Minimum Wage
The Australian national minimum wage from 1 July 2026 is $26.44 per hour or $1,004.90 per 38-hour week for adult employees not covered by an award or enterprise agreement. It applies from the first full pay period starting on or after 1 July 2026. The Fair Work Commission sets it each year through the Annual Wage Review.
Legislation: Fair Work Act 2009 Part 2-6 | Category: Wages & Payment | Last updated: September 2026
What is the Minimum Wage in Australia?
The national minimum wage is the lowest rate an employer can legally pay an adult employee who isn’t covered by a Modern Award or enterprise agreement. Most Australian employees are covered by an award, which sets higher minimum rates based on industry and classification.
What Changed on 1 July 2026
On 2 June 2026 the Fair Work Commission handed down its Annual Wage Review 2026 decision.
- The national minimum wage rose around 6%, from $24.95 to $26.44 per hour. It is now above $1,000 per week for the first time.
- Modern award minimum rates rose 4.75%.
- The lowest award rate for ongoing employment must be at least $26.44 per hour.
- Entry-level award rates that apply to the first 6 months or less must be at least $25.74 per hour ($978.10 per week).
- The Commission has started phasing out the C13 classification level over the next few reviews.
Current Minimum Wage Rates (from 1 July 2026)
| Age | % of adult rate | Hourly | Weekly (38 hrs) |
|---|---|---|---|
| 21 and over | 100% | $26.44 | $1,004.90 |
| 20 | 97.7% | $25.84 | $981.79 |
| 19 | 82.5% | $21.82 | $829.04 |
| 18 | 68.3% | $18.06 | $686.35 |
| 17 | 57.8% | $15.29 | $580.83 |
| 16 | 47.3% | $12.51 | $475.32 |
| Under 16 | 36.8% | $9.73 | $369.80 |
Casual adult: $33.05 per hour, which includes the 25% casual loading. For casual juniors, apply the junior percentage first, then add the 25% loading.
These junior rates only apply to award-free employees. Most awards have their own junior scales.
Key Compliance Points for Employers
- Most employees are covered by a Modern Award, which sets a higher minimum than the national minimum wage.
- New rates start from the first full pay period on or after 1 July. For example, if your weekly pay cycle runs Monday to Sunday, the new rates started on Monday 6 July 2026.
- Casual employees must get the minimum rate plus the 25% casual loading.
- Piece rates and commission must still add up to at least the minimum wage for all hours worked.
- Annualised salaries and set-off clauses need checking after every increase. The salary must still cover the new award minimums, overtime and penalties.
- Enterprise agreement base rates can never fall below the current award rate.
- Apprentices, trainees and supported wage employees have separate minimum rates.
- Underpaying is expensive. See the penalties below.
Penalties for Underpayment
- Civil penalties: For employers with 15 or more employees, the maximum is $546,000 per contravention, or three times the underpayment if that is higher.
- Serious contraventions: The maximum rises to $5.46 million per contravention.
- Personal liability: Directors and managers involved in the breach can be personally liable.
- Criminal offence: Since 1 January 2025, intentional underpayment is a crime. Individuals face up to 10 years’ jail.
- Back pay: Employees can recover underpayments going back 6 years, plus interest.
Frequently Asked Questions
What is the minimum wage in Australia in 2026?
From 1 July 2026, the national minimum wage is $26.44 per hour or $1,004.90 per 38-hour week for adults aged 21 and over. It applies to employees not covered by a Modern Award or enterprise agreement.
When do the new rates start?
The new rates apply from the first full pay period starting on or after 1 July 2026. If 1 July falls mid-cycle, the new rates start from your next pay cycle.
Is the minimum wage the same in all states?
Yes. The national minimum wage applies in every Australian state and territory. Modern Award rates are also the same nationally.
Do casual workers get the minimum wage?
Yes. Casuals must get at least the minimum wage plus the 25% casual loading. For adults that is $33.05 per hour from 1 July 2026. The loading makes up for having no paid leave or notice of termination.
Does the minimum wage apply if my employee is on an award?
No. Award-covered employees must be paid the award rate for their classification. That rate is higher than the national minimum wage.
What happens if an employer pays below the minimum wage?
It is a breach of the Fair Work Act. Employers with 15 or more employees face penalties of up to $546,000 per contravention, or three times the underpayment if higher. Serious contraventions attract up to $5.46 million. Intentional underpayment is also a criminal offence. Employees can recover up to 6 years of underpayments, plus interest.
