Australia's National Minimum Wage is $26.44 an hour or $1004.90 a week from 1 July 2026, as of October 2026. But it only applies to employees who aren't covered by an award or registered agreement; for most Australian workers, the minimum pay rate is set by the award for their industry or occupation.
That second sentence is the one that matters for small businesses. If you only check the National Minimum Wage, you can underpay someone without realising, because their award rate, penalty rates and allowances may be higher.
National Minimum Wage or award: which applies?
| Employee | Minimum pay comes from |
|---|---|
| Not covered by an award or registered agreement | The National Minimum Wage: $26.44 an hour or $1004.90 a week (from 1 July 2026) |
| Covered by a modern award | The award's minimum rate for their classification, plus penalty rates and allowances |
| Covered by a registered enterprise agreement | The agreement's pay rates |
The Fair Work Ombudsman says award rates may be higher than the National Minimum Wage. It also flags an odd case: some awards have introductory rates for new employees that can be lower than the National Minimum Wage for a limited time. Where an award or agreement covers the employee, the award rate applies instead of the National Minimum Wage.
When the minimum wage changes
Each year the Fair Work Commission reviews both the National Minimum Wage and the minimum rates in awards, in what's called the annual wage review. Most changes start from the first full pay period on or after 1 July. So the date to watch isn't 1 July itself: it's the first full pay period that starts on or after it. The Fair Work Ombudsman updates its pay calculator and website when the rate changes.
How to find the right award rate
- Find the award that covers the employee's industry or occupation. Fair Work has a Find my award tool.
- Work out their classification level under that award.
- Use the Fair Work Pay and Conditions Tool, or the award's pay guide, to get the minimum hourly rate.
- Add any penalty rates (for weekends, nights or public holidays) and allowances that apply.
- If they're casual or a junior, apply the award's casual loading or junior percentage.
Award-free employees
A smaller group of employees aren't covered by any award or registered agreement. They're the people the National Minimum Wage was built for: $26.44 an hour or $1004.90 a week from 1 July 2026. If you think a role is award-free, check carefully with the Fair Work tools first, because Fair Work says that for most employees the minimum wage is set by the award covering their industry or occupation. Getting the award wrong is an easy route to underpayment, and the Fair Work Ombudsman's free tools exist to stop that happening.
Junior pay rates
Junior rates apply to employees under 21 and are a percentage of the adult rate, usually based on age, but only if the award or agreement includes them. If it doesn't, juniors are paid the same as adults for their classification. Fair Work's own example: a 16-year-old hair salon assistant under the Hair and Beauty Award gets half the adult Level 1 rate, rising to three quarters when she turns 17.
Here's the rule most cafe and restaurant owners don't know. Fair Work says two common awards give juniors the right to be paid the adult rate for selling or serving alcohol. Under the Restaurant Award, a junior who serves alcohol, even as part of general waiting duties, must be paid the adult rate for their classification regardless of age.
Casual employees
Casuals are usually paid a casual loading on top of the base rate, and Fair Work says casuals don't get most types of paid leave, notice of termination or redundancy pay, even if they work regularly for a long time. But a regular pattern of work on its own doesn't make someone permanent, and a casual can change to full-time or part-time at any time if both sides agree. Fair Work also says there are protections for employees engaged under sham casual arrangements designed to avoid paying entitlements.
What to get right as an employer
| Check | Why |
|---|---|
| Which award covers each role | The award, not the National Minimum Wage, usually sets the rate |
| Junior rates exist in that award | If not, juniors get the adult rate |
| Alcohol service duties | Some awards require adult rates for juniors serving alcohol |
| Pay rates updated from the first full pay period on or after 1 July | That's when most annual wage review changes start |
| Super and payroll reporting | Wages flow into super and Single Touch Payroll |
Wages sit next to two other employer duties: my guides to Single Touch Payroll and payday super cover how wages are reported and when super has to be paid. New staff will also need a tax file number.
Want AI doing the heavy lifting in your marketing?
I build the systems that handle the boring 80 percent, so you get your week back. Done properly, with the human kept in.
My verdict
Don't stop at $26.44. Treat it as the floor for award-free staff only, then find the award for every role you employ, because that's where the real minimum, penalty rates and junior rules live. Use the Fair Work Pay and Conditions Tool, save a copy of the result for each employee, and update every rate from the first full pay period on or after 1 July.
Frequently asked questions
What is the minimum wage in Australia in 2026?
The National Minimum Wage is $26.44 an hour or $1004.90 a week from 1 July 2026, for employees not covered by an award or registered agreement.
Do award rates override the National Minimum Wage?
If an employee is covered by an award or agreement, the minimum wage in that award or agreement applies instead of the National Minimum Wage.
When does the minimum wage increase in Australia?
Most changes from the Fair Work Commission's annual wage review begin on the first full pay period on or after 1 July.
What are junior pay rates?
Rates for employees under 21 set as a percentage of the adult rate, usually by age. They only apply if the award or agreement includes them.
Do juniors get adult pay for serving alcohol?
Under some awards, yes. Fair Work says juniors covered by the Restaurant Award who sell or serve alcohol must be paid the adult rate for their classification.
Do casual employees get paid leave in Australia?
Casuals don't get most types of paid leave, notice of termination or redundancy pay, even if they work regularly for a long time.
