd company in WA is in the national system. If you trade in WA without a company structure, check the WA Government's state minimum wage figures instead.

Casual employees and the casual loading

Casual employees don't get paid leave, notice of termination or redundancy pay, so they receive a casual loading on top of the base rate to compensate. For award and agreement-free employees, the loading is 25%, which takes the minimum to A$33.05 an hour for an adult. Most awards also use 25%, but the loading and the way penalty rates apply to casuals vary between awards, so read the casual clause in yours.

Casual work carries other rules too. Awards usually set a minimum engagement — often two or three hours per shift — so a casual called in for one hour must be paid for the minimum. And under the Fair Work Act's casual employment rules, a casual who has worked a regular pattern of hours for at least six months (12 months for small businesses with fewer than 15 employees) may be able to notify you that they want to change to permanent employment. Getting the classification right matters because a mislabelled "casual" who works as a permanent employee can later claim leave entitlements.

Junior and apprentice rates

Junior rates let employers pay workers under 21 a percentage of the adult rate. For award and agreement-free juniors, the percentages come from the National Minimum Wage Order. The rates below apply from 1 July 2026. The under-16 and 16-year-old figures are those published by the Fair Work Ombudsman; the others are calculated from the order's percentages and rounded to the cent — confirm them in the Pay Calculator.

Junior employees covered by an award follow that award's own junior table, which can be quite different. Some awards have no junior rates at all for certain classifications, and some only allow junior rates for particular roles. Retail and fast food awards are the ones small employers most often use. Junior rates also stop applying at the birthday, from the next pay period or as the award specifies, so build birthdays into your payroll system.

Apprentices and trainees have separate wage schedules — usually based on year of apprenticeship and whether they finished Year 12 — set in the relevant award or, for award-free trainees, in the National Training Wage provisions. Employees with disability can be paid under the Supported Wage System, using an independent assessment of their productive capacity.

How to find your award and the right rate

Getting the award wrong is the root of most underpayments. The Fair Work Ombudsman's tools are free and are what its inspectors use.

Finding the right minimum rate for an employee

1. 1

   Identify the award

   Use the Fair Work Ombudsman's Find my award tool. Search by industry first, then occupation, and read the award's coverage clause.

   Find my award
2. 2

   Choose the classification

   Match the employee's main duties, skills and experience to the classification definitions in the award's schedule — not to their job title.

3. 3

   Get the current rate

   Use the Pay Calculator or download the award's pay guide, which shows base, casual, overtime and penalty rates from 1 July 2026.

   Pay Calculator
4. 4

   Add loadings, penalties and allowances

   Apply casual loading, weekend and evening penalties, overtime and any allowances the award sets for the hours actually worked.

5. 5

   Record and review

   Note the award and classification in the employee's records and recheck every 1 July and whenever duties change.

If an employee's work could fit more than one award, the award that most closely matches the nature of their work applies. If you're unsure, the Fair Work Infoline on 13 13 94 can help, and its small business showcase and templates are free.

Penalty rates, overtime and allowances

The base rate is only the starting point. Most awards add penalty rates for work at times that are considered unsociable — evenings, Saturdays, Sundays and public holidays — expressed as a percentage of the base rate. A Sunday shift might attract 125% or 150% of the base rate depending on the award and whether the employee is full-time, part-time or casual. Because penalties are percentages, every 1 July increase flows straight through to weekend and public holiday costs.

Overtime applies when an employee works beyond their ordinary hours, outside the span of ordinary hours or beyond their agreed roster. Awards typically pay time and a half for the first two or three hours and double time after that, although some allow time off in lieu if the employee agrees in writing. Part-time employees usually have their hours agreed in writing, and extra hours can trigger overtime rather than ordinary pay.

Allowances compensate for particular duties, skills or costs: a first-aid allowance, a tool allowance for a tradesperson, a meal allowance when overtime runs late, or vehicle allowances when staff use their own car for work. Some allowances are fixed dollar amounts that the Commission adjusts each year in line with the wage review or with changes in costs. Check the allowance table in the new pay guide as well as the base rates, because these amounts change on 1 July too and are easy to miss in payroll software.

Superannuation guarantee is worked out on qualifying earnings, which include ordinary time pay, casual loadings and most allowances and penalties for ordinary hours, but generally not overtime.

Worked examples in A$

These use 1 July 2026 rates. The award example uses an illustrative base rate — check your own award's pay guide for exact figures.

1. Award-free adult, full-time. A practice manager in an industry with no award works 38 hours a week. The minimum is A$1,004.90 a week. Super guarantee of 12% adds about A$120.59 a week, paid to their fund within 7 business days of each payday.

2. Award-free casual adult. A casual works 20 hours in a week: 20 × A$33.05 an hour = A$661.00. Super is calculated on that A$661.00, which includes the loading.

3. Award-free 17-year-old casual. A 17-year-old works three five-hour shifts after school: 15 × A$19.10 = A$286.50. Under-18s only get super guarantee if they work more than 30 hours in a week, so no super is due here.

4. Award employee, 4.75% rise. If a classification paid A$1,050.00 a week before 1 July 2026, the new minimum is A$1,050.00 × 1.0475 = about A$1,099.88 a week — the published pay guide will show the exact rounded figure. Overtime and penalty rates are percentages of the base rate, so they rise automatically.

5. Annual cost to a small business. A business with three full-time award-free employees on the minimum pays each A$1.49 an hour more: 1.49 × 38 × 52 × 3 = A$8,832.72 a year in extra wages, plus about A$1,059.93 in extra super — roughly A$9,893 before any payroll tax or workers' compensation impact.

Turn a weekly wage into an hourly rateFree, no login — check an hourly, weekly or annual figure against the 2026 minimum for your employee's award or the national minimum wage.

Pay slips, records and the underpayment rules

Paying the right rate is only half the job. Under the Fair Work Act, you must:

• give each employee a pay slip within one working day of paying them, showing the pay period, gross and net pay, the hourly rate and hours, loadings and penalties, deductions and super contributions;
• keep employment records for seven years, including hours worked for casual and irregular-hours staff, rates paid, leave balances and super;
• pay at least monthly, in money, and only make deductions the employee has agreed to in writing that are principally for their benefit, or that are authorised by law.

Underpayments are treated seriously. The Fair Work Ombudsman can issue compliance notices and take court action, and courts can order back-payment and significant civil penalties, which are much higher for serious contraventions. Since 1 January 2025, intentionally underpaying an employee is a criminal offence. Small business employers who follow the Voluntary Small Business Wage Compliance Code — which essentially means making honest efforts to pay correctly — won't be referred for criminal prosecution for an underpayment.

If you discover you've underpaid, fix it quickly: work out the shortfall for every affected pay period, back-pay it with any superannuation owed, correct your payroll settings and keep a record of what you did. The Fair Work Ombudsman's guidance on self-auditing explains how to check, and voluntary disclosure is treated far more leniently than an underpayment found by an inspector.

Common mistakes small employers make

• Paying the national minimum wage to award employees. It's the floor only for the award-free. A barista on A$26.44 an hour is likely underpaid once Restaurant Industry Award penalties and classifications are applied.
• Missing the 1 July increase. Payroll software doesn't always update awards automatically. Check the rate in your system against the pay guide after the first July pay run.
• "Above-award" salaries that don't cover penalties. A flat salary must still be at least what the employee would have earned under the award for the hours they actually worked. Many awards require annual reconciliation of these arrangements.
• Wrong classification. Experience and duties drive the level, so a cook with trade qualifications can't be paid as a kitchen attendant.
• Unpaid trials and training. Work trials beyond a short, supervised skills demonstration must be paid, as must required training and meetings.
• Junior rates after a birthday. The rate rises with age — set a reminder.

Minimum wage checks after every 1 July

0/9

• Each employee's award (or award-free status) and classification recorded
• Base rates updated from the first full pay period on or after 1 July
• Casual loading, penalty rates and allowances updated from the new pay guide
• Junior rates reviewed for birthdays
• C14 entry-level employees moved up after six months
• Salaried staff reconciled against award entitlements for hours worked
• Enterprise agreement base rates checked against the new award rates
• Super guarantee calculated on qualifying earnings and paid within the Payday Super deadline
• Pay slips issued within one working day; records kept seven years

Share Print

Official links

• Minimum wages increase from 1 July 2026FWO summary of the 2026 decision
• The national minimum wageFair Work Commission
• Find my awardIdentify the award that covers your staff
• Pay CalculatorRates, penalties and allowances
• Award and agreement free wagesNMW, casual and junior rates
• Junior pay ratesHow junior percentages work

What to do next

Confirm the award and classification for each employee, update your payroll to the 2026-27 pay guides and check your first July pay run. Then make sure you're also meeting the new super guarantee rules under Payday Super and withholding the right tax using the 2026-27 PAYG withholding tables. If you're hiring your first staff member, the guide to starting a business in Australia covers registrations, and the salary slip generator produces a compliant pay slip.

This is general information, not legal or tax advice — confirm on the official source or with a professional.

Frequently asked questions

What is the minimum wage in Australia per hour in 2026?

From the first full pay period starting on or after 1 July 2026, the National Minimum Wage is A$26.44 an hour, or A$1,004.90 a week for a 38-hour week, before tax. Casual employees on the national minimum wage get at least A$33.05 an hour, which includes the 25% casual loading. Most employees are covered by an award, which usually sets a higher rate for their job.

How much did the minimum wage go up on 1 July 2026?

The Fair Work Commission's Annual Wage Review 2026 decision, handed down on 2 June 2026, lifted the National Minimum Wage from A$24.95 an hour to A$26.44 an hour an hour — about 6% — and increased modern award minimum rates by 4.75%. Both took effect from the first full pay period starting on or after 1 July 2026.

Does the national minimum wage apply if my employee is covered by an award?

No — the award rate applies instead, and it's usually higher. The National Minimum Wage is the floor for adult employees who aren't covered by an award or registered agreement. Award employees must get at least the minimum rate for their award classification, plus any loadings, penalty rates and allowances the award sets.

What is the minimum wage for a 16 or 17-year-old in Australia?

For award and agreement-free juniors, the minimum is a percentage of the adult National Minimum Wage. From 1 July 2026 that's about A$12.51 an hour at 16 and A$15.28 at 17 for permanent staff, with casuals getting 25% more. If the young person is covered by an award, use the award's junior percentages instead, which differ between awards.

How do I find which award covers my employee?

Use the Fair Work Ombudsman's Find my award tool, which works by industry and occupation, then check the award's coverage clause and classification definitions. The Pay Calculator and the downloadable pay guide for that award show the current hourly, casual and penalty rates. If an employee could fit two awards, the one that most closely matches their main duties applies.

Is superannuation paid on top of the minimum wage?

Yes. Super guarantee of 12% of qualifying earnings is paid on top of wages, not taken out of them. Since 1 July 2026, under Payday Super, it must reach the employee's fund within 7 business days of each payday. On the full-time national minimum wage that's about A$120.59 a week.

Sources & verification

Figures on this page were checked against the sources below when it was last reviewed on 9 October 2026. Each rate and limit is stored once with its own official source and review date, and official update channels are monitored daily so changes are picked up. How we verify

1. 1.Minimum wages increase from 1 July 2026 — Fair Work Ombudsman · accessed 9 October 2026
2. 2.The national minimum wage — Fair Work Commission · accessed 9 October 2026
3. 3.Annual Wage Review 2026 — decision announcement — Fair Work Commission · accessed 9 October 2026
4. 4.Award and agreement free wages and conditions — Fair Work Ombudsman · accessed 9 October 2026
5. 5.Junior pay rates — Fair Work Ombudsman · accessed 9 October 2026
6. 6.Minimum wages — Fair Work Ombudsman · accessed 9 October 2026
7. 7.Circular 2026/02: Annual Wage Review updating Australian Government Awards — Australian Public Service Commission · accessed 9 October 2026
8. 8.2026 Annual Wage Review decision: FWC increases the national minimum wage and award rates — Squire Patton Boggs (law firm) · accessed 9 October 2026