Convert Your Hourly Rate to Annual Pay: A 38-Hour Week, Fortnight, and Salary Sacrafice Explained
For a full-time employee working 38 ordinary hours each week, annual gross pay is your hourly rate × 38 × 52, assuming the same rate every week, with no unpaid overtime, no penalty rates, no allowances, and no salary sacrafice.
Converting Hourly to Annual Pay: The 38-Hour Week and the Fortnight
When you know your hourly rate, the simplest way to estimate your annual gross pay is to multiply by the hours you work each week and then by 52 weeks. For a full-time employee, the standard week is 38 ordinary hours. So the formula: annual gross ≈ hourly rate × 38 × 52. This gives a base figure before tax, super, and any salary sacrafice arrangements.
The National Minimum Wage and Award Rates
From 1 July 2026, the National Minimum Wage is $26.44 per hour, or $1,004.90 for a 38-hour week. If you are a casual employee, you are entitled to a 25% loading on top of the minimum wage, making it $33.05 per hour. However, many employees are covered by an award or enterprise agreement that sets higher minimum rates. The Fair Work Ombudsman provides pay guides for each award. Always check your award to ensure you are being paid correctly.
Casual Loading and Superannuation
If you are casual, your hourly rate should include the 25% casual loading. Our calculator has a checkbox to add this loading on top of your base rate. Remember, superannuation is paid on top of your ordinary earnings. The super guarantee is 12% of your ordinary time earnings, up to the maximum contribution base of $270,830. For example, if your annual gross is $50,000, your employer should contribute an additional $6,000 to your super fund.
Tax and Medicare
The 2026–27 resident tax rates are nil on the first $18,200, 15% on income between $18,201 to $45,000, 30% on $45,001 to $135,000, 37% on $135,001 to $190,000, and 45% above $190,000. Medicare levy is generally 2% of your taxable income. Note that the Medicare levy surcharge and HELP repayments are not included in this estimate.
Salary Sacrafice and Its Impact
Salary sacrafice (also known as salary packaging) is an arrangement where you agree to forgo part of your salary in exchange for benefits such as a car, super contributions, or other fringe benefits. The Australian Taxation Office explains that salary sacrafice reduces your taxable income, potentially lowering the tax you pay. However, it can affect your super guarantee, Medicare levy surcharge, and government benefits. Our estimates do not account for salary sacrafice; you should seek financial advice before entering such an arrangement.
Fortnightly Pay
Many employers pay fortnightly. To find your fortnightly gross, multiply your weekly pay by 2. For a 38-hour week at the minimum wage, weekly pay is $1,004.90, so fortnightly is $2,009.80. After tax and Medicare, your take-home pay will be lower. Use our take-home pay page for more detailed calculations.
Important Disclaimer
This estimate assumes you work the same number of hours every week, with no unpaid overtime, no penalty rates, no allowances, and no salary sacrafice. Super is calculated 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.
Related Topics
Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.