Minimum Wage in Australia Explained
Australia has one of the highest minimum wages in the world. The national minimum wage is set by the Fair Work Commission through its Annual Wage Review, with increases typically taking effect from 1 July each year.
National Minimum Wage vs Award Rates
The national minimum wage ($24.10/hr as of 1 July 2025) is the absolute floor. However, approximately 80% of Australian employees are covered by a Modern Award, which typically sets higher minimum rates based on classification level, industry, and experience.
Signs You May Be Underpaid
- Your hourly rate is below the minimum for your award classification
- You're not receiving penalty rates for weekends, public holidays, or overtime
- Your casual loading is not being applied (if you're a casual employee)
- You haven't received a pay increase after the annual wage review (1 July)
- Deductions are bringing your effective rate below the minimum
What To Do If You're Underpaid
If this checker shows you may be underpaid:
- Gather evidence: keep copies of payslips, rosters, and time records
- Raise it with your employer first -- it may be an honest mistake
- Contact the Fair Work Ombudsman on 13 13 94 for free, confidential advice
- You can lodge a formal complaint and may be entitled to back-pay (up to 6 years)
Employer Obligations
Employers are legally required to pay at least the minimum rate set by the applicable Modern Award or enterprise agreement. Underpayment can result in significant penalties, including fines of up to $93,900 per contravention for individuals and $469,500 for corporations.