How do I convert my hourly rate to an annual salary?

Multiply your hourly rate by the number of hours you work per week, then by 52 weeks. For a standard full-time week of 38 hours, the formula is: hourly rate × 38 × 52. This gives your gross annual pay before tax and super. For example, the National Minimum Wage of $26.44 per hour equals $52,261.44 per year. If you work casual hours, add 25% loading to your base rate first.

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

The National Minimum Wage ($26.44 per hour from 1 July 2026) is the legal minimum for award/agreement-free employees. Award rates are higher minimums set for specific industries or occupations, often including penalty rates and allowances. Most employees are covered by an award, so your minimum pay may be above the National Minimum Wage. Use the Fair Work Ombudsman's Pay Calculator to check your award rate.

How is superannuation calculated on my salary?

Superannuation is paid on top of your ordinary earnings at a rate of 12% (from 1 July 2026). It does not come out of your pay. For example, if your annual gross salary is $80,000, your employer must contribute an additional $9,600 to your super fund, up to the maximum contribution base of $270,830. Super is not included in your take-home pay.

Median Full Time Salary Australia: How to Convert Your Hourly Rate to Annual Pay

The median full-time salary in Australia is $1,887 per week, or about $98,124 per year based on a 38-hour week, according to the Australian Bureau of Statistics.

Understanding Your Pay: From Hourly to Annual

When you're offered an hourly rate or a salary, it helps to know what that means over a year. The median full time salary Australia gives you a benchmark: according to the Australian Bureau of Statistics, the median weekly earnings for full-time employees was $1,887 in May 2025. That works out to about $98,124 per year (assuming 52 weeks). But how do you get there from an hourly rate?

The Basic Conversion Formula

To convert an hourly rate to an annual salary, use this formula:

Annual gross pay = hourly rate × hours per week × 52

For full-time work, we assume a standard week of 38 hours (the base used by the Fair Work Commission). So:

$26.44/hour (National Minimum Wage) × 38 × 52 = $52,261.44 per year
$33.05/hour (casual rate including 25% loading) × 38 × 52 = $65,326.80 per year

If you work part-time, use your actual weekly hours. The formula works the same way.

The National Minimum Wage vs. Award Rates

The National Minimum Wage is the legal floor for award/agreement-free employees. From 1 July 2026 it is $26.44 per hour, or $1,004.90 per week for 38 hours. However, most employees are covered by an award or enterprise agreement that sets higher minimum rates. Award rates vary by industry and occupation – for example, a retail employee might earn more than the National Minimum Wage. Casual employees get an extra 25% loading on top of their base rate (making it $33.05 per hour at the minimum).

To find your correct minimum, check your award using the pay guides on this site or the Fair Work Ombudsman's Pay Calculator.

The Fortnightly View

Many Australians are paid fortnightly. To get your fortnightly gross pay:

Fortnightly pay = weekly pay × 2

For the median full-time salary of $1,887 per week, that's $3,774 per fortnight. For the National Minimum Wage, it's $2,009.80 per fortnight.

Tax and Medicare Levy

Your annual gross pay is not what you take home. The Australian Taxation Office applies marginal tax rates for 2026–27:

$0 – $18,200: nil
$18,201 – $45,000: 15% on excess over $18,200
$45,001 – $135,000: 30% on excess over $45,000
$135,001 – $190,000: 37% on excess over $135,000
$190,001+: 45% on excess over $190,000

Plus a Medicare levy of 2% (with possible reductions for low-income earners). Use the take-home pay calculator to estimate your net income.

Superannuation: Paid on Top

Super guarantee is 12% of your ordinary earnings, paid by your employer on top of your salary. It does not reduce your take-home pay. The maximum contribution base for 2026–27 is $270,830, so super stops accruing on earnings above that. For example, if your annual salary is $80,000, your employer adds $9,600 to your super fund.

Putting It All Together

Let's compare two scenarios using the the timesheet calculator:

National Minimum Wage (award-free adult): $26.44/hr → $52,261/yr gross → after tax and Medicare (approx.) $42,000 take-home → plus $6,271 super.
Median full-time salary: $1,887/week → $98,124/yr gross → after tax (approx.) $73,000 take-home → plus $11,775 super.

Remember, these are estimates. Your actual pay may differ due to penalties, allowances, salary sacrifice, or unpaid overtime. Always check your award or agreement.

Why the Median Matters

The median full time salary Australia ($98,124 per year) is a useful benchmark because it splits the workforce in half – half earn more, half earn less. It's different from the average (mean) full-time ordinary time earnings of $2,083.70 per week ($108,352 per year). The median is less affected by very high incomes, so it better represents a typical full-time worker.

Disclaimer

Annual pay 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 more detailed calculations, see the reference tables or explore topics like minimum wage and super and packaging.