Hourly to annual .au

TimesheetGuidesSuper and packaging

Can You Salary Sacrifice Your Mortgage? A Guide to Hourly to Annual Pay

Based on the National Minimum Wage of $26.44 per hour for a 38-hour week, annual gross pay is approximately $52,253 before tax and super.

Understanding Hourly to Annual Pay

Converting your hourly rate to an annual salary is straightforward when you know the formula: hourly rate × hours per week × 52 weeks. This calculation assumes you work the same number of hours every week with no unpaid overtime, penalty rates, or allowances. For a standard full-time role, we assume 38 hours per week, as this is the ordinary hours defined by the Fair Work Ombudsman for many awards.

For example, the National Minimum Wage from 1 July 2026 is $26.44 per hour. Multiply that by 38 hours and 52 weeks:

$26.44 × 38 × 52 = $52,252.64 annual gross pay.

If you are a casual employee, you receive a 25% casual loading on top of the base rate. That means your hourly rate becomes $33.05 (including loading), and your annual gross pay would be:

$33.05 × 38 × 52 = $65,315.60.

Remember, superannuation is paid on top of your ordinary earnings. The super guarantee is 12% of your ordinary time earnings, up to the maximum contribution base of $270,830. So for a full-time employee on the minimum wage, the employer pays an additional $6,270.32 in super each year.

Fortnightly Pay

If you are paid fortnightly, simply multiply your weekly pay by 2. Using the minimum wage example:

Weekly pay = $26.44 × 38 = $1,004.72 Fortnightly pay = $1,004.72 × 2 = $2,009.44

For casuals, weekly pay is $33.05 × 38 = $1,255.90, and fortnightly is $2,511.80.

National Minimum Wage vs Award Rates

The National Minimum Wage is the floor for all employees not covered by an award or registered agreement. Award rates, set by the Fair Work Commission, are industry-specific and often higher. They also include classifications for different roles and experience levels. The figures above are based on the National Minimum Wage; your actual rate may be higher if you are covered by an award. Use the pay guides to find your award rate.

Casual Loading and Super

Casual loading of 25% is paid instead of entitlements like annual leave and sick leave. It is calculated on top of the base hourly rate. When using the timesheet, you enter your base hourly rate and check the casual loading box. Do not enter a rate that already includes casual loading. The calculator will add the 25% automatically.

Superannuation is paid on top of your ordinary earnings. For casuals, super is also paid on the base rate plus casual loading. The 12% super guarantee applies to all ordinary time earnings, including casual loading. However, super is not paid on overtime or bonuses unless specified in your award.

Can You Salary Sacrifice Your Mortgage?

A common question is: can you salary sacrifice your mortgage? Salary sacrifice is an arrangement where you forgo part of your pre-tax salary in exchange for benefits like superannuation, a car, or electronic devices. Mortgage payments are not typically eligible for salary sacrifice under ATO rules. However, you can salary sacrifice into your superannuation, and through the First Home Super Saver Scheme, you may be able to withdraw those contributions to help buy your first home. This effectively allows you to use salary sacrifice for a home deposit, though not directly for mortgage repayments.

If you are considering salary packaging, check with your employer and a tax professional. The super and packaging page has more details on how salary sacrifice affects your take-home pay and super balance.

Tax and Take-Home Pay

Once you have your annual gross pay, you can estimate your tax using the 2026–27 resident tax rates:

  • Nil tax on income up to $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

Plus, the Medicare levy of 2% applies to most taxpayers. For a full-time minimum wage earner ($52,252.64), the tax would be approximately $5,175.79 (including Medicare), leaving a take-home pay of about $47,076.85 per year. Use the take-home pay tool for a more detailed estimate.

Average Earnings in Australia

The Australian Bureau of Statistics reports Average Weekly Earnings for full-time adult ordinary time earnings at $2,083.70 per week (May 2026). This is an average across all industries and states, not a median for your specific job. Your actual pay may differ based on your occupation, experience, and location. See the average pay page for more context.

Using the Timesheet

The timesheet is the home page where you can enter your base hourly rate. It assumes a 38-hour week but you can adjust hours if needed. The calculator shows your annual gross, fortnightly, and weekly pay, along with estimated tax and super. Remember, the results are estimates and do not account for salary sacrifice, HELP repayments, or the Medicare levy surcharge.

Summary

Converting hourly to annual pay is simple: multiply by hours per week and 52. Remember to add casual loading if applicable, and know that super is paid on top. While you cannot directly salary sacrifice your mortgage, salary sacrifice into super can help with home buying through government schemes. Always check your award rate and use the resources on this site for accurate estimates.

Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.

Try the rate on a timesheet

Adjust the timesheet

Year, gross$52,245.4452 weeks at this rate

Starts at the adult National Minimum Wage. Change the rate if the job pays more.

Level with the adult National Minimum Wage.

Mon$200.947.6 h
Tue$200.947.6 h
Wed$200.947.6 h
Thu$200.947.6 h
Fri$200.947.6 h
One fortnight$2,009.44 gross
  • Take-home
  • Tax
  • Medicare
Super 12%, paid on top$6,269.45 a year
Week
$1,004.72
Fortnight
$2,009.44
Take-home a year
$45,006.90
Tax + Medicare
$7,238.54
  • 16 h$21,998
  • 20 h$27,498
  • 24 h$32,997
  • 30 h$41,246
  • 38 h$52,245
  • 40 h$54,995

Resident tax for 2026–27 with the tax-free threshold. Medicare uses the 2025–26 single reduction thresholds. No HELP, no salary sacrifice, no Medicare levy surcharge. Super is 12% of ordinary earnings only, capped at the maximum contribution base.

Questions people ask next

Can you salary sacrifice your mortgage?

Salary sacrifice for mortgage payments is not a standard arrangement under most employer agreements or ATO rules. Typically, salary sacrifice applies to superannuation, cars, or other fringe benefits. However, you may be able to use the First Home Super Saver Scheme to withdraw sacrificed super contributions for a home deposit. Always check with your employer and a tax professional before entering any salary packaging arrangement.

How is casual loading calculated on top of the base rate?

Casual loading is an additional 25% paid on top of the base hourly rate to compensate for the lack of paid leave entitlements. For example, the National Minimum Wage of $26.44 per hour becomes $33.05 per hour with casual loading. When using the timesheet, you select the base rate and check the casual loading box; do not enter a rate that already includes loading.

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

The National Minimum Wage is the legal minimum for all employees not covered by an award or agreement. Award rates are industry-specific minimums set by the Fair Work Commission and are often higher. Award rates also include classifications and penalty rates. The National Minimum Wage from 1 July 2026 is $26.44 per hour, while award rates vary. Check your award on the Fair Work Ombudsman website for your correct rate.

Keep going

Super and packagingJob payCan You Salary Sacrifice Childcare Fees? Hourly to Annual Pay GuideHow Much Can You Salary Sacrifice Into Super? A Guide to Hourly to Annual Pay in AustraliaCan I Salary Sacrifice My Mortgage? Understanding Your Hourly to Annual PayWhat Can You Salary Sacrifice? Hourly to Annual Pay Guide for 38-Hour Weeks