What is the minimum wage?

The minimum wage is the lowest hourly rate that an employer can legally pay an adult employee in Australia. It is set each year by the Fair Work Commission's Expert Panel through the Annual Wage Review, with the new rate taking effect from 1 July. As of 1 July 2024, the National Minimum Wage was 24.10 dollars an hour, or 915.90 dollars for a 38-hour week before tax.

The Annual Wage Review considers economic conditions, the needs of low-paid workers, the relative cost of living, labour market participation, business competitiveness, and the impact on inflation. The Expert Panel hears written submissions from the Australian Council of Trade Unions, employer groups including the Australian Chamber of Commerce and Industry, the Australian Industry Group, the federal government, and individual employers and employees. The Panel publishes a detailed decision each year explaining the size of the increase.

Most Australian employees are paid above the minimum wage because they are covered by a modern award or an enterprise agreement that sets a higher rate. Award rates are typically organised into classifications based on skill and experience, with higher classifications paid more. The Fair Work Commission also adjusts award minimum rates each year, usually by the same percentage as the National Minimum Wage. The minimum wage applies to employees who are not covered by any award or agreement.

Australia's minimum wage is one of the highest in the world in absolute terms and at the upper end of OECD countries by purchasing power parity. About 200,000 Australian workers are paid the National Minimum Wage directly, and another 2.5 million are paid the minimum rate of an award. Junior rates apply to workers under 21 in many awards, set as a percentage of the adult minimum (typically 50 per cent at age 16 rising to 100 per cent at 21). Apprentices and trainees have their own wage scales set under awards or training contracts.