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

The National Minimum Wage is the legal minimum pay for employees not covered by an award or agreement. From 1 July 2026 it is $26.44 per hour. Award rates are set by the Fair Work Commission for specific industries and occupations, and are almost always higher. Most employees are covered by an award, so you should check the relevant pay guide on the Fair Work Ombudsman website to find the correct minimum rate for your classification.

How is casual loading applied in the calculator?

Our timesheet includes a checkbox that adds 25% casual loading on top of the base hourly rate you enter. For example, if the base rate is $26.44, the casual rate becomes $33.05 per hour. You should enter the base rate only, not a rate that already includes loading. The loading compensates for the lack of paid leave entitlements.

Does the calculator include super and tax?

Yes. The calculator estimates superannuation at 12% of ordinary earnings, paid on top of your gross pay, up to the maximum contribution base of $270,830. Tax is estimated using the 2026–27 resident tax rates and the 2% Medicare levy. However, it does not account for HELP repayments, the Medicare levy surcharge, salary packaging, or individual offsets. For a more detailed estimate that includes salary packaging, you might use a smart salary novated lease calculator, but our tool focuses on the base conversion.

From Hourly to Annual: Using the Smart Salary Novated Lease Calculator and Understanding Minimum Wages

Based on a 38-hour week, the National Minimum Wage from 1 July 2026 is $26.44 per hour, equating to $1,004.90 per week or $52,254.80 per year before tax and super.

Understanding Your Hourly to Annual Pay

Converting your hourly rate to an annual salary is straightforward: 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 standard 38-hour week. So the formula is:

Annual gross pay = hourly rate × 38 × 52

This gives you a base figure before tax and super. For example, at the National Minimum Wage of $26.44 per hour, the annual gross pay is $26.44 × 38 × 52 = $52,254.80.

You can also work out your weekly pay by multiplying the hourly rate by 38, and your fortnightly pay by doubling that weekly amount. The the timesheet on this site lets you enter your hourly rate and see these figures instantly.

The National Minimum Wage vs Award Rates

The National Minimum Wage is the legal floor set by the Fair Work Commission. From 1 July 2026 it is $26.44 per hour, or $1,004.90 per week for a 38-hour week. However, most Australian employees are covered by an award or enterprise agreement that sets higher minimum rates. Awards are industry- or occupation-specific and include penalty rates, allowances, and loadings.

To find the correct minimum rate for your job, check the pay guides on the Fair Work Ombudsman website. These guides list the minimum pay rates for each classification in an award. If you are not covered by an award, the National Minimum Wage applies.

Casual Loading

If you are a casual employee, you are entitled to a casual loading – typically 25% on top of the base hourly rate. This loading compensates for the lack of paid leave such as annual leave and sick leave. In our timesheet, you can check the “casual loading” box to add 25% automatically. For the National Minimum Wage, the casual rate becomes $33.05 per hour. Always enter the base rate (without loading) into the calculator.

Salary Packaging and Super

Superannuation is paid on top of your ordinary earnings at a rate of 12% for the 2026–27 financial year. This is not deducted from your pay; it is an additional contribution your employer makes to your super fund. The super guarantee is capped at the maximum contribution base of $270,830 per year. In our calculator, super is estimated as 12% of your gross annual pay, up to that cap.

Salary packaging (also called salary sacrificing) allows you to use pre-tax income to pay for certain items like a car or laptop, reducing your taxable income. For a more detailed estimate that includes salary packaging, you might use a smart salary novated lease calculator, but our tool focuses on the base conversion without packaging. See our super and packaging page for more information.

Tax and Medicare

Your annual gross pay is subject to income tax and the Medicare levy. For the 2026–27 financial year, the resident tax rates are:

$0 – $18,200: nil
$18,201 – $45,000: 15% on the excess over $18,200
$45,001 – $135,000: 30% on the excess over $45,000
$135,001 – $190,000: 37% on the excess over $135,000
$190,001 and above: 45% on the excess over $190,000

The Medicare levy is generally 2% of your taxable income. Our calculator uses the 2025–26 single reduction thresholds because the 2026–27 thresholds were not confirmed at the time of this reference. The calculator does not deduct HELP repayments, the Medicare levy surcharge, or any tax offsets.

Fortnightly and Weekly Breakdown

Knowing your weekly and fortnightly pay helps with budgeting. Weekly pay is simply hourly rate × hours per week. Fortnightly pay is that amount × 2. For a full-time employee on the National Minimum Wage:

Weekly: $26.44 × 38 = $1,004.90
Fortnightly: $1,004.90 × 2 = $2,009.80
Annual: $52,254.80

If you are paid a salary, your employer may pay you an annualised wage that covers minimum entitlements like penalties and allowances. The Fair Work Ombudsman provides guidance on annualised wage arrangements. Always check that your salary meets or exceeds the award minimums for the hours you work.

Important Notes

This conversion assumes you work the same number of hours every week, with no unpaid overtime, penalty rates, or allowances. It is a base estimate. For a personalised calculation that includes your specific circumstances, use the the timesheet on this site. You can also explore our minimum wage topic page for more details on current rates.

Remember: super is paid on top of your gross pay, not deducted from it. Tax is deducted by your employer through PAYG withholding. The figures here are estimates only and should not replace professional advice.