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 multiply by 52. For a standard 38-hour week, the formula is: hourly rate × 38 × 52. This gives your gross annual pay before tax and super. The AFP enterprise agreement uses a 40-hour week (38 ordinary plus 2 reasonable additional hours), so check your specific award or agreement.

What is the casual loading for AFP employees?

Under the AFP Enterprise Agreement 2024–2027, casual employees receive a 25% loading on top of the base salary hourly rate. This loading is paid in lieu of paid leave, public holidays, notice of termination, and redundancy benefits. The national minimum wage casual rate from 1 July 2026 is $33.05 per hour (including 25% loading).

Understanding Your AFP Salary: From Hourly Rates to Annual Pay

Q: How is superannuation calculated on an AFP salary?

The AFP contributes 15.4% of your ordinary time earnings (OTE) for most employees in accumulation funds, including the PSSap. This is paid on top of your salary. The super guarantee rate is 12% for most employees, but the AFP rate is higher. Super is capped at the maximum contribution base of $270,830 for the 2026–27 year.

For an AFP employee on the EL1 minimum rate, the annual salary is $173,733 based on a 40-hour week (38 ordinary plus 2 reasonable additional hours), but for standard conversion we assume 38 ordinary hours.

Introduction

When you're offered a job or negotiating a pay rise, understanding how your hourly rate translates into an annual salary is essential. Whether you're looking at the National Minimum Wage or a specific award like the AFP salary (Australian Federal Police), the conversion follows a simple formula. This guide walks you through the process, explains the 38-hour week assumption, and covers tax, super, and the fortnightly pay cycle.

National Minimum Wage vs Award Rates

The Fair Work Commission sets the National Minimum Wage each year. From 1 July 2026, the minimum is $26.44 per hour, or $1,004.90 per week for a 38-hour week. Casual employees receive an additional 25% loading, making the casual rate $33.05 per hour. This is the legal floor for award/agreement-free employees.

However, many employees are covered by an award or enterprise agreement that sets higher rates. For example, the AFP salary structure under the AFP Enterprise Agreement 2024–2027 provides significantly higher pay. The EL1 minimum rate, effective from the commencement date, is $173,733 per year. This is based on a 40-hour week (38 ordinary hours plus 2 reasonable additional hours), not the standard 38 hours. When converting an AFP salary to an hourly rate, you must use the correct weekly hours from the agreement.

How to Convert Hourly to Annual

The standard formula for converting an hourly rate to annual pay is:

Hourly rate × hours per week × 52 = annual gross salary

For most calculations, we assume 38 ordinary hours per week, as this is the base for the National Minimum Wage and many awards. For example, at $26.44 per hour:

$26.44 × 38 × 52 = $52,245.44 per year

But for an AFP salary, the agreement defines normal working hours as 38 ordinary hours plus 2 reasonable additional hours, totalling 40 hours per week. So to find the hourly rate from an annual AFP salary, you would divide by (40 × 52). Conversely, if you know your AFP hourly rate, multiply by 40 × 52 to get annual.

Our hourly conversion tool uses the 38-hour week by default, but you can adjust for your specific agreement.

The Fortnight and Tax

Most Australian employers pay fortnightly. To find your gross fortnightly pay, multiply your weekly pay by 2. For the National Minimum Wage:

$1,004.90 × 2 = $2,009.80 per fortnight

Tax is withheld each pay period based on the 2026–27 resident tax rates:

Nil 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 possible reductions for low-income earners). The Australian Taxation Office provides withholding schedules, but our take-home pay calculator gives a close estimate.

For an AFP salary at the EL1 minimum ($173,733), the annual tax would be approximately:

$18,200 tax-free
$26,800 at 15% = $4,020
$90,000 at 30% = $27,000
$38,733 at 37% = $14,331
Total tax ≈ $45,351, plus Medicare levy of $3,474.66, giving a total of about $48,826. Take-home pay would be around $124,907 per year, or $4,803 per fortnight.

Superannuation and Salary Packaging

Superannuation is paid on top of your salary. The super guarantee rate for 2026–27 is 12% of ordinary time earnings, up to the maximum contribution base of $270,830. However, the AFP contributes 15.4% for most employees in accumulation funds, including the PSSap. This is a significant benefit.

For an AFP salary of $173,733, the employer super contribution at 15.4% would be $26,754.88 per year, paid on top of your salary. This is higher than the standard 12%.

Salary packaging is also available to AFP employees under the enterprise agreement. You can sacrifice part of your pre-tax salary for benefits like cars or laptops, which can reduce your taxable income. See our super and packaging page for more details.

Example: AFP Salary

Let's take the AFP EL1 minimum rate from the enterprise agreement: $173,733 per year. To find the hourly rate based on the 40-hour week:

$173,733 ÷ (40 × 52) = $173,733 ÷ 2,080 = $83.53 per hour

But if you're a casual AFP employee, you'd receive an additional 25% loading, making the casual hourly rate $104.41. Remember, casual loading is paid instead of leave entitlements.

Compare this to the National Minimum Wage of $26.44 per hour. The AFP salary is clearly well above the minimum, reflecting the specialised nature of police work and the enterprise agreement negotiated with the Fair Work Commission.

For more detailed pay scales, refer to the reference tables on our site, which include the full AFP classification structure.

Conclusion

Converting your hourly rate to an annual salary is straightforward once you know your weekly hours. Always check your award or enterprise agreement for the correct hours and any loadings. The AFP salary example shows how a generous agreement can significantly boost your pay. Use our timesheet to calculate your own figures, and remember that tax and super are estimates only. For personalised advice, consult the Fair Work Ombudsman or a qualified accountant.