Guide
What do you actually have to pay?
Almost every employer who gets this wrong makes the same mistake: they look up the national minimum wage, see $26.44 an hour, and assume that is the floor. For most employees it is not. It is the floor only for the minority of workers no award covers.
The real floor is set by whichever of the 120-odd modern awards applies to the work — and it is usually higher, before you add loading, penalties, allowances and super.
The short version
- The national minimum wage is $26.44 an hour from 1 July 2026 — but it only applies if no award covers the role.
- Awards are matched to the work and the industry, not to your ABN or what you call the job.
- Casual loading is 25% in most awards, paid instead of annual and sick leave.
- Superannuation is 12% for 2026-27, and from 1 July 2026 it must be paid every pay cycle, not quarterly.
- Fair Work's Pay and Conditions Tool is the authoritative answer. Use it before you write the ad, not after you make the offer.
Which modern award covers my employee?
The award is determined by the industry your business operates in and the work the person actually does — not by your job title for them or how you structure your payroll.
This is the step people skip, and it is the one that matters most, because every other number flows from it. A bookkeeper in a construction company and a bookkeeper in a medical practice may sit under different awards, with different base rates and different penalty provisions.
Two tests run at once. Industry awards cover a business and most of the people in it — the Building and Construction General On-site Award, the Hospitality Industry (General) Award, the Retail Award. Occupation awards cover a kind of work wherever it is done — the Clerks Private Sector Award is the common catch-all for administrative roles in businesses with no industry award of their own.
Within an award, roles sit at a classification level tied to skill, responsibility and sometimes years of experience. Getting the award right and the classification wrong produces the same underpayment, so read the classification descriptions rather than assuming the lowest one applies.
What is the national minimum wage in Australia in 2026-27?
From 1 July 2026 the national minimum wage is $26.44 an hour, or $1,004.90 for a 38-hour week, and it applies only to employees not covered by an award or registered agreement.
| Basis | Rate | Applies to |
|---|---|---|
| Hourly | $26.44 | Permanent employees not covered by an award |
| Weekly (38 hours) | $1,004.90 | Full-time equivalent |
| Casual, with 25% loading | $33.05 | Casual employees not covered by an award |
The wording on Fair Work's own page is worth quoting exactly, because it is the part that gets misread: the National Minimum Wage "applies to employees not covered by an award or registered agreement". Most Australian employees are covered by one. If you are hiring a cleaner, a receptionist, a retail assistant or a labourer, the award rate is your floor, not this number.
Rates change on 1 July each year following the Fair Work Commission's annual wage review. If you are reading an old pay guide or an old blog post, assume it is wrong.
What does an award add on top of the base rate?
Awards add casual loading, penalty rates for evenings, weekends and public holidays, overtime, and allowances for things like tools, travel, laundry and first aid.
The base hourly rate is the smallest part of the picture for any role worked outside standard business hours. A hospitality or retail business costing a weekend shift at the base rate will be out by a wide margin.
- Casual loading — 25% in most awards, paid on every hour worked. It is compensation for having no paid annual leave, sick leave or notice, not a bonus.
- Penalty rates — higher rates for evenings, weekends and public holidays. They vary by award, and they are where weekend trading either works or does not.
- Overtime — typically time and a half then double time, triggered by hours beyond the ordinary span, which the award defines.
- Allowances — tools, vehicle, travel, laundry, meal, first aid, leading hand. Small individually, and routinely forgotten.
How much superannuation do I pay in 2026-27?
The superannuation guarantee is 12% of ordinary time earnings for 2026-27, and from 1 July 2026 it must be paid at the same time as each pay cycle rather than quarterly.
The rate reached 12% on 1 July 2025 and stays there for 2026-27. The change that affects you operationally is timing, not quantum: Payday Super means contributions now go out with each pay run rather than within 28 days of the end of each quarter.
For cash flow this matters more than it sounds. Businesses that were quietly using the quarterly super liability as working capital no longer can. If that describes you, the transition is a one-off hit worth planning for rather than discovering.
- 12%
- Super guarantee rate, 2026-27
- Each pay run
- When super must be paid from 1 July 2026
- $26.44
- National minimum hourly wage
Source: ATO
Source: Fair Work Ombudsman
What should a job ad say about pay when an award applies?
Name the award and classification and publish the actual rate you will pay — being award-covered is a reason to be more specific about pay, not less.
"Award rates apply" is read by candidates as the legal minimum and not a cent more. Sometimes that is accurate. If you intend to pay above the award, saying so is one of the cheapest competitive advantages available to a small employer, and almost nobody does it.
Don't
"Rate as per award"
Instead
"$32.50/hr, Clerks Private Sector Award Level 2 — above the $29.10 minimum"
Don't
Leaving casual loading ambiguous
Instead
State whether the advertised rate includes the 25% loading. Candidates cannot tell, and will assume the worse reading.
If you are weighing up whether to publish pay at all, the fuller argument is in should you put the salary in your job ad.
Common questions
Is the national minimum wage the same as the award rate?
No. The national minimum wage ($26.44 an hour from 1 July 2026) applies only to employees not covered by an award or registered agreement. Most Australian employees are covered by a modern award, and the award rate for their classification is usually higher.
How do I find out which award applies to my employee?
Use the Fair Work Ombudsman's Pay and Conditions Tool. It asks about your industry and the work the employee does, then returns the award, the classification levels and the current rates including penalties and allowances.
What is casual loading in Australia?
Casual loading is an additional percentage — 25% in most modern awards and under the national minimum wage — paid on every hour a casual works. It compensates for the absence of paid annual leave, paid sick leave and notice of termination.
Do I have to pay superannuation to casual employees?
Yes. The 12% superannuation guarantee applies to casual employees on their ordinary time earnings in the same way it applies to permanent staff.
Read next
What a hire actually costs you
Advertising is the smallest line item. Here's the full picture — owner hours, vacancy cost, ramp-up, and what a mis-hire really costs — with Australian benchmarks.
Read→
Casual, part-time or full-time?
What legally separates the four types, what each costs, and the trap of calling someone casual when they are not.
Read→
Should you put the salary in your job ad?
The objections, honestly assessed — and what to publish when you can't publish a number.
Read→