How is casual loading applied when converting hourly to annual?

Casual employees are entitled to a 25% loading on top of the base hourly rate. For example, the National Minimum Wage of $26.44 per hour becomes $33.05 per hour with casual loading. When converting to annual pay, multiply the casual rate by 38 hours per week and 52 weeks. Our [the timesheet](/) has a checkbox to add casual loading automatically. Never enter a rate that already includes the loading.

What are the 2026-27 tax thresholds and Medicare levy?

For 2026-27, the resident tax rates are: nil on the first $18,200, 15% on income from $18,201 to $45,000, 30% from $45,001 to $135,000, 37% from $135,001 to $190,000, and 45% above $190,000. The Medicare levy is generally 2% of taxable income. These are applied to your annual gross pay after any salary sacrifice reductions. See our [reference tables](/data) for full details.

How to Sacrifice Salary and Convert Your Hourly Rate to Annual Pay in Australia

Q: What is salary sacrifice and how does it affect my take-home pay?

Salary sacrifice (or salary packaging) is an agreement with your employer to give up part of your pre-tax salary in exchange for benefits such as a car, super contributions, or work-related items. This reduces your taxable income, so you pay less income tax and Medicare levy. However, some benefits may incur fringe benefits tax (FBT) for your employer, and the sacrificed amount cannot be accessed as cash. Our calculator does not include salary sacrifice; use the [take-home pay](/topics/take-home) page to estimate the effect.

Based on a 38-hour week, your annual gross pay is your hourly rate multiplied by 38 then by 52 weeks.

Converting Hourly to Annual Pay

To convert an hourly rate to annual pay, multiply the hourly rate by the number of hours worked per week, then by 52 weeks. This calculator assumes a standard 38-hour week, as set by the Fair Work Commission for the National Minimum Wage. For example, $26.44 per hour × 38 hours × 52 weeks = $52,254.88 per year. Your fortnightly pay is simply your weekly pay multiplied by two.

If you work different hours, adjust the weekly hours in the calculation. The formula is always: hourly rate × hours per week × 52.

Understanding the National Minimum Wage and Award Rates

From 1 July 2026, the National Minimum Wage is $26.44 per hour, or $1,004.90 per week for 38 hours. This is the base rate for adult employees not covered by an award or agreement. Many employees are covered by an award or enterprise agreement that sets higher minimum rates. Check your award using our pay guides to find the correct rate for your classification.

Casual employees receive a 25% loading on top of the base rate. For the National Minimum Wage, that means $33.05 per hour. Use our casual loading page to understand how this applies. Our the timesheet includes a checkbox to add casual loading automatically; never enter a rate that already includes the loading.

Tax and Medicare on Your Annual Salary

Once you have your annual gross pay, you can estimate your tax using the 2026-27 resident tax rates:

$0 – $18,200: nil
$18,201 – $45,000: 15% of excess over $18,200
$45,001 – $135,000: $4,020 plus 30% of excess over $45,000
$135,001 – $190,000: $31,020 plus 37% of excess over $135,000
$190,001+: $51,370 plus 45% of excess over $190,000

The Medicare levy is generally 2% of taxable income. These figures are estimates only; your actual tax may vary due to offsets, the Medicare levy surcharge, or other factors. See our take-home pay page for a detailed breakdown.

Superannuation Guarantee

Employers must pay superannuation contributions of 12% of your ordinary earnings on top of your salary. This is not deducted from your pay. For 2026-27, the maximum contribution base is $270,830 per year. Super is calculated on your ordinary time earnings, which may differ from your total pay if you receive overtime or allowances. Our super and packaging page explains how salary sacrifice can boost your super.

Salary Sacrifice Explained

Salary sacrifice (also called salary packaging) is an arrangement where you agree to receive less pre-tax salary in exchange for benefits such as a car, additional super contributions, or work-related items. This reduces your taxable income, so you pay less income tax and Medicare levy. However, some benefits are fringe benefits and may attract fringe benefits tax (FBT) for your employer. The Australian Taxation Office provides detailed guidance on effective arrangements.

When you sacrifice salary, you cannot access the sacrificed amount as cash. The benefit replaces the salary. For example, if you earn $65,000 and sacrifice $17,353 for a car, your taxable income drops to $47,647, saving you tax. But your employer may need to pay FBT unless you make employee contributions. Our calculator does not include salary sacrifice; use the reference tables to see how it affects your net pay.

Important Notes and 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 information, visit our about the timesheet page or explore the minimum wage and average pay topics.