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

Multiply your hourly rate by the number of hours you work per week, then by 52. For a standard full-time role, assume 38 hours per week. For example, $30 per hour × 38 hours × 52 weeks = $59,280 per year. This is a gross figure before tax and super.

What is the National Minimum Wage in Australia for 2026–27?

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 at least $33.05 per hour including 25% casual loading. Award rates may be higher.

How does salary packaging affect my take-home pay?

Salary packaging lets you use pre-tax income for eligible expenses like a car or super contributions, reducing your taxable income. This can lower the tax you pay and increase your net pay. The advantage salary packaging offers depends on your tax bracket and the type of benefit.

How to Convert Your Hourly Rate to Annual Pay and Advantage Salary Packaging

For a 38-hour week, your annual gross pay is your hourly rate multiplied by 38, then by 52.

Understanding the Hourly-to-Annual Conversion

When you have an hourly rate or a salary offer, the first step is to calculate your annual gross pay. The standard formula is simple: hourly rate × hours per week × 52 weeks. For most full-time roles in Australia, the typical working week is 38 hours. This is the figure used by the Fair Work Ombudsman and the Fair Work Commission for the National Minimum Wage and many awards. If you work a different number of hours, adjust the formula accordingly.

For example, if you earn $35 per hour and work 38 hours each week, your annual gross pay is:

$35 × 38 × 52 = $69,160

This is the amount before tax, the Medicare levy, and superannuation. It also assumes you work every week of the year with no unpaid leave or overtime.

Why 52 Weeks and 38 Hours?

Australian pay periods often run weekly, fortnightly, or monthly. Using 52 weeks gives you a consistent annual figure. The 38-hour week is the standard full-time benchmark under the Fair Work Act. Many awards and enterprise agreements also use 38 hours. If your contract says 40 hours, use that instead. But for general comparisons, 38 hours is the default.

Your fortnightly pay is simply your weekly pay multiplied by two. For the $35 per hour example, weekly pay is $1,330 ($35 × 38), so fortnightly pay is $2,660 before deductions.

Minimum Wage, Awards, and Casual Loading

The National Minimum Wage from 1 July 2026 is $26.44 per hour, or $1,004.90 per week for 38 hours. This is the legal minimum for employees not covered by an award or agreement. Casual employees receive a 25% loading on top, making it $33.05 per hour. That loading compensates for not receiving paid leave.

Award rates are often higher than the minimum. For example, the Hospitality Industry General Award might pay $28 per hour for a level 2 employee. Always check the relevant award or your enterprise agreement. The pay guides on this site can help you find the correct rate.

When you use the hourly conversion tool, you enter your base hourly rate. If you are casual, tick the box to add 25% casual loading. Do not enter a rate that already includes loading.

Tax and Medicare Levy

Once you have your annual gross pay, you can estimate tax using the 2026–27 resident tax rates:

$0 – $18,200: nil
$18,201 – $45,000: 15% of excess over $18,200
$45,001 – $135,000: $4,020 plus 30% of excess over $45,000
$135,001 – $190,000: $31,020 plus 37% of excess over $135,000
$190,001+: $51,370 plus 45% of excess over $190,000

Plus the Medicare levy of 2% of taxable income (with reductions for low-income earners). For a single person earning $69,160, the tax would be approximately:

Tax on first $18,200: $0
Tax on $18,201–$45,000: 15% of $26,800 = $4,020
Tax on $45,001–$69,160: 30% of $24,160 = $7,248
Total tax: $11,268
Medicare levy (2% of $69,160): $1,383.20
Total deductions: $12,651.20
Net annual pay: $56,508.80

This is a rough estimate. The take-home pay calculator on this site gives a more precise figure.

Superannuation: Paid on Top

Super guarantee is 12% of your ordinary earnings, paid by your employer on top of your gross pay. For the $69,160 example, super would be $8,299.20 per year. However, the maximum contribution base is $270,830, so super stops accumulating once your earnings exceed that threshold. Super is not deducted from your pay; it is an additional contribution to your retirement fund.

How to Advantage Salary Packaging

Salary packaging (also called salary sacrifice) allows you to use pre-tax income to pay for certain benefits, such as a car, laptop, or additional super contributions. This reduces your taxable income, potentially lowering the tax you pay. For example, if you salary package $10,000 worth of benefits, your taxable income drops from $69,160 to $59,160. At the 30% marginal rate, you save $3,000 in tax (plus Medicare).

To advantage salary packaging, you need to choose benefits that are eligible under your employer’s policy and the Australian Taxation Office rules. Common options include:

Novated car leases
Super contributions (up to concessional caps)
Work-related expenses (e.g., laptops)

Always check the fringe benefits tax (FBT) implications. Some benefits, like a car, may incur FBT, but many employers offer a salary packaging arrangement that still saves you money. The super and packaging page explains more.

Using the Timesheet and Reference Tables

Our timesheet is the home page where you can enter your base hourly rate and toggle casual loading. It calculates your weekly, fortnightly, monthly, and annual gross pay instantly. For award-specific rates, see the reference tables which list minimum wages and common award classifications.

Important Disclaimer

Annual pay shown 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 the full tax-free threshold. Medicare uses the 2025–26 single reduction thresholds because the 2026–27 reduction thresholds were not confirmed here. HELP, the Medicare levy surcharge, and salary packaging are not deducted. This is an estimate, not a determination of your pay or tax.

Summary

Converting your hourly rate to an annual figure helps you compare job offers and plan your budget. Remember the formula: hourly × hours per week × 52. For a standard full-time role, use 38 hours. Factor in tax, Medicare, and super. And if your employer offers salary packaging, it can be a smart way to reduce your taxable income and boost your net pay. Always check the latest rates from the Fair Work Commission and the Australian Taxation Office.