What is a salary in Australia?

A salary is a fixed annual amount paid to an employee, often set out in an employment contract. Unlike an hourly wage, a salary covers all hours worked and may include entitlements such as penalties and allowances. Under some awards, employers can use an annualised wage arrangement, which must be reviewed to ensure it meets minimum award rates. For more detail, see the Fair Work Ombudsman's guidance on annualised wages and salaries.

How do I convert an hourly rate to an annual salary?

Multiply your hourly rate by the number of hours you work each week, then multiply by 52 weeks. For a standard full-time role, we assume 38 hours per week. For example, $30 per hour × 38 hours × 52 weeks = $59,280 per year. This is gross pay before tax and super. Use our timesheet to calculate your own figures.

What is the difference between a salary and an annualised wage?

A salary is typically agreed in an employment contract and may offset award entitlements. An annualised wage is a specific arrangement under some awards that pays a fixed amount to cover minimum rates, penalties, and allowances. Both must be reviewed to ensure the employee receives at least the award minimum. The Fair Work Ombudsman explains that annualised wages follow award rules, while salaries are contractual.

What Is a Salary? How to Convert Hourly Pay to Annual Pay in Australia

For a full-time employee on the National Minimum Wage of $26.44 per hour, working 38 hours per week, the annual gross pay is approximately $52,270 before tax and super.

What Is a Salary? Understanding Annual Pay in Australia

When you see a job advertisement offering a salary of $80,000 per year, you might wonder how that compares to an hourly rate. Conversely, if you're paid by the hour, you may want to know what that equates to annually. This guide explains what is a salary in the Australian context, how to convert hourly pay to annual pay, and what factors like tax, super, and award rates mean for your take-home pay.

The Basics: Hourly to Annual Conversion

The standard formula to estimate annual gross pay is:

Hourly rate × hours per week × 52 weeks

We assume a full-time week of 38 hours, as this is the standard under the Fair Work Act and used in the National Minimum Wage. If you work different hours, adjust accordingly. For example, a part-time employee working 20 hours per week would use that figure.

Using the hourly conversion tool on this site, you can enter your hourly rate and see the annual equivalent. Remember, this is an estimate that assumes the same rate every week, no unpaid overtime, and no penalty rates or allowances.

National Minimum Wage and Award Rates

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 minimum $33.05 per hour. However, many employees are covered by awards that set higher minimum rates. The Fair Work Ombudsman provides pay guides for each award, listing minimum pay rates, allowances, and penalty rates.

If you are covered by an award, your employer must pay at least the award rate. Some employers offer a salary that is above the award, but it must still meet minimum entitlements. The Fair Work Ombudsman explains that a salary can offset award entitlements like penalties and overtime, but only if the total paid is at least what the employee would have received under the award.

Casual Loading and Superannuation

If you are a casual employee, your hourly rate typically includes a 25% casual loading. On our timesheet, you can check a box to add this loading on top of your base rate. Never enter a rate that already includes casual loading – the tool adds it for you.

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 per year. For example, if your annual gross is $60,000, your employer must contribute $7,200 to your super fund. This is not deducted from your pay; it's an additional benefit.

Tax and Take-Home Pay

Your annual gross pay is not what you take home. The Australian Taxation Office applies progressive tax rates for 2026–27:

Nil on income up to $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, the Medicare levy of 2% applies to most residents. Use our take-home pay calculator to estimate your net income after tax and Medicare.

Fortnightly Pay

Many employers pay fortnightly. To find your fortnightly gross, multiply your weekly pay by 2. For a $30 per hour employee working 38 hours, weekly pay is $1,140, so fortnightly is $2,280. This can help with budgeting.

Annualised Wages vs Salary

The Fair Work Ombudsman distinguishes between an annualised wage (under an award) and a salary (under a contract). An annualised wage is a fixed amount that covers minimum rates, penalties, and allowances, and must be reviewed annually. A salary is a contractual amount that may also offset entitlements. Both must ensure the employee is not worse off than if paid under the award.

If you are offered a salary, check whether it includes super and whether it meets award minimums. The minimum wage page has more details.

Using the Timesheet

Our timesheet is designed for hourly workers. Enter your base hourly rate, select your hours per week, and the tool calculates annual gross, super, and estimated tax. If you are casual, check the casual loading box. The result is an estimate – always consult a professional for your specific situation.

Summary

Understanding what is a salary and how it relates to hourly pay helps you compare job offers and plan your finances. Use the formula hourly × hours × 52 for a quick estimate, but remember that actual pay may vary due to overtime, penalties, and allowances. For award-covered employees, always check the relevant pay guides or use the Fair Work Ombudsman's Pay and Conditions Tool.

For more information on average earnings, see the average pay page, which uses ABS data. And if you're considering salary packaging, visit super and packaging.