How do I convert my hourly rate to annual salary?

Multiply your hourly rate by the number of hours you work each week, then multiply by 52 weeks. For a standard full-time week of 38 hours, the formula is hourly × 38 × 52. This gives your gross annual pay before tax and other deductions.

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

The National Minimum Wage is the base rate set by the Fair Work Commission for employees not covered by an award or agreement. Award rates are higher minimums for specific industries or occupations, set by the Fair Work Ombudsman. Casual employees also receive a 25% loading on top of their base rate.

How is superannuation calculated on top of my pay?

Superannuation is paid by your employer at 12% of your ordinary-time earnings, on top of your salary. It is not deducted from your pay. The super guarantee applies up to a maximum contribution base of $270,830 per year (2026–27).

From Hourly to Annual: Understanding the National Minimum Wage and Average Earnings in Australia

For a 38-hour week, the national minimum wage of $26.44 per hour gives an annual gross of about $52,269, while full-time average ordinary-time earnings are around $108,352 per year.

Converting Your Hourly Rate to Annual Pay

If you earn an hourly wage or have been offered a salary, understanding your annual gross pay is straightforward. The basic formula is:

Hourly rate × hours per week × 52 weeks = annual gross pay

For a standard full-time week of 38 hours, this becomes hourly rate × 38 × 52. This calculation assumes you work the same number of hours every week, with no unpaid overtime, penalty rates, or allowances. It is a useful starting point for comparing job offers or planning your budget.

The National Minimum Wage as a Benchmark

From 1 July 2026, the national minimum wage set by the Fair Work Commission is $26.44 per hour. For a 38-hour week, that equals $1,004.90 per week and an annual gross of about $52,269. This is the legal minimum for employees not covered by an award or registered agreement. Many workers, however, are entitled to higher rates under industry or occupation awards.

Casual employees receive a 25% loading on top of their base rate, bringing the casual national minimum wage to $33.05 per hour (including loading). This loading compensates for the lack of paid leave entitlements. When using our timesheet, you can check a box to add 25% casual loading to your base hourly rate. Never enter a rate that already includes loading.

State Differences in Ordinary-Time Earnings

While the national minimum wage sets a floor, average earnings vary significantly across states and territories. According to the Australian Bureau of Statistics (ABS) Average Weekly Earnings for May 2026, full-time adult ordinary-time earnings averaged $2,083.70 per week nationally. That translates to an annual gross of about $108,352 for a 38-hour week. This figure is an average across all industries and states, not a median for any specific job.

When looking at all employees (including part-time and casual workers), total average weekly earnings were $1,579.20 in May 2026. This lower figure reflects the mix of full-time and part-time hours. These averages highlight that the national minimum wage is just one point on a wide spectrum. Your actual pay will depend on your award, enterprise agreement, or individual contract.

For more detailed comparisons, see our average pay reference tables.

Tax and Medicare Levy

Once you have your annual gross pay, you can estimate your take-home pay using the 2026–27 resident tax rates. The tax-free threshold is $18,200. Above that, income is taxed at progressive rates:

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, most residents pay a Medicare levy of 2% of taxable income. The 2025–26 single reduction thresholds are used here because the 2026–27 thresholds were not confirmed. The levy may be reduced for low-income earners. Note that HELP repayments, the Medicare levy surcharge, and salary packaging are not included in this estimate.

Superannuation Paid on Top

Employers must pay superannuation guarantee contributions of 12% of your ordinary-time earnings, on top of your salary. For example, if your annual gross pay is $80,000, your employer adds $9,600 to your super fund. The super guarantee applies up to a maximum contribution base of $270,830 per year (2026–27). Super is not deducted from your pay; it is an additional cost to your employer.

Fortnightly Pay

Many Australian workers are paid fortnightly. To find your gross fortnightly pay, simply double your weekly pay. For a 38-hour week at the national minimum wage, that is $2,009.80 per fortnight before tax. Fortnightly figures can help with budgeting and comparing to salary offers.

Casual Loading and Award Rates

If you are a casual employee, your base rate should be increased by 25% for casual loading. This loading is meant to compensate for the lack of paid sick leave and annual leave. Award rates often specify a higher base rate plus the casual loading. Always check your award or agreement with the Fair Work Ombudsman. Our casual loading page explains more.

Important Disclaimer

This conversion is an estimate only. It assumes the same hourly 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 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. For a precise determination of your pay and tax, consult a professional or use official tools.

For more information, see our hourly conversion guide and take-home pay calculator.