How is annual pay calculated from an hourly rate?

Annual gross pay is calculated as hourly rate × hours per week × 52 weeks. For a standard full-time role, we assume 38 hours per week. For example, at the National Minimum Wage of $26.44 per hour, annual pay is $26.44 × 38 × 52 = $52,261.44. This formula does not include overtime, penalty rates, or casual loading unless specified.

Does superannuation come out of my hourly rate?

No, super guarantee is paid on top of your ordinary earnings by your employer. From 1 July 2026, the rate is 12% of your ordinary time earnings, up to the maximum contribution base of $270,830 per year. For example, if your annual ordinary earnings are $80,000, your employer must contribute an extra $9,600 to your super fund. This is not deducted from your hourly rate.

What Can You Salary Sacrifice in Australia? A Guide to Hourly to Annual Pay

Q: What can you salary sacrifice in Australia?

Salary sacrifice allows you to forgo part of your pre-tax salary in exchange for benefits like additional super contributions, a car, or electronic devices. The Australian Taxation Office sets rules on what can be sacrificed, and the benefit is taxed at a lower rate or exempt. Common items include superannuation (up to concessional caps), work-related items, and novated leases. Always check the ATO guidelines or speak with your employer.

This guide converts your hourly rate to annual pay assuming a standard 38-hour week, 52 weeks per year, and explains tax, super, and salary sacrifice options.

Understanding Your Hourly to Annual Pay

When you’re offered an hourly rate or a salary, it helps to know the full picture: what you’ll earn in a year, what you’ll take home after tax, and what can you salary sacrifice in Australia to reduce your tax. This guide walks you through the conversion, using a standard 38-hour week and 52-week year.

The Basic Formula

Annual gross pay = hourly rate × hours per week × 52. For a full-time employee, we assume 38 hours per week as per the Fair Work Ombudsman’s standard. If you work different hours, adjust accordingly. For example, a rate of $30 per hour gives $30 × 38 × 52 = $59,280 per year.

Fortnightly Pay

Many Australians are paid fortnightly. To find your gross fortnightly pay, multiply your weekly pay by 2. Weekly pay is hourly rate × 38. So at $30 per hour, weekly pay is $1,140, and fortnightly is $2,280. This helps with budgeting and comparing to salary offers.

National Minimum Wage and Award Rates

The National Minimum Wage from 1 July 2026 is $26.44 per hour, or $1,004.90 per week for 38 hours. This is the minimum for employees not covered by an award or agreement. Many industries have award rates that are higher. Check the minimum wage page for current rates. If you’re a casual employee, you receive a 25% casual loading on top of the base rate, making the casual minimum $33.05 per hour. Never enter a rate that already includes casual loading into the timesheet; instead, use the base rate and check the casual loading box.

Superannuation Paid on Top

Your employer must pay super guarantee at 12% of your ordinary time earnings (from 1 July 2026) into your super fund. This is on top of your salary, not deducted from it. For example, on $59,280 annual ordinary earnings, the employer adds $7,113.60 to super. The super guarantee stops once your earnings exceed the maximum contribution base of $270,830 per year. Learn more about super and packaging.

Tax and Take-Home Pay

Your take-home pay depends on tax brackets and the Medicare levy. For 2026–27, the resident tax rates are:

Nil 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

Plus a Medicare levy of 2% (generally). Use the take-home pay calculator for an estimate. Note that HELP repayments, Medicare levy surcharge, and salary packaging are not included in this guide.

What Can You Salary Sacrifice in Australia?

Salary sacrifice is an arrangement where you give up part of your pre-tax salary in exchange for benefits. Common items include:

Additional super contributions (up to the concessional cap of $30,000 for 2026–27)
A car through a novated lease
Work-related items like laptops or tools
Childcare fees (if offered by employer)

The benefit is that the sacrificed amount is not subject to income tax, though some benefits may have fringe benefits tax (FBT). The Australian Taxation Office sets rules on what can be sacrificed. Always check with your employer or a tax professional. This can be a smart way to reduce your taxable income while gaining valuable benefits.

Award Rates vs. Average Earnings

Award rates are minimum pay rates set by the Fair Work Commission for specific industries. They are not the same as the National Minimum Wage. For example, the Hospitality Award has different rates for different roles. The Australian Bureau of Statistics publishes average weekly earnings. As of May 2026, full-time adult ordinary time earnings averaged $2,083.70 per week, while all employees (including part-time) averaged $1,579.20 per week. These are averages, not medians for a specific job. For job-specific pay, refer to job pay or pay guides.

Casual Loading Explained

Casual employees get a 25% loading on their base hourly rate to compensate for lack of paid leave. If you are casual, use the casual loading page to understand how it works. On the timesheet, enter your base rate and tick the casual loading box to see the loaded rate. Never enter a rate that already includes loading.

Using the Timesheet

The timesheet is the home page where you type your base hourly rate. A checkbox adds 25% casual loading on top. The calculator shows your weekly, fortnightly, and annual pay, plus estimated tax and super. Remember that super is paid on top of your ordinary earnings, not deducted.

Important Disclaimer

Annual pay here is hourly rate × hours per week × 52. 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 only, paid on top, and stops at the $270,830 maximum contribution base. Tax is the 2026–27 resident scale with the full tax-free threshold. Medicare uses the 2025–26 single reduction thresholds because the 2026–27 reduction thresholds were not confirmed here. HELP, the Medicare levy surcharge, and salary packaging are not deducted. This is an estimate, not a determination of your pay or tax.

Reference Tables

For more detailed data, see the reference tables page. It includes the National Minimum Wage, award rates, and superannuation caps. Always verify with official sources like the Fair Work Ombudsman, Fair Work Commission, Australian Bureau of Statistics, and Australian Taxation Office.

Summary

To convert your hourly rate to annual pay: multiply by 38 hours per week, then by 52 weeks. Add super at 12% on top. Consider what can you salary sacrifice in Australia to reduce your tax. Use the hourly conversion tool for quick calculations. Remember that award rates, casual loading, and penalty rates can change your pay. Always check your specific award or agreement.