TimesheetGuidesJob pay

Understanding Salary Packing and Your Hourly to Annual Pay Conversion

To convert your hourly rate to annual pay, multiply by hours per week (typically 38) and 52 weeks, then add super on top.

Converting Your Hourly Rate to Annual Pay

To work out your annual gross pay from an hourly rate, use the formula: 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 standard week is 38 hours, as set by the Fair Work Commission. If you work part-time or casual, use your usual weekly hours.

For example, the National Minimum Wage from 1 July 2026 is $26.44 per hour. For a 38-hour week, that gives $1,004.90 per week and $52,269.44 per year. A casual employee gets a 25% loading, making the rate $33.05 per hour, or $65,336.80 per year. You can use the timesheet to enter your base hourly rate and tick the casual loading box – never enter a rate that already includes casual loading.

Understanding the National Minimum Wage and Award Rates

The National Minimum Wage applies to employees not covered by an award or agreement. It is $26.44 per hour for adults, with special rates for juniors, apprentices, and employees with disability. Most employees, however, are covered by an award that sets higher minimum rates. The Fair Work Ombudsman provides pay guides for each award, including penalty rates and allowances. Award rates vary by industry and classification, so always check the correct pay guide for your job.

Casual employees receive a 25% loading on top of the minimum rate. This compensates for not receiving paid leave. The loading is calculated on the base rate, not on top of other penalties. For example, a casual on the National Minimum Wage earns $33.05 per hour.

Tax and Medicare in 2026–27

Once you have your annual gross figure, you can estimate tax using the 2026–27 resident rates:

  • Nil tax 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

Most residents also pay the Medicare levy of 2% of taxable income. The tax-free threshold reduces the amount of tax withheld, but the Medicare levy applies to all taxable income. Our take-home pay page provides a detailed breakdown. Note that salary packing can reduce your taxable income – see the next section.

Superannuation Guarantee

Your employer must pay superannuation on top of your ordinary earnings. From 1 July 2026, the super guarantee rate is 12% of your ordinary time earnings, up to the maximum contribution base of $270,830 per year. Super is not deducted from your pay; it is an additional cost for the employer. For example, on a $52,269 annual salary, the employer would contribute $6,272.28 in super. You can read more about super and packaging on our super and packaging page.

Salary Packing and Your Pay

Salary packing (also called salary sacrifice) is an arrangement where you forgo part of your salary in exchange for benefits such as a car, additional super contributions, or electronic devices. These benefits are paid from your pre-tax income, reducing your taxable income and therefore your tax and Medicare levy. Salary packing is common in the not-for-profit sector, where employees may have access to a higher tax-free cap.

Our calculator does not deduct salary packing. If you salary pack, you will need to adjust your tax estimate manually. For example, if you salary sacrifice $10,000 into super, your taxable income drops by $10,000, saving you tax at your marginal rate. Always check with your employer or a tax professional before entering into a salary packing arrangement.

Using Our Timesheet and Pay Guides

To get a personalised estimate, use the timesheet. Enter your base hourly rate, select your hours per week, and tick the casual loading box if applicable. The calculator will show your weekly, fortnightly, and annual gross pay, plus estimated tax, Medicare levy, and super. For award-specific rates, refer to the pay guides from the Fair Work Ombudsman.

Remember that this is an estimate. It assumes the same rate every week with no unpaid overtime, penalty rates, allowances, or 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. For a binding determination, consult the Fair Work Ombudsman or a registered tax agent.

Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.

Try the rate on a timesheet

Adjust the timesheet

Year, gross$52,245.4452 weeks at this rate

Starts at the adult National Minimum Wage. Change the rate if the job pays more.

Level with the adult National Minimum Wage.

Mon$200.947.6 h
Tue$200.947.6 h
Wed$200.947.6 h
Thu$200.947.6 h
Fri$200.947.6 h
One fortnight$2,009.44 gross
  • Take-home
  • Tax
  • Medicare
Super 12%, paid on top$6,269.45 a year
Week
$1,004.72
Fortnight
$2,009.44
Take-home a year
$45,006.90
Tax + Medicare
$7,238.54

$52,245.44 gross a year, $2,009.44 a fortnight.

  • 16 h$21,998
  • 20 h$27,498
  • 24 h$32,997
  • 30 h$41,246
  • 38 h$52,245
  • 40 h$54,995

Resident tax for 2026–27 with the tax-free threshold. Medicare uses the 2025–26 single reduction thresholds. No HELP, no salary sacrifice, no Medicare levy surcharge. Super is 12% of ordinary earnings only, capped at the maximum contribution base.

Questions people ask next

How do I calculate my annual salary from an hourly rate?

Multiply your hourly rate by your weekly hours (usually 38 for full-time) and then by 52 weeks. For example, $26.44 per hour × 38 hours × 52 weeks = $52,269.44 per year before tax and super.

What is salary packing and how does it affect my take-home pay?

Salary packing (or salary sacrifice) allows you to pay for certain items like a car or super contributions from pre-tax income, reducing your taxable income. Our calculator does not deduct salary packing; you should adjust your tax estimate accordingly.

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

The National Minimum Wage ($26.44 per hour from 1 July 2026) is the minimum for award/agreement-free employees. Award rates are higher minimums set by industry awards. Casual employees get a 25% loading on top.

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