How do I convert my hourly rate to 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, we assume 38 hours per week. So annual gross = hourly rate × 38 × 52. For example, the National Minimum Wage of $26.44 per hour gives $26.44 × 38 × 52 = $52,261.44 per year before tax and super. If you work casual, a 25% loading is added on top of the base rate, not included in the rate you enter.

What is the difference between the National Minimum Wage and award rates?

The National Minimum Wage, set by the Fair Work Commission, is the minimum pay for employees not covered by an award or agreement. From 1 July 2026 it is $26.44 per hour ($1,004.90 per week for 38 hours). Award rates are higher minimums for specific industries or occupations, set by the Fair Work Ombudsman. They often include penalty rates, allowances, and overtime. Your actual rate may be above the minimum if your award or enterprise agreement says so. Use our [pay guides](/blog) to check applicable rates.

How is superannuation calculated and what about salary packaging?

Superannuation is 12% of your ordinary earnings, paid on top of your salary by your employer. It stops once your earnings reach the maximum contribution base ($270,830 in 2026–27). Salary packaging benefits allow you to sacrifice part of your pre-tax salary for things like a car or additional super, reducing your taxable income. Our calculator does not deduct salary packaging; it shows gross pay and estimated tax without those arrangements. See [super and packaging](/topics/super-and-packaging) for more.

Convert Your Hourly Rate to Annual Pay: Salary Packaging Benefits and the 38-Hour Week

Based on a 38-hour week and 52-week year, your annual gross pay is your hourly rate multiplied by 1,976 hours.

How to Convert Hourly to Annual Pay

To find your annual gross salary from an hourly rate, use the standard formula: hourly rate × hours per week × 52 weeks. For a full-time employee, we assume a 38-hour week, as set by the Fair Work Ombudsman for ordinary hours. This gives 1,976 hours per year (38 × 52). If you work part-time or irregular hours, adjust the weekly hours accordingly. Our the timesheet lets you enter your base hourly rate and optionally add 25% casual loading – never include loading in the rate you type.

Example Using the National Minimum Wage

The National Minimum Wage from 1 July 2026 is $26.44 per hour. For a 38-hour week:

Weekly pay: $26.44 × 38 = $1,004.90
Fortnightly pay: $1,004.90 × 2 = $2,009.80
Annual gross: $26.44 × 38 × 52 = $52,261.44

Casual employees receive a 25% loading on top of the base rate, making the casual minimum $33.05 per hour. This loading compensates for lack of paid leave. Our casual loading page explains when it applies.

Understanding the 38-Hour Week and Fortnight

Most full-time awards and agreements define a standard 38-hour week. This is the basis for calculating annual leave, personal leave, and the ordinary time earnings used for super. Knowing your fortnightly pay helps with budgeting – simply double your weekly amount. For example, if your hourly rate is $40, your fortnightly gross is $40 × 38 × 2 = $3,040.

Award Rates vs Minimum Wage

While the National Minimum Wage sets a floor, many employees are covered by an award that specifies higher minimum rates. For instance, the Hospitality Industry General Award has different rates for different classifications. These are not job medians; they are legal minimums. The minimum wage page has details. If you see an industry average from the Australian Bureau of Statistics, such as the May 2026 Average Weekly Earnings for full-time adult ordinary time of $2,083.70 per week, that is an average across all full-time employees, not the median for your specific job.

Tax, Super, and Salary Packaging Benefits

Income Tax Estimates

Our calculator uses the 2026–27 resident tax rates:

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

Plus the Medicare levy of 2% (based on 2025–26 single reduction thresholds, as 2026–27 thresholds were not confirmed). This is an estimate – it does not include the Medicare levy surcharge, HELP repayments, or any salary packaging benefits.

Superannuation Guarantee

Employers must pay super of 12% on your ordinary earnings, up to the maximum contribution base of $270,830 per year. Super is paid on top of your salary, not deducted from it. For example, if your annual gross is $80,000, your employer adds $9,600 to your super fund. Our super and packaging page explains how salary sacrifice can boost your super while reducing taxable income.

Salary Packaging Benefits

Salary packaging (also called salary sacrifice) lets you use pre-tax income for eligible expenses like a car, laptop, or additional super. This reduces your taxable income and can increase your take-home pay. However, our calculator does not deduct these arrangements – it shows your gross pay and estimated tax without packaging. To see how packaging affects your numbers, use the take-home pay tool or consult a financial adviser.

Using the Calculator

On our the timesheet page, enter your base hourly rate. If you are a casual employee, tick the box to add 25% casual loading – do not enter a rate that already includes loading. The calculator then shows your weekly, fortnightly, and annual gross pay, plus estimated tax and super. It assumes the same rate every week, no unpaid overtime, no penalty rates, no allowances, and no salary sacrifice. For a more detailed breakdown, see reference tables or hourly conversion.

Important 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.