Salary Calculation: Convert Hourly Rate to Annual Pay for a 38-Hour Week
For a 38-hour week, annual gross pay is hourly rate × 38 × 52, with super paid on top at 12% up to the maximum contribution base.
Understanding the Salary Calculation
A salary calculation helps you turn an hourly rate into an annual figure, or vice versa. Whether you are comparing job offers, budgeting, or checking your pay, the basic formula is straightforward: multiply your hourly rate by the number of hours you work each week, then multiply by 52 weeks in a year. This gives your gross annual pay before tax and other deductions.
For most full-time employees in Australia, the standard week is 38 hours. This assumption comes from the National Employment Standards and is used in the National Minimum Wage and many awards. When you use the timesheet, you can enter your base hourly rate and choose whether to add casual loading. The tool then does the salary calculation for you.
The 38-Hour Week Assumption
If you work 38 hours per week, the annual gross pay is:
Annual gross = hourly rate × 38 × 52
For example, at the National Minimum Wage of $26.44 per hour (from 1 July 2026, as set by the Fair Work Commission ), the calculation is:
$26.44 × 38 × 52 = $52,261.44 per year.
If you are paid fortnightly, your gross pay is weekly pay × 2. For the National Minimum Wage, weekly pay is $1,004.90, so fortnightly is $2,009.80.
National Minimum Wage vs Award Rates
The National Minimum Wage is the floor for award-free employees. However, most workers are covered by an award that sets higher minimum rates. The Fair Work Ombudsman publishes pay guides for each award, which include classification rates, allowances, and penalty rates. For example, the Social, Community, Home Care and Disability Services Industry Award (SCHADS) received an initial increase of up to 15% from 1 December 2026. Always check the correct award for your industry.
Your salary calculation should use the award rate that applies to your classification, not the National Minimum Wage, unless you are award-free. The minimum wage page has more details on current rates.
Casual Loading
Casual employees are entitled to a 25% loading on top of the base hourly rate. This compensates for not receiving paid leave. When doing a salary calculation for a casual role, you add the loading to the base rate first. For the National Minimum Wage, the casual rate is $26.44 + 25% = $33.05 per hour. The Fair Work Ombudsman confirms this loading.
If you are casual, never enter a rate that already includes the loading. Instead, use the base rate and tick the casual loading checkbox in the timesheet. The tool will apply the 25% on top automatically.
Superannuation and Tax
Superannuation is paid on top of your ordinary earnings. The super guarantee rate is 12% for 2026–27, up to the maximum contribution base of $270,830. This means if your annual gross is $52,261.44, your employer must pay an extra $6,271.37 into your super fund. Super is not deducted from your pay; it is an additional cost to the employer.
Tax is calculated using the 2026–27 resident rates:
- 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 the Medicare levy of 2% (with reduction thresholds based on 2025–26 single figures). The take-home pay page can help you estimate net pay after tax and Medicare.
Using the Timesheet Tool
Our the timesheet makes salary calculation easy. Enter your base hourly rate, select your hours per week (default 38), and choose whether you are casual. The tool shows your annual gross, fortnightly pay, estimated tax, Medicare, and super. It also provides a breakdown for award rates if you select your award from the pay guides.
Remember that this is an estimate. It assumes the same rate every week, no unpaid overtime, no penalty rates, no allowances, and no salary sacrifice. For a precise determination, consult your employer or a professional advisor.
Fortnightly Pay
Many employees are paid fortnightly. To find your fortnightly gross, multiply your weekly pay by 2. For the National Minimum Wage example:
Weekly: $1,004.90 Fortnightly: $2,009.80
This can help you budget between paydays.
Key Differences in Ordinary-Time Earnings
The Australian Bureau of Statistics (ABS) publishes Average Weekly Earnings (AWE) data. For May 2026, full-time adult ordinary time earnings were $2,083.70 per week, while all employees (including part-time) averaged $1,579.20 per week. These figures are higher than the National Minimum Wage because they reflect actual earnings across the workforce. Your salary calculation may differ if you work in an industry with above-award rates.
For more context, see average pay and hourly conversion.
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.
Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.