Annual minimum compensation

Australia's National Minimum Wage sets the lowest hourly and weekly pay rates that employers must offer to employees who are not covered by an applicable award or enterprise agreement. As of 1 July 2025, the National Minimum Wage is $24.95 per hour, equivalent to $948 per week for a standard 38-hour week. This translates to an annual minimum compensation of $49,301.20 for full-time employment. The minimum wage applies to all employees in Australia regardless of age, with limited exceptions for certain apprentices and trainees during their first year of training.

The Fair Work Act 2009 (Cth) and the Fair Work Commission establish and review the National Minimum Wage annually. The Fair Work Ombudsman administers compliance and provides guidance to employers and workers on minimum wage obligations.

The National Minimum Wage is indexed annually on 1 July each year, with adjustments determined by the Fair Work Commission based on economic indicators and the principle of ensuring a safety net of fair minimum wages. The most recent adjustment took effect on 1 July 2025.

Employers must ensure all employees receive at least the National Minimum Wage unless they are covered by an award or agreement that provides higher rates. Payroll teams should verify whether employees fall under industry-specific awards, which often prescribe higher minimum rates than the national floor. Records of wages paid must be maintained and made available to employees. Non-compliance can result in underpayment claims and penalties under the Fair Work Act.