Take-Home Pay vs Minimum Wage Checker
Compare your take-home pay to the national minimum wage to get perspective on your earnings.
Quick Use Samples
Your Pay Details
Comparison to Minimum Wage
Your Pay is
1.36x
the gross minimum wage
Minimum Wage Hours
51.7
hours to earn your weekly pay
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What is the Minimum Wage?
The National Minimum Wage is the legal floor for pay rates in Australia. Set by the Fair Work Commission, it's the lowest hourly rate an employee can be paid. This tool compares your actual take-home pay to this national benchmark to give you perspective on your earnings.
Behind the Formula
The calculator first converts your take-home pay into a standard weekly figure. It then compares this to the gross (before-tax) weekly National Minimum Wage, which is calculated as the minimum hourly rate multiplied by a standard 38-hour work week. The result shows how many 'multiples' of the minimum wage you take home.
Expert Insights
- Most employees are covered by a Modern Award, which sets a minimum wage higher than the National Minimum Wage. This tool uses the national base rate, so your actual award minimum could be higher.
- This comparison highlights the 'tax wedge' - the difference between the gross wage an employer pays and the net pay an employee receives. Your take-home pay is significantly less than your gross pay due to income tax and Medicare.
- The minimum wage is a crucial part of Australia's social safety net, aiming to provide a basic, decent standard of living for all workers.
Actionable Tips
- Use the Fair Work Ombudsman's Pay and Conditions Tool (PACT) to find the specific minimum wage for your job under your Modern Award.
- If you discover you are being paid less than the legal minimum, you are entitled to back pay. Contact the Fair Work Ombudsman for free advice and assistance.
- When evaluating your pay, consider your total compensation, including superannuation, which is paid on top of the minimum wage.
Real-World Examples
A Graduate's First Job
A graduate with a weekly take-home pay of $1,100 sees that this is approximately 1.25 times the gross minimum wage, providing context for their starting salary.
A High-Income Professional
A professional with a fortnightly take-home pay of $4,000 finds their equivalent weekly pay is double that of the national minimum wage, reflecting their experience and skills.
Checking a Low-Paid Job
Someone in a low-paid job with a weekly take-home pay of $750 uses the tool. Seeing that their pay is very close to the minimum wage motivates them to check their specific award rate to ensure they are not being underpaid.
Glossary of Terms
National Minimum Wage
The base minimum hourly rate for any employee in Australia not covered by a specific award or agreement.
Modern Award
A legal document setting out the minimum pay rates and conditions for a particular industry or occupation.
Fair Work Commission
Australia's independent workplace relations tribunal that, among other things, sets the minimum wage.