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

Multiply your hourly rate by the number of hours you work each week, then multiply by 52 weeks. For a full-time employee working 38 hours per week, the formula is: hourly rate × 38 × 52. This gives your gross annual pay before tax and super. Remember, super is paid on top of this amount, not deducted from it.

What is the difference between the National Minimum Wage and award rates?

The National Minimum Wage is the legal minimum pay for employees not covered by an award or agreement. As of 1 July 2026, it is $26.44 per hour for a 38-hour week. Award rates are higher minimums set by the Fair Work Commission for specific industries or occupations. Many employees are covered by an award, so always check your award or enterprise agreement for your correct minimum rate.

How does casual loading affect my pay?

Casual employees are entitled to a 25% loading on top of the base hourly rate to compensate for not receiving paid leave. For example, if the base rate is $26.44, the casual rate becomes $33.05 per hour. When using our timesheet, you can check a box to add 25% casual loading automatically. Never enter a rate that already includes casual loading – enter the base rate and let the tool add the loading.

Calculating Salary Sacrifice: Turn Your Hourly Rate into Annual, Fortnightly, and Tax Figures

For a 38-hour week, annual gross pay is hourly rate × 38 × 52, with super paid on top at 12%.

From Hourly to Annual: The Simple Formula

Whether you're negotiating a salary, comparing job offers, or planning your budget, knowing how to convert an hourly rate to an annual figure is essential. In Australia, the standard full-time week is 38 hours, and most annual salary calculations assume 52 weeks of work per year. The basic formula is:

Annual gross pay = hourly rate × hours per week × 52

For a full-time employee working 38 hours each week, this becomes:

Annual gross pay = hourly rate × 38 × 52

This gives you the gross amount before tax, Medicare levy, and superannuation. It assumes you work the same number of hours every week with no unpaid overtime, penalty rates, allowances, or salary sacrifice arrangements. For part‑time or casual workers, simply replace 38 with your usual weekly hours.

Why 38 Hours and 52 Weeks?

The 38‑hour week is the standard full‑time benchmark under the Fair Work Act. Many awards and agreements use it for calculating minimum wages and annualised salaries. The 52‑week year is standard for annualising pay, even though most employees receive four weeks of paid annual leave. The formula treats leave as paid time, so your annual figure includes those weeks.

If you work a different pattern – say 30 hours per week – use that number. The same logic applies: 30 × 52 gives your annual gross. For casuals, remember that the 25% casual loading is added to the base rate before this calculation.

From Annual to Fortnightly

Many Australians are paid fortnightly. To find your gross fortnightly pay, divide your annual gross by 26 (the number of fortnights in a year). Alternatively, multiply your weekly pay by 2.

Fortnightly gross = (hourly rate × hours per week × 52) ÷ 26

Or simply:

Fortnightly gross = hourly rate × hours per week × 2

This is handy when you receive a salary offer expressed as an annual figure and want to know what to expect in each pay cycle. Our the timesheet lets you toggle between hourly, weekly, fortnightly, and annual views.

Tax and Super: What Comes Off and What Goes On

Once you have your gross annual figure, you can estimate your take‑home pay using the 2026–27 resident tax rates and the Medicare levy. The Australian Taxation Office (ATO) sets these rates. For 2026–27, the tax‑free threshold is $18,200. Above that, you pay:

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 over $190,000

Most residents also pay a Medicare levy of 2% of taxable income. The 2025–26 single reduction thresholds are used here because the 2026–27 thresholds were not confirmed in this estimate. This estimate does not include the Medicare levy surcharge, HELP repayments, or salary packaging.

Superannuation: Paid on Top

Superannuation guarantee contributions are paid by your employer on top of your ordinary earnings. From 1 July 2026, the super guarantee rate is 12% of your ordinary time earnings, up to the maximum contribution base of $270,830 per quarter. This means if your annual gross is $80,000, your employer pays an extra $9,600 into your super fund. Super is not deducted from your pay – it's an additional cost to the employer.

When calculating salary sacrifice arrangements, remember that salary‑sacrificed amounts reduce your ordinary time earnings for super purposes, which can affect your super guarantee. Always check with your employer or a financial adviser before entering a salary sacrifice agreement.

Minimum Wage, Award Rates, and Casual Loading

It's important to distinguish between different pay rates. The National Minimum Wage (set by the Fair Work Commission) is the legal floor. From 1 July 2026, it is $26.44 per hour, or $1,004.90 per week for 38 hours. Casual employees receive an additional 25% loading, making the casual minimum $33.05 per hour.

However, most employees are covered by an award or enterprise agreement that sets higher minimum rates. For example, a retail employee may have a higher base rate than the national minimum. Always check your award on the Fair Work Ombudsman website or use our pay guides for industry-specific information.

Our reference tables include the National Minimum Wage, award rates, and casual loading figures. When using the timesheet, enter your base hourly rate (the rate before casual loading). If you are a casual, check the box to add 25% loading automatically – never enter a rate that already includes casual loading.

Average Earnings and Comparing Your Pay

The Australian Bureau of Statistics (ABS) publishes Average Weekly Earnings (AWE) data. For May 2026, full‑time adult ordinary time earnings averaged $2,083.70 per week. All employees (including part‑time) averaged $1,579.20 per week. These are averages across all industries and occupations, not medians for a specific job. If you want to compare your pay to others in your occupation, look for industry‑specific data or use our average pay page.

Remember that the formula here assumes a consistent 38‑hour week. If you work overtime, receive penalties, or have irregular hours, your actual annual pay may differ. For a more precise estimate tailored to your situation, use our hourly conversion tool or explore take-home pay calculations.

Putting It All Together: An Example

Let's say you earn $30 per hour as a full‑time permanent employee working 38 hours per week.

Annual gross: $30 × 38 × 52 = $59,280
Fortnightly gross: $59,280 ÷ 26 = $2,280 (or $30 × 38 × 2 = $2,280)
Estimated tax (2026–27): On $59,280, tax is $5,092 plus Medicare $1,185.60 = $6,277.60 total deductions
Estimated take‑home annual: $59,280 – $6,277.60 = $53,002.40
Super (12% on top): $59,280 × 0.12 = $7,113.60

If you were casual at the same base rate, your hourly rate would be $30 × 1.25 = $37.50. Your annual gross would be $37.50 × 38 × 52 = $74,100, with super still calculated on the base ordinary earnings (not the casual loading).

Important Disclaimer

This article provides estimates only. Annual pay is calculated as hourly rate × hours per week × 52, assuming the same rate every week with no unpaid overtime, penalty rates, allowances, or salary sacrifice. Super is estimated at 12% of ordinary earnings, 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 thresholds were not confirmed. HELP, the Medicare levy surcharge, and salary packaging are not deducted. This is an estimate, not a determination of your pay or tax.

For more details, visit our about the timesheet page or check the minimum wage and super and packaging topics.