What is the minimum wage in Australia?

When the minimum wage was first introduced, it was hailed as a revolutionary idea, giving Australian workers a set rate of pay that met the cost of living in 1907. Now, more than a century later, today’s minimum wage is sitting at $24.10 per hour or $30.13 per hour for employees employed on a casual basis.

So, what is the National Minimum wage, who decides what it should be, and how often does it increase? Here, our experts answer these questions and explain the ins and outs of the mandatory minimum wage in Australia. Let’s get into it.

1. What is the mandatory minimum wage in Australia?

The current mandatory minimum wage in Australia is set at $24.10.

The 2024 decision announced a 3.75 per cent increase to the National Minimum Wage, taking it to $24.10 per hour, effective from the first full pay period commencing on or after 1 July 2024. This increase flows onto Modern Award minimum wages for all classification levels, with those increases also effective from the first full pay period commencing on or after 1 July 2024.

2. Where do you find the National Minimum Wage?

You can find the National Minimum Wage within the National Employment Standards (NES), which are outlined in the Fair Work Act 2009 (Cth) (FW Act). This piece of essential legislation is the country’s national workplace relations framework; it outlines the rights, responsibilities, entitlements, and obligations of both employees and employers. It governs our industrial relations framework.

3. Who decides what the minimum wage is?

An Expert Panel of the Fair Work Commission (FWC) is responsible for setting the National Minimum Wage. Every year, the Expert Panel plays a critical role in fostering fair participation during reviews by ensuring that all interested organisations and individuals are given a reasonable opportunity to contribute. The review considers a range of factors such as wage growth, economic pressures, inflation rates and cost of living. Participants can submit written submissions and provide feedback on others’ submissions, promoting an open and transparent process.

To maintain accessibility, the Panel publishes all submissions on its website unless they contain confidential or commercially sensitive information. This process complies with the requirements outlined in the FW Act, underscoring the importance of inclusivity and accountability.

4. How often does the National Minimum Wage increase?

The minimum wage is reviewed yearly by an Expert Panel of the FWC during a process called the Annual Wage Review, and the decision and order come into place on 1 July of the following financial year. For example, in 2024, the National Minimum Wage increased by 3.75 per cent and flowed onto award, minimum pay rates for all classification levels.

5. How many people currently earn the minimum wage in Australia?

From apprentices and trainees to junior employees, there are over 2.6 million workers who earn minimum wage in Australia.

Stay tuned for the next annual wage review, which is expected in early June 2025. Remember that any percentage increase that’s set by the FWC at this time will take effect from the first full pay period on or after 1 July 2025.

Have questions about the minimum wage and workplace compliance? Citation HR can help

Of course, every business is different, and how you manage your people will be unique to your organisation. That’s where Citation HR can help – if you need tailored assistance, we’re here to support your business so you can focus on doing what you do best: running your business.

Citation HR’s experts can assist and support you with changes to relevant modern awards and any other workplace matters you might have. You can reach our Workplace Relations Advisors via our 24/7 HR Advice Line.

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