Lyla Lindsey
In Australia, the minimum wage is the least that employees can be paid for the work they do. The national minimum wage is set by the Fair Work Commission and is reviewed annually. This is the base rate for adult employees in the national system who are award/agreement-free. The minimum wage varies depending on the industry and occupation, and employees covered by an award or registered agreement are entitled to minimum pay rates, including penalty rates and allowances. These pay rates may be higher than the national minimum wage. Award rates are the minimum rates of pay and conditions for a particular industry or occupation. Junior employees, apprentices, and trainees may have different minimum wages depending on their age and work capacity.
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What You'll Learn
Minimum wage for junior employees
In Australia, the minimum wage that applies to an employee depends on several factors, including the industry they work in, their age, and the type of employment. The national minimum wage is the minimum base rate that an employee can receive for doing any job. As of 1 July 2024, the national minimum wage in Australia is AUD 24.10 per hour or AUD 915.90 per week (based on 38 ordinary hours).
For junior employees, the minimum wage varies based on their age and the specific award or agreement that covers their industry or occupation. If a junior employee is not covered by an award or agreement, they are entitled to a percentage of the National Minimum Wage based on their age. For example, employees under 16 years of age should receive at least 36.8% (AUD 8.86 per hour) of the National Minimum Wage, while 17-year-olds should receive at least 57.8% (AUD 13.42 per hour). These rates increase with the employee's age, with 18-year-olds entitled to 68.3% (AUD 16.46 per hour).
Some awards or enterprise bargaining agreements (EBAs) may also provide for higher pay rates than the National Minimum Wage for junior employees. For example, certain awards in the hospitality industry require juniors who sell or serve alcohol as part of their general waiting duties to be paid the adult rate for their classification, regardless of their age.
It is important to note that the minimum wage rates for junior employees are reviewed and adjusted annually by the Fair Work Commission. These rates are designed to protect young workers from unfairly low payments and to encourage their employment by providing incentives to employers. However, critics argue that the existence of junior rates contributes to intergenerational inequity, with young Australians earning an estimated AUD 3.5 billion less in wages per annum compared to adult rates.
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Apprentice wages
Apprentices in Australia are covered by awards, which specify their minimum pay rates and conditions during their training. An award is a legal document outlining the minimum pay rates and conditions of employment for specific industries. The Fair Work Commission reviews and adjusts the minimum wage every year.
Apprentices are paid according to the industry they are working in, with minimum pay rates for apprentices set by the Fair Work Commission. The minimum wage is the least an employee can be paid for the work they are doing. The minimum wage refers to the amount of pay before tax is deducted (gross pay).
Apprentices' pay rates will depend on how long the apprenticeship is and how much training the apprentice has done. School leavers under 21 can generally expect to earn between $500 and $700 per week in their first year. If you are 21 or older, you will often earn more, with a first-year plumber earning around $954.10 per week. If you didn’t complete Year 12, you may earn less than $500 per week. School leavers generally receive higher first-year wages.
As an apprentice, you may be eligible for financial support from the Federal or State government. From 1 July 2024, eligible apprentices in priority areas can receive up to $25,374 to cover training and living expenses, with repayment starting when income exceeds $54,435. Up to $5,000 is available for apprentices in priority occupations over two years. Up to $10,000 is available for full-time apprentices and $5,000 for part-time apprentices in the clean energy sector.
Apprentices are also entitled to overtime and penalty rates under most awards. These apply when working outside standard hours, such as weekends or public holidays. Besides your wage, you may be eligible for travel, tool allowances, and superannuation contributions from your employer.
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Award rates
In Australia, the minimum wage is the least that employees can be paid for their work. The minimum wage is adjusted annually to ensure workers receive fair compensation for their efforts. Award rates are the minimum rates of pay, allowances, and conditions for a particular industry or occupation. They are set by the Fair Work Commission and contained in modern awards. Modern awards are industry or occupation-based and provide a safety net of minimum terms and conditions of employment for employees.
The national minimum wage is the base rate for adult employees in the national system who are award/agreement-free. The Fair Work Commission uses it to set different rates, or 'special national minimum wages', for certain types of employees depending on their employment type, age, or work capacity. For example, the minimum wage for junior employees (those under 21) is determined as a percentage of the national minimum wage depending on their age and industry.
Minimum wages for award/agreement-free workers aged under 21 are calculated as a percentage of the national minimum wage. For instance, a 16-year-old should get 47.3%, or $11.39 an hour. Employees with disabilities may also have different minimum wages depending on their work capacity.
The minimum wage for employees covered by an award or registered agreement may be higher than the national minimum wage. These employees are entitled to the minimum pay rates, including penalty rates and allowances, in their award or agreement. Award rates apply to most employees in a particular industry or occupation. As of 1 July 2024, the national minimum wage is $24.10 per hour or $915.90 per week for a 38-hour workweek.
It is illegal for employers to pay their employees less than the minimum wage. Employers must pay their employees the higher of the national minimum wage, the award minimum wage, or the enterprise agreement minimum wage. Employers can choose to pay their employees more than the minimum wage, and many do so to attract and retain talented employees.
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Employees with disabilities
In Australia, the national minimum wage is set by the Fair Work Commission. This wage is reviewed annually, with any changes coming into effect on the first full pay period on or after 1 July. The current minimum wage, as of 1 July 2024, is AUD 24.10 per hour or AUD 915.90 per week (based on 38 ordinary hours). This applies to adult employees who are award/agreement free.
The national minimum wage is used as a base rate to set different rates, called 'special national minimum wages', for certain types of employees. This includes employees with disabilities, whose minimum wage will depend on their assessed work capacity. Under the Supported Wage System, a special workplace arrangement can be made for employers to pay wages to a person with a disability based on their productivity. An employee's work capacity is assessed by a qualified independent assessor, and they cannot be paid less than AUD 106 per week. For example, an employee with a work capacity of 70% will receive 70% of the national minimum wage.
It is important to note that in Australia, most workplaces are covered by an award or enterprise bargaining agreement (EBA) that sets the rates of pay for a specific industry, workplace, or enterprise. These agreements are usually negotiated by unionised employees and can result in pay rates higher than the national minimum wage. Awards cover many different industries and occupations, and employees covered by an award or registered agreement are entitled to the minimum pay rates, including penalty rates and allowances outlined in that award or agreement. These pay rates may be higher than the national minimum wage.
Employees who are not covered by an award or registered agreement are entitled to the national minimum wage. This includes award-free employees, who must be paid at least the minimum hourly rate for every hour worked.
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Casual workers
In Australia, the minimum wage is the lowest rate an employer is legally allowed to pay their employees. It is set at a level that ensures all workers can afford a relative standard of living. The national minimum wage is reviewed annually by the Fair Work Commission, which adjusts the minimum wage. It applies to all workers not covered by an industry award or registered agreement.
The minimum wage for casual workers in Western Australia increased on 31 January 2025, as the casual loading applied to the state minimum wage changed from 20% to 25%. This change does not require all casual loadings in WA awards, agreements, or contracts of employment to be 25%. However, if an employee's pay rate 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 the minimum wage is just that—a minimum. Employers can choose to pay their employees more than the minimum wage and many do so to attract and retain talented employees. Award rates are the minimum pay rates, allowances, and conditions that apply to most employees in a particular industry or occupation. They are set by the Fair Work Commission and are contained in modern awards, which are reviewed and updated regularly. Award rates are sometimes lower than the National Minimum Wage, for example, introductory rates might apply for a limited time after an employee starts a new job.
The best way to find your specific wage is to use a minimum wage calculator. You can check what pay rate applies to your job using the Pay and Conditions Tool (PACT) provided by the Fair Work Ombudsman.
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Frequently asked questions
The minimum award rate in Australia is the lowest amount that employers can legally pay their employees. This rate is set by the Fair Work Commission and is reviewed annually. As of July 1, 2024, the national minimum wage is AUD24.10 per hour or AUD915.90 per week for a 38-hour workweek.
Yes, the minimum award rate in Australia varies across different industries and occupations. Awards or enterprise bargaining agreements (EBAs) set the rates of pay for specific industries, workplaces, or enterprises. These rates may be higher than the national minimum wage.
Yes, the minimum award rate for junior employees, who are under 21 years of age, is different and is determined as a percentage of the national minimum wage. This percentage varies depending on the age of the junior employee.
Yes, there are minimum award rates for apprentices in Australia. Employers must ensure they adhere to the conditions stipulated in the relevant award for apprenticeships. The Fair Work Ombudsman Pay Calculator can be used to determine the exact rate for a specific apprenticeship.
If an employer pays less than the minimum award rate in Australia, it is considered a breach of federal or state law. Significant penalties may be incurred. Employees who believe they are not being paid the minimum wage can contact the Australian Workers' Union (AWU) for support.
