What is the difference between the National Minimum Wage and an award rate?

The National Minimum Wage is the legal minimum for award/agreement-free employees, set at $26.44 per hour from 1 July 2026. Award rates are higher minimums set by the Fair Work Commission for specific industries and occupations, found in pay guides from the Fair Work Ombudsman. Most employees are covered by an award, so their base salary must meet the award rate, not just the National Minimum Wage.

How do I calculate my base salary if I'm a casual employee?

Casual employees receive a 25% loading on top of the minimum hourly rate. For the National Minimum Wage, that's $33.05 per hour. To find your base salary, multiply your casual hourly rate by 38 hours per week and then by 52 weeks. For example, $33.05 × 38 × 52 = $65,318.80 per year. Remember, super is paid on top of this amount.

Does the base salary include superannuation?

No, the base salary is the gross annual pay before tax and before super. The super guarantee is paid on top of your ordinary earnings at 12% (from 1 July 2026), up to the maximum contribution base of $270,830. So if your base salary is $70,000, your employer must also contribute $8,400 to your super fund, making your total remuneration $78,400.

From Hourly Rate to Base Salary: National Minimum Wage vs Award Rates

For a 38-hour week, the National Minimum Wage of $26.44 per hour gives a base salary of $52,254.80 per year, with casual loading of 25% on top.

Understanding Your Base Salary from an Hourly Rate

Whether you're negotiating a new job or checking your current pay, converting an hourly rate to a base salary is a straightforward calculation. Your base salary is the gross annual amount you earn before tax, super, and any deductions. It's the figure you'll see on employment contracts and the one used to compare offers across different roles.

The Standard Formula

The basic formula is:

Base salary = hourly rate × hours per week × 52 weeks

We assume a standard full-time week of 38 ordinary hours, as defined by the Fair Work Commission. This is the benchmark used for the National Minimum Wage and most awards. If you work part-time or different hours, adjust the 'hours per week' accordingly.

For example, at the National Minimum Wage of $26.44 per hour (from 1 July 2026, as set by the Fair Work Commission ):

Weekly pay: $26.44 × 38 = $1,004.72 (rounded to $1,004.90 in official figures)
Fortnightly pay: $1,004.72 × 2 = $2,009.44
Annual base salary: $26.44 × 38 × 52 = $52,254.80

This is the minimum base salary for an adult employee not covered by an award or agreement.

National Minimum Wage vs Award Rates

The National Minimum Wage is the floor. However, most employees are covered by a modern award that sets higher minimum rates for their industry or occupation. For instance, the Health Services Award and the Social, Community, Home Care and Disability Services (SCHADS) Award have recently updated rates, as noted by the Fair Work Ombudsman.

Your base salary must meet the award rate for your classification. If you're award-free, the National Minimum Wage applies. Always check the relevant pay guides to find the correct minimum for your role.

Casual Loading and Your Base Salary

Casual employees receive a 25% loading on top of the minimum hourly rate to compensate for not receiving paid leave. This loading is added to the base rate before calculating the annual figure. For the National Minimum Wage:

Casual hourly rate: $26.44 × 1.25 = $33.05
Annual base salary (casual): $33.05 × 38 × 52 = $65,318.80

Important: When using a calculator, never enter a rate that already includes casual loading. Instead, enter the base hourly rate and apply the loading separately. This ensures your base salary is correctly calculated.

Tax and Super on Your Base Salary

Your base salary is the starting point for tax and super calculations.

Tax (2026–27 resident 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).

Superannuation: The super guarantee is 12% of your ordinary earnings, paid on top of your base salary. It does not reduce your take-home pay. The super contribution is capped at the maximum contribution base of $270,830 per year. For example, on a base salary of $70,000, your employer adds $8,400 to super, making total remuneration $78,400.

Using the Timesheet Tool

Our timesheet tool lets you enter your hourly rate and optionally add casual loading. It then calculates your weekly, fortnightly, and annual base salary, along with estimated tax and super. Remember, this is an estimate based on standard assumptions. For precise figures, consult your employer or a tax professional.

Key Takeaways

Always use 38 hours per week for full-time unless your award specifies otherwise.
Your base salary is the gross annual amount before tax and super.
Award rates often exceed the National Minimum Wage – check the minimum wage page for current rates.
Casual loading is added on top of the base rate, not included in it.
Super is paid on top of your base salary at 12%.

Understanding your base salary helps you compare job offers, budget, and plan for tax time. Whether you're on the National Minimum Wage or an award, the formula remains the same.