In Australia, employees are entitled to a minimum amount to be paid by an employer for the work completed. This is called a minimum wage. An employee’s minimum wage depends on the industry they work in, their age, and other relevant factors.
What is minimum wage?
Minimum wage is the base hourly or weekly pay you receive before tax. This does not include any bonuses, penalties, superannuation or casual loading that an employee may be entitled to receive from their employer. The minimum wage is typically set by the award of your industry or occupation. Employees cannot be paid less than the minimum wage that applies to them and is set by the Australian Fair Work Commission.
Why is there a minimum wage?
A minimum wage attempts to protect employees from being underpaid for the amount of work they complete. Its aim is to ensure that employees earn a living wage, and to reduce worker exploitation and poverty.
What is a modern award?
Modern awards are agreements that list the minimum terms and conditions of employment, including information about pay, hours of work, rosters, breaks, allowances, penalty rates and overtime. They apply to all employees under the national workplace relations system, and are industry or occupation-based. At times, higher income employees may not be covered by an award despite working in an industry that applies one.
How to determine your minimum wage?
The Fair Work Ombudsman has a comprehensive list of pay guides that provide information on an award’s current minimum pay rates for full-time, part-time, and casual employees working different occupations within different industries. The guides also provide information on monetary allowances and penalty rates. They can be accessed here. Employees can also use the award finder to determine their minimum wage.
What if I am not covered by an award?
Employees not covered by an award or registered agreement with the Fair Work Ombudsman are entitled to the National Minimum Wage. This pay rate is received annually and legislated in the Fair Work Act. Changes typically begin from the first full pay period from 1 July each year. Since 1 July 2023, the National Minimum Wage is $23.23/hour or $882.80 per 38 hour week for adult employees in Australia. There is also a casual loading of 25% for casual employees covered by the National Minimum Wage scheme. Different rates apply for apprentices and trainers, employees under 21 years, and employees with disabilities.
What if my award wage is less than the national minimum wage?
The minimum pay rates under an award may be higher than the National Minimum Wage. However, since the 2023 Annual Wage Review decision, the minimum award wage can also be lower than the National Minimum Wage. This typically occurs when an award has an introductory pay rate for new employees and lasts only for a limited time.
What if I am less than 21-years of age?
Employees under the age of 21 years are entitled to junior pay rates. Juniors are paid a percentage of the pay rate of adult employees. This will depend on their age and will increase as they get older. However, if the award does not have junior pay rates, juniors are paid the same as adult employees. Junior employees that are covered by the Hospitality Award or the Restaurant Award are paid the adult wage regardless of their age if their role involves selling and serving alcohol. Junior employees not covered by an award receive a percentage of the National Minimum Wage. The following table sets out their minimum wage as it corresponds to their age.
| Age | Percentage | Hourly Rate |
| Under 16 | 36.8% | $8.55 |
| 16 | 47.3% | $10.99 |
| 17 | 57.8% | $13.43 |
| 18 | 68.3% | $15.87 |
| 19 | 82.5% | $19.16 |
| 20 | 97.7% | $22.70 |
What if I am an apprentice or trainee?
Apprentices and trainees have a formal training contract with their employer that is recognised by a Registered Training Organisation, like TAFE. The pay rate will depend on the length of the apprenticeship and the amount of training completed. The terms and conditions of pay for trainees completing a certificate will be determined by Miscellaneous Award [MA000104].
Apprentices can advance their pay level once they have worked for a certain amount of time or once they have achieved a certain amount of the training requirements. The award will determine which condition determines the pay increase.
What if I have a disability?
Employees with disability may be covered by the Supported Wage System. This arrangement allows employers to pay employees in accordance with how productive they are. An employee’s individual rate of pay is determined by assessing their work capacity.
Employees covered by the Supported Wage System and under an award receive a percentage of pay that aligns with their work capacity. If an award fails to provide provisions related to the Supported Wage System, then the employee is paid the full pay rate.
Employees covered by the Supported Wage System but not covered by an award receive a percentage of the National Minimum Wage. Employees are entitled to at least $102/week.