What is an annualised salary?

An annualised salary is a fixed yearly amount paid to an employee that covers all entitlements under an award or agreement, such as minimum pay, penalties, overtime, allowances, and annual leave loading. It must be at least what the employee would have earned under the award for the work performed. See the Fair Work Ombudsman's guidance on annualised wages and salaries.

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

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

Does casual loading affect my annualised salary?

Yes, if you are a casual employee, your hourly rate typically includes a 25% casual loading. When converting to an annualised salary, use the loaded rate (e.g., $33.05 per hour for the National Minimum Wage casual rate). The loading compensates for leave entitlements you do not receive. Always check your award or agreement for the correct casual rate.

Annualised Salary: How to Convert Your Hourly Rate to a Yearly Figure

For a full-time employee working 38 hours per week, your annualised salary is your hourly rate multiplied by 38 hours per week times 52 weeks.

Understanding Your Annualised Salary

When you are offered an hourly rate or a salary, it helps to see the bigger picture. Your annualised salary is the yearly amount you would earn if you worked the same hours every week for 52 weeks. This figure is essential for comparing job offers, budgeting, and planning your tax and super.

The basic formula is simple: hourly rate × hours per week × 52. For most full-time roles, we assume a 38‑hour week, which is the standard ordinary hours under many awards and the National Employment Standards. If you work part‑time or different hours, adjust the weekly hours accordingly.

The Fortnightly View

Many Australians are paid fortnightly. Your fortnightly pay is simply your weekly pay multiplied by two. For example, if your annualised salary is $59,280, your weekly pay is about $1,140, and your fortnightly pay is about $2,280 before tax. Knowing this helps you match your pay cycle to your bills.

Minimum Wage, Award Rates, and Casual Loading

Australia has a National Minimum Wage set by the Fair Work Commission. From 1 July 2026, the minimum is $26.44 per hour for a permanent employee, or $1,004.90 per week for 38 hours. Casual employees receive a 25% loading, making their minimum $33.05 per hour. This loading is meant to compensate for not receiving paid leave.

However, most employees are covered by an award or enterprise agreement that sets higher minimum rates, penalties, and allowances. Your annualised salary must be at least what you would have earned under the award for the work you do. The Fair Work Ombudsman explains that an annualised wage arrangement can cover entitlements like minimum pay, overtime, penalties, and annual leave loading, but it must be reviewed every 12 months to ensure it is not less than the award amount. See for details.

If you are a casual, your annualised salary calculation should use the casual-loaded rate. The casual loading page on this site explains more.

Superannuation Is Paid on Top

Your employer must pay superannuation guarantee contributions on top of your annualised salary. From 1 July 2026, the super guarantee rate is 12% of your ordinary earnings, up to a maximum contribution base of $270,830 per year. This means if your annualised salary is $60,000, your employer adds $7,200 to your super fund. Super is not deducted from your pay – it is an extra cost for the employer.

For more on how super interacts with your pay, see super and packaging.

Tax and the Medicare Levy

Your annualised salary is your gross income before tax. The Australian Taxation Office (ATO) applies a progressive tax scale for residents in 2026–27:

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

In addition, most residents pay a Medicare levy of 2% of your taxable income. Low-income earners may qualify for a reduction. The thresholds used here are based on the 2025–26 single reduction thresholds, as the 2026–27 figures were not confirmed at the time of this estimate.

For example, on an annualised salary of $80,000, your tax would be approximately:

$0 on first $18,200
15% on $26,800 ($4,020)
30% on $35,000 ($10,500)
Total tax: $14,520
Medicare levy (2%): $1,600
Total deductions: $16,120
Net take-home pay: $63,880 per year, or about $1,228 per week.

Use our take-home pay calculator to estimate your own figures.

Annualised Salary vs. Annualised Wage Arrangements

The Fair Work Ombudsman distinguishes between an annualised salary (agreed in an employment contract) and an annualised wage arrangement under an award. Both involve a fixed yearly amount, but award-based annualised wages must follow specific rules, including record-keeping and annual reconciliation. The Fair Work Commission's model award clause (see ) requires employers to keep records of hours and compare the annualised wage to award entitlements each year. If the annualised wage is less, the employer must pay the shortfall within 14 days.

This is important because your annualised salary should not be a guess – it should be based on a proper calculation of your expected hours and entitlements. If you are covered by an award, check whether it allows annualised wages and what the rules are.

Using This Site

To get started, enter your base hourly rate on the timesheet. If you are a casual, tick the box to add 25% casual loading – do not enter a rate that already includes loading. The calculator will show your annualised salary, fortnightly pay, estimated tax, and super.

For more detailed pay guides, visit pay guides. You can also explore reference tables for award rates and average pay data from the Australian Bureau of Statistics. The ABS reports that full-time adult ordinary time earnings were $2,083.70 per week in May 2026, which gives an annualised salary of about $108,352.

Remember, this is an estimate. Your actual pay may differ due to unpaid overtime, penalty rates, allowances, salary sacrifice, or HELP repayments. Always consult your employer or a professional for a binding determination.

Summary

Annualised salary = hourly rate × hours per week × 52 (assume 38 hours for full-time)
Fortnightly pay = weekly pay × 2
National Minimum Wage: $26.44/hour permanent, $33.05/hour casual
Super: 12% paid on top, up to $270,830 contribution base
Tax: progressive rates plus 2% Medicare levy (check your eligibility for reductions
Award rates: must be at least the award entitlements; annual review required

Use the tools on this site to convert your hourly rate to an annualised salary and plan your finances.