The Australian minimum wage is a crucial aspect of the country’s labour laws, ensuring fair compensation for workers across various industries. As of July 1, 2024, there have been significant updates to the national minimum wage that all employees and employers should be awa
This article will provide a comprehensive overview of the current minimum wage rates, who is eligible, and how it applies to different work situations.
Current National Minimum Wage in Australia
As of July 1, 2024, the national minimum wage in Australia has been set at $24.10 per hour or $915.90 per week for a standard 38-hour workweek. This rate applies to all adult employees who are not covered by an award or registered agreement, commonly referred to as “award-free” workers.
Who is Entitled to the Minimum Wage?
The national minimum wage applies to the majority of Australian workers, with a few exceptions:
- Workers under 21 years of age
- Employees on the Supported Wage System
- Apprentices and trainees
It’s important to note that it’s illegal for employers to pay less than the minimum wage, regardless of the job or industry.
Casual Workers and the Minimum Wage
Casual employees are entitled to a higher hourly rate to compensate for the lack of benefits such as paid leave. The minimum casual loading is 25% on top of the base rate, bringing the minimum hourly rate for casual workers to $30.13 as of July 1, 2024.
Awards and Enterprise Agreements
Many industries and workplaces are covered by specific awards or enterprise bargaining agreements (EBAs) that may set higher rates of pay than the national minimum wage. These agreements are often negotiated by unions and can provide better conditions for employees.
Minimum Wage for Young Workers
For award-free workers under 21, the minimum wage is calculated as a percentage of the adult rate:
- Under 16: 36.8% ($8.86 per hour)
- 16 years: 47.3% ($11.39 per hour)
- 17 years: 57.8% ($13.42 per hour)
- 18 years: 68.3% ($16.46 per hour)
- 19 years: 82.5% ($19.88 per hour)
- 20 years: 97.7% ($23.55 per hour)
Some awards or EBAs may provide higher rates for young workers, potentially even matching the full adult minimum wage.
Special Cases: Apprentices, Trainees, and Supported Wage System
Apprentices and trainees have different minimum wage structures based on their specific training agreement, age, and progress in their program. The Supported Wage System applies to employees with disabilities that affect their work capacity, with rates determined by the Department of Social Services.
Commission and Piece-Rate Work
Some jobs pay based on output rather than hours worked. Even in these cases, employees should not earn less than the national minimum wage. If you’re in a commission or piece-rate job, it’s important to ensure your earnings meet or exceed the minimum wage requirements.
Annual Minimum Wage Review
The Fair Work Commission reviews and adjusts the minimum wage annually. This process involves input from unions, businesses, and other stakeholders to determine fair and appropriate wage increases.
The Australian national minimum wage for 2024 is set at $24.10 per hour or $915.90 per week for full-time workers. This rate varies for young workers, casual employees, and those under special agreements. It’s crucial for both employees and employers to stay informed about these rates to ensure fair compensation and compliance with labor laws.