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

Multiply your hourly rate by the number of hours you work per week, then by 52. For full‑time, assume 38 hours per week. For example, $30/hour × 38 × 52 = $59,280 gross per year.

Does salary sacrifice affect my super guarantee?

Yes, salary sacrifice reduces your ordinary time earnings, which is the base for super guarantee contributions. However, your employer must still pay 12% on your reduced ordinary earnings, up to the maximum contribution base. Always check with your provider.

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

The National Minimum Wage is the legal minimum for employees not covered by an award or agreement. Award rates are industry‑specific minimums set by the Fair Work Commission and are often higher. Your pay must meet the higher of the two.

Understanding Your Pay: Hourly to Annual with Salary Sacrifice Companies Australia

For a full-time employee working 38 hours per week, annual gross pay is hourly rate × 38 × 52.

From Hourly to Annual: What You Need to Know

If you're paid by the hour or considering a salary offer, converting your hourly rate to an annual figure is straightforward. 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 – the ordinary hours defined by the Fair Work Ombudsman. So annual gross pay = hourly rate × 38 × 52. This gives you a base figure before tax, super, and any salary sacrifice arrangements.

Why 38 Hours and What About Fortnights?

The 38‑hour week is the benchmark for full‑time employment in Australia. If you work different hours, adjust accordingly. Many people find it helpful to think in fortnights: your fortnightly gross pay is simply your weekly pay multiplied by two. For example, at the National Minimum Wage of $26.44 per hour (from 1 July 2026), weekly pay is $1004.90, and fortnightly pay is $2009.80. This can make budgeting easier if you’re paid fortnightly.

Minimum Wage, Award Rates, and Casual Loading

It’s important to distinguish between different pay rates. The National Minimum Wage, set by the Fair Work Commission, is the legal minimum for most employees not covered by an award or agreement. As of 1 July 2026, it’s $26.44 per hour for a permanent employee. However, many industries have award rates that may be higher. If you’re a casual employee, you’re entitled to a 25% casual loading on top of the base rate – that’s $33.05 per hour at the minimum wage. When using our the timesheet, you can check the box to add casual loading; never enter a rate that already includes it.

Superannuation: Paid on Top

Your employer must pay superannuation guarantee contributions on your ordinary earnings. The rate is 12% (from 1 July 2026), and it’s paid on top of your gross pay – not deducted from it. For example, if your annual gross is $60,000, your employer adds $7,200 to your super fund, up to the maximum contribution base of $270,830. This is separate from any salary sacrifice you might arrange.

Salary Sacrifice Companies Australia

Many employees choose to reduce their taxable income through salary sacrifice arrangements. Salary sacrifice companies Australia offer services to help you package items like a car, laptop, or additional super contributions. By sacrificing part of your pre‑tax salary, you lower your assessable income and pay less tax. However, salary sacrifice does affect your super guarantee base (since it’s based on ordinary time earnings) and your take‑home pay. Always check with your employer or a provider about how salary sacrifice interacts with your award or agreement. For more on super and packaging, see our super and packaging page.

Tax and Medicare Levy

Once you have your annual gross figure, you can estimate tax using the 2026–27 resident tax rates. The tax‑free threshold is $18,200. Above that, you pay 15% on income up to $45,000, 30% up to $135,000, 37% up to $190,000, and 45% above that. Most residents also pay a 2% Medicare levy. For example, if your annual gross is $70,000, your tax (before offsets) would be approximately $5,092 plus 30% of the amount over $45,000, plus $1,400 Medicare levy. Use our take‑home pay estimator for a more detailed breakdown.

What About Averages?

The Australian Bureau of Statistics publishes Average Weekly Earnings. For May 2026, full‑time adult ordinary time earnings were $2,083.70 per week. That’s an average across all industries and occupations, not the median for any specific job. If you’re comparing your pay, remember that averages can be skewed by high earners. For job‑specific pay guides, check our job pay page.

Important Notes

This conversion assumes you work the same hours every week with no unpaid overtime, penalty rates, or allowances. It does not account for salary sacrifice. Super is estimated at 12% of ordinary earnings, paid on top, and capped at the maximum contribution base. Tax uses the 2026–27 resident scale with the full tax‑free threshold. Medicare uses the 2025–26 single reduction thresholds as the 2026–27 thresholds were not confirmed. HELP repayments, the Medicare levy surcharge, and salary packaging are not deducted. This is an estimate, not a determination of your pay or tax.

For more detailed calculations, refer to our reference tables or pay guides. And if you’re considering salary sacrifice, consult a reputable salary sacrifice companies Australia provider to understand the implications for your specific situation.