How does casual loading affect my super?

Casual loading (usually 25%) is paid on top of your base hourly rate to compensate for not receiving paid leave. Super is calculated on your ordinary time earnings, which include the casual loading. So if your base rate is $26.44 per hour, your casual rate is $33.05 per hour, and super is 12% of that $33.05, not just the base. The super guarantee is paid on top of your gross pay, so your total employment cost to the employer is higher.

What is salary sacrifice super and how it affects your annual pay

Q: What is salary sacrifice super?

Salary sacrifice super is an arrangement where you ask your employer to pay part of your before‑tax salary into your superannuation fund instead of paying it to you as cash. This reduces your assessable income for tax purposes, so you pay less income tax, while the sacrificed amount is taxed in the super fund at a concessional rate of 15% (or 30% if you earn over $250,000). The super guarantee (12% of ordinary earnings) is calculated on your reduced salary‑sacrificed earnings, not on the sacrificed amount itself. Salary sacrifice super is voluntary and must be agreed in writing with your employer.

Q: Is super included in the hourly rate when converting to annual pay?

No. When you convert an hourly rate to annual pay, the super guarantee is paid on top of your gross earnings. For example, if you earn $30 per hour for 38 hours a week, your annual gross is $30 × 38 × 52 = $59,280. Your employer then adds 12% super ($7,113.60) on top, making your total remuneration $66,393.60. The super does not reduce your take‑home pay; it is an extra contribution to your retirement fund.

To convert an hourly rate to annual gross pay, multiply by hours per week (typically 38) and by 52 weeks, then add 12% super on top.

Converting your hourly rate to annual, fortnightly and take‑home pay

If you have an hourly rate or a salary offer, understanding how it translates into annual gross pay, fortnightly pay, tax, and super is essential. The standard formula used in Australia is:

Annual gross ≈ hourly rate × hours per week × 52

This assumes you work the same number of hours every week, with no unpaid overtime, penalty rates, allowances, or salary sacrifice. For full‑time employees, the typical week is 38 hours, as set by the Fair Work Act. If your hours differ, adjust the calculation accordingly.

The 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. This is the legal floor set by the Fair Work Commission. Many employees are covered by an award or enterprise agreement that pays a higher rate. Award rates vary by industry and classification, and they often include penalty rates for weekends, evenings, or public holidays. The National Minimum Wage applies only if no award or agreement covers you.

Casual employees receive a 25% loading on top of the base rate to compensate for not receiving paid sick leave or annual leave. For the National Minimum Wage, the casual rate is $33.05 per hour. Never enter a rate that already includes casual loading – instead, use the base rate and tick the casual loading checkbox on the timesheet to add 25% automatically.

Super is paid on top of your gross earnings

Under the super guarantee, your employer must contribute 12% of your ordinary time earnings into a super fund. This is paid on top of your gross pay, not deducted from it. Ordinary time earnings include your base rate, casual loading, commissions, and shift loadings – but not overtime. The maximum earnings subject to the super guarantee is $270,830 per year (the maximum contribution base).

For example, if your base hourly rate is $30 and you work 38 hours a week, your annual gross is $30 × 38 × 52 = $59,280. Your employer then adds 12% super ($7,113.60), making your total remuneration $66,393.60. Your take‑home pay is calculated on the $59,280, not the super amount.

What is salary sacrifice super?

What is salary sacrifice super? It is a voluntary arrangement where you ask your employer to pay part of your before‑tax salary into your super fund instead of giving it to you as cash. This reduces your taxable income, so you pay less income tax. The sacrificed amount is taxed in the super fund at a concessional rate of 15% (or 30% if your income and super contributions exceed $250,000).

Importantly, the super guarantee (12%) is calculated on your reduced salary‑sacrificed earnings, not on the sacrificed amount. For example, if you earn $80,000 and sacrifice $10,000 into super, your employer pays 12% super on the $70,000 of ordinary earnings, not on the $80,000. Salary sacrifice must be agreed in writing with your employer and cannot reduce your ordinary time earnings below the award or minimum wage.

Salary sacrifice super can be a tax‑effective way to boost your retirement savings, especially if you are in a higher tax bracket. However, it reduces your take‑home pay now. Use the super and packaging page to see how it affects your net income.

Tax and Medicare levy

Your take‑home pay depends on 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% (generally). The tax‑free threshold is included. The Medicare levy reduction thresholds used here are from 2025–26 because the 2026–27 figures were not confirmed at the time of this estimate. HELP loans, the Medicare levy surcharge, and salary packaging are not deducted.

For a full‑time worker on the National Minimum Wage ($26.44/hour, 38 hours), annual gross is $26.44 × 38 × 52 = $52,285.44. After tax and Medicare, the estimated take‑home pay is around $42,000 per year (exact figures depend on your circumstances). Use the take‑home pay page for a detailed breakdown.

Fortnightly pay

Many employers pay fortnightly. Your fortnightly gross is simply your weekly pay multiplied by two. For the National Minimum Wage, weekly pay is $1,004.90, so fortnightly is $2,009.80. Super is calculated on your ordinary time earnings each pay period and contributed quarterly.

If you are comparing a salary offer to an hourly rate, remember that a salary usually includes the super guarantee in the total package. For example, a $70,000 salary package might be $62,500 gross plus $7,500 super. Always check whether the quoted figure is ‘base salary’ or ‘total remuneration’.

Using the reference tables

For industry averages, the Australian Bureau of Statistics reports Average Weekly Earnings for full‑time adult ordinary time as $2,083.70 per week (May 2026). This is an average across all industries and occupations, not the median for any specific job. All employees total earnings (including part‑time) average $1,579.20 per week. These figures are useful for benchmarking but do not represent a particular role.

For award rates, casual loading, and minimum wage details, see the pay guides and reference tables. The minimum wage page has the latest rates. The hourly conversion page explains the formula in more detail.

Summary

Annual gross = hourly rate × hours per week × 52 (assume 38 hours if full‑time)
Super is 12% on top of ordinary earnings, up to $270,830
Casual loading (25%) is added to the base rate before calculating super
Salary sacrifice super reduces your taxable income but also reduces the super guarantee base
Tax and Medicare are deducted from gross pay using the 2026–27 resident rates
Use the timesheet to enter your base hourly rate and toggle casual loading

Remember, this is an estimate. Your actual pay may differ due to unpaid overtime, penalty rates, allowances, salary sacrifice, or other factors. Always consult your employer or a qualified professional for personalised advice.