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

Multiply your hourly rate by the number of hours you work each week, then by 52 weeks. For a standard full-time role of 38 hours, the formula is hourly rate × 38 × 52. This gives your gross annual pay before tax and other deductions. Remember that this assumes the same rate every week with no unpaid overtime, penalty rates, or allowances.

What is the difference between the National Minimum Wage and an award rate?

The National Minimum Wage, set by the Fair Work Commission, is the legal minimum for employees not covered by an award or agreement. From 1 July 2026 it is $26.44 per hour. Award rates are industry- or occupation-specific minimums that are often higher. They include classifications, penalty rates, and allowances. Always check the relevant award from the Fair Work Ombudsman to ensure you are paid correctly.

How is superannuation calculated on my hourly rate?

Superannuation is paid on top of your ordinary earnings at the super guarantee rate of 12% (2026–27). For example, if your hourly rate is $30, your employer contributes an additional $3.60 per hour into your super fund, up to the maximum contribution base of $270,830 per year. This is not deducted from your pay; it is an extra benefit.

Hourly to Annual Pay: Positive Salary Packaging and the National Minimum Wage

For a full-time employee working 38 hours per week, annual gross pay is your hourly rate multiplied by 38 then by 52.

Understanding Your Hourly to Annual Conversion

When you know your hourly rate or have a salary offer, converting to an annual figure helps you compare jobs and plan your budget. The basic formula is simple: hourly rate × hours per week × 52 weeks. For a standard full-time position, we assume 38 hours per week, as defined by the Fair Work Ombudsman. This gives you your gross annual pay before tax, super, and other deductions.

The National Minimum Wage vs Award Rates

The National Minimum Wage, set by the Fair Work Commission, is the legal floor. 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 minimums. Award rates vary by industry and classification, and often include penalty rates for weekends, public holidays, or late shifts. Always check the relevant pay guides or reference tables on the Fair Work Ombudsman website to confirm your correct rate.

If you are a casual employee, you are entitled to a 25% casual loading on top of the base rate. For the National Minimum Wage, that means $33.05 per hour. Note that this loading is added to the base rate, not included in it. When using the timesheet, you can tick a checkbox to add 25% casual loading – never enter a rate that already includes it.

From Hourly to Annual: The Numbers

Let’s look at a few examples using the National Minimum Wage. At $26.44 per hour for 38 hours a week:

Weekly pay: $26.44 × 38 = $1,004.72 (close to the official $1,004.90 due to rounding)
Fortnightly pay: $1,004.72 × 2 = $2,009.44
Annual gross: $26.44 × 38 × 52 = $52,245.44

For a casual worker at $33.05 per hour:

Weekly: $33.05 × 38 = $1,255.90
Annual: $33.05 × 38 × 52 = $65,306.80

These figures are estimates. They assume the same rate every week, no unpaid overtime, no penalty rates, and no allowances. Your actual pay may differ if you work irregular hours or receive additional payments.

Tax and Medicare

Your annual gross pay is subject to income tax and the Medicare levy. For the 2026–27 financial year, the 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

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. If you have a higher income, you may also be liable for the Medicare levy surcharge if you do not have appropriate private hospital cover. HELP loans, the Medicare levy surcharge, and salary packaging are not deducted in this estimate.

Superannuation: Paid on Top

Super guarantee is 12% of your ordinary earnings (from 1 July 2026) and is paid by your employer on top of your salary. For the National Minimum Wage example above, the employer would contribute an additional $6,269.45 per year into your super fund, up to the maximum contribution base of $270,830. This means your total employment cost is higher than your gross pay. Super is not deducted from your take-home pay; it is an extra benefit.

Positive Salary Packaging

Positive salary packaging can further optimise your take-home pay by allowing you to pay for certain items with pre-tax dollars. Common items include a car, laptop, or super contributions above the guarantee. This reduces your taxable income, so you pay less tax. However, salary packaging is not included in the simple hourly-to-annual conversion. For more details, see our guide on super and packaging.

Using the Timesheet

Our the timesheet tool lets you enter your base hourly rate and optionally add casual loading. It then calculates your weekly, fortnightly, and annual gross pay, along with estimated tax, Medicare, and super. Remember that the results are estimates only. Always consult the Fair Work Ombudsman for your correct award rate and the Australian Taxation Office for your personal tax situation.

A Note on Averages

The Australian Bureau of Statistics publishes Average Weekly Earnings. In May 2026, full-time adult ordinary time earnings were $2,083.70 per week, while total earnings for all employees (including part-time) were $1,579.20 per week. These are averages, not medians for a specific job. Your pay may be higher or lower depending on your industry, experience, and location.

Final Thoughts

Converting your hourly rate to annual pay is straightforward when you know the formula. Use 38 hours per week as the standard full-time assumption, but adjust if you work different hours. Remember that the National Minimum Wage is just a floor – most workers are entitled to more under an award. And don’t forget that super is paid on top, and positive salary packaging can help you keep more of what you earn. For further reading, check our minimum wage page and take-home pay guide.

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.