Understanding the minimum wage for a 16 year old in Australia

Introduction

If you're a 16-year-old working in Australia, you might be wondering what you're entitled to earn. The answer isn't as simple as a single dollar figure because your minimum wage depends on the award or enterprise agreement that covers your job. This guide explains how junior pay rates work, what the minimum wage for a 16 year old really means, and how to work out your take-home pay after tax and the Medicare levy.

What is the minimum wage for a 16 year old?

Fair Work sets a National Minimum Wage of $26.44 per hour (or $1,004.90 per week) from 1 July 2026. But that rate applies only to employees not covered by an award or registered agreement. Most 16-year-olds work in industries like retail, fast food, hospitality, or hairdressing, which are covered by awards that include specific junior pay rates.

How junior pay rates work

Under many awards, employees under 21 are paid a percentage of the adult rate. The percentage increases with age. For example, the Hair and Beauty Award sets 50% of the adult rate for a 16-year-old, rising to 75% at 17. The Retail Award, Fast Food Award, and Hospitality Award all have similar tables. You must check the specific award that applies to your job – use the Fair Work Ombudsman's Pay and Conditions Tool or download the award's pay guide.

If no award applies

If you are truly award-free (rare for most part-time jobs), you are entitled to a percentage of the National Minimum Wage. Fair Work does not publish a single percentage for 16-year-olds without an award; you should contact the Fair Work Ombudsman for guidance. In practice, many employers follow the percentages common in similar awards.

From gross to take-home

Once you know your gross hourly rate, you need to understand what actually lands in your bank account. Your take-home pay is your gross pay minus:

• Income tax (calculated using the 2026–27 resident tax rates)
• Medicare levy (2% of taxable income, with a phase-in for low earners)

Superannuation (12% from 1 July 2026) is not deducted from your take-home if your pay is quoted as 'plus super'. Always check whether your salary is inclusive or exclusive of super.

Tax and Medicare

The tax-free threshold is $18,200. If you earn less than that in a financial year, you pay no tax. Between $18,201 and $45,000, you pay 15c for each dollar over $18,200. The Low Income Tax Offset (LITO) can reduce your tax further – up to $700 for incomes under $37,500.

Medicare levy: you pay 2% on your taxable income. However, if your income is below the single lower threshold of $28,011, you pay no Medicare levy. Between $28,011 and $35,013, the levy phases in at 10c per dollar over $28,011. Above $35,013, you pay the full 2%.

Example calculation

Suppose you work 10 hours per week at $15.00 per hour (a common junior rate in retail). Your weekly gross is $150, annual gross $7,800. That's below $18,200, so no income tax and no Medicare levy. Your take-home is $150 per week. If you work 20 hours at $20.00 per hour, annual gross $20,800. Tax on $2,600 above $18,200 = $390. LITO reduces that to $0 if your tax is less than $700. Medicare levy: $20,800 is below $28,011, so no Medicare. Take-home = $20,800 – $0 = $20,800 per year ($400 per week).

Use our Take-home pay calculator to get a precise estimate for your situation.

Common misunderstandings

• Gross vs net: Your job ad might say '$26.44 per hour' – that's the gross National Minimum Wage. Your take-home will be less after tax and Medicare, unless you earn under the thresholds.
• Junior rates are not apprentice rates: Apprentice rates are different and apply to formal training contracts.
• Super is not your money now: Super is paid on top of your salary (if quoted as 'plus super') and goes into a fund you can't access until retirement.

For more details on the National Minimum Wage and junior rates, see our Minimum wage guide. To understand how tax and Medicare affect your pay, visit Tax and Medicare.