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

Multiply your hourly rate by the number of hours you work each week, then by 52. For a standard 38-hour week, annual = hourly × 38 × 52. This gives your gross annual pay before tax and super. If you work different hours, adjust the weekly figure accordingly.

What is the difference between the National Minimum Wage and an award rate?

The National Minimum Wage is the legal floor set by the Fair Work Commission, currently $26.44 per hour from 1 July 2026. Award rates are industry-specific minimums that may be higher, set by the Fair Work Ombudsman. Your award may also include casual loading of 25% on top of the base rate.

How does salary sacrifice superannuation affect my employer's obligations?

Salary sacrifice super contributions are part of your pre-tax salary, reducing your taxable income. Your employer must still meet the super guarantee (12% of ordinary earnings) on top of any sacrificed amount, subject to the maximum contribution base of $270,830. This is a key aspect of salary sacrifice superannuation employer obligations.

Understanding Salary Sacrifice Superannuation Employer Obligations: From Hourly Rate to Annual Pay

For a full-time employee working 38 hours per week, annual gross pay is hourly rate multiplied by 38 then by 52, with super paid on top.

Converting Your Hourly Rate to Annual Pay

When you have an hourly rate or a salary offer, understanding the full picture of annual pay, tax, and super is essential. The basic formula is simple: multiply your hourly rate by the number of hours you work each week, then by 52 weeks in a year. For most full-time employees, the standard week is 38 hours, as defined by the Fair Work Ombudsman. So annual gross pay ≈ hourly × 38 × 52. This estimate assumes the same rate every week, no unpaid overtime, no penalty rates, no allowances, and no salary sacrifice.

The 38-Hour Standard Week

Australia’s full-time week is typically 38 hours. Using this assumption, you can quickly convert an hourly rate to an annual figure. For example, the National Minimum Wage from 1 July 2026 is $26.44 per hour. That gives $26.44 × 38 = $1,004.90 per week, and $1,004.90 × 52 = $52,254.80 per year. Your fortnightly pay would be $2,009.80 (weekly × 2). If you work part-time or different hours, adjust the weekly hours accordingly. The the timesheet on this site lets you enter your base hourly rate and see the annual, fortnightly, and weekly breakdowns.

National Minimum Wage vs Award Rates

The National Minimum Wage is the legal minimum set by the Fair Work Commission. But many employees are covered by an award – an industry or occupation-specific minimum that is often higher. For instance, a retail award might set a higher base rate than the NMW. The Fair Work Ombudsman provides pay guides for each award. If you are on an award, your rate may include allowances or classifications not captured by the NMW. The figures on this page are based on the NMW unless stated otherwise. For award-specific rates, consult the pay guides or reference tables.

Casual Loading and Superannuation

Casual employees typically receive a 25% loading on top of the base hourly rate. For the NMW, that means $26.44 × 1.25 = $33.05 per hour. This loading compensates for not receiving paid leave. When using the timesheet, you can check a box to add 25% casual loading – never type a rate that already includes loading. Superannuation is paid on top of your ordinary earnings at 12% (the super guarantee rate). For a casual on $33.05/hour, the employer must contribute an additional $3.97 per hour to super, subject to the maximum contribution base of $270,830 per year. Super is not deducted from your pay; it is an extra cost for the employer.

Salary Sacrifice Superannuation Employer Obligations

Understanding salary sacrifice superannuation employer obligations is crucial when comparing a salary offer to an hourly wage. Salary sacrifice involves directing part of your pre-tax salary into super, reducing your taxable income. However, your employer must still meet the super guarantee on your ordinary earnings (the amount before sacrifice). The sacrificed amount counts towards the $270,830 maximum contribution base. For example, if you earn $80,000 and sacrifice $10,000, your employer still pays 12% on the $80,000 ordinary earnings (up to the cap). This is a key part of salary sacrifice superannuation employer obligations – the employer cannot reduce their super contributions because you sacrifice. For more details, see super and packaging.

Tax and Medicare

Once you have your annual gross pay, you can estimate tax using the 2026–27 resident tax rates: nil on the first $18,200, 15% on the next $26,800 (to $45,000), 30% on the next $90,000 (to $135,000), 37% on the next $55,000 (to $190,000), and 45% above that. The Medicare levy is generally 2% of taxable income. Note that this site uses the 2025–26 single reduction thresholds for Medicare because the 2026–27 thresholds were not confirmed. Tax is calculated after the tax-free threshold. No HELP, Medicare levy surcharge, or salary packaging is deducted. This is an estimate only.

Average Earnings vs Your Pay

The Australian Bureau of Statistics publishes Average Weekly Earnings (AWE) for May 2026. For full-time adult ordinary time, the average is $2,083.70 per week. All employees total earnings (including part-time) average $1,579.20 per week. These are averages, not medians for a specific job. Your pay may differ based on your industry, experience, and award. For job-specific pay information, see job pay.

Putting It All Together

To convert your hourly rate to annual pay: hourly × hours per week × 52. Use 38 hours for full-time. Add 25% if casual. Super is 12% on top. Tax and Medicare reduce your take-home pay. Remember that salary sacrifice superannuation employer obligations mean your employer must still pay super on your ordinary earnings, even if you sacrifice part of your salary. Use the timesheet to run your own numbers, and always check your award or agreement for exact rates. This tool provides an estimate, not a determination of your pay or tax.