Minimum Wage Australia: Rates & Rules for 2026
The national minimum wage is $26.44 per hour, or $1,004.90 for a 38-hour week, from the first full pay period starting on or after 1 July 2026. This minimum wage australia guide is for employers and workers, and it covers who gets the rate, how casual loading works, how to check your pay and what employers must keep on record. Many people are paid under an award instead, and award rates are usually higher.
The 2026 Annual Wage Review raised modern award minimum rates by 4.75% from the first full pay period on or after 1 July 2026. Our Annual Wage Review 2026 guide explains what changed for employers.
- From the first full pay period on or after 1 July 2026, the national minimum wage is $26.44 per hour or $1,004.90 per 38-hour week.
- Casual employees on the national minimum wage get at least $33.05 per hour, which already includes the 25% casual loading.
- Modern award minimum rates rose 4.75% from the same date, so check the Fair Work Ombudsman pay guide for your award and classification.
- Employers must give payslips within 1 working day of payday and keep time and wage records for 7 years.
What is minimum wage australia?
Minimum wage australia is the lowest hourly rate an employee can lawfully be paid when no award or enterprise agreement sets a higher one. The Fair Work Commission reviews it every year, and the new rate starts from 1 July.
Most workers in construction, cleaning, warehousing and hospitality are covered by a modern award, which sets its own minimum rates by classification. The national figure works as a safety net underneath those awards.
| Term | Meaning | Why it matters |
|---|---|---|
| National minimum wage | The lowest hourly rate for employees not covered by an award or agreement, set each year by the Fair Work Commission. | It is the floor for award-free employees and the reference point for some government payments. |
| Modern award minimum rate | The lowest rate for a classification under an industry or occupation award. | Most employees are paid at or above this rate, not the national figure. |
| Casual loading | An extra 25% on the base rate for casuals under most awards and for award-free casuals. | It compensates for the leave and notice casuals do not receive. |
| Ordinary hours | The standard hours an employee works, up to 38 per week for a full-time employee. | Hours outside the ordinary pattern may attract overtime or penalty rates. |
| Pay guide | A free Fair Work Ombudsman summary of rates, loadings and allowances for one award. | It is the quickest way to confirm what a worker should be paid. |
| Payday super | The rule that super is paid with wages and reaches the fund within 7 business days of payday. | Late super is now easier to spot, and it is a payroll cost on top of wages. |
Who minimum wage australia applies to
Most private-sector employees are in the national workplace relations system under the Fair Work Act 2009 (Cth). NSW state public sector employees, and some local government employees, are covered by the NSW state system, so check which one applies before you rely on a national rate.
| Situation | What applies |
|---|---|
| Full-time employee, no award or agreement | At least $26.44 per hour from the first full pay period on or after 1 July 2026, with 38 ordinary hours a week as the standard. |
| Full-time employee under an award | At least the award rate for the classification. Award minimums rose 4.75% from the same date. |
| Part-time employee | The same hourly rate as a full-timer in the same role, with leave pro rata. Minimum shift lengths come from the award or agreement, not the NES. |
| Casual employee, no award | At least $33.05 per hour, which includes the 25% casual loading. |
| Casual employee under an award | The award base rate plus the loading the award sets, usually 25%, plus any penalties the award requires. |
| Labour hire worker | Employed by the labour hire provider, who pays the wage. A Fair Work Commission regulated labour hire arrangement order may require the same pay as host employees in some cases. |
| Genuine contractor | Not paid under minimum wage rules, but an ABN does not decide the question. The Fair Work Ombudsman and ATO have tools to test the real relationship. |
Sham contracting is illegal. Never classify someone as a contractor or casual to avoid minimum wage australia obligations when the working relationship says otherwise.
Minimum wage australia rates from 1 July 2026
These are the current figures, and each one applies from the date shown. They change every 1 July.
| Item | Figure | Applies from |
|---|---|---|
| National minimum wage, hourly | $26.44 | First full pay period starting on or after 1 July 2026 |
| National minimum wage, 38-hour week | $1,004.90 | First full pay period starting on or after 1 July 2026 |
| Casual minimum, hourly (includes 25% loading) | $33.05 | First full pay period starting on or after 1 July 2026 |
| Modern award minimum rates | Up 4.75% | First full pay period starting on or after 1 July 2026 |
| Super guarantee | 12% of ordinary time earnings | Unchanged for 2026-27 |
| Payday super timing | Within 7 business days of payday | 1 July 2026 |
| Maximum super contribution base | $270,830 per year | 2026-27 |
How to calculate minimum wage australia pay
Start with the award, because it overrides the national figure for covered employees. A Monday-morning payroll run is a good time to spot a rate that was never updated after 1 July.
- Confirm whether the employee is covered by a modern award or enterprise agreement, and note the classification and employment type.
- Open the Fair Work Ombudsman pay guide for that award and find the hourly rate that applies from 1 July 2026.
- If no award or agreement applies, use $26.44 per hour for permanent employees and $33.05 per hour for casuals.
- Multiply the hourly rate by the ordinary hours worked in the pay period, then add any overtime, penalty rates and allowances the award requires.
- Add the 12% super guarantee on ordinary time earnings and pay it so it reaches the fund within 7 business days of payday.
- Compare the result with the payslip, and fix any shortfall straight away, including back pay for earlier periods.
| Worked example | Calculation |
|---|---|
| Full-time employee, no award | Works 38 ordinary hours in the week, so the national minimum for the week is $1,004.90. |
| Casual employee, no award | The base rate of $26.44 plus the 25% loading gives the $33.05 hourly minimum, paid for every hour worked. |
| Super on the full-time wage | 12% of ordinary time earnings is added on top of that wage and is not deducted from it. |
Employer obligations for minimum wage australia
Paying the right rate is only half the job. The records have to prove it if the Fair Work Ombudsman asks.
- Pay at least the award, agreement or national rate for every hour worked, including short shifts and unpaid-looking tasks such as site inductions and pre-start meetings.
- Issue a payslip within 1 working day of payday, showing the rate, hours, loadings, super and any deductions.
- Keep time and wage records for 7 years, including signed timesheets from the host supervisor where you place labour hire workers.
- Report payroll information to the ATO through Single Touch Payroll on or before each payday.
- Pay super at the same time as wages so it reaches the employee's fund within 7 business days of payday.
- Update rates in your payroll system for the first full pay period starting on or after 1 July each year, and keep a dated record of the change.
- Give new casuals the Casual Employment Information Statement and respond properly when a casual asks to convert.
- Register for NSW payroll tax if your NSW taxable wages go above the $1,200,000 annual threshold, and take out workers compensation insurance with icare where it is required.
Public holiday pay rates and minimum wage australia
Public holidays change what a day of work costs. The base rate still starts at the award or minimum wage australia figure, and the holiday rules sit on top.
- Employees are entitled to be absent and paid their ordinary hours on a public holiday, but an employer can ask them to work if the request is reasonable.
- Casuals are paid only if they work the day.
- Penalty rates for working a public holiday come from the award or agreement, so look them up by classification.
- Run payroll cut-off dates early before a long weekend so shift workers are not underpaid.
Read the full guide on public holiday pay rates before you roster for the next holiday.
Penalty rates on top of minimum wage australia
Penalty rates are extra pay for work at unsociable times, such as nights, weekends and public holidays. They are set by the award or agreement, not by the national minimum.
- Find the penalty percentages in the pay guide for the employee's award and classification.
- Check how penalties interact with the casual loading, because awards differ on whether they stack or replace it.
- Apply penalties to the correct hours, which matters for casuals rostered across two sites in one week.
- Record start and finish times accurately so penalty hours can be shown on the payslip.
Our guide to penalty rates explains how to find and apply them.
Overtime and minimum wage australia
The National Employment Standards set 38 ordinary hours a week for a full-time employee, plus reasonable additional hours. Overtime rates are not in the NES, so they come from the award or agreement.
- Work out whether the hours are ordinary hours or overtime under the relevant award, since the trigger point differs between awards.
- Calculate overtime from the award's base rate for the classification, not from the national minimum.
- Keep written approval for overtime where your award or site rules require it.
- Pay overtime in the pay period it is worked, and show it as a separate line on the payslip.
Step-by-step examples are in our guide on how to calculate overtime.
Meal and rest breaks and minimum wage australia
Break rules come from the award or enterprise agreement, and they affect whether time is paid or unpaid. A worker who is not released from duty on a break may need to be paid for it.
- Check the award for the length and timing of meal breaks, and whether they are paid.
- Check whether short rest breaks are paid, since many awards treat them as paid time.
- Record unpaid meal breaks on timesheets so the paid hours match the payslip.
- Look for extra payments when an employer asks a worker to work through a break.
The details are covered in our guide to meal and rest breaks.
Work allowances and minimum wage australia
Allowances are separate payments for things like tools, travel, heights or dirty work. They are paid in addition to the hourly rate, so they do not count towards the minimum.
- Look up the allowances for the award and classification in the Fair Work Ombudsman pay guide.
- Pay allowances only when the condition applies, such as a specific task or a site location.
- List each allowance separately on the payslip so the employee can check it.
- Do not reduce the base rate to fund an allowance, because the base rate must still meet the minimum.
See our overview of work allowances for common examples.
Time in lieu (TOIL) and minimum wage australia
Time off in lieu lets an employee take time off instead of being paid for extra hours. It is allowed only where the award or agreement permits it, and it usually needs the employee's agreement.
- Check that your award or agreement allows time off instead of overtime pay before you offer it.
- Put the arrangement in writing and have the employee agree to it freely, without pressure.
- Record the hours worked and the time taken so the balance can be checked at any time.
- Pay out any unresolved balance correctly if employment ends, using the rules in the award.
Our guide to time in lieu (TOIL) covers how to set it up fairly.
Maximum working hours and minimum wage australia
A full-time employee has 38 ordinary hours a week under the NES. They can be asked to work reasonable additional hours, and they can refuse hours that are unreasonable.
- Treat 38 hours as the standard week, not a cap on what you can pay for.
- Weigh the employee's health, family responsibilities and the notice given when you ask for extra hours.
- Pay every extra hour at the correct award or agreement rate, with no unpaid trial or catch-up time.
- Manage fatigue as a safety issue, since employers must manage risks under the Work Health and Safety Act 2011 (NSW).
Read more in our guide to maximum working hours.
Common mistakes to avoid with minimum wage australia
- Paying the national rate when an award applies, which can leave an employee well under their lawful minimum.
- Skipping the 1 July update in payroll, then finding months later that everyone was underpaid.
- Treating allowances or super as part of the hourly rate instead of paying them in addition.
- Paying casuals without the 25% loading, or hiding it in a flat rate that does not clearly cover it.
- Calling a worker a contractor because they have an ABN, without testing the real working relationship.
- Failing to keep timesheets and payslip records for 7 years, which leaves nothing to rely on in a dispute.
Minimum wage australia FAQ
What is the minimum wage in Australia in 2026?
From the first full pay period starting on or after 1 July 2026, the national minimum wage is $26.44 per hour, or $1,004.90 for a 38-hour week. Casual employees on the national minimum get at least $33.05 per hour, which includes the 25% casual loading.
Does minimum wage australia apply if I am under an award?
Your award rate applies, not the national figure, and award minimums rose 4.75% from the same date. Find the exact rate for your classification in the free Fair Work Ombudsman pay guide, or call the Fair Work Infoline on 13 13 94.
What is the minimum wage for casuals?
Casuals with no award or agreement get at least $33.05 per hour. That figure includes the 25% casual loading. Under an award, the casual rate is the award base rate plus the loading the award sets, which is usually 25%, plus any penalty rates.
Is super paid on top of the minimum wage?
Yes. The super guarantee is 12% of ordinary time earnings for 2026-27, and it is paid in addition to wages. Under payday super, it must reach the employee's fund within 7 business days of payday.
How long must employers keep pay records?
Employers must keep employee time and wage records for 7 years. They must also give each employee a payslip within 1 working day of payday and report payroll information to the ATO through Single Touch Payroll on or before payday.
What can I do if I am paid less than the minimum?
Raise it with your employer first and keep your payslips and timesheets. If it is not fixed, contact the Fair Work Ombudsman, which offers free advice and can help recover unpaid wages through the Fair Work Infoline on 13 13 94.
Next step: get your minimum wage australia pay right
Check each worker's award, classification and employment type, then confirm the rate in the pay guide before the next pay run. At TQN Personnel, we place and pay labour hire workers across Sydney and can help you find workers or register for work. This is general information, not legal, tax or financial advice, so check the Fair Work Ombudsman, the ATO or an employment lawyer for your situation.