How to Convert Hourly Pay to Annual Salary: Tax, Super, and Salary Sacrifice Not for Profit

Understanding the hourly to annual conversion

When you have an hourly rate or a salary offer, converting between the two helps you compare jobs and plan your budget. The standard formula is simple: multiply your hourly rate by the number of hours you work each week, then multiply by 52 weeks. For a full-time employee, we assume a 38-hour week, as this is the ordinary hours under the Fair Work Act. If you work different hours, adjust accordingly.

For example, an hourly rate of $30 gives an annual gross of $30 × 38 × 52 = $59,280. If you are paid a salary, dividing by 52 and then by 38 gives your equivalent hourly rate. This calculation assumes the same rate every week, no unpaid overtime, no penalty rates, no allowances, and no salary sacrifice. It is a starting point for understanding your pay.

The fortnightly view

Many Australians are paid fortnightly. To find your fortnightly gross, multiply your weekly pay by 2. Using the same $30 per hour example, weekly pay is $30 × 38 = $1,140, so fortnightly is $2,280. This can help you match your pay cycle to your budget.

National Minimum Wage and award rates

The Fair Work Commission sets the National Minimum Wage each year. From 1 July 2026, the minimum is $26.44 per hour, which equates to $1,004.90 per week for 38 hours. Casual employees receive a 25% loading, making the casual minimum $33.05 per hour. This loading compensates for the lack of paid leave entitlements.

Award rates are industry-specific minimums that may be higher than the National Minimum Wage. For example, the Hospitality Award or the Manufacturing Award have different rates for different classifications. Always check the relevant award or your employment agreement. The minimum wage page has more details.

Casual loading is paid on top of the base rate. When using our timesheet, you can check a box to add 25% casual loading. Do not type a rate that already includes casual loading; the tool adds it for you.

Tax and Medicare on your annual salary

Once you have your annual gross figure, you need to estimate tax and the Medicare levy. The Australian Taxation Office publishes tax rates each year. For 2026–27, the resident tax rates are:

• 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 the Medicare levy of 2% of taxable income. There are reductions for low-income earners, but the calculator uses the standard 2% for simplicity. The Medicare levy surcharge for high-income earners without private hospital cover is not included.

For example, on a gross annual salary of $59,280:

• Tax: $0 on first $18,200, then 15% on $26,800 ($4,020), then 30% on $14,280 ($4,284) = total tax $8,304
• Medicare levy: 2% of $59,280 = $1,185.60
• Total deductions: $9,489.60, leaving take-home pay of $49,790.40

This is an estimate. Your actual tax may differ if you have deductions, offsets, or a salary sacrifice not for profit arrangement. The take-home pay page provides more context.

Superannuation and salary sacrifice not for profit

Superannuation is paid by your employer 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. For the $59,280 example, super would be $7,113.60 per year, added to your gross pay. This is not deducted from your salary; it is an extra contribution to your super fund.

Some employers, especially in the not-for-profit sector, offer salary sacrifice arrangements. With a salary sacrifice not for profit, you can reduce your taxable income by directing part of your pre-tax salary to benefits like super, a car, or other expenses. This can lower your tax bill and increase your take-home pay, but it also affects your super guarantee and other entitlements. The calculator does not include salary sacrifice because it varies by employer and individual circumstances. You would need to adjust your salary manually or consult a tax professional.

Our super and packaging page explains how salary sacrifice not for profit interacts with super and tax. Remember that the maximum super contribution base still applies, and salary sacrifice amounts count towards your concessional contributions cap.

Using the timesheet and reference tables

Our timesheet, also known as the home page, lets you enter your base hourly rate and optionally add casual loading. It then calculates annual gross, fortnightly pay, tax, Medicare, and super. The results are estimates based on the assumptions above.

For more detailed information, visit the reference tables for tax brackets and super rates, or the pay guides for award-specific information. The average pay page shows the Australian Bureau of Statistics' Average Weekly Earnings figures: full-time adult ordinary time $2,083.70 per week as of May 2026, and all employees total earnings $1,579.20 per week (including part-time). These are averages, not medians for your specific job.

Always check your own pay slip and consult the Fair Work Ombudsman for your award or agreement. The calculator is a tool, not a guarantee of your exact pay or tax.