How do I calculate my annual salary from an hourly rate?

Multiply your hourly rate by the number of hours you work each week, then multiply by 52. For a standard full-time role of 38 hours per week, the formula is: hourly rate × 38 × 52. This gives your gross annual pay before tax and super.

What is the current National Minimum Wage in Australia?

From 1 July 2026, the National Minimum Wage is $26.44 per hour, or $1,004.90 per week for 38 hours. Casual employees receive a 25% loading, making the casual rate $33.05 per hour. These rates are set by the Fair Work Commission.

How is superannuation calculated on my salary?

Superannuation is paid on top of your ordinary earnings at 12% (from 2026–27). For example, if your annual salary is $100,000, your employer contributes an extra $12,000 to your super fund, up to the maximum contribution base of $270,830.

How to Convert Your Hourly Rate to Annual Pay: A Guide for VPS 6 Salary and Beyond

For a VPS 6 salary, a typical hourly rate of $60 works out to about $118,560 per year before tax, assuming 38 hours per week and 52 weeks.

Understanding the Hourly to Annual Conversion

Whether you're negotiating a VPS 6 salary in the Victorian public service or comparing a casual job offer, knowing how to convert an hourly rate to annual pay is essential. The standard formula is simple: multiply your hourly rate by the number of hours you work each week, then multiply by 52 weeks. For most full-time roles, the assumption is 38 hours per week, as set by the Fair Work Act and used in the National Minimum Wage.

For example, if you earn $60 per hour (a common rate for a VPS 6 classification), your annual gross pay would be:

$60 × 38 × 52 = $118,560

This figure is before tax, the Medicare levy, and any superannuation contributions (which are paid on top). It also assumes you work every week of the year with no unpaid leave, overtime, or penalty rates.

Why 38 Hours?

The 38-hour week is the standard ordinary hours for full-time employees under most awards and the National Employment Standards. The Fair Work Commission uses 38 hours to calculate the National Minimum Wage: $26.44 per hour equals $1,004.90 per week. If you work more or fewer hours, adjust the formula accordingly. For part-time or casual roles, your weekly hours may vary, so use your actual average.

Fortnightly Pay

Many employers pay fortnightly. To find your gross fortnightly pay, simply double your weekly pay. Using the VPS 6 example above:

Weekly pay: $60 × 38 = $2,280 Fortnightly pay: $2,280 × 2 = $4,560

This can help you budget and compare with job advertisements that quote fortnightly salaries.

Distinguishing Minimum Wage, Award Rates, and Casual Loading

It's important to know which pay rate applies to you. The National Minimum Wage is the legal floor for award/agreement-free employees. From 1 July 2026, it is $26.44 per hour for adults. However, most employees are covered by an award or enterprise agreement that sets higher minimum rates.

For example, the Social, Community, Home Care and Disability Services Industry Award (SCHADS) has specific pay scales, and from December 2026 home care disability employees will receive up to a 15% increase. Always check the relevant pay guides for your industry.

Casual Loading

Casual employees are entitled to a 25% loading on top of the base hourly rate. This compensates for not receiving paid leave. When using our timesheet, you can check a box to add 25% casual loading. Do not enter a rate that already includes the loading – the tool adds it automatically. For the National Minimum Wage, the casual rate is $33.05 per hour ($26.44 × 1.25).

Tax and the Medicare Levy

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

$0 – $18,200: Nil
$18,201 – $45,000: 15% of excess over $18,200
$45,001 – $135,000: $4,020 + 30% of excess over $45,000
$135,001 – $190,000: $31,020 + 37% of excess over $135,000
$190,001+: $51,420 + 45% of excess over $190,000

Additionally, most residents pay the Medicare levy of 2% of taxable income. For 2025–26, the single reduction threshold is used here (the 2026–27 thresholds were not confirmed at the time of this guide). If your income is below a certain level, the levy may be reduced or waived.

Example: VPS 6 Salary Tax Estimate

For a gross annual salary of $118,560:

Tax: $4,020 + 30% × ($118,560 – $45,000) = $4,020 + $22,068 = $26,088
Medicare levy (2%): $2,371.20
Total deductions: $28,459.20
Net annual pay: $90,100.80

This is an estimate only. It does not include HELP repayments, the Medicare levy surcharge, or salary packaging.

Superannuation Paid on Top

Employers must pay superannuation guarantee contributions of 12% of your ordinary time earnings (from 2026–27). This is paid on top of your salary, not deducted from it. For the VPS 6 example, your employer would contribute an extra $14,227.20 per year to your super fund, up to the maximum contribution base of $270,830.

Super is not included in your take-home pay, but it is part of your total remuneration package. When comparing job offers, consider the super component.

Using the Timesheet and Other Tools

Our the timesheet lets you enter your base hourly rate and see the annual, monthly, fortnightly, and weekly equivalents. You can toggle casual loading and see estimated tax and super. For award-specific rates, refer to the pay guides from the Fair Work Ombudsman.

Remember: the conversion assumes a consistent 38-hour week with no unpaid overtime. If your role involves shift work, penalties, or allowances, your actual pay may differ. Always check your enterprise agreement or award.

Summary

Annual gross = hourly rate × hours per week × 52
Standard full-time hours: 38 per week
National Minimum Wage (July 2026): $26.44/hr, casual $33.05/hr
Super is 12% on top, up to $270,830
Tax and Medicare levy reduce your take-home pay

For a VPS 6 salary, a typical hourly rate of $60 gives an annual gross of $118,560. Use the formula to compare any hourly offer or salary.