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The minimum wage in Australia is the lowest amount that employers are legally allowed to pay their staff. It is reviewed annually to ensure it keeps up with the cost of living and inflation. The minimum wage in Australia depends on the industry or job a person works in, and there are different minimum wages for junior employees (those under 21) and apprentices. The minimum wage for permanent employees is AUD24.10 per hour or AUD915.90 per week, while casual workers get paid the same hourly base rate plus a 25% loading, which equates to AUD30.15 per hour.
| Characteristics | Values |
|---|---|
| Minimum wage per hour | $24.10 |
| Minimum wage per week | $915.90 |
| Minimum wage for juniors | Determined as a percentage of the national minimum wage, depending on the industry they're working in |
| Minimum wage for apprentices | Determined by the Fair Work Ombudsman Pay Calculator |
| Minimum wage for trainees | Determined by the Fair Work Ombudsman Pay Calculator |
| Minimum wage for award/agreement-free workers under 16 | $8.86 per hour |
| Minimum wage for award/agreement-free workers aged 16 | $11.39 per hour |
| Minimum wage for award/agreement-free workers aged 17 | $13.42 per hour |
| Minimum wage for award/agreement-free workers aged 18 | $16.46 per hour |
| Minimum wage for award/agreement-free workers aged 19 | $19.88 per hour |
| Minimum wage for award/agreement-free workers aged 20 | $23.55 per hour |
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What You'll Learn
Minimum wage for juniors
In Australia, the minimum wage is set by the Fair Work Commission, which reviews and adjusts the minimum wage annually. The minimum wage is determined by various factors, including the industry, age, and type of employment. As of July 1, 2024, the National Minimum Wage is $24.10 per hour or $915.90 per week for a 38-hour workweek.
For junior employees, the minimum wage varies based on their age and whether they are covered by an award or agreement. If a junior employee is not covered by an award or agreement, they are entitled to a percentage of the National Minimum Wage. The percentage increases with age, starting at 36.8% or $8.86 per hour for those under 16, and reaching 97.7% or $23.55 per hour for 20-year-olds.
For example, a level 1 junior employee under 16 covered by the General Retail Industry Award is entitled to a minimum hourly rate of $11.13, which is 45% of the National Minimum Wage. On the other hand, a 17-year-old like Carly, who works in a shop and is entitled to 60% of the adult pay rate under her award, will see her pay rate increase to 70% of the adult rate when she turns 18.
The rationale behind the junior pay rate is to facilitate the employment of young people entering their first or second jobs, recognizing their competitive disadvantage compared to older Australians with more work experience. However, critics argue that these claims lack empirical evidence and that eliminating junior rates would boost the economy, create new jobs, and have minimal labour displacement effects.
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Minimum wage for apprentices
The minimum wage in Australia is $24.10 per hour or $915.90 per week, based on a week of 38 ordinary hours. This is the National Minimum Wage, which applies to employees not covered by an award or registered agreement. The minimum wage is reviewed each year by the Fair Work Commission.
Different minimum wages apply to apprentices and trainees, who are employees with a formal training contract with their employer. Special rates and conditions apply to these employees, and their pay rates will depend on the type of employment, the employee's age, and their work capacity. Apprentice pay rates will also depend on how long the apprenticeship is and how much training the apprentice has done.
There are two ways an apprentice can move to the next level of an apprenticeship: time-based and competency-based. In the former, the apprentice moves up to the next pay level after working a certain amount of time (e.g., 12 months). In the latter, the apprentice moves up based on their demonstrated skills and abilities.
Apprentices and trainees may also be entitled to different minimum wages depending on their age. For example, employees under 21 are entitled to a minimum wage that is a percentage of the national minimum wage. This ranges from 36.8% ($8.86 per hour) for those under 16 years old to 97.7% ($23.55 per hour) for those who are 20 years old.
It is important to note that apprentices and trainees should be paid according to the terms of their registered agreement. The Fair Work Ombudsman provides a Pay and Conditions Tool to help calculate the minimum pay rates, penalties, and allowances that apply for specific awards.
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Casual workers' minimum wage
In Australia, the minimum wage is $20.33 per hour. However, this varies depending on the industry or job a person works in. The minimum wage is the lowest rate an employer is legally allowed to pay an employee. It is set at a level that ensures all workers can achieve a relative standard of living. The National Minimum Wage applies to employees not covered by an award or registered agreement.
For casual workers, the minimum wage includes an additional 'loading' on top of the base rate. The base rate is the same as for permanent employees, which is $24.10 per hour or $915.90 per week for a 38-hour work week. The additional loading for casual workers is 25%, which equates to a total minimum wage of $30.15 per hour.
The minimum wage for casual workers in Australia is reviewed annually by the Fair Work Commission. The National Minimum Wage Order outlines the minimum wage for award and agreement-free employees. Awards contain the minimum wage, as well as other terms and conditions, for employees in particular industries and occupations. If a job is covered by an industry award or agreement, the minimum rate set out in these will apply instead of the national minimum wage.
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.
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Awards and agreements
In Australia, the minimum wage depends on the industry or job a person works in. The National Minimum Wage is the minimum hourly rate one can be paid for the work they do, regardless of their job or industry. The National Minimum Wage applies to employees not covered by an award or registered agreement. This is the minimum pay rate provided by the Fair Work Act 2009 and is reviewed each year.
Awards outline the minimum entitlements for wages and conditions of employment. They usually relate to a specific industry or occupation. Awards cover things such as minimum wage rates, annual leave, hours of work, penalty rates, allowances and other minimum conditions. The Commission announced that minimum award wages will increase by 3.75% as of 1 July 2024. In some instances, employees aren’t covered by an award or enterprise agreement, in which case a national minimum wage order safeguards against exploitative arrangements.
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) that sets 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.
If the work you do is covered by an industry award or registered agreement, then the minimum pay rates set out in your award or agreement will apply, instead of the national minimum wage. The Fair Work Act 2009 outlines the minimum wage and each year this amount is reviewed by the Fair Work Commission. Once this annual wage review is complete, any changes to minimum wage are set out in the National Minimum Wage Order for that year.
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Unions and pay rates
Unions in Australia play a crucial role in advocating for fair pay rates and ensuring that workers receive a fair wage for their labour. The Australian Workers' Union (AWU) is one such example, campaigning for increases to the minimum wage, which is currently $24.10 per hour or $915.90 per week for a 38-hour workweek. The AWU provides assistance to employees who believe they are not being paid correctly, particularly in cases where the employer is paying less than the national minimum wage.
The Annual Wage Review, conducted by the Fair Work Commission, allows unions to submit claims for fair increases to minimum wages. This process involves input from various interested parties, including unions, who negotiate on behalf of their members. Unions have been instrumental in establishing and safeguarding the minimum wage standard, ensuring it keeps pace with the rising cost of living.
Union membership has been linked to higher wages across various industries and occupations. Data from the Australian Bureau of Statistics (ABS) indicates that union members' median weekly earnings are 26% higher than those of non-members. This translates to a median weekly income of $1,520 for union members compared to $1,208 for non-union members. The benefits of union membership extend beyond long-time members, with newer members also experiencing higher earnings than non-union workers.
Highly unionised industries or workplaces tend to have higher rates of pay compared to non-unionised ones. Unions are often involved in bargaining for Enterprise Bargaining Agreements (EBAs), resulting in higher wages than non-union-backed agreements. Additionally, unionised employees may negotiate pay rates that surpass the national minimum wage, further enhancing their earning potential.
Unions also provide support to specific groups, such as apprentices, trainees, and younger workers, who may be subject to different minimum wage rates based on their age, type of employment, and the industry they work in. By joining a union, individuals can access specific information about their wages and ensure they receive the pay they are entitled to.
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Frequently asked questions
The minimum pay rate in Australia is $24.10 per hour or $915.90 per 38-hour week. This rate is for adult employees in the national system who are award/agreement-free.
The minimum wage for junior employees in Australia is determined as a percentage of the national minimum wage depending on the industry they're working in and their age. For example, a 16-year-old should get 47.3%, which is $11.39 an hour.
The minimum wage in Australia is reviewed annually by the Fair Work Commission.
