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

Multiply your hourly rate by the number of hours you work each week, then multiply by 52 weeks. For a standard full-time week of 38 hours, the formula is: hourly rate × 38 × 52. This gives your gross annual salary before tax and super.

What is the difference between the national minimum wage and award rates?

The national minimum wage is the legal minimum for award/agreement-free employees, currently $26.44 per hour. Award rates are higher minimums set for specific industries or occupations and may include penalty rates, allowances, and overtime. Most employees are covered by an award.

Whats the Salary? A Guide to Converting Hourly Rates to Annual Pay in Australia

Q: Is superannuation included in my salary or paid on top?

Superannuation is paid on top of your salary. Employers must contribute 12% of your ordinary earnings into a super fund, up to the maximum contribution base of $270,830 per year. This is separate from your take-home pay.

For a full-time employee on the national minimum wage of $26.44 per hour, the annual salary is approximately $52,254.80 based on a 38-hour week and 52 weeks per year.

Understanding Your Pay: From Hourly Rate to Annual Salary

When you're offered an hourly rate or a salary, it's natural to ask whats the salary in annual terms. This guide explains how to convert your hourly pay to a yearly figure, using the standard 38-hour week, and covers tax, super, and the difference between minimum wages and award rates.

The Basic Formula

The standard conversion is straightforward:

Annual gross pay = hourly rate × hours per week × 52 weeks

For a full-time employee working 38 hours each week, this becomes:

Annual gross pay = hourly rate × 38 × 52

For example, the national minimum wage from 1 July 2026 is $26.44 per hour. Using the formula:

$26.44 × 38 × 52 = $52,254.80 per year

This is the gross amount before tax and other deductions. If you're a casual employee, you also get a 25% loading on top of the base rate, making it $33.05 per hour. For casuals, the annual equivalent would be:

$33.05 × 38 × 52 = $65,306.80 per year

Why 38 Hours and 52 Weeks?

The Fair Work Act sets a standard full-time week at 38 hours. Most awards and agreements use this as the basis for ordinary hours. We multiply by 52 weeks because a year has 52 weeks, though some employees work 52 weeks a year while others take unpaid leave. This formula assumes you work every week of the year with no unpaid time off.

Fortnightly Pay

Many employers pay fortnightly. To find your fortnightly gross pay, simply double your weekly pay. For the minimum wage:

Weekly: $26.44 × 38 = $1,004.72 (close to the official $1,004.90 due to rounding)
Fortnightly: $1,004.72 × 2 = $2,009.44

Using fortnightly figures can help with budgeting and comparing salary offers that are quoted per fortnight.

National Minimum Wage vs Award Rates

The national minimum wage applies to employees not covered by an award or agreement. However, most workers are covered by a modern award that sets higher minimum rates for their industry or role. For example, the Hospitality Award or the General Retail Award have specific hourly rates that are above the national minimum. Always check your award or enterprise agreement to find your correct minimum pay rate. The Fair Work Ombudsman provides pay guides and a Pay Calculator to help you determine your exact rate.

Casual Loading

Casual employees receive a 25% loading on top of the base hourly rate because they don't get paid leave entitlements like annual leave or sick leave. The national minimum wage for casuals is $33.05 per hour. When using our the timesheet, you can check a box to add 25% casual loading to your base rate. Do not enter a rate that already includes the loading; enter the base rate and let the tool add the loading.

Tax and Medicare

Your annual gross salary is not what you take home. The Australian Taxation Office (ATO) withholds tax based on the 2026–27 resident tax rates:

Nil tax on the first $18,200
15% on income between $18,201 and $18,200 and $45,000
30% between $45,001 and $135,000
37% between $135,001 and $190,000
45% above $190,000

Plus, the Medicare levy of 2% generally applies. For the minimum wage example ($52,254.80), the tax would be roughly $5,092 plus Medicare $1,045, leaving about $46,117 take-home pay (this is an estimate; use the ATO's gross pay estimator for precise calculations).

Superannuation

Super is paid on top of your salary. Employers must contribute 12% of your ordinary earnings into a super fund, up to the maximum contribution base of $270,830 per year. For the minimum wage earner, super would be:

$52,254.80 × 12% = $6,270.58 per year

This is not deducted from your pay; it's an additional cost to the employer. Your salary package might be quoted as "$52,254.80 plus super."

Average Earnings Comparison

According to the Australian Bureau of Statistics (ABS), full-time adult average weekly ordinary time earnings were $2,083.70 in May 2026. That equates to an annual salary of about $108,352.40. All employees (including part-time) averaged $1,579.20 per week, or $82,118.40 annually. These figures give context for where the minimum wage sits relative to the broader workforce.

Important Limitations

This conversion assumes a consistent 38-hour week, no unpaid overtime, no penalty rates, no allowances, and no salary sacrifice. Tax estimates use the 2026–27 resident scale with the full tax-free threshold. Medicare uses 2025–26 single reduction thresholds as 2026–27 thresholds were not confirmed. HELP repayments, Medicare levy surcharge, and salary packaging are not included. Always consult a tax professional or the ATO for your personal situation.

For more detailed breakdowns, see our reference tables and take-home pay pages.