TimesheetGuidesSuper and packaging
Hourly to Annual: Understand Your Pay with Casual Loading and Salary Package Super
For a 38-hour week, the National Minimum Wage is $26.44 per hour ($1,004.90 per week) and with 25% casual loading it becomes $33.05 per hour ($1,256.13 per week), with super paid on top.
Converting Your Hourly Rate to Annual Pay
Whether you're negotiating a salary, comparing job offers, or budgeting, understanding how your hourly rate translates to annual pay is essential. The basic formula is simple: multiply your hourly rate by the number of hours you work each week, then multiply by 52 weeks. For a standard full-time role, we assume 38 hours per week, as defined by the Fair Work Ombudsman for the National Employment Standards. This gives you your gross annual salary before tax and super.
For example, if you earn $30 per hour and work 38 hours per week, your annual gross pay is $30 × 38 × 52 = $59,280. If you work casual hours, use your average weekly hours. The fortnightly equivalent is simply your weekly pay multiplied by two. This conversion is the foundation for understanding your take-home pay and super contributions.
National Minimum Wage and Award Rates
The Fair Work Ombudsman sets minimum pay rates through awards and the National Minimum Wage. From 1 July 2026, the National Minimum Wage is $26.44 per hour, which equates to $1,004.90 per week for a 38-hour week. However, many industries have specific award rates that may be higher. You can check the applicable pay guide for your industry on the pay guides page.
Casual Loading
If you are a casual employee, you are entitled to a casual loading of 25% on top of the base hourly rate. This compensates for not receiving paid leave entitlements. For the National Minimum Wage, the casual rate becomes $33.05 per hour ($26.44 × 1.25). This loading is already included in the hourly rate you see on your payslip; you should never add it again. When using our the timesheet, you can check a box to add casual loading on top of the base rate you enter. Do not enter a rate that already includes casual loading.
Understanding 'Salary Package Super'
The term 'salary package super' is often used in job advertisements, but it can be confusing. It refers to a total remuneration package (TRP) that includes superannuation within the quoted figure. In contrast, a 'base salary' has super paid on top. This distinction is critical when comparing offers.
According to the Fair Work Ombudsman, superannuation is an entitlement under the National Employment Standards and must be paid on top of an employee's ordinary earnings. The super guarantee rate is 12% from 1 July 2026, and it applies to most employees earning over $450 per month (though this threshold is being removed). Super is paid into your nominated fund and is not part of your take-home pay.
How to Compare Offers
If one offer says "$95,000 base salary plus super" and another says "$105,000 package including super", you need to convert them to the same basis. The package includes super, so the taxable salary is $105,000 ÷ 1.12 = $93,750. The super is $11,250. The base salary offer gives a taxable salary of $95,000 and super of $11,400. As shown by the Salary Comparison Calculator, the $95,000 base salary actually provides $850 more take-home pay per year than the $105,000 package, because the package has a lower taxable salary. Always ask: "Is this base salary or total remuneration package?"
Tax and Super Considerations
Your gross annual 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 $45,001 to $135,000, 37% on $135,001 to $190,000, and 45% above $190,000. The Medicare levy is generally 2% of taxable income. These deductions are taken from your pay through PAYG withholding.
Superannuation is paid by your employer on top of your ordinary earnings, up to the maximum contribution base of $270,830 per year. From 1 July 2026, employers must pay super on each payday, and it must be received by your fund within 7 business days. The Australian Taxation Office enforces the super guarantee. If you are a casual employee, super is paid on your loaded rate.
Using Our Timesheet
Our the timesheet allows you to enter your base hourly rate and optionally add 25% casual loading. It then calculates your annual gross pay, fortnightly pay, estimated tax, Medicare levy, and super. The results are based on the 2026–27 tax rates and the 12% super guarantee. Remember that this is an estimate; it assumes consistent hours, no unpaid overtime, no penalty rates, and no salary sacrifice. For a more detailed comparison of job offers, visit our super and packaging page.
Conclusion
Converting hourly to annual pay is straightforward, but you must account for casual loading, super, and whether a salary offer is base or package. Always clarify the terms of your employment and use reliable sources like the Fair Work Ombudsman and the Australian Taxation Office. Our timesheet helps you see the full picture, including take-home pay and super, so you can make informed decisions about your work and finances.
Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.