What is the difference between the National Minimum Wage and an award rate?

The National Minimum Wage is the legal minimum hourly rate set by the Fair Work Commission, currently $26.44 per hour from 1 July 2026. An award rate is higher and applies to specific industries or occupations, as determined by the Fair Work Ombudsman. Most employees are covered by an award, which includes minimum pay rates, penalty rates, and allowances. If no award applies, the National Minimum Wage is the floor. Always check your award or enterprise agreement, as it may provide more than the minimum.

How does casual loading work when converting hourly to annual pay?

Casual loading is an extra 25% on top of the base hourly rate, compensating for lack of paid leave. For example, the National Minimum Wage casual rate is $33.05 per hour ($26.44 × 1.25). When converting to annual pay, multiply the casual hourly rate by hours per week and 52. However, casual employees do not accrue annual or sick leave, so the annual figure is a gross estimate. Our [casual loading](/topics/casual-loading) guide explains how to use the checkbox on the timesheet to add the 25% loading correctly.

What is a car salary sacrifice and how does it affect my pay?

A car salary sacrifice is an arrangement where you forego part of your pre-tax salary in exchange for a vehicle (including running costs) provided by your employer. This reduces your taxable income, potentially lowering your tax and Medicare levy. However, it also reduces your ordinary earnings for super guarantee purposes, as super is calculated on the reduced salary. Our [super and packaging](/topics/super-and-packaging) page covers how salary packaging interacts with super. Note that our calculator does not deduct salary sacrifice; it estimates gross pay without packaging.

Hourly to Annual Pay: National Minimum Wage vs Award Rates and Car Salary Sacrifice

For a full-time employee working 38 hours per week, the annual gross pay is your hourly rate multiplied by 1,976 hours (38 × 52).

Understanding Hourly to Annual Pay

When you have an hourly rate or a salary offer, converting between the two helps you compare jobs and budget. The basic formula is straightforward: annual gross pay ≈ hourly rate × hours per week × 52. For a standard full-time role, we assume 38 hours per week (the ordinary hours under the Fair Work Act). That gives 1,976 hours per year. But not all jobs are the same – award rates, casual loading, and salary packaging like a car salary sacrifice can change the picture.

The National Minimum Wage vs Award Rates

The National Minimum Wage, set by the Fair Work Commission, is the legal minimum for employees not covered by an award or agreement. From 1 July 2026, it is $26.44 per hour, or $1,004.90 per week for 38 hours. However, most Australian employees are covered by an industry or occupation award, which often pays more. For example, a retail employee might earn $28–$30 per hour under the General Retail Industry Award. Award rates include minimum wages, penalty rates, and allowances. If you're unsure which award applies, check the pay guides on the Fair Work Ombudsman website. Our minimum wage page has more details on the current rate.

Casual Loading and the Fortnight

Casual employees receive a 25% loading on top of the base rate to compensate for not receiving paid leave. For the National Minimum Wage, that's $33.05 per hour. When converting to annual pay, multiply the casual rate by 38 hours and 52 weeks: $33.05 × 38 × 52 = $65,306.80 gross per year. But remember, casuals don't get annual leave or sick pay, so the annual figure is an estimate of gross earnings if you work every week. To see your fortnightly pay, multiply your weekly gross by 2. For a casual on the minimum wage, that's $33.05 × 38 × 2 = $2,511.80 per fortnight before tax. Our casual loading guide explains how to use the timesheet checkbox correctly.

Super Guarantee Paid on Top

Your employer must pay super guarantee of 12% of your ordinary earnings (from 1 July 2026) into a super fund. This is on top of your gross pay, not deducted from it. For a full-time employee earning $26.44 per hour, the annual super contribution is $26.44 × 38 × 52 × 12% = $6,265.34, up to the maximum contribution base of $270,830. If you have a car salary sacrifice, your ordinary earnings for super may be reduced, as the sacrificed amount is not considered ordinary earnings. Check our super and packaging page for more on how salary packaging affects super.

Tax and Take-Home Pay

Once you have your annual gross, you can estimate tax using the 2026–27 resident rates: nil on the first $18,200, 15% on the next $26,800 (to $45,000), 30% on the next $90,000 (to $135,000), 37% on the next $55,000 (to $190,000), and 45% above that. Plus a 2% Medicare levy (using 2025–26 single reduction thresholds as 2026–27 thresholds are not confirmed). For a full-time worker on the National Minimum Wage ($52,416.80 gross), the tax would be roughly $5,232 (15% of $34,216) plus Medicare $1,048, leaving about $46,136 take-home. But this doesn't include HELP repayments, the Medicare levy surcharge, or salary packaging. Our take-home pay page has a detailed breakdown.

How a Car Salary Sacrifice Fits In

A car salary sacrifice is a popular way to reduce taxable income by having your employer provide a vehicle (including fuel, insurance, and maintenance) in exchange for a lower salary. For example, if you earn $80,000 gross and sacrifice $15,000 for a car, your taxable income drops to $65,000. This can save you tax at your marginal rate. However, it also reduces your super guarantee (since super is based on the reduced ordinary earnings) and may affect other entitlements. Our calculator does not deduct salary sacrifice – it shows gross pay without packaging. To see the impact, use the the timesheet to enter your base rate, then adjust manually. For award-covered employees, salary sacrifice must not reduce your pay below the award minimum.

Using the Timesheet and Reference Tables

Our the timesheet lets you enter your base hourly rate and optionally add 25% casual loading. It then calculates annual gross, fortnightly pay, estimated tax, and super. The reference tables provide quick conversions for common rates. If you're comparing a salary offer, use the hourly conversion guide to work backwards. Remember, the formula assumes you work the same hours every week with no unpaid overtime, penalty rates, or allowances. For award-specific rates, consult the pay guides from Fair Work.

Key Takeaways

Annual gross = hourly rate × hours per week × 52 (assume 38 hours for full-time).
The National Minimum Wage is $26.44/hour; award rates are usually higher.
Casual loading adds 25% – use the checkbox on the timesheet.
Super is 12% paid on top, up to the $270,830 contribution base.
Tax and Medicare are estimated using 2026–27 rates; salary sacrifice is not included.
A car salary sacrifice reduces taxable income but also lowers super and must not breach award minimums.

For a personalised estimate, start with the timesheet and adjust for your situation. Always check your pay slip and consult a tax professional for salary packaging advice.