Understanding the minimum wage for a 17 year old: gross pay vs take-home

The mix-up between gross salary, package, and take-home

When you see a job ad or hear about the minimum wage for a 17 year old, it’s easy to confuse the gross hourly rate with what actually lands in your bank account. Gross pay is the amount before any deductions – it includes the base rate plus any penalties or allowances. A salary package might also include superannuation (12% from 1 July 2026) and other benefits, but super is not part of your take-home pay. Take-home pay is what remains after income tax and the Medicare levy are withheld.

What is the minimum wage for a 17 year old?

Fair Work explains that junior pay rates are a percentage of the adult rate under an award. For example, a 17-year-old under the Hair and Beauty Award gets 75% of the adult rate. If you serve alcohol under the Restaurant Award, you must be paid the adult rate regardless of age. If you are not covered by any award or agreement, you are award-free and entitled to a percentage of the national minimum wage – currently $26.44 per hour or $1,004.90 per week. The exact percentage for a 17-year-old award-free employee is set by the Fair Work Ombudsman and varies by age.

How junior rates work under awards

Many awards include a table of junior percentages. Common awards with junior rates include the Fast Food Award, Retail Award, and Hospitality Award. To find your rate, use the Pay and Conditions Tool or download the pay guide for your award. Always check if your award has a special rule – for instance, if you sell or serve alcohol, you may be entitled to the adult rate.

From gross to take-home: an example

Let’s say you are 17, work 38 hours per week under an award that pays 75% of the adult rate. The adult rate under your award might be $26.44 (the national minimum wage) or higher. At 75%, your hourly rate is $19.83. Your weekly gross pay is $753.54, or about $1,507 per fortnight. Over a year (52 weeks), that’s $39,184.

Now apply 2026–27 tax rates: the first $18,200 is tax-free, then 15c per dollar up to $45,000. Your taxable income of $39,184 gives tax of ($39,184 – $18,200) × 0.15 = $3,147.60. The Low Income Tax Offset (LITO) reduces this: maximum $700, reduced by 5c per dollar over $37,500. Your LITO is $700 – (($39,184 – $37,500) × 0.05) = $615.80. So tax after LITO is $3,147.60 – $615.80 = $2,531.80.

Medicare levy: full 2% applies because your income is above the single upper threshold of $35,013. That’s $39,184 × 0.02 = $783.68. Total deductions: $2,531.80 + $783.68 = $3,315.48. Your annual take-home is $39,184 – $3,315.48 = $35,868.52, or about $690 per week, $1,379 per fortnight.

Remember: this is an estimate. Your actual tax may differ due to rounding, HELP/HECS, or the Medicare levy surcharge. Use the Clearance tool for a personalised calculation.

Key numbers to know

• National minimum wage: $26.44 per hour, $1,004.90 per week (from 1 July 2026).
• Medicare levy single thresholds: $28,011 (lower) and $35,013 (upper). Below $28,011 you pay no Medicare levy; between $28,011 and $35,013 you pay 10c per dollar over the lower threshold.
• Super guarantee: 12% from 1 July 2026, paid on top of your wage, not deducted from take-home.
• Tax-free threshold: $18,200.

Why the minimum wage for a 17 year old is not a single number

Because junior rates depend on your award, your actual minimum wage could be anywhere from 50% to 100% of the adult rate. The Fair Work Ombudsman provides detailed pay guides for each award. If you are award-free, the percentage is set by the National Minimum Wage Order. Always check your specific situation.

How to avoid confusion

• Look for the gross hourly rate in your employment contract.
• Ask if the rate is plus super or inclusive of super.
• Use the Take-home pay guide to estimate your net income.
• Remember that tax and Medicare are withheld by your employer through PAYG.

Final thoughts

Understanding the difference between gross pay, package, and take-home is crucial, especially when you are starting work. The minimum wage for a 17 year old is not a fixed amount – it varies by award and age. Always verify your award coverage and use official tools to calculate your entitlements. For more details, see Minimum wage and Tax and Medicare.