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HR Glossary

National minimum wage

Australia · Fair Work and entitlements
What is the national minimum wage?

The national minimum wage is the legal pay floor for Australian employees who are not covered by a modern award or enterprise agreement. It is set by the Fair Work Commission's annual wage review, with changes taking effect from 1 July each year.

Who does the national minimum wage actually cover?

Fewer people than the name suggests. Most Australian employees are covered by an award or agreement, and their floor is the relevant award classification rate, not the national minimum wage. The national rate is the backstop for award-free employees, with adjusted rates for juniors, apprentices, trainees and employees with disability under supported wage arrangements.

How is it set?

Each year the Fair Work Commission's Expert Panel reviews minimum wages, taking submissions from government, employer groups and unions, and sets both the national minimum wage and the increase to award minimum rates. The 2026 review lifted award minimum wages by 4.75% from 1 July 2026. Because the decision lands every July, wage budgets and annualised salary reconciliations should be built around that date.

What it means for employers in practice

Two checks every July: award-covered staff move with the award increase automatically, and salaried staff sitting just above old award rates can quietly fall below the new ones. The second is how compliant employers drift into underpayment without a single decision being made.

Next step

Calculator

Award Wage Increase Calculator

Put a number on it. Free, no sign-up, every benchmark sourced.

Open the calculator →Related term

Modern award

A modern award is a legal document that sets minimum pay rates and employment conditions for an industry or occupation in Australia, sitting on top of the National Employment Standards.

Read the definition →Related term

National Employment Standards (NES)

The National Employment Standards (NES) are the minimum employment entitlements in the Fair Work Act that apply to all national system employees in Australia, covering hours, leave, notice, redundancy and superannuation.

Read the definition →Related term

Wage theft

Wage theft is the deliberate underpayment of employees' wages or entitlements.

Read the definition →HR Glossary

All terms

Every definition, with the local rules, rates and thresholds attached.

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Where
Compono fits.

Compono is a talent intelligence platform: an applicant tracking system and an employee engagement platform built on the same people data.

Wage floors move every July. Model what the increase does to your cost base.

See how it works
Compono
$34M
saved by VicRoads over two years

Common questions

Is the national minimum wage the same as award minimum wages?

No. The national minimum wage covers award-free employees; award-covered employees have their own minimum rates by classification, adjusted in the same annual review.

When do minimum wage increases take effect?

From the first full pay period on or after 1 July each year.

This page is general information, not legal advice. We check figures annually and update them on a best-efforts basis, but employment rules change and we cannot promise everything here is current or complete. Before you act on it, confirm the detail with the Fair Work Ombudsman (fairwork.gov.au) or your own adviser. Last reviewed July 2026.