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Mechanical Engineer Salary Australia: Award Rates vs National Minimum Wage

A Level 1 graduate mechanical engineer under the Professional Employees Award earns at least $33.71 per hour, or $66,825 annually based on 38 hours per week for 52 weeks.

Mechanical Engineer Salary Australia: Award Rates vs National Minimum Wage

When searching for a mechanical engineer salary Australia, it is important to understand the difference between the National Minimum Wage and the minimum rates set by the Professional Employees Award 2020. Most mechanical engineers are covered by this award, which provides higher pay than the National Minimum Wage. This article explains how to convert hourly rates to annual, fortnightly, and weekly figures, and covers tax and superannuation.

National Minimum Wage vs Award Rates

From 1 July 2026, the National Minimum Wage is $26.44 per hour, or $1,004.90 per week for 38 hours, according to the Fair Work Commission. However, mechanical engineers are typically covered by the Professional Employees Award 2020, which sets much higher minimum rates. For example, a Level 1 graduate professional with a three-year degree must be paid at least $33.71 per hour, or $66,825 per year. More experienced engineers at Level 2 earn $39.77 per hour ($78,836 annually), and Level 3 professionals earn $43.46 per hour ($86,157 annually). These rates are from the Fair Work Ombudsman's award summary.

If you are a casual mechanical engineer, you receive a 25% loading on top of the award rate. For a Level 1 graduate casual, that is $33.71 × 1.25 = $42.14 per hour. The award also specifies penalty rates for evening, weekend, and public holiday work, which further increase pay.

Converting Hourly to Annual, Fortnightly, and Weekly Pay

To find your annual gross salary, use the formula: hourly rate × hours per week × 52. This assumes you work the same hours every week with no unpaid overtime. For a full-time employee under the award, ordinary hours are 38 per week. So for a Level 1 graduate:

  • Hourly: $33.71
  • Weekly: $33.71 × 38 = $1,280.98
  • Fortnightly: $1,280.98 × 2 = $2,561.96
  • Annual: $33.71 × 38 × 52 = $66,825

If you work part-time, use your agreed weekly hours. The award allows part-time employees to work fewer than 38 hours per week, paid pro-rata.

Tax on Your Mechanical Engineer Salary

For the 2026–27 financial year, the Australian Taxation Office 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

Plus a Medicare levy of 2% (with possible reductions for low-income earners). For a Level 1 graduate earning $66,825, the tax would be approximately:

  • $0 on first $18,200
  • 15% on $26,800 ($45,000 – $18,200) = $4,020
  • 30% on $21,825 ($66,825 – $45,000) = $6,547.50
  • Total tax: $10,567.50
  • Medicare levy (2%): $1,336.50
  • Total tax and Medicare: $11,904
  • Net annual income: $66,825 – $11,904 = $54,921

This is an estimate; your actual tax may vary due to deductions or offsets.

Superannuation Paid on Top

Your employer must pay superannuation guarantee contributions of 12% of your ordinary time earnings into a super fund. This is on top of your salary, not deducted from it. For a $66,825 salary, the super contribution is $8,019 per year, up to the maximum contribution base of $270,830. So your total employment cost to the employer is $74,844.

Using the Timesheet Calculator

Our timesheet tool lets you enter your base hourly rate and optionally add casual loading. It then calculates your weekly, fortnightly, and annual pay, plus estimated tax and super. Remember, the calculator assumes 38 hours per week for full-time work. If you are award-covered, use the award rate from your classification.

For more detailed pay guides, see our pay guides page, which links to official Fair Work Ombudsman resources. You can also check the minimum wage page for the latest National Minimum Wage and award rates.

Summary

A mechanical engineer salary Australia under the Professional Employees Award is significantly higher than the National Minimum Wage. Always check your award classification to ensure you are paid correctly. Use the hourly-to-annual formula to understand your gross income, and remember that super is an extra benefit. For casual employees, the 25% loading applies. Tax and Medicare will reduce your take-home pay, but the calculator on this site can help you estimate your net income.

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

$52,245.44 gross a year, $2,009.44 a fortnight.

  • 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

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 multiply by 52. For a full-time employee working 38 hours per week, the formula is: hourly rate × 38 × 52. This gives your gross annual income before tax and super. For example, $33.71 per hour × 38 × 52 = $66,825. If you work part-time or casual, use your actual weekly hours.

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

Casual loading is an extra 25% paid on top of the minimum hourly rate to compensate for entitlements casual employees do not receive, such as paid leave. Under the Professional Employees Award, a casual mechanical engineer receives the base rate plus 25%. For a Level 1 graduate, that is $33.71 × 1.25 = $42.14 per hour. The National Minimum Wage for casuals is $26.44 × 1.25 = $33.05 per hour.

What is the superannuation guarantee and how is it paid?

The superannuation guarantee requires your employer to contribute 12% of your ordinary time earnings into a super fund on top of your salary. For a mechanical engineer earning $66,825, the super contribution would be about $8,019 per year, up to the maximum contribution base of $270,830. This is not deducted from your pay; it is an additional benefit.

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