How do I convert my hourly rate to annual salary?

Multiply your hourly rate by the number of hours you work per week, then by 52 weeks. For a standard full-time role, we assume 38 hours per week, so annual gross = hourly rate × 38 × 52. This gives a base figure before tax, super, or any salary sacrifice arrangements.

What is the National Minimum Wage in Australia?

From 1 July 2026, the National Minimum Wage is $26.44 per hour, or $1,004.90 per week for 38 hours. Casual employees receive an additional 25% loading, making the casual minimum $33.05 per hour. These rates are set by the Fair Work Commission.

Does the calculator include salary sacrifice lease car?

No, the calculator does not deduct salary sacrifice arrangements such as a lease car. Salary sacrifice reduces your taxable income, which can lower your tax and Medicare levy, but it also affects your super guarantee base. You should adjust your estimates separately if you have a salary sacrifice lease car.

From Hourly to Annual: Your Guide to Salary Sacrifice Lease Car and Pay Calculations

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

Understanding Your Hourly to Annual Conversion

When you have an hourly rate or a salary offer, the first step is to see the full-year picture. The standard formula used across Australia is:

Annual gross pay = hourly rate × hours per week × 52 weeks

For a full-time employee working 38 hours per week, that means multiplying your hourly rate by 1,976 (38 × 52). This gives you the gross annual figure before any deductions like tax, super, or salary sacrifice.

Why 38 Hours and 52 Weeks?

The 38-hour week is the standard full-time week under the Fair Work Act. It is used by the Fair Work Ombudsman for award rates and by the Australian Bureau of Statistics for Average Weekly Earnings. The 52-week year assumes you work every week of the year with no unpaid leave. If you take unpaid leave, work part-time, or have irregular hours, your actual annual pay will differ.

The Fortnightly View

Many employers pay fortnightly. To find your fortnightly gross, simply multiply your weekly pay by two. For example, if your weekly pay is $1,000, your fortnightly gross is $2,000. This can help you budget and compare with salary offers that are quoted per fortnight.

Key Pay Components

National Minimum Wage and Award Rates

The National Minimum Wage from 1 July 2026 is $26.44 per hour for a permanent employee. Casual employees get a 25% loading, making the casual minimum $33.05 per hour. Many industries have award rates that are higher than the minimum. Always check your specific award or enterprise agreement via pay guides or the Fair Work Ombudsman.

Casual Loading

If you are a casual employee, your hourly rate usually includes a 25% loading in lieu of paid leave. When using our the timesheet tool, you can check a box to add 25% casual loading on top of the base hourly rate. Do not enter a rate that already includes casual loading – the tool adds it for you.

Superannuation Guarantee

Super is paid 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; your employer adds it separately. Our annual estimate shows the super amount as an additional cost to your employer, not as part of your take-home pay.

Tax and Medicare

Income Tax 2026–27

The Australian Taxation Office sets the resident tax rates for 2026–27:

Nil 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

These rates apply to your taxable income after any deductions, including salary sacrifice arrangements.

Medicare Levy

Most residents pay a Medicare levy of 2% of taxable income. The 2025–26 single reduction thresholds are used here because the 2026–27 thresholds were not confirmed. If you have a salary sacrifice lease car, your taxable income is reduced, which may lower your Medicare levy.

Salary Sacrifice Lease Car

A salary sacrifice lease car is an arrangement where you forgo part of your pre-tax salary in exchange for a car and related expenses. This reduces your taxable income, so you pay less income tax and Medicare levy. However, it also reduces the base for your super guarantee (since super is calculated on ordinary earnings after salary sacrifice). Our annual estimate does not include any salary sacrifice – it assumes your full hourly rate is your ordinary earnings. If you have a salary sacrifice lease car, you should adjust your taxable income downwards when estimating tax.

Putting It All Together

Let’s walk through an example using the on-site reference figures. Suppose you earn the National Minimum Wage of $26.44 per hour as a permanent full-time employee.

Weekly gross: $26.44 × 38 = $1,004.72 (close to the official $1,004.90 due to rounding)
Fortnightly gross: $1,004.72 × 2 = $2,009.44
Annual gross: $1,004.72 × 52 = $52,245.44

Now estimate tax using the 2026–27 scale. On $52,245:

First $18,200 tax-free
Next $26,800 (up to $45,000) taxed at 15% = $4,020
Remaining $7,245 taxed at 30% = $2,173.50
Total tax = $6,193.50
Medicare levy (2%) = $1,044.91
Net annual pay = $52,245.44 – $6,193.50 – $1,044.91 = $45,007.03

Super at 12% on ordinary earnings (assuming no salary sacrifice) = $52,245.44 × 12% = $6,269.45, paid on top by your employer.

If you had a salary sacrifice lease car worth $10,000 per year, your taxable income would drop to $42,245.44. Tax would be lower, and Medicare would be lower, but your super guarantee base would also be lower (since super is on ordinary earnings after sacrifice). Always consult a tax professional for your situation.

Average Earnings Context

According to the Australian Bureau of Statistics’ Average Weekly Earnings for May 2026, full-time adult ordinary time earnings were $2,083.70 per week, or about $108,352 per year. All employees total earnings (including part-time) averaged $1,579.20 per week, or about $82,118 per year. These are averages, not medians for a specific job. For job-specific pay, refer to job pay resources.

Important Limitations

Our annual estimate assumes the same hourly 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 thresholds were not confirmed. HELP, 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, use the timesheet to enter your base rate and see weekly, fortnightly, and annual figures. You can also explore reference tables for award rates and tax brackets.