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

A salary is a fixed annual amount agreed in an employment contract, often covering minimum pay, penalties, overtime, allowances, and annual leave loading. An annualised wage is a similar arrangement allowed under some awards, with specific rules about review and record-keeping. Both must ensure the employee receives at least the award or National Minimum Wage entitlements. See the Fair Work Ombudsman's guidance on annualised wages and salaries.

How is superannuation calculated on a salary?

Superannuation guarantee is 12% of ordinary earnings, paid on top of your salary. The contribution is capped at the maximum contribution base of $270,830 per year. For example, if your annual salary is $80,000, your super contribution is $9,600 per year, added to your pay.

What tax is deducted from a salary in 2026-27?

For residents, tax-free threshold is $18,200. Then 15% on income up to $45,000, 30% up to $135,000, 37% up to $190,000, and 45% above that. Medicare levy generally 2%. Use the [take-home pay](/topics/take-home) calculator for an estimate.

What Is Salary? A Guide to Hourly, Annual, and Fortnightly Pay in Australia

Annual pay is hourly rate × hours per week × 52, assuming 38 ordinary hours per week for full-time work.

What Is Salary? Understanding Your Pay in Australia

When you receive a job offer or review your pay, you might ask: what is salary? In Australia, a salary is a fixed annual amount paid to an employee, usually expressed as a gross figure before tax and super. It can be paid weekly, fortnightly, or monthly. Understanding how your salary compares to an hourly rate, or how to convert between the two, is essential for budgeting and negotiating.

Hourly to Annual: The Basic Formula

The standard conversion used by the Fair Work Commission and the Australian Bureau of Statistics is:

Annual gross salary = hourly rate × hours per week × 52

For full-time employees, the assumed ordinary hours are **38 hours per week (the standard full-time week). If your hours differ, adjust accordingly. For example, a $30 per hour rate working 38 hours per week gives:

$30 × 38 × 52 = $59,280 per year

This formula assumes you work the same hours every week, with no unpaid overtime, penalty rates, or allowances. Use the hourly conversion tool to calculate your own figures.

The Fortnightly View

Many employers pay fortnightly (every two weeks). To find your fortnightly pay:

Fortnightly gross = weekly pay × 2

From the weekly rate: $30 per hour × 38 hours = $1,140 per week. Fortnightly = $2,280.

The National Minimum Wage and Award Rates

Australia has a **National Minimum Wage set by the Fair Work Commission. From 1 July 2026, the rate is $26.44 per hour, $1,004.90 per week for 38 hours. This applies to award/agreement-free employees. Most employees are covered by a modern award, which sets higher minimum rates for specific industries. Check the relevant pay guides from the Fair Work Ombudsman.

Casual Loading

Casual employees receive a 25% loading on top of the minimum wage or award rate. For the national minimum wage, casual rate is $33.05 per hour ($26.44 + 25%). This loading compensates for lack of paid leave. Never enter a rate that already includes casual loading into a calculator; use the base rate and add loading separately. See casual loading for details.

Superannuation Paid on Top

Superannuation guarantee is 12% of ordinary earnings, paid by your employer on top of your salary. It is not deducted from your pay. The contribution stops at the maximum contribution base of $270,830 per year. For example, if your annual salary is $80,000, your super contribution is $9,600 added to your super account. Learn more at super and packaging.

Tax and Medicare

Resident tax rates for 2026-27: nil up to $18,200; 15% from $18,201 to $45,000; 30% to $135,000; 37% to $190,000; 45% above that. Medicare levy generally 2% of taxable income. Use the take-home pay calculator for an estimate.

Average Earnings in Australia

According to the Australian Bureau of Statistics (May 2026), full-time adult ordinary time earnings average $2,083.70 per week. All employees (including part-time) average $1,579.20 per week. These figures help benchmark your salary. See average pay for more.

Salary vs Annualised Wage

Some awards allow an annualised wage – a fixed amount covering base pay, penalties, overtime, allowances, and leave loading. This differs from a salary under an employment contract. Both must ensure you receive at least the award minimum. The Fair Work Ombudsman provides guidance on annualised wages and salaries.

Using the Timesheet Calculator

Our timesheet tool lets you enter your base hourly rate and optionally add 25% casual loading. It calculates annual, fortnightly, weekly, and monthly figures, including estimated tax and super. Remember: super is paid on top, 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 full tax-free threshold. Medicare uses 2025-26 single reduction thresholds. HELP, Medicare levy surcharge, and salary packaging are not deducted. This is an estimate, not a determination of your pay or tax.