Minimum Wage in Australia
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Across all industries and workplaces, over two-million workers in unions across Australia continue to negotiate higher pay to ensure all members get a fair wage for a fair day’s work. Join your union today and make it happen.Every worker has the right to live a decent life, with fair pay for their work, which is why the minimum wage exists.
Union members fought hard to set this minimum standard and continue to fight for it to keep up with the cost of living, so we can all live with dignity.
Although there are different wages and awards for different types of employment, the national minimum wage is a crucial standard for all workers.
What is the minimum wage in Australia?
The National Minimum Wage is the minimum hourly rate you can be paid for the work you do, regardless of your job or industry.
As of 1 July 2024 the minimum wage is $24.10 per hour. This equates to $915.90 per week (for a standard 38 hours work week) and $47,627.06 per year (52 weeks).
How often does the minimum wage change in Australia?
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) to decide how much it should increase. This is called the Annual Wage Review, and it takes place from March to June, with the new rates coming into effect from 1 July.
To help make the decision, the Commission asks for submissions from interested parties on what they think should happen. Every year, the union movement submits a claim for a fair increase that reflects the value of work and keeps up with the cost of living.
This year, we campaigned for a 5% increase and a 9% interim increase for key feminised industries.
On 3 June 2024, the FWC announced that the minimum wage would increase by 3.75% on 1 July 2024.
Can an employer pay below the national minimum wage?
No. Anything below the national minimum wage is illegal unless you fall into one or more of the below categories:
- Young workers under 21 years of age in some industries
- Workers on the Supported Wage System
- Apprentices and trainees
Employers who deliberately engage in wage theft can face hefty fines and legal consequences imposed by the Fair Work Ombudsman. If you think you’re not being paid correctly, talk with your employer and reach out to you union.
Don’t forget that even if you are paid the minimum wage, that may not be all the pay you are entitled to. Your final payment should consider various factors, such as leave loading, long service leave, and any overtime or penalty rates worked.
Understanding how to calculate your final pay is crucial to ensuring you receive fair compensation. Don’t forget to regularly check your payslip.
Young workers
Different minimum wages may apply for employees who are younger than 21. Minimum wages for young workers are calculated as a percentage of the National Minimum Wage:
| Age | Percentage | Hourly minimum |
| 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 |
If you are under 21 and covered by certain awards or an Enterprise Bargaining Agreement, the percentage you are entitled to may be higher (and may even be 100% of the full minimum wage).
Union members are currently campaigning for all workers over 18 to receive 100% of the National Minimum Wage. Join the campaign here.
The Supported Wage System
The Supported Wage System applies to employees who have a disability that reduces their capacity to work. If you are on the Supported Wage System, your minimum wage will be calculated as a percentage of what someone without a disability would earn if they were doing the same job.
It is up to the Department of Social Services to decide whether you should be paid a Supported Wage System rate and assess your capacity and determine what rate you should be paid.
Apprenticeships and traineeships
Different minimum wages apply to workers who are under a registered training agreement, like an apprenticeship or a traineeship.
These minimum wages depend on what job you are doing and how old you are. Depending on what kind of work you are doing, your minimum wage might also increase the longer you spend there. It might also increase as you get better at doing your job.
Award and agreement wages
Most workplaces are covered by an award that sets out the minimum wage for a particular industry. This amount is often higher than the minimum wage in Australia.
Some workplaces are also covered by an Enterprise Bargaining Agreement (EBA) which set the rates of pay for one particular workplace or enterprise.
Unions are often involved in bargaining for an agreement which is a key reason why these rates are often higher than they would be if that workplace had no EBA (and agreements which are union-backed consistently deliver higher wages than non-union-backed agreements).
Casual wages
Casual employees covered by the minimum wage receive a loading (ie. additional pay) of at least 25% cent of the hourly rate of pay. This is paid in recognition that casuals don’t have access to most paid leave entitlements.
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 still 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, on average, $312 more per week than non-union members.
This doesn’t necessarily mean that a union member will earn more than their coworker who is not a member, in the same job under the same employer. Nor does it mean that as soon as you join your union, your pay automatically goes up.
It means that generally union members tend to have higher wages than non-members. And highly-unionised workplaces or industries (ie. workplaces or industries where lots of the workers are union members) generally have higher rates of pay, than non-unionised workplaces or industries.
Already a union member?
Reach out to your union for more specific information about your wages in your workplace.
Not yet a member of your union?
Joining your union will ensure you’re getting the pay you’re entitled to.
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