Software Engineer Salary: Convert Your Hourly Rate to Annual Pay (2026-27)
For a software engineer on the Professional Employees Award, a Level 1 graduate (3-year degree) earns $33.71 per hour, or $66,825 annually based on 38 hours per week.
Understanding Your Software Engineer Salary
If you're a software engineer in Australia, knowing how your hourly rate translates into annual, fortnightly, and take-home pay is essential for budgeting and negotiating. This guide uses the latest Fair Work award rates and tax information to help you convert your hourly wage into a full picture of your earnings.
The Basic Formula: Hourly to Annual
The standard calculation for a full-time employee is:
Annual gross pay = hourly rate × hours per week × 52 weeks
For most full-time roles, ordinary hours are 38 per week, as set by the Fair Work Commission and most awards. If you work 38 hours, your annual salary is simply your hourly rate multiplied by 1,976 (38 × 52).
For example, a software engineer on the Professional Employees Award 2020 at Level 1 (3-year degree) earns a minimum hourly rate of $33.71. That works out to:
- Annual: $33.71 × 38 × 52 = $66,825
- Fortnightly: $66,825 ÷ 26 = $2,570.19
- Weekly: $66,825 ÷ 52 = $1,285.10
This is the gross amount before tax, Medicare, and super.
Award Rates vs. the National Minimum Wage
It's important to distinguish between the National Minimum Wage and award rates. The National Minimum Wage, set by the Fair Work Commission, is $26.44 per hour from 1 July 2026. This applies only to employees not covered by an award or agreement. Most software engineers are covered by the Professional Employees Award 2020, which provides higher minimum rates. The award has several classification levels:
| Classification | Annual wage (full-time) | Minimum hourly rate |
|---|---|---|
| Level 1 Graduate (3-year degree) | $66,825 | $33.71 |
| Level 1 Graduate (4 or 5-year degree) | $68,538 | $34.57 |
| Level 2 Experienced professional | $78,836 | $39.77 |
| Level 3 Senior professional | $86,157 | $43.46 |
| Level 4 Professional | $97,173 | $49.02 |
| Level 5 Experienced medical research (senior) | $117,064 | $59.05 |
These rates are the minimum; many software engineers earn above award, but the award ensures a baseline. Always check your classification in the award or use the pay guides from the Fair Work Ombudsman.
Casual Loading and Superannuation
If you work as a casual software engineer, you are entitled to a 25% loading on top of the minimum hourly rate. For a Level 1 graduate, that becomes $33.71 × 1.25 = $42.14 per hour. The loading compensates for not receiving paid leave or other entitlements.
Superannuation is paid on top of your gross earnings. From 1 July 2026, the Super Guarantee is 12% of ordinary time earnings, up to a maximum contribution base of $270,830. For a full-time employee earning $66,825, the employer must contribute an additional $8,019 per year into your super fund. This is not deducted from your salary; it's an extra benefit.
Tax and Medicare Levy on Your Software Engineer Salary
Once you have your annual gross figure, you can estimate your take-home pay using the 2026-27 resident tax rates:
- $0 – $18,200: Nil
- $18,201 – $45,000: 15% on excess over $18,200
- $45,001 – $135,000: 30% on excess over $45,000
- $135,001 – $190,000: 37% on excess over $135,000
- $190,001+: 45% on excess over $190,000
Plus the Medicare levy of 2% of taxable income (with possible reductions for low-income earners).
Example: For a $66,825 annual salary:
- Tax: $0 on first $18,200, then 15% on $26,800 ($4,020), then 30% on $21,825 ($6,547.50) = total tax $10,567.50
- Medicare: $66,825 × 2% = $1,336.50
- Total deductions: $11,904
- Take-home pay: $66,825 – $11,904 = $54,921 per year, or about $4,577 per month.
This estimate does not include the tax-free threshold, HELP repayments, or the Medicare levy surcharge. For a more detailed calculation, see our take-home pay page.
Using the Timesheet Calculator
Our the timesheet tool lets you enter your base hourly rate and optionally add casual loading. It then calculates annual, fortnightly, and weekly pay, plus estimated tax and super. Remember: if you are a casual employee, do not include the 25% loading in your base rate; check the box to add it automatically.
Why 38 Hours?
The 38-hour week is the standard ordinary hours under the Fair Work Act and most awards. Some roles may have different arrangements, such as averaged hours over a period. Always confirm your ordinary hours with your employer or award. Our calculator assumes 38 hours unless you change it.
Fortnightly Pay
Many employers pay fortnightly. To find your gross fortnightly pay, divide your annual salary by 26. For a $66,825 salary, that's $2,570.19 per fortnight. After tax and Medicare, you'd receive approximately $2,112 per fortnight.
Summary
- Software engineer salary depends on your award classification and experience.
- Use the Professional Employees Award rates as a minimum benchmark.
- Convert hourly to annual: rate × 38 × 52.
- Add 25% for casual loading; super is 12% on top.
- Tax and Medicare reduce your gross pay; use the 2026-27 rates for estimates.
For more information, visit the minimum wage page or the average pay page for industry comparisons.
Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.