TimesheetGuidesSuper and packaging
Hourly to Annual Pay: Use Our Salary Sacrifice Mortgage Calculator to Understand Your Take-Home Pay
For a standard 38-hour week, annual gross pay is your hourly rate multiplied by 38 then by 52, before tax, Medicare, and super.
How to Convert Hourly to Annual Pay
If you earn an hourly wage or have been offered a salary, understanding the annual equivalent is essential for budgeting, comparing job offers, and planning tax. The standard formula is simple: multiply your hourly rate by the number of hours you work each week, then multiply by 52 weeks.
For most full-time employees, a 38-hour week is the benchmark used by the Fair Work Ombudsman and the Australian Bureau of Statistics. Using this assumption, annual gross pay = hourly rate × 38 × 52. For example, if your hourly rate is $30.00, your annual salary would be $30 × 38 × 52 = $59,280.
If you work part-time or casual hours, adjust the weekly figure. A fortnightly amount is simply the weekly figure multiplied by two, which can be useful for comparing with pay cycles.
Minimum Wage and Award Rates
The National Minimum Wage from 1 July 2026 is $26.44 per hour, or $1,004.90 per week for 38 hours. This is the legal minimum for employees not covered by an award or agreement. Many industries have award rates that are higher. The Fair Work Commission sets these rates, and they vary by occupation and experience level. Always check the relevant award for your job.
Casual employees receive a 25% loading on top of the base rate. For the minimum wage, that means $33.05 per hour. When using the timesheet on this site, enter your base hourly rate and tick the casual loading checkbox if applicable. Do not enter a rate that already includes loading.
Superannuation Is Paid on Top
Employers must pay super guarantee contributions of 12% of your ordinary earnings, on top of your salary. This is not deducted from your pay. For the 2026–27 year, the maximum contribution base is $270,830. If your annual salary exceeds that, super is only paid on the first $270,830. Use our super and packaging guide to see how salary sacrifice can affect your super.
Estimating Tax and Medicare
Once you have your annual gross figure, you can estimate the tax you will pay using the 2026–27 resident tax rates:
- 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
In addition, 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 in this estimate. If your income is below a certain level, the levy may be reduced or waived.
For example, an annual salary of $80,000 would have tax calculated as:
- $0 on first $18,200
- 15% on $26,800 ($45,000 – $18,200) = $4,020
- 30% on $35,000 ($80,000 – $45,000) = $10,500
- Total tax = $14,520
- Medicare levy (2%) = $1,600
- Total deductions = $16,120
- Estimated take-home pay = $63,880
This is a simplified estimate. It does not include HELP repayments, the Medicare levy surcharge, or salary packaging. For a more detailed breakdown, see our take-home pay page.
Using a Salary Sacrifice Mortgage Calculator
Salary sacrifice allows you to direct pre-tax income towards certain benefits, such as additional super contributions or a mortgage. A salary sacrifice mortgage calculator helps you see how much tax you could save by reducing your taxable income through mortgage payments. For example, if you sacrifice $10,000 of your salary into your home loan, your taxable income drops by $10,000, potentially saving you $3,000 to $4,500 in tax depending on your bracket.
This strategy can be particularly effective for homeowners looking to pay off their loan faster while lowering their annual tax bill. Our super and packaging page explains how salary packaging works with mortgages and other benefits.
Average Earnings for Context
The Australian Bureau of Statistics reports Average Weekly Earnings for full-time adult ordinary time as $2,083.70 per week (May 2026). That equates to an annual salary of about $108,352. All employees total earnings average $1,579.20 per week, which includes part-time workers. These are averages, not medians for any specific job. Your actual pay may differ based on your industry, experience, and location.
Important Disclaimer
Annual pay shown here is an estimate based on 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.
For a quick conversion, use the timesheet on our home page. For more detailed guides, visit our reference tables or minimum wage page.
Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.