Hourly minimum compensation

Australia's National Minimum Wage sets the lowest hourly rate employers must pay most employees. From 1 July 2026, the National Minimum Wage is $26.44 per hour, equivalent to $1004.90 per week before tax. This rate applies to adult employees and most junior workers, apprentices, and trainees unless a modern award or enterprise agreement specifies a higher rate for their industry or role.

The Fair Work Act 1994 and the Fair Work Commission establish and review Australia's minimum wage annually. The Fair Work Commission considers economic data, living costs, and wage trends when determining each year's rate. Modern awards—industry-specific instruments—often prescribe minimum rates above the National Minimum Wage for particular classifications, and these take precedence where applicable.

The previous National Minimum Wage of $23.23 per hour applied until 30 June 2026. The increase to $26.44 reflects the Fair Work Commission's annual wage review process, which typically takes effect on 1 July each year.

Employers must ensure all employees receive at least the applicable minimum wage for their classification and industry. Payroll teams should verify whether employees fall under the National Minimum Wage or a higher modern award rate, as underpayment can trigger penalties and back-pay obligations. Award rates vary significantly across sectors such as retail, hospitality, healthcare, and construction. Employers should consult the Fair Work Ombudsman or their relevant modern award to confirm correct wage rates for each employee classification.