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How to Convert Your Hourly Rate to Annual Pay: State Differences and Charity Salary Packaging Explained
For a full-time worker on a 38-hour week, annual gross pay is hourly rate × 38 × 52, with super paid on top.
Understanding Your Hourly to Annual Conversion
Whether you are negotiating a salary offer or checking your current pay, converting an hourly rate to an annual figure is straightforward. The basic formula is:
Annual gross pay = hourly rate × hours per week × 52 weeks
For a full-time employee, we assume a standard 38-hour week as set by the Fair Work Commission. This gives a consistent baseline for comparison. If you work part-time or irregular hours, adjust the weekly hours accordingly.
For example, if you earn $30 per hour, your annual gross would be $30 × 38 × 52 = $59,280. This is before tax, the Medicare levy, and superannuation.
Why 38 Hours?
The 38-hour week is the standard full-time week under many awards and the National Employment Standards. It is also used by the Australian Bureau of Statistics for its average earnings data. When you use the timesheet, you can enter any hourly rate and it will calculate the annual, monthly, fortnightly, and weekly figures based on 38 hours unless you change the hours.
The Fortnightly Pay Period
Many employers pay fortnightly. To find your fortnightly gross, simply multiply your weekly pay by two. Using the example above, weekly pay is $30 × 38 = $1,140, so fortnightly is $2,280. This helps you budget between pay cycles.
State Differences in Ordinary-Time Earnings
Earnings vary across states and territories due to industry mix, cost of living, and local labour markets. According to the Australian Bureau of Statistics’ Average Weekly Earnings (May 2026), full-time adult ordinary-time earnings nationally were $2,083.70 per week. However, this is an average, not a median, and it masks state differences.
For instance, the Australian Capital Territory and Western Australia often report higher average earnings due to concentrations of public administration and mining jobs, respectively. Tasmania and South Australia tend to be below the national average. These figures are averages across all industries and occupations, not a median for any specific job. If you are looking for pay information for a particular role, refer to job pay or award-specific pay guides.
National Minimum Wage and Award Rates
The National Minimum Wage from 1 July 2026 is $26.44 per hour, or $1,004.90 per week for a 38-hour week. This is the legal floor for employees not covered by an award or agreement. Most workers are covered by an award that sets higher minimum rates for their industry and classification. You can find relevant rates on pay guides or reference tables.
Casual employees receive a 25% loading on top of the base rate. For the minimum wage, that is $33.05 per hour. When using the timesheet, never enter a rate that already includes casual loading; instead, enter the base hourly rate and tick the casual loading checkbox.
Superannuation and Tax
Super guarantee is 12% of your ordinary earnings, paid by your employer on top of your gross pay. For 2026–27, the maximum contribution base is $270,830, meaning super is only paid on earnings up to that amount. So if your annual gross exceeds that, super stops at the cap.
Tax is calculated using the 2026–27 resident tax rates:
- 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
Plus the Medicare levy of 2% (based on 2025–26 single reduction thresholds, as 2026–27 thresholds were not confirmed). Our take-home pay tool estimates after-tax income, but it does not include HELP repayments, the Medicare levy surcharge, or salary packaging.
Charity Salary Packaging
If you work for a registered charity or certain not-for-profit organisations, you may be able to salary package up to $15,900 per year tax-free (plus additional amounts for meals and entertainment). This reduces your taxable income, potentially lowering the tax you pay and increasing your take-home pay. For example, packaging $10,000 of your salary could save you $3,000–$4,500 in tax depending on your marginal rate. The keyword “charity salary packaging” is an important consideration when comparing job offers, especially in the community sector. Our estimates do not include salary packaging, but you can learn more on the super and packaging page.
Important Disclaimer
Annual pay shown here is hourly rate × hours per week × 52. It assumes the same rate every week, no unpaid overtime, no penalty rates, no allowances, and no salary sacrifice. Super is estimated at 12% of ordinary earnings only, paid on top, and stops at the $270,830 maximum contribution base. Tax is 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, the Medicare levy surcharge, and salary packaging are not deducted. This is an estimate, not a determination of your pay or tax.
For a personalised calculation, use the timesheet. It lets you enter your base hourly rate, add casual loading, and see the breakdown for different pay periods.
Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.