How do I convert my hourly rate to an annual salary?

Multiply your hourly rate by the hours you work each week, then by 52. If you work a standard 38-hour week, annual gross pay ≈ hourly × 38 × 52. This assumes the same rate every week with no unpaid overtime, penalty rates, or allowances. For a casual worker, the 25% loading is added to the base rate before multiplying.

What tax and Medicare levy will I pay on my annual pay?

For 2026–27, the resident tax scale is: nil up to $18,200; 15% from $18,201 to $45,000; 30% from $45,001 to $135,000; 37% from $135,001 to $190,000; 45% above $190,000. Medicare levy is generally 2% of taxable income. The estimate uses the full tax-free threshold and 2025–26 Medicare reduction thresholds, so it is an approximation.

What is salary sacrifice school fees and how does it affect my pay?

Salary sacrifice school fees is an arrangement where you forgo part of your pre-tax salary to pay for your child's school fees, reducing your taxable income. It is a form of salary packaging. The annual estimate on this page does not include salary sacrifice; you would need to adjust your gross pay before applying tax. For more details, see the [super and packaging](/topics/super-and-packaging) page.

Annual Pay Calculator: Convert Hourly Rates and Consider Salary Sacrifice School Fees

Annual pay is calculated as hourly rate × hours per week × 52, assuming a standard 38-hour week; for example, the National Minimum Wage of $26.44/hour yields about $52,277/year before tax and super.

How to Convert Your Hourly Rate to Annual Pay

If you earn an hourly wage or are considering a salary offer, you can estimate your annual gross pay using a simple formula: hourly rate × hours per week × 52. This article explains the conversion, the assumptions behind it, and how tax, super, and arrangements like salary sacrifice school fees fit into the picture.

The Basic Formula and the 38-Hour Week

Most full-time employees in Australia work a 38-hour week under modern awards or enterprise agreements. When you use the hourly conversion tool on this site, the annual figure is calculated as:

Annual gross ≈ hourly rate × 38 × 52

For example, the National Minimum Wage from 1 July 2026 is $26.44 per hour. Multiplying by 38 gives $1,004.90 per week, and by 52 gives about $52,254 per year. This is a standard estimate; your actual hours may differ.

If you are a casual employee, you are entitled to a 25% casual loading on top of the base rate. The National Minimum Wage for casuals is therefore $33.05 per hour (including loading). When using the timesheet on the home page, you can check a box to add 25% casual loading – never type a rate that already includes loading.

Fortnightly Pay and Other Time Periods

Many employers pay fortnightly. To find your fortnightly gross, simply multiply your weekly pay by two. Using the minimum wage example: $1,004.90 per week × 2 = $2,009.80 per fortnight. This can help you compare with salary offers that are quoted fortnightly.

Award Rates, Minimum Wage, and Casual Loading

The National Minimum Wage applies to employees not covered by an award or agreement. However, most workers are covered by a modern award that sets a higher minimum rate for their industry or occupation. The Fair Work Ombudsman provides pay guides that list award-specific rates. Always check your award before relying on the minimum wage.

Casual loading (usually 25%) is paid in lieu of entitlements like paid leave. It is added on top of the base hourly rate. The casual loading page explains this in more detail.

Superannuation: Paid on Top

Your employer must pay superannuation guarantee contributions on your ordinary earnings. From 1 July 2026, the super guarantee rate is 12% of your ordinary time earnings, paid on top of your gross pay. The maximum contribution base is $270,830 per year – super is not required on earnings above that cap.

For the minimum wage example, the super contribution would be about $6,270 per year (12% of $52,254), but this is not deducted from your pay; it goes into your super fund. The super and packaging page covers how salary sacrifice arrangements, such as salary sacrifice school fees, interact with super.

Tax and Medicare Levy

Once you have your annual gross figure, you can estimate your tax using the 2026–27 resident tax rates:

Nil tax 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 estimate on this site uses the 2025–26 single reduction thresholds because the 2026–27 thresholds were not confirmed at the time of calculation. This means your actual Medicare levy may differ slightly.

Understanding Salary Sacrifice School Fees

Salary sacrifice school fees is a popular arrangement where you agree to reduce your pre-tax salary in exchange for your employer paying your child's school fees directly. This lowers your taxable income, potentially reducing the tax you pay. However, salary sacrifice is not included in the annual estimate on this page – the calculation assumes no salary packaging. If you are considering salary sacrifice, you would need to subtract the sacrificed amount from your gross pay before applying tax. For more details, see the take-home pay page.

Average Earnings for Comparison

The Australian Bureau of Statistics (ABS) publishes Average Weekly Earnings. For May 2026, full-time adult ordinary time earnings were $2,083.70 per week (about $108,352 per year). All employees total earnings (including part-time) averaged $1,579.20 per week (about $82,118 per year). These are averages, not medians for any specific job. Do not use them as a benchmark for your role – refer to job pay or award rates instead.

Important Disclaimer

The annual pay shown on this site is an estimate only. 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, 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. HELP repayments, the Medicare levy surcharge, and salary packaging are not deducted. This is not a determination of your actual pay or tax liability.

For a more personalised calculation, use the timesheet, which lets you enter your base hourly rate and optionally add casual loading. You can also explore the reference tables for award rates and tax brackets.