TimesheetGuidesSuper and packaging
What Does Salary Sacrifice Mean? A Guide to Hourly to Annual Pay
Annual pay is estimated as hourly rate × 38 hours per week × 52 weeks, assuming no overtime or penalty rates.
Understanding Hourly to Annual Pay
If you earn an hourly wage or have received a salary offer, you may want to compare them on an annual basis. The standard formula is simple: multiply your hourly rate by the number of hours you work each week, then by 52 weeks. For a full-time employee working 38 hours per week, that is hourly rate × 38 × 52. This gives your gross annual pay before tax, Medicare, and super.
For example, the National Minimum Wage from 1 July 2026 is $26.44 per hour. Using the 38-hour week, the annual gross is approximately $52,245. A casual worker receives a 25% loading, making the casual minimum $33.05 per hour, or about $65,306 per year. Remember, the loading is paid on top of the base rate—never type a rate that already includes casual loading into the calculator.
The Fortnightly View
Many Australians are paid fortnightly. To find your fortnightly gross, simply multiply your weekly pay by two. Weekly pay is your hourly rate × hours per week. For a full-time worker on the minimum wage, weekly pay is $1,004.90 (38 hours × $26.44), so fortnightly pay is $2,009.80. This can help you budget between pay cycles.
Ordinary-Time Earnings vs Total Earnings
The Australian Bureau of Statistics (ABS) reports Average Weekly Earnings for full-time adult ordinary time at $2,083.70 per week (May 2026). This figure represents ordinary-time earnings—the base pay for standard hours, excluding overtime, bonuses, and allowances. In contrast, total earnings for all employees (including part-time) average $1,579.20 per week. The difference highlights that many workers earn less than full-time ordinary-time rates.
Our calculator uses the same ordinary-time concept: it assumes you work the same number of hours each week, with no unpaid overtime, penalty rates, or allowances. If your actual earnings include shift loadings or overtime, your annual pay will be higher than the estimate.
Tax, Medicare, and Super
Tax is calculated using the 2026–27 resident tax rates:
- Nil up to $18,200
- 15% from $18,201 to $45,000
- 30% from $45,001 to $135,000
- 37% from $135,001 to $190,000
- 45% above $190,000
Medicare levy is generally 2% of taxable income. The calculator uses the 2025–26 single reduction thresholds because the 2026–27 thresholds were not confirmed in this estimate.
Superannuation is paid on top of your gross pay at 12% of ordinary earnings, up to the maximum contribution base of $270,830. For example, if your annual gross is $80,000, your employer contributes an extra $9,600 to your super fund. This is not deducted from your pay—it is an additional benefit.
What Does Salary Sacrifice Mean?
You may have heard the term and wondered, "What does salary sacrifice mean?" It is an arrangement where you agree to give up part of your pre-tax salary in exchange for benefits such as a car, additional super contributions, or electronic devices. The sacrificed amount is not subject to income tax, which can reduce your taxable income and increase your take-home pay (or boost your super).
However, salary sacrifice is not included in the simple hourly-to-annual conversion. Our calculator assumes no salary sacrifice, so if you have such an arrangement, your actual taxable income will be lower than the gross annual figure shown. For more details on how salary packaging interacts with super and tax, see our guide on super and packaging.
Award Rates and Casual Loading
The National Minimum Wage is the legal floor, but many industries have award rates set by the Fair Work Commission. These awards specify minimum pay for different roles, including penalty rates for weekends and public holidays. Casual employees receive a 25% loading on top of the base rate to compensate for lack of paid leave. You can select the casual loading checkbox in our calculator to see the effect on your annual pay.
For more on casual loading, visit our casual loading page.
Using the Calculator Responsibly
Our timesheet (home page) lets you enter your base hourly rate and optionally add casual loading. It then calculates annual gross, fortnightly pay, estimated tax, Medicare, and super. Remember, this is an estimate only. It does not account for:
- Unpaid overtime
- Penalty rates or allowances
- Salary sacrifice arrangements
- HELP repayments or Medicare levy surcharge
- State-specific taxes
For a more precise picture of your take-home pay, see our take-home pay guide.
Differences in Ordinary-Time Earnings
Ordinary-time earnings vary widely across industries and states. The ABS average of $2,083.70 per week for full-time adults is a national figure. Your actual ordinary-time earnings may be higher or lower depending on your occupation, experience, and location. Award rates set by the Fair Work Ombudsman provide minimums for specific jobs, but many employees earn above award.
If you are comparing a salary offer to your current hourly rate, use the formula: annual salary ÷ (hours per week × 52) = equivalent hourly rate. For a 38-hour week, divide the annual salary by 1,976. This gives you the hourly rate before tax and super.
Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.