Minimum Wage in Australia: Current Rates and Who It Applies To

Minimum Wage in Australia: Current Rates and Who It Applies To

Australia has one of the highest minimum wages in the world, providing workers with a meaningful safety net. The minimum wage is reviewed and set annually by the Fair Work Commission, taking effect from 1 July each year.

The National Minimum Wage

The National Minimum Wage as of 1 July 2024 is:

  • $24.10 per hour
  • $915.90 per week (based on a 38-hour week)

This rate applies to employees who are not covered by a Modern Award or Enterprise Agreement. In practice, the majority of Australian workers are covered by an award, which almost always sets higher minimums than the national base rate.

The Fair Work Commission reviews the national minimum wage and all award minimum rates every year as part of the Annual Wage Review. Submissions from unions, employer groups, and government inform the decision. The increase takes effect on 1 July, or on the first full pay period starting on or after 1 July.

Award Minimum Wages

Most Australian employees are covered by a Modern Award — a legal instrument that sets minimum pay rates and conditions for a specific industry or occupation. There are approximately 120 awards, and they nearly always set minimum wages that are higher than the national minimum.

For example:

  • The Retail Industry Award sets different minimum rates for different classification levels (e.g., a Grade 1 retail employee in their first year has a higher minimum than the national base)
  • The Hospitality Industry Award sets specific rates for chefs, front-of-house staff, and other classifications
  • Professional awards (e.g., Social, Community, Home Care) set rates well above the national minimum

To find the award that applies to your job and check your minimum pay rate, use the Pay and Conditions Tool (PACT) at fairwork.gov.au/pay-and-wages/pay-rates. You will need your job title and industry to search.

Who Is Covered

The national minimum wage and award rates apply to:

  • Permanent employees (full-time and part-time)
  • Casual employees — who also receive a casual loading (typically 25%) on top of the minimum rate
  • Most employees on temporary visas — visa status does not affect your right to minimum pay

The minimum wage does not apply to:

  • Independent contractors — who are not legally employees and set their own rates (though sham contracting arrangements are illegal)
  • Business owners working in their own business
  • Trainees and some apprentices — who may receive a percentage of the adult rate while training (set by the relevant award)

Penalty Rates

Penalty rates are extra payments for working at times considered outside standard hours:

  • Weekends — typically 150%–200% of the base rate depending on the award
  • Public holidays — typically 225%–250% of the base rate
  • Evening and night work — some awards pay a loading for hours worked after certain times
  • Overtime — most awards require time-and-a-half for the first 2–3 hours of overtime, and double time after that

In 2017, the Fair Work Commission reduced Sunday penalty rates for some workers in hospitality and retail. However, penalty rates for public holidays remain significantly higher than the base rate for most workers.

Junior and Apprentice Rates

Employees under 21 and apprentices may be paid a percentage of the adult minimum rate:

  • Junior rates are set by each Modern Award and typically increase with age (e.g., 70% at 16, 80% at 17, 90% at 18, etc.)
  • Apprentices receive wages set by their training award, which increase as they progress through their apprenticeship stages

How to Check If You Are Being Underpaid

Wage theft — employers paying workers less than their legal entitlements — is unfortunately common in Australia. To check if you are being paid correctly:

  1. Use the Pay and Conditions Tool (PACT) at fairwork.gov.au — enter your award, classification, and hours worked to calculate what you should be paid
  2. Check your payslip — your employer must provide a payslip within one working day of payment; the payslip must show your hourly rate, hours worked, gross and net pay, and any deductions
  3. Ask your union — if you are a member, your union can check your pay rates and advise you

If you believe you are being underpaid, you can lodge a complaint with the Fair Work Ombudsman at fairwork.gov.au or by calling 13 13 94. Complaints can be made anonymously. The Ombudsman can investigate, recover unpaid wages, and take enforcement action against non-compliant employers.

Being paid correctly is your legal right. Do not be afraid to ask questions or seek help if something does not seem right.

Similar Articles