Minimum wage 2025: What you actually take home after tax and Medicare

Understanding the minimum wage 2025 and your take-home pay

When you see a job advertised at the minimum wage 2025, it's easy to assume that the number on the ad is what lands in your bank account. But the reality is different. The advertised rate is your gross salary – the amount before tax, the Medicare levy, and other deductions. Your take-home pay is what remains after the Australian Tax Office takes its share.

This guide explains the key mix-ups between gross salary, total package (including super), and take-home pay, so you know exactly what to expect.

Gross salary vs package vs take-home

• Gross salary: The base pay you earn before any deductions. For the national minimum wage, that's $26.44 per hour or $1,004.90 per week (based on a 38-hour week).
• Package: Often includes superannuation on top. For example, a job ad might say "$52,255 plus super" – the super is extra, not deducted from your pay.
• Take-home pay: The net amount deposited into your bank account after income tax and the Medicare levy are withheld. It does not include super (which goes into your super fund) or any salary sacrifice arrangements.

How tax and Medicare affect your minimum wage

For the 2026–27 tax year, the tax rates for a resident earning the minimum wage ($52,255) are:

• First $18,200: no tax
• Next $26,800 (up to $45,000): taxed at 15 cents per dollar
• Next $7,255 (up to $52,255): taxed at 30 cents per dollar

After applying the Low Income Tax Offset (LITO), your total income tax is approximately $5,980. Then the Medicare levy of 2% applies to your entire taxable income, adding $1,045. So total deductions are about $7,025, leaving you with roughly $45,230 take-home pay per year.

If your income is below $28,011, you pay no Medicare levy. Between $28,011 and $35,013, you pay a reduced rate (the shading threshold). But at the minimum wage, you are well above these thresholds, so the full 2% applies.

The role of superannuation

Super is not part of your take-home pay. From 1 July 2026, the super guarantee rate is 12% of your gross salary, paid by your employer into your super fund. If your salary is quoted as "plus super", your take-home is calculated from the base salary only. If it's quoted as "including super", the base salary is lower, and your take-home will be less. Always check which way the ad is written.

Using our tools to calculate your take-home

To get a personalised estimate, use our Take-home pay calculator. It applies the latest tax rates, Medicare thresholds, and LITO. For a deeper look at the minimum wage itself, see our Minimum wage page. Remember, this is an estimate only – it excludes HELP/HECS, the Medicare levy surcharge, and salary sacrifice.

Common questions about minimum wage take-home

Why is my take-home less than the weekly rate?

Your employer withholds tax and Medicare from each pay. The amount withheld depends on your tax code and earnings. At the minimum wage, you can expect about 13.5% of your gross pay to go to tax and Medicare combined.

Does the minimum wage change every year?

Fair Work reviews the national minimum wage annually. The current rate of $26.44 per hour applies from 1 July 2026. Always check the latest rate on the Fair Work Ombudsman website.

Can salary packaging increase my take-home?

Yes, by reducing your taxable income, salary packaging can lower your tax and Medicare levy. However, it may reduce your super guarantee base. See our Salary packaging guide for details.

Final thoughts

Knowing the difference between gross, package, and take-home helps you compare job offers accurately. The minimum wage 2025 rate is a starting point – your actual take-home depends on your personal circumstances. Use our Clearance tool to run your own numbers.