What is OTE in salary for super guarantee purposes?

Ordinary time earnings (OTE) are the amounts you pay an employee for their ordinary hours of work, including commissions, shift loadings, and casual loading. Overtime payments are not OTE if ordinary hours are clearly identified. The Australian Taxation Office provides a detailed list of payments that count as OTE for the super guarantee.

Does casual loading count as ordinary time earnings?

Yes, casual loading is considered OTE. The ATO includes casual loading in the list of payments that are ordinary time earnings. For award/agreement-free employees, the Fair Work Commission sets the casual loading at 25% on top of the national minimum wage.

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

Multiply your hourly rate by the number of hours worked per week, then 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 gross per year. Super is calculated on your ordinary time earnings and paid on top, not deducted from that amount.

What Is OTE in Salary? A Guide to Ordinary Time Earnings for Australian Pay

For a full-time employee on the National Minimum Wage of $26.44 per hour, working 38 hours a week, the annual gross pay is approximately $52,265, with super of 12% paid on top.

What Is OTE in Salary? Ordinary Time Earnings Explained

When you convert an hourly rate to an annual salary, the most important figure to understand is your ordinary time earnings (OTE). This is the amount that determines your super guarantee contributions, and it may differ from your total gross pay. The question “what is ote in salary” comes up often because not every dollar you earn counts the same way for super and tax.

Defining Ordinary Time Earnings

Ordinary time earnings are the payments you receive for your ordinary hours of work. According to the Australian Taxation Office, OTE includes your base hourly rate, casual loading, shift penalties (including public holiday penalties), commissions, and performance bonuses – as long as they relate to ordinary hours. Overtime payments are not OTE if your ordinary hours are clearly defined in an award or agreement. If they aren’t, all hours worked are treated as ordinary hours.

For example, if you work 38 ordinary hours plus 5 hours of overtime each week, only the 38 hours are OTE. The overtime is still salary or wages, but your employer does not have to pay super on it (unless your award says otherwise).

How OTE Affects Your Super

Your employer must pay super guarantee contributions of 12% on your OTE, up to the maximum contribution base of $270,830 (2026–27). This super is paid on top of your salary, not deducted from it. So if your annual OTE is $60,000, your employer adds $7,200 to your super fund. Understanding what is ote in salary helps you check that you’re receiving the correct super.

Converting Hourly to Annual: The 38-Hour Week

Our the timesheet calculator uses the standard formula: hourly rate × hours per week × 52 weeks. For full-time employees, we assume 38 hours per week, which is the ordinary hours used by the Fair Work Commission for the national minimum wage. From 1 July 2026, the National Minimum Wage is $26.44 per hour, or $1,004.90 per week for 38 hours.

If you are a casual employee, you receive a 25% loading on top of the minimum wage, making your minimum casual rate $33.05 per hour. That loading is part of your OTE and counts toward super.

Award Rates and Pay Guides

Most employees are covered by an award or enterprise agreement that sets higher minimum rates than the National Minimum Wage. The Fair Work Ombudsman publishes pay guides for each award, which include minimum pay rates for full-time, part-time, and casual employees, plus monetary allowances. Always check your award to confirm your correct hourly rate.

Tax and Medicare

Once you know your annual gross pay, you can estimate your take-home pay using the 2026–27 resident tax rates:

Nil tax 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 the Medicare levy of 2% (with reductions for low-income earners). Our take-home pay estimator applies these rates, but note that HELP debts, the Medicare levy surcharge, and salary packaging are not included.

Fortnightly Pay

If you are paid fortnightly, multiply your weekly gross by 2. For example, $1,004.90 per week × 2 = $2,009.80 per fortnight (before tax and super). This can be useful for budgeting.

Super on Top, Not Included

A common confusion is whether super is part of your salary. It is not. Your annual salary figure (hourly × hours × 52) is your gross pay before super. The 12% super is an additional contribution your employer makes to your super fund. For high-income earners, super is capped at the maximum contribution base of $270,830, meaning super stops accruing once your OTE reaches that amount.

Summary

Understanding what is ote in salary helps you accurately calculate your annual pay, super, and tax. Use our the timesheet to convert your hourly rate, or browse our reference tables for award rates and tax brackets. Remember: the calculator assumes 38 ordinary hours per week, no unpaid overtime, and no salary sacrifice. Always consult your award or agreement for your exact conditions.

For more details on minimum wages, see our minimum wage page. If you are a casual worker, check casual loading to see how the 25% loading affects your pay.