How minimum wage works in Australia
Australia’s minimum wage framework is set by the Fair Work Act and decisions of the Fair Work Commission. There are three main settings:
- National Minimum Wage (NMW): the base safety net for employees not covered by a modern award or enterprise agreement.
- Modern awards: industry or occupation instruments that set minimums for classifications, penalties, allowances, overtime and loadings.
- Enterprise agreements (EAs): workplace-specific agreements that must leave employees “better off overall” than the relevant award.
Employees should be paid the highest applicable minimum from these sources. A salary or “flat rate” does not override legal minimums unless it actually compensates for all award entitlements and record-keeping obligations are met.
Important: The correct rate depends on classification, hours and the instrument that applies. This page gives general information only. Get tailored advice before making decisions about pay or claims.
Current pay rates at a glance
National Minimum Wage
- $24.10 per hour (from 1 July 2024)
- $915.90 per week for a 38-hour week
- Casual loading of 25% on top of the base rate (where applicable)
Many workers are entitled to higher rates under a modern award or enterprise agreement.
What can increase your pay rate
- Modern award classification (level/grade)
- Penalty rates (weekends, public holidays, late/early shifts)
- Overtime and minimum breaks
- Allowances (tools, travel, uniform, first aid)
- Annual wage increases each 1 July
Not sure what applies? Use the Fair Work Ombudsman Pay Calculator, then confirm your award classification and any enterprise agreement. If you are in Western Australia’s state system, a separate state minimum wage may apply to some businesses.
Common minimum wage and pay issues
Frequent problems
- Paid a flat rate that ignores penalties or overtime
- Wrong award or wrong classification level
- Casual loading not added or misapplied
- Salaried role paid below award once hours are reconciled
- Unpaid training, meetings or travel time
- Piece rates not meeting minimums or record gaps
- Internships or “trials” not lawfully unpaid
Why issues escalate
Underpayments often build slowly from small errors: misclassification, missing allowances, inadequate records or “off the books” hours. Once detected, you can usually claim up to 6 years back pay plus interest and penalties may apply to the employer. Early calculation and clear documentation make resolution faster.
Documents and information to collect
Gathering the right material up front speeds up advice and helps quantify any underpayment.
- Employment contract, letter of offer and any variation
- Your award or enterprise agreement name and classification (if known)
- Timesheets, rosters, payslips and payroll summaries
- Bank statements showing wage deposits
- Communications about hours, duties, training and breaks
- Records of unpaid meetings, travel or set-up/pack-down time
How wage and underpayment matters often move forward
| Stage | What usually happens |
|---|---|
| Identify the instrument | Confirm if a modern award or enterprise agreement applies and your correct classification. |
| Calculate entitlements | Work out base rates, penalties, overtime, allowances and casual loading for each period. |
| Request resolution | Send a clear underpayment letter with calculations and a timeframe for payment. |
| Escalate if needed | Seek help from the Fair Work Ombudsman, your union, or commence a small claims/court action (up to $100,000 in small claims) to recover amounts, interest and potential penalties. |
Minimum wage FAQ
What is the national minimum wage in Australia?
From 1 July 2024 it is $24.10 per hour, or $915.90 for a standard 38‑hour week, before tax. Most casuals also receive a 25% loading. If an award or enterprise agreement applies, its minimums may be higher.
How do I know my correct award and classification?
Check your industry/occupation against the Fair Work modern awards list, then review duty lists and levels within that award. Your contract or payslip may reference the award and classification, but the legal test depends on the actual duties performed.
How far back can I claim unpaid wages?
Generally up to 6 years. Interest and civil penalties may also apply to the employer. Act promptly—records and witnesses become harder to obtain over time.
Do salaries and “all-in” rates comply if I work long hours?
Only if the salary is high enough to cover minimum award rates plus overtime, penalties and allowances, with proper time records and reconciliations. Many underpayments come from salaries that are too low once hours are counted.
Are interns, trial shifts and visa holders entitled to minimum wage?
Yes, unless the internship is a genuine vocational placement allowed to be unpaid. Trial shifts must be short and lawful; otherwise they are paid. Visa status does not remove workplace rights.
Where do I go for help?
The Fair Work Ombudsman provides free information and can help recover underpayments. Unions, community legal centres and employment lawyers can advise and act quickly. Use the form below to compare your options.
Free help, costs and local employment lawyers
Use this confidential form to get a fast wage check, estimated back pay and your best next step. We can connect you with free resources or provide quotes from employment lawyers near you.