What is the casual loading and how does it affect my salary package?

Casual loading is an additional 25% on top of the base hourly rate, as set by the Fair Work Commission. When calculating your salary package as a casual employee, you should include this loading. Our calculator has a checkbox to add the 25% loading automatically.

How is superannuation included in a salary package?

Superannuation is paid on top of your ordinary earnings at 12% (from 1 July 2026). It is not part of your salary package but an additional contribution by your employer. The maximum contribution base is $270,830 per year.

What is the difference between a salary package and an annualised wage?

A salary package is a term used in employment contracts to describe total remuneration including base salary, super, and other benefits. An annualised wage is a fixed amount that covers all award entitlements like penalties and overtime, as explained by the Fair Work Ombudsman. Our calculator estimates your base salary package before any additional benefits.

Convert Your Hourly Rate to a Salary Package: A Complete Guide

Based on a 38-hour week, your annual salary package is your hourly rate multiplied by 1,976 hours (38 × 52).

Understanding Your Salary Package from an Hourly Rate

When you are offered an hourly rate or a salary, it helps to see the full picture. A salary package typically includes your base pay, superannuation, and sometimes other benefits. This guide shows you how to convert an hourly rate into an annual, fortnightly, and weekly salary package using the standard 38-hour full-time week.

The Basic Formula

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

For a full-time employee working 38 hours each week, that is:

Annual gross = hourly rate × 38 × 52 = hourly rate × 1,976.

For example, the National Minimum Wage from 1 July 2026 is $26.44 per hour. Multiply by 1,976 gives an annual salary of about $52,245. That is the base before tax and super.

Award Rates and Pay Guides

Many employees are covered by an award that sets higher minimum rates than the National Minimum Wage. The Fair Work Ombudsman publishes pay guides for each award, showing minimum pay rates, allowances, and penalty rates. Your salary package should at least meet the award rate for your classification. If you are award-free, the National Minimum Wage applies.

Casual Loading

Casual employees receive a 25% loading on top of the base hourly rate. This compensates for not receiving paid leave. On our the timesheet page, you can check a box to add the casual loading automatically. For the minimum wage, the casual rate is $33.05 per hour ($26.44 × 1.25). When building a salary package for a casual role, include this loading in your calculations.

Fortnightly and Weekly Pay

Your salary package can be broken into smaller periods. Weekly pay is your hourly rate multiplied by hours per week. Fortnightly pay is that amount times two. For a minimum wage full-time employee:

Weekly: $26.44 × 38 = $1,004.90
Fortnightly: $1,004.90 × 2 = $2,009.80

This matches the Fair Work Commission’s figures. Using these numbers helps you compare job offers or budget your take-home pay.

Tax and Medicare

The Australian Taxation Office applies a progressive tax scale for 2026–27:

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

Most residents also pay a Medicare levy of 2% of taxable income. Our take-home pay tool estimates your net income after these deductions. Remember that the tax-free threshold and Medicare reduction thresholds may change each year.

Superannuation on Top

Superannuation is paid by your employer on top of your ordinary earnings. From 1 July 2026, the super guarantee rate is 12%. It applies to most employees and is capped at the maximum contribution base of $270,830 per year. Super is not part of your salary package in the sense of take-home pay, but it is a key component of total remuneration. See super and packaging for more details.

What a Salary Package Includes

The term “salary package” is often used in employment contracts to describe the total value of your remuneration. According to the Fair Work Ombudsman, a salary may cover minimum entitlements such as base pay, penalties, overtime, allowances, and annual leave loading. This is known as a contractual offsetting arrangement. However, our calculator focuses on the base salary component. It does not include salary sacrifice, bonuses, or non-cash benefits.

Important Assumptions

This conversion assumes you work the same number of hours every week, with no unpaid overtime, penalty rates, or allowances. It is an estimate, not a determination of your actual pay or tax. Always check your award or enterprise agreement for the correct rates. Use our minimum wage page for the latest figures.

Summary

To build your salary package from an hourly rate:

Multiply your hourly rate by 38 (or your usual weekly hours) and then by 52.
Add casual loading if applicable.
Remember that super is paid on top at 12%.
Deduct tax and Medicare to estimate take-home pay.

Whether you are negotiating a new job or checking your current pay, understanding these numbers puts you in control. Start with the timesheet to enter your hourly rate and see the full breakdown.