Your take-home pay under the new minimum wage

Understanding the new minimum wage

The Fair Work Ombudsman confirms the new minimum wage is $26.44 per hour, or $1,004.90 per week for a 38-hour week. This rate applies from the first full pay period on or after 1 July 2026. If you are covered by an award, your minimum pay may be higher, but the lowest ongoing rate in any award must be at least this amount.

For a full-time employee working 38 hours per week, 52 weeks per year, the annual salary is $52,255. This is the figure you will see on your employment contract before any deductions. The Fair Work Commission sets the national minimum wage each year, and the 2026 increase reflects a 4.75% rise for award-covered employees.

How to calculate your take-home pay

Your take-home pay is the amount that reaches your bank account after income tax and the Medicare levy. Using the 2026–27 tax rates:

• Tax-free threshold: First $18,200 is tax-free.
• Next bracket: $18,201 to $45,000 taxed at 15 cents per dollar.
• Next bracket: $45,001 to $135,000 taxed at 30 cents per dollar (plus $4,020).

For a $52,255 salary:

• Tax on $18,201–$45,000: ($45,000 – $18,200) × 0.15 = $4,020
• Tax on $45,001–$52,255: ($52,255 – $45,000) × 0.30 = $2,176.50
• Gross tax: $6,196.50
• Less Low Income Tax Offset (LITO): at $52,255, LITO is $216.18 (reduced from the maximum $700)
• Net tax: $5,980.32

Medicare levy: 2% of $52,255 = $1,045.10. The latest published single-person Medicare thresholds are $28,011 and $35,013. Full-time minimum wage earners are above the upper threshold, so the full 2% applies.

Total deductions: $5,980.32 + $1,045.10 = $7,025.42 Take-home pay: $52,255 – $7,025.42 = $45,229.58 per year, or approximately $869.80 per week.

This is an estimate only. It excludes HELP/HECS repayments, the Medicare levy surcharge, salary sacrifice, and payroll rounding. Use the Take-home pay guide for a personalised calculation.

Comparing job offers: salary vs total package

When comparing job offers, focus on the amount that reaches your bank account. The new minimum wage is a useful benchmark, but many roles offer more. Consider:

• Salary plus super: If an offer says “$52,255 plus super”, your employer contributes an additional 12% ($6,270.60) to your super fund. Your take-home pay is still based on $52,255.
• Salary inclusive of super: Some contracts quote a total package including super. For example, a $58,525 package includes $52,255 salary and $6,270.60 super. Your take-home is based on the salary component only.
• Penalty rates and allowances: Award-covered employees may receive higher pay for weekends, nights, or overtime. These increase your gross income and take-home pay.

Use the Minimum wage page to check award rates and the Tax and Medicare page to estimate your net income. Remember that super is not deducted from your pay – it is an additional benefit that grows your retirement savings.