Ruqayyah Snyder
As of 1 July 2025, the national minimum wage in Australia is AUD 24.95 per hour or AUD 948 per week for a 38-hour workweek. This is the base rate for adult employees in the national system who are award/agreement-free. The minimum wage is the lowest amount that employers can legally pay their employees. In Western Australia, the minimum wage for casual employees in the state system increased on 31 January 2025, as the casual loading applied to the state minimum wage was adjusted from 20% to 25%.
| Characteristics | Values |
|---|---|
| National Minimum Wage in Australia | $24.95 per hour or $948 per week |
| National Minimum Wage effective date | 1 July 2025 |
| Minimum wage for casual employees in Western Australia | 25% casual loading |
| Minimum wage for award/agreement-free workers under 16 | $9.18 per hour or 36.8% of the national minimum |
| Minimum wage for award/agreement-free workers aged 16 | $11.80 per hour or 47.3% of the national minimum |
| Minimum wage for award/agreement-free workers aged 17 | $14.42 per hour or 57.8% of the national minimum |
| Minimum wage for award/agreement-free workers aged 18 | $17.04 per hour or 68.3% of the national minimum |
| Minimum wage review frequency | Annual |
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What You'll Learn
National Minimum Wage
In Australia, all employees are entitled to a minimum wage, which is the least they can be paid for the work they are doing. The National Minimum Wage is set by the Fair Work Commission, which reviews and adjusts it annually. As of 1 July 2025, the National Minimum Wage is $24.95 per hour or $948 per week (for 38 working hours). This is the base rate for adult employees who are award/agreement-free.
The National Minimum Wage is the lowest rate that employees can be paid, regardless of their job. It is illegal for employers to pay their staff less than the minimum wage. The National Minimum Wage is used as a basis to set different rates, called 'special national minimum wages', for certain types of employees. These rates may vary depending on factors such as the type of employment (e.g. apprenticeship or traineeship), the employee's age if they are under 21, and the employee's work capacity (in case of a disability).
Most employees are covered by an award, which is a legal document outlining the pay rates for a particular industry or occupation. Awards can set pay rates that are higher than the National Minimum Wage. For instance, some awards contain introductory pay rates for new employees, which may be higher than the National Minimum Wage. Additionally, casual workers covered by the National Minimum Wage receive at least a 25% casual loading to compensate for missing out on entitlements that permanent employees receive, such as paid sick leave or annual leave.
It is important to note that employees who are covered by an award or agreement will have their minimum wage set by that award, which may differ from the National Minimum Wage. Employees can use resources such as the Pay and Conditions Tool, Pay guides, and the Find my award tool to calculate their pay rates and ensure they are being paid correctly. If an employee believes they are not receiving the minimum wage, they should first speak with their employer and, if the issue persists, they can contact the Fair Work Ombudsman for support.
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Award-free minimum pay rates
In Australia, all employees are entitled to a minimum wage. This is the minimum amount an employee can be paid for the work they are doing. The minimum wage is set by the award that covers their industry or occupation. The Fair Work Commission reviews and adjusts the minimum wage annually. This is the only guaranteed wage increase in the economy.
For award-free employees, the minimum wage is set as a base rate for adult employees who are award/agreement-free. This is also referred to as the National Minimum Wage. As of 1 July 2025, the National Minimum Wage is $24.95 per hour or $948 per week for a 38-hour workweek. This is before tax is deducted. The minimum wage is the lowest rate an employee can be paid, regardless of their job.
On 31 January 2025, the minimum wage for casual employees in the state system increased as the casual loading applied to the state minimum wage changed from 20% to 25%. This increase does not require all casual loadings in Western Australia awards, agreements, or contracts of employment to be 25%. However, if an employee's pay rate under an award or agreement is lower than the casual state minimum wage, they are entitled to be paid the relevant state minimum wage rate.
It is important to note that employees might also be covered by a contract of employment that can provide for a higher rate of pay. Additionally, different minimum wages apply to employees under registered training agreements, such as apprenticeships or traineeships. Their wages will depend on the job and their age.
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Annual wage reviews
In Australia, all employees are entitled to a minimum wage. This is the minimum amount that an employee can be paid for their work. The minimum wage is set by the award that covers an employee's industry or occupation. Awards cover many different industries and occupations. Employees covered by an award or registered agreement are entitled to minimum pay rates, including penalty rates and allowances in their award or agreement. These pay rates may be higher than the National Minimum Wage.
Each year, the Fair Work Commission reviews the National Minimum Wage and minimum pay rates under awards (Annual Wage Review). The Fair Work Act 2009 sets out the objectives of the review, which includes research, submissions, and consultations. The Expert Panel of the Fair Work Commission reviews and sets minimum wages for employees in the national system each year. The review usually takes place from March to June, with changes taking effect on the first full pay period on or after 1 July.
The Annual Wage Review directly affects employees in the national system who are covered by a modern award or a transitional instrument. The Expert Panel must ensure that all interested organizations and individuals have a reasonable opportunity to be involved in the process. The President of the Commission may direct the Panel to investigate and report on certain matters, and all research must be published. At the end of the review, the Expert Panel issues its decision, which includes determinations that change the minimum wages in modern awards and a national minimum wage order for employees who are not covered by an agreement or award.
The Fair Work Commission is Australia's workplace tribunal. It creates awards, approves enterprise agreements, and helps resolve issues at work. The Annual Wage Review can also affect minimum wages in agreements, and changes to the high-income threshold and contractor laws can be made alongside the review. The National Minimum Wage applies to employees not covered by an award or enterprise agreement, and this increase typically applies to employees from their first full pay period starting on or after 1 July each year.
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Wage review process
In Western Australia, the minimum wage for casual employees in the state system is subject to change. As of 31 January 2025, the minimum wage for casual employees increased as the casual loading applied to the state minimum wage was adjusted from 20% to 25%. Award-free employees must be paid at least the minimum hourly rate for every hour worked. Full-time employees are entitled to the minimum weekly rate for the first 38 hours each week, with each additional hour paid at the minimum hourly rate.
The national minimum wage in Australia, which applies to Western Australia, is reviewed annually by the Fair Work Commission, the country's workplace tribunal. The Expert Panel of the Fair Work Commission reviews and sets minimum wages for employees in the national system each year. The Fair Work Act 2009 outlines the objectives of the review, which includes research, submissions, and consultations. The review typically takes place between March and June, with any changes taking effect on 1 July of the following financial year.
The Expert Panel must consider the provisions and objectives outlined in the Fair Work Act, including Part 2-6, which specifically addresses minimum wages and annual wage reviews. Additionally, the Panel is responsible for reviewing transitional instruments as mandated by the Fair Work (Transitional Provisions and Consequential Amendments) Act 2009. The President of the Commission may instruct the Panel to investigate and report on specific matters, and all research must be published to allow the public to provide submissions.
The Expert Panel's decision is announced on the day it is made, and it results in the publication of determinations that outline changes to the minimum wages in modern awards. A national minimum wage order is also issued for employees not covered by an agreement or award. This process ensures that minimum wages in Australia are regularly reviewed and adjusted to meet the needs of employees and employers.
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Special national minimum wages
In Australia, all employees are entitled to a minimum wage, which is the minimum amount an employee can be paid for their work. The national minimum wage is set by the Fair Work Commission and is reviewed annually. As of 1 July 2025, the national minimum wage is $948 per week or $24.95 per hour for adult employees in the national system who are award/agreement-free.
- Apprentices or trainees: These employees may have a different minimum wage depending on their specific industry or occupation.
- Employees under 21 years of age: Also known as 'juniors', these employees may have a lower minimum wage than adult workers.
- Employees with a disability: The minimum wage for these employees may be adjusted based on their work capacity.
- Casual employees: In Western Australia, the minimum wage for casual employees in the state system increased on 31 January 2025, as the casual loading applied to the state minimum wage changed from 20% to 25%. Award-free casual employees must be paid at least the minimum hourly rate for every hour worked, and the minimum weekly rate for the first 38 hours each week.
It is important to note that if an employee is covered by an award or agreement, the minimum wage set out in that award or agreement will apply instead of the National Minimum Wage. These pay rates may be higher than the National Minimum Wage and can include penalty rates and allowances.
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Frequently asked questions
As of July 1, 2025, the national minimum wage in Australia is AUD 24.95 per hour or AUD 948 per week (for 38 hours). This applies to Western Australia as well. The minimum wage is the least that can be paid for a certain job and it is illegal for employers to pay less than this.
If you are being paid less than the minimum wage, you should first speak with your employer. If the issue persists, you can contact the Fair Work Ombudsman.
You can use the Pay and Conditions Tool by the Fair Work Commission to calculate your new pay rate. You can also refer to their Pay guides and Find my award tool to check the right pay rate for your award.
