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

Multiply your hourly rate by the number of hours you work each week, then by 52 weeks. For a full-time 38-hour week, the formula is hourly rate × 38 × 52. This gives your gross annual pay before tax and super. If you work different hours, adjust the weekly hours accordingly. Remember, this assumes the same rate every week with no unpaid overtime or penalty rates.

What is casual loading and how does it affect my pay?

Casual loading is an extra 25% paid on top of the base hourly rate to compensate for lack of paid leave entitlements. The Fair Work Commission sets the National Minimum Wage at $26.44 per hour from 1 July 2026, so a casual employee would receive at least $33.05 per hour including loading. When using a calculator, enter your base rate without loading, then add the 25% separately if applicable.

Is salary packaging worth it for most workers?

Salary packaging can reduce your taxable income by directing pre-tax dollars toward eligible expenses like a car or super contributions. Whether it is worth it depends on your tax bracket, employer's policy, and fringe benefits tax implications. For most employees on the 30% or 37% marginal rate, packaging can save tax, but you should consider the impact on your super guarantee and Medicare levy. Use the [super and packaging](/topics/super-and-packaging) guide to compare scenarios.

Is Salary Packaging Worth It? A Guide to Hourly to Annual Pay for 38-Hour Weeks

For a standard 38-hour week, annual gross pay is your hourly rate multiplied by 38 hours per week and 52 weeks per year, with superannuation paid on top.

Understanding the Hourly to Annual Conversion

When you receive an hourly rate or a salary offer, the first step is to calculate your annual gross pay. The standard formula used across Australia is:

Annual gross = 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 typical full-time employee, the Fair Work Ombudsman considers 38 hours per week as the standard. If you work a different pattern, adjust the weekly hours accordingly. For example, a part-time worker on 20 hours per week would use 20 in the formula.

Why 52 Weeks and Not 48?

Some people mistakenly use 48 weeks to account for annual leave, but the formula uses 52 weeks because annual leave is paid. Your hourly rate already includes the cost of leave entitlements. If you are a casual employee, you receive a 25% loading instead of paid leave, so the 52-week formula still applies.

The Fortnightly View

Many employers pay fortnightly. To find your gross fortnightly pay, simply multiply your weekly pay by 2. For a 38-hour week at the National Minimum Wage of $26.44 per hour, your weekly pay is $1,004.90, and your fortnightly pay is $2,009.80. This can help you budget and compare with salary offers that are expressed per fortnight.

Distinguishing Minimum Wage, Award Rates, and Casual Loading

Australia has a complex system of minimum wages. The Fair Work Commission sets the National Minimum Wage, which from 1 July 2026 is $26.44 per hour for a 38-hour week. This applies to employees not covered by an award or enterprise agreement.

However, most workers are covered by an award that sets higher minimum rates for specific industries or occupations. Award rates often include classifications based on skill level and experience. If you are covered by an award, your minimum hourly rate may be higher than the national minimum. The minimum wage page provides more detail.

Casual loading is an additional 25% paid on top of the base hourly rate to compensate for not receiving paid sick leave or annual leave. The casual rate for the National Minimum Wage is $33.05 per hour. When using a timesheet or calculator, always enter your base rate without loading, then apply the 25% loading as a separate checkbox. Never enter a rate that already includes casual loading, as this would double-count the loading.

Superannuation Is Paid on Top

Superannuation is not included in your gross pay. The super guarantee is currently 12% of your ordinary earnings, paid on top of your gross salary, up to the maximum contribution base of $270,830 per year. For a full-time worker on $1,004.90 per week, the annual super contribution is approximately $120.59 per week (12% of $1,004.90). Super is paid by your employer and is separate from your take-home pay.

Tax and Medicare Levy

Your annual gross pay is the starting point for tax calculations. The Australian Taxation Office (ATO) uses the 2026–27 resident tax rates:

Nil 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

In addition, the Medicare levy is generally 2% of your taxable income. The 2025–26 single reduction thresholds are used here because the 2026–27 thresholds were not confirmed in this estimate. For most full-time workers, the combined tax and Medicare levy will be between 15% and 32% of gross income.

For example, a full-time worker earning the National Minimum Wage ($52,254.80 per year) falls into the 15% tax bracket. Their tax would be approximately $4,008.22 plus 2% Medicare levy, leaving a net annual take-home pay of around $46,000. Use the take-home pay guide for a detailed breakdown.

Is Salary Packaging Worth It?

Is salary packaging worth it? This is a common question for employees considering salary sacrifice arrangements. Salary packaging allows you to use pre-tax income to pay for certain expenses, such as a car, laptop, or additional super contributions. By reducing your taxable income, you may pay less tax and Medicare levy, but you also reduce your super guarantee (since super is calculated on ordinary earnings).

For most workers in the 30% or 37% tax brackets, salary packaging can save tax if the packaged items are exempt from fringe benefits tax. However, you should consider the effect on your overall financial situation. The super and packaging page explains how packaging affects your super balance and tax outcome. It is not always beneficial for everyone, especially if you are on a low income or close to the tax-free threshold.

Using the Timesheet Calculator

The timesheet on this site lets you enter your base hourly rate and see your annual, fortnightly, and annual pay instantly. A checkbox adds 25% casual loading on top. Remember to use your base rate only. The calculator 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, 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. HELP, the Medicare levy surcharge, and salary packaging are not deducted.

Average Earnings and Comparisons

The Australian Bureau of Statistics (ABS) Average Weekly Earnings for May 2026 show full-time adult ordinary time earnings of $2,083.70 per week. This is an average across all industries and states, not a median for any specific job. All employees total earnings (including part-time) average $1,579.20 per week. These figures can help you see where your pay sits relative to the broader workforce. The average pay page provides more context.

Final Notes

This guide uses the 38-hour week as the standard for full-time work. If your hours differ, adjust the formula accordingly. Always check your award or agreement for your exact minimum rate. The Fair Work Ombudsman provides pay guides for each industry. You can find them on the pay guides page.

Remember, the calculations here are estimates. Your actual pay may vary due to unpaid overtime, penalty rates, allowances, or salary packaging. For a more precise determination, consult a qualified professional or use the ATO resources.