Is superannuation included in the hourly rate or paid on top?

Superannuation is paid on top of your ordinary earnings. The current super guarantee rate is 12% of your ordinary time earnings, up to the maximum contribution base of $270,830. This estimate adds super to your annual gross pay, not deducted from it.

How do tax brackets affect my annual salary estimate?

The estimate uses the 2026–27 resident tax rates: nil up to $18,200, then 15%, 30%, 37%, and 45% for higher brackets. Medicare levy of 2% is also applied. Note that salary packaging companies may reduce taxable income, but this estimate does not include salary sacrifice arrangements.

Hourly to Annual Salary: Understanding Your Pay with Salary Packaging Companies

Q: Does casual loading apply to my hourly rate before or after conversion?

Casual loading is an extra 25% on top of the base hourly rate, as set by the Fair Work Commission. When using the timesheet, tick the casual loading checkbox to add it to your base rate before calculating annual pay. Never enter a rate that already includes casual loading.

For a 38-hour week, your annual gross pay is your hourly rate multiplied by 38 hours per week times 52 weeks.

How to Convert Your Hourly Rate to Annual Salary

If you earn an hourly wage or have received a salary offer, understanding your annual pay helps you compare jobs, plan your budget, and estimate tax and super. This guide explains the conversion using the standard 38-hour week, and covers the National Minimum Wage, award rates, casual loading, superannuation, and tax. It also touches on how salary packaging companies can affect your take-home pay.

The Basic Formula

Annual gross pay = hourly rate × hours per week × 52 weeks. This assumes you work the same number of hours every week, with no unpaid overtime, penalty rates, or allowances. For a full-time employee, the typical week is 38 hours. If you work part-time or casual, adjust the hours accordingly. Use the timesheet to enter your base hourly rate and see the annual figure instantly.

Fortnightly Pay

Many employers pay fortnightly. Your fortnightly gross pay is simply your weekly pay multiplied by two. For a 38-hour week at $30 per hour, weekly pay is $1,140, so fortnightly is $2,280. This can help you match your pay cycle to your budget. The reference tables include common fortnightly amounts for various hourly rates.

National Minimum Wage and Award Rates

The Fair Work Commission sets the National Minimum Wage. From 1 July 2026, it is $26.44 per hour, or $1,004.90 per week for 38 hours. This is the minimum for employees not covered by an award or registered agreement. Most industries have award rates that are higher. Check your specific award using the pay guides from the Fair Work Ombudsman. The figures here are averages or minimums, not a median for your job.

Casual Loading

Casual employees receive a 25% loading on top of the base hourly rate to compensate for lack of paid leave. For the National Minimum Wage, the casual rate is $33.05 per hour. When using the timesheet, tick the casual loading checkbox to add 25% to your base rate. Do not enter a rate that already includes casual loading.

Superannuation

Super guarantee is 12% of your ordinary time earnings, paid on top by your employer. It is not deducted from your hourly rate. The maximum contribution base is $270,830 per year. For example, if your annual gross ordinary earnings are $60,000, super adds $7,200 on top. This estimate shows super separately. Note that salary packaging companies may offer arrangements that reduce your taxable income, but this estimate does not include salary sacrifice.

Tax and Medicare Levy

Resident tax for 2026–27 uses these brackets: nil up to $18,200; 15% 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. This estimate applies the full tax-free threshold and the 2025–26 single reduction thresholds for Medicare (as 2026–27 thresholds were not confirmed). HELP repayments, the Medicare levy surcharge, and salary packaging are not deducted. For a detailed breakdown, see the take-home pay page.

Limitations of This Estimate

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 uses 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. Always consult a tax professional or the Australian Taxation Office for your personal situation.

Using the Timesheet

The timesheet is the home page where you type your base hourly rate. A checkbox adds 25% casual loading on top. The tool then calculates annual gross, fortnightly pay, estimated tax, Medicare, and super. It is designed for quick comparisons, not for precise payroll.

Average Weekly Earnings

The Australian Bureau of Statistics publishes Average Weekly Earnings. For May 2026, full-time adult ordinary time earnings were $2,083.70 per week. All employees total earnings (including part-time) averaged $1,579.20 per week. These are averages, not medians for your specific job. See the average pay page for more context.

Salary Packaging Companies

Salary packaging companies allow you to sacrifice part of your pre-tax salary for benefits like a car or super contributions. This can reduce your taxable income and increase take-home pay. However, this estimate does not include salary packaging. If you use such an arrangement, your actual tax may differ. Always check with your employer or a salary packaging provider.

Conclusion

Converting your hourly rate to annual salary is straightforward: multiply by hours per week and 52. Remember to account for casual loading, super on top, and tax. Use the hourly conversion page for more examples, and always refer to official sources like the Fair Work Ombudsman and the Australian Taxation Office for your specific circumstances.