How do I calculate my annual salary from an hourly rate?

Multiply your hourly rate by the number of hours you work per week, then by 52 weeks. For a standard full-time week of 38 hours, the formula is: hourly rate × 38 × 52. This gives your gross annual pay before tax and super. The ATO salary calculator can then estimate your tax and take-home pay.

What is the difference between the National Minimum Wage and award rates?

The National Minimum Wage is the legal minimum pay for employees not covered by an award or agreement. From 1 July 2026 it is $26.44 per hour for a 38-hour week. Award rates are set by the Fair Work Commission for specific industries and occupations, and are often higher. Your actual pay may be based on an award rate, which can include penalty rates and allowances.

How is superannuation calculated on top of my hourly rate?

Superannuation is paid by your employer on top of your ordinary earnings. The current super guarantee rate is 12% of your ordinary time earnings, up to the maximum contribution base of $270,830 per year. For example, if your hourly rate is $30, your employer pays an extra $3.60 per hour into your super fund. This is not deducted from your pay.

How to Use the ATO Salary Calculator for a 38-Hour Week: Hourly to Annual Pay

For a 38-hour week, your annual gross pay is your hourly rate multiplied by 38 hours per week and 52 weeks per year.

How to Convert Your Hourly Rate to Annual Pay Using the ATO Salary Calculator

If you're paid by the hour and want to understand your annual salary, the simplest method is to multiply your hourly rate by the number of hours you work each week and then by 52 weeks. For a standard full-time week of 38 hours, the formula is:

Annual gross pay = hourly rate × 38 hours × 52 weeks

This gives you your gross annual income before tax, Medicare levy, and superannuation. To get a more accurate picture of your take-home pay and tax obligations, you can use the ATO salary calculator, which applies the current tax scales and Medicare levy. The calculator is a free tool provided by the Australian Taxation Office and is ideal for estimating your tax return or pay after deductions.

Why 38 Hours? The Standard Full-Time Week

Under the Fair Work Act, the standard full-time working week in Australia is 38 hours (not including overtime). Many awards and enterprise agreements adopt this as the ordinary hours. When you use the formula above, you assume you work exactly 38 hours every week for 52 weeks, with no unpaid leave or overtime. If your hours vary, you may need to average them over a longer period.

For part-time or casual workers, the same formula applies but with your actual weekly hours. For example, if you work 20 hours per week at $30 per hour, your annual gross would be $30 × 20 × 52 = $31,200.

The Fortnightly View

Many Australians are paid fortnightly. To find your gross fortnightly pay, simply multiply your weekly pay by two. Using the 38-hour week example: if your hourly rate is $30, your weekly pay is $1,140, and your fortnightly pay is $2,280. This can help you budget and compare with salary offers that are quoted per fortnight.

National Minimum Wage vs. Award Rates vs. Casual Loading

It's important to distinguish between different pay rates:

National Minimum Wage: From 1 July 2026, the minimum wage is $26.44 per hour for a 38-hour week, or $1,004.90 per week. This applies to employees not covered by an award or registered agreement.
Award rates: Many industries have specific award rates set by the Fair Work Commission. These are often higher than the minimum wage and may include penalty rates for weekends, evenings, or public holidays. Check the relevant pay guides for your industry.
Casual loading: Casual employees are entitled to a 25% loading on top of the base hourly rate (or award rate) to compensate for lack of paid leave. For example, the casual minimum wage from 1 July 2026 is $33.05 per hour (including loading). When using the the timesheet, you can check a box to add 25% casual loading on top of your base rate – never enter a rate that already includes loading.

Superannuation Is Paid on Top

Your employer must pay superannuation guarantee contributions on top of your ordinary earnings. The rate is 12% for the 2026–27 financial year, up to the maximum contribution base of $270,830 per year. Super is not deducted from your pay; it is an additional cost to your employer. For example, if your hourly rate is $30, your employer pays an extra $3.60 per hour into your super fund. This means your total employment cost is $33.60 per hour, but your take-home pay is based on the $30 rate.

Tax and Medicare Levy

The Australian tax system is progressive. For 2026–27, the resident tax rates are:

Nil on the first $18,200
15% on income from $18,201 to $45,000
30% on income from $45,001 to $135,000
37% on income from $135,001 to $190,000
45% on income above $190,000

In addition, most residents pay a Medicare levy of 2% of taxable income. The ATO salary calculator applies these rates and also accounts for the tax-free threshold and Medicare levy reduction thresholds (using the 2025–26 single reduction thresholds as the 2026–27 figures were not confirmed at the time of this guide).

Example Calculation

Let's say you earn $35 per hour and work a 38-hour week.

Weekly gross: $35 × 38 = $1,330
Fortnightly gross: $1,330 × 2 = $2,660
Annual gross: $35 × 38 × 52 = $69,160

Using the ATO salary calculator, your estimated tax on $69,160 would be:

Tax on first $18,200: $0
Tax on next $26,800 (up to $45,000): 15% = $4,020
Tax on remaining $24,160 (up to $69,160): 30% = $7,248
Total tax: $11,268
Medicare levy (2%): $1,383.20
Total deductions: $12,651.20
Estimated take-home pay: $56,508.80 per year, or about $1,086.71 per week.

Superannuation (12%): $69,160 × 12% = $8,299.20 paid by your employer on top.

Using the Timesheet and Reference Tables

Our the timesheet lets you enter your base hourly rate and optionally add casual loading. It calculates your weekly, fortnightly, and annual pay instantly. For more detailed comparisons, see our reference tables which include award rates and average earnings by industry.

Important Disclaimer

The calculations above are estimates. They assume you work the same number of hours every week, with no unpaid overtime, penalty rates, allowances, or salary sacrifice. Super is estimated at 12% of ordinary earnings only, paid on top, and stops at the $270,830 maximum contribution base. Tax uses the 2026–27 resident scale with the full tax-free threshold. Medicare uses the 2025–26 single reduction thresholds because the 2026–27 reduction thresholds were not confirmed here. HELP repayments, the Medicare levy surcharge, and salary packaging are not deducted. This is an estimate, not a determination of your pay or tax.

Average Earnings for Context

According to the Australian Bureau of Statistics, average weekly earnings for full-time adult ordinary time employees in May 2026 were $2,083.70 per week. This is an average across all industries and occupations, not a median for any specific job. For all employees (including part-time), total average earnings were $1,579.20 per week. These figures can help you gauge where your hourly rate sits relative to the broader workforce.

Final Tips

Always check your award or agreement for your correct minimum rate.
If you are a casual, remember to add the 25% loading to your base rate.
Use the ATO salary calculator for a personalised tax estimate.
For more on minimum wage and casual loading, see our minimum wage and casual loading pages.

Converting your hourly rate to annual pay is straightforward with the 38-hour week formula. Whether you're negotiating a salary, budgeting, or planning your tax, the ATO salary calculator and our tools can help you make informed decisions.