TimesheetGuidesHourly conversion
How to Use the ATO Salary Calculator for a 38-Hour Week: Hourly to Annual Pay
For a 38-hour week, your annual gross pay is your hourly rate multiplied by 38 hours per week and 52 weeks per year.
How to Convert Your Hourly Rate to Annual Pay Using the ATO Salary Calculator
If you're paid by the hour and want to understand your annual salary, the simplest method is to multiply your hourly rate by the number of hours you work each week and then by 52 weeks. For a standard full-time week of 38 hours, the formula is:
Annual gross pay = hourly rate × 38 hours × 52 weeks
This gives you your gross annual income before tax, Medicare levy, and superannuation. To get a more accurate picture of your take-home pay and tax obligations, you can use the ATO salary calculator, which applies the current tax scales and Medicare levy. The calculator is a free tool provided by the Australian Taxation Office and is ideal for estimating your tax return or pay after deductions.
Why 38 Hours? The Standard Full-Time Week
Under the Fair Work Act, the standard full-time working week in Australia is 38 hours (not including overtime). Many awards and enterprise agreements adopt this as the ordinary hours. When you use the formula above, you assume you work exactly 38 hours every week for 52 weeks, with no unpaid leave or overtime. If your hours vary, you may need to average them over a longer period.
For part-time or casual workers, the same formula applies but with your actual weekly hours. For example, if you work 20 hours per week at $30 per hour, your annual gross would be $30 × 20 × 52 = $31,200.
The Fortnightly View
Many Australians are paid fortnightly. To find your gross fortnightly pay, simply multiply your weekly pay by two. Using the 38-hour week example: if your hourly rate is $30, your weekly pay is $1,140, and your fortnightly pay is $2,280. This can help you budget and compare with salary offers that are quoted per fortnight.
National Minimum Wage vs. Award Rates vs. Casual Loading
It's important to distinguish between different pay rates:
- National Minimum Wage: From 1 July 2026, the minimum wage is $26.44 per hour for a 38-hour week, or $1,004.90 per week. This applies to employees not covered by an award or registered agreement.
- Award rates: Many industries have specific award rates set by the Fair Work Commission. These are often higher than the minimum wage and may include penalty rates for weekends, evenings, or public holidays. Check the relevant pay guides for your industry.
- Casual loading: Casual employees are entitled to a 25% loading on top of the base hourly rate (or award rate) to compensate for lack of paid leave. For example, the casual minimum wage from 1 July 2026 is $33.05 per hour (including loading). When using the the timesheet, you can check a box to add 25% casual loading on top of your base rate – never enter a rate that already includes loading.
Superannuation Is Paid on Top
Your employer must pay superannuation guarantee contributions on top of your ordinary earnings. The rate is 12% for the 2026–27 financial year, up to the maximum contribution base of $270,830 per year. Super is not deducted from your pay; it is an additional cost to your employer. For example, if your hourly rate is $30, your employer pays an extra $3.60 per hour into your super fund. This means your total employment cost is $33.60 per hour, but your take-home pay is based on the $30 rate.
Tax and Medicare Levy
The Australian tax system is progressive. For 2026–27, the resident tax rates are:
- 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
In addition, most residents pay a Medicare levy of 2% of taxable income. The ATO salary calculator applies these rates and also accounts for the tax-free threshold and Medicare levy reduction thresholds (using the 2025–26 single reduction thresholds as the 2026–27 figures were not confirmed at the time of this guide).
Example Calculation
Let's say you earn $35 per hour and work a 38-hour week.
- Weekly gross: $35 × 38 = $1,330
- Fortnightly gross: $1,330 × 2 = $2,660
- Annual gross: $35 × 38 × 52 = $69,160
Using the ATO salary calculator, your estimated tax on $69,160 would be:
- Tax on first $18,200: $0
- Tax on next $26,800 (up to $45,000): 15% = $4,020
- Tax on remaining $24,160 (up to $69,160): 30% = $7,248
- Total tax: $11,268
- Medicare levy (2%): $1,383.20
- Total deductions: $12,651.20
- Estimated take-home pay: $56,508.80 per year, or about $1,086.71 per week.
Superannuation (12%): $69,160 × 12% = $8,299.20 paid by your employer on top.
Using the Timesheet and Reference Tables
Our the timesheet lets you enter your base hourly rate and optionally add casual loading. It calculates your weekly, fortnightly, and annual pay instantly. For more detailed comparisons, see our reference tables which include award rates and average earnings by industry.
Important Disclaimer
The calculations above are estimates. They assume you work the same number of hours every week, with no unpaid overtime, penalty rates, allowances, or salary sacrifice. Super is estimated at 12% of ordinary earnings only, paid on top, and stops at the $270,830 maximum contribution base. Tax uses 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 repayments, the Medicare levy surcharge, and salary packaging are not deducted. This is an estimate, not a determination of your pay or tax.
Average Earnings for Context
According to the Australian Bureau of Statistics, average weekly earnings for full-time adult ordinary time employees in May 2026 were $2,083.70 per week. This is an average across all industries and occupations, not a median for any specific job. For all employees (including part-time), total average earnings were $1,579.20 per week. These figures can help you gauge where your hourly rate sits relative to the broader workforce.
Final Tips
- Always check your award or agreement for your correct minimum rate.
- If you are a casual, remember to add the 25% loading to your base rate.
- Use the ATO salary calculator for a personalised tax estimate.
- For more on minimum wage and casual loading, see our minimum wage and casual loading pages.
Converting your hourly rate to annual pay is straightforward with the 38-hour week formula. Whether you're negotiating a salary, budgeting, or planning your tax, the ATO salary calculator and our tools can help you make informed decisions.
Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.