Australia’s minimum wage rose on 1 July 2025, and if you are one of the roughly 2.6 million workers paid at or near the minimum, the change is already in your pay packet. The new national minimum wage is $24.95 per hour — or $948.00 per week for a full-time employee.
This guide breaks down exactly what the 2025 minimum wage means for your pay: your annual earnings, what you actually take home after tax, casual and part-time rates, and what to check if you think you are being underpaid.
The 2025 Minimum Wage Rates
Each year the Fair Work Commission reviews the minimum wage and sets new rates. In the 2025 Annual Wage Review, handed down on 3 June 2025, the Commission awarded a 3.5% increase — the same increase flowing through to minimum rates in modern awards.
The new rates apply from the first full pay period starting on or after 1 July 2025 (not necessarily 1 July itself — it depends on when your pay cycle begins).
| Rate | 2024-25 (old) | 2025-26 (new) | Increase |
|---|---|---|---|
| Hourly (adult, full-time) | $24.10 | $24.95 | +$0.85 (3.5%) |
| Weekly (38-hour week) | $915.90 | $948.00 | +$32.10 |
| Casual hourly (incl. 25% loading) | $30.13 | $31.19 | +$1.06 |
The 3.5% increase was larger than many expected, and the Commission was explicit about its reasoning: since July 2021, inflation had eroded the real value of minimum wages by around 4.5%, and with inflation back inside the Reserve Bank’s 2–3% target range, it was time to start restoring the lost ground.
What the Minimum Wage Means for Your Annual Pay
For a full-time adult working a standard 38-hour week at the national minimum wage:
| Pay period | Gross pay |
|---|---|
| Hourly | $24.95 |
| Weekly | $948.00 |
| Fortnightly | $1,896.00 |
| Monthly | $4,108.00 |
| Annual | $49,296.00 |
And here is what that looks like after tax in 2025-26 (income tax plus the 2% Medicare levy, no offsets or HECS):
| Annual | Monthly | Weekly | |
|---|---|---|---|
| Gross pay | $49,296 | $4,108 | $948 |
| Income tax | $5,577 | $465 | $107 |
| Medicare levy | $986 | $82 | $19 |
| Take-home pay | $42,733 | $3,561 | $822 |
On top of your wages, your employer must pay 12% superannuation guarantee — that is $5,915 a year on a minimum-wage salary, paid into your super fund on top of your take-home pay.
Want to check your own numbers? Our income tax calculator breaks down tax, Medicare and take-home pay for any salary.
Casual Minimum Wage: $31.19 Per Hour
Casual employees are entitled to the minimum hourly rate plus a 25% casual loading — compensation for not receiving paid leave and other permanent entitlements. In 2025-26 that works out to:
$24.95 × 1.25 = $31.19 per hour
A casual working 38 hours a week at the minimum earns $1,185.10 a week — $61,625 a year before tax. After tax and Medicare, that is roughly $51,120 in the hand, or about $983 a week.
Note that casual loading compounds with penalty rates: if you work weekends or public holidays under an award, the loading is typically calculated on top of the penalty rate, not instead of it. Our casual loading calculator can work out exactly what you should be paid for your shifts.
Who Does the National Minimum Wage Apply To?
The national minimum wage is the safety net for adult employees in the national workplace relations system who are not covered by a modern award or an enterprise agreement. That is a smaller group than many people realise — around one in five Australian employees (about 20.7%) are paid at minimum rates, but most of those are covered by awards rather than the national minimum wage itself.
If you are covered by a modern award — retail, hospitality, aged care, construction and most other industries have one — your minimum rate comes from the award, not the national minimum wage. The good news: the same 3.5% increase applied to award minimum rates from the first full pay period on or after 1 July 2025. Many award rates sit above the national minimum wage.
If you are covered by an enterprise agreement, your base rate must be at least as high as the relevant award rate — the increase flows through to you if your agreement rate was sitting at the minimum.
Junior employees, apprentices and trainees have their own rates (usually a percentage of the adult rate based on age or year of training), and employees with disability under supported wage arrangements are assessed separately. If any of these apply to you, check the Fair Work Ombudsman’s pay calculator for your exact rate.
How the Minimum Wage Compares to Average Earnings
A full-time minimum-wage salary of $49,296 is well below the national benchmarks. For context, average full-time adult earnings are around $108,350 a year, and the median Australian worker earns roughly $74,100.
That gap is exactly why the Fair Work Commission exists: minimum wages are a floor to protect the lowest-paid, not a reflection of typical earnings. Still, the comparison shows why so many minimum-wage workers feel the pressure of living costs — a full-time minimum-wage worker takes home about $822 a week after tax, in cities where median rents alone can exceed $600 a week.
If you earn more than the minimum and want to see where you sit, our salary to hourly calculator converts any annual salary into its hourly, weekly and monthly equivalents.
How the 2025 Increase Compares to Recent Years
The 3.5% increase continues a run of above-inflation rises as the Fair Work Commission works to restore the real value of minimum wages after the 2021–2023 inflation spike:
| Year (from 1 July) | Increase | Hourly rate | Weekly rate |
|---|---|---|---|
| 2023 | 8.6% | $23.23 | $882.80 |
| 2024 | 3.75% | $24.10 | $915.90 |
| 2025 | 3.5% | $24.95 | $948.00 |
In dollar terms, the minimum wage has risen $1.72 an hour — about $65 a week full-time — in just two years. For a full-time minimum-wage worker, that is roughly $3,400 more a year before tax than in 2023, a meaningful difference at this income level.
What To Do If You Think You Are Being Underpaid
Underpayment is common and often accidental — payroll systems miss the annual increase, or an employer applies the wrong award classification. Here is what to do:
- Check your rate. Confirm which award (if any) covers you and what your classification’s minimum rate is from 1 July 2025. The Fair Work Ombudsman’s pay calculator is the authoritative source.
- Check your payslips. Look at the pay period dates: the new rates apply from the first full pay period on or after 1 July 2025. If your pay week started on 30 June, the old rates applied to that week and the new rates to the next.
- Raise it with your employer first. Many underpayments are fixed quickly once pointed out — keep a written record.
- Contact the Fair Work Ombudsman if your employer will not fix it. They can investigate and order back-pay.
Keep your payslips and timesheets. If a dispute ever reaches the Ombudsman or the Fair Work Commission, your own records are your best evidence.
Frequently Asked Questions
When did the 2025 minimum wage increase start?
The new rates apply from the first full pay period starting on or after 1 July 2025. If your pay cycle started on, say, Wednesday 2 July, the $24.95 rate applied from that day.
Is the minimum wage the same in every state?
Yes. The national minimum wage applies across Australia. State and territory differences only matter for state-system employees (such as some state public sector workers not in the national system), who have their own minima.
Does the minimum wage include superannuation?
No. The $24.95 per hour is your wage; the 12% super guarantee is paid on top by your employer. Your total package at the minimum wage is effectively $27.94 per hour.
What is the minimum wage for a 19-year-old?
Junior rates are a percentage of the adult rate and vary by award. As a rough guide, many awards set 19-year-olds at around 70–80% of the adult rate, but you must check your specific award — the percentages differ.
Will the minimum wage rise again in 2026?
Almost certainly — the Fair Work Commission reviews the minimum wage every year, with the next decision due around June 2026 and new rates from 1 July 2026. The size of the increase will depend on inflation, wage growth and economic conditions at the time.
How much is $24.95 an hour per year after tax?
Working full-time (38 hours a week), $24.95 an hour is $49,296 a year before tax and about $42,733 after income tax and the Medicare levy — roughly $3,561 a month in your hand.
The Bottom Line
The 2025 minimum wage of $24.95 an hour ($948 a week) is worth $49,296 a year full-time, or about $42,733 after tax. If you are casual, make sure you are getting at least $31.19 an hour. And if you are covered by an award, check your classification rate — the 3.5% increase applied there too.
To see exactly what any wage is worth after tax, run it through our income tax calculator — it handles tax, Medicare levy and super in seconds.