Minimum Wage in Australia

6 min read

Last updated March 2026

What is the minimum wage in Australia?

The national minimum wage is $24.95 per hour ($948 per week, based on a 38-hour full-time week), as of 1 July 2025.

This is the minimum hourly rate you can be paid for the work you do, regardless of your job or industry.

Every worker has the right to live a decent life with fair pay for their work. Union members fought hard to set a minimum standard and continue to fight for increases that reflect the value of work and keep up with the cost of living.

How often does the minimum wage increase?

Did you know that union members are the biggest reason that the minimum wage goes up, and why Australia has one of the highest minimum wages in the world?

In Australia, our minimum wage is set by the Fair Work Commission (FWC).

Every year, the FWC reviews the minimum wage and award wages and decides how much they should increase.

This is called the Annual Wage Review, and it usually takes place from March to June.

To help make the decision, the FWC asks interested parties (like unions and employer groups) to share what they think the increase should be and why.

Every year, the union movement submits a claim – on behalf of the nearly three million workers who rely on these wages – arguing for a fair increase that keeps up with the cost of living.

The employers usually argue for no increase, or one that doesn’t keep up with the cost of living, effectively calling for workers to receive a pay cut.

With all the infomation, the FWC makes a decision, and it comes into effect from 1 July.

This year, union members are calling for a 5% increase to the minimum and award wages.

Four steps to a pay rise

1. Unions submit a claim to the Fair Work Commission to increase minimum and award wages, on behalf of workers, and push the FWC to support our wage claim (via expert witnesses and public campaigning) while bosses demand wage cuts.

2. The FWC considers the union movement’s submission, along with those from other groups, taking into account the cost of living and other economic conditions.

4. The FWC announces its decision on how much the increase will be.

5. New pay rates for workers on minimum and award wages take effect on the first full pay cycle after 1 July.

Union members and ACTU Secretary Sally McManus explaining why workers need above-inflation pay rises every year

Can an employer pay below the national minimum wage?

No. Anything below the minimum wage is illegal (unless you fall into one of the three categories below). Employers who deliberately engage in wage theft can face hefty fines and legal consequences.

Don’t forget that even if you are paid the minimum wage, that may not be all the pay you are entitled to. Your total pay should include any loadings or penalty rates you’re entitled to. Checking your payslips is crucial to ensuring you get paid properly.

1. Apprentices and trainees

Different minimum wages apply to workers who are under a registered training agreement, like an apprenticeship or a traineeship. These pay rates depend on what job you are doing, how old you are and how long you have worked there.

2. Workers on the Supported Wage System

The Supported Wage System applies to workers who have a disability that reduces their capacity to work. Your pay rate will be calculated (by the Department of Social Services) as a percentage of what someone without a disability would earn if they were doing the same job.

3. Young workers (junior employees)

In some industries, and under some awards, different minimum wages apply for workers who are younger than 21 years old. The junior pay rates are calculated as a percentage of the national minimum wage, or the relevant award rates.

Union members are campaigning for all workers over 18 years old to receive 100% of the minimum and award wages!

Award and agreement wages

Most workers are covered by an award that sets pay rates higher than the national minimum wage.

Some workplaces are also covered by an agreement which sets a higher rate of pay than both the relevant award (the award that the workplace would be covered by, if the agreement didn’t exist) and the minimum wage.

Unions are usually involved in negotiating an agreement, which is a key reason why being a union member is the most powerful way to earn higher wages.

Casual wages

Casual workers who are on the minimum wage also receive a loading of at least 25%.

Commission payments and piece rates

Some jobs pay according to how much work you get done, rather than how many hours you work. Often these jobs are covered by an award or agreement, but even if they’re not, your employer must still pay you at a rate which is equal to, or higher than, the minimum wage.

What is the best way to get a pay rise?

By joining your union: union members earn $251 more per week than non-members!

That doesn’t mean that a union member will earn more than a non-member at the same workplace. Nor does it mean that as soon as you join your union, your pay automatically goes up.

It means that generally union members have higher wages than non-members. And highly-unionised workplaces or industries (where lots of the workers are union members) generally have higher rates of pay, than non-unionised workplaces or industries.

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