The National Minimum Wage is the lowest legal rate of pay for employees in Australia who are not covered by a modern award or enterprise agreement.
What is the National Minimum Wage?
The National Minimum Wage sets a legally enforceable pay floor for award‑free employees in Australia. As of 1 July 2025, it is $24.95 per hour or $948 per week for adult employees who are not covered by a modern award or enterprise agreement.
It is reviewed each year by the Fair Work Commission as part of the Annual Wage Review process.
In practice, many employees are covered by modern awards or enterprise agreements, which set minimum pay rates above the National Minimum Wage. From a payroll and compliance perspective, employers must ensure that employees receive at least the applicable minimum rate — whether that is the National Minimum Wage or a higher award‑based rate — and that payroll systems are updated when rates change.
Things to know
- The National Minimum Wage applies where no modern award or enterprise agreement covers the role
- The rate is reviewed and updated annually by the Fair Work Commission
- Many employees are covered by awards with higher minimum pay rates
- Payroll systems must be updated when minimum rates change
- Paying below the minimum rate can result in underpayment and compliance action
FAQs
Does the National Minimum Wage apply to all employees?
No. The National Minimum Wage applies only to employees who are not covered by a modern award or enterprise agreement.
Who sets the National Minimum Wage in Australia?
The Fair Work Commission sets and reviews the National Minimum Wage each year as part of the Annual Wage Review.
How does the National Minimum Wage affect payroll processing?
Payroll processing must ensure that pay rates meet or exceed the applicable minimum rate and that updates are applied when new rates take effect.
What happens if an employer pays below the National Minimum Wage?
Paying below the minimum rate can result in underpayment obligations, back payments and potential compliance action.
