TimesheetGuidesSuper and packaging
Hourly to Annual Salary Calculator: Car Lease Salary Packaging and the National Minimum Wage
Annual pay is calculated as hourly rate × 38 hours per week × 52 weeks, assuming a standard full-time week.
How to Convert Your Hourly Rate to Annual Pay
If you earn an hourly wage or have a salary offer, the simplest way to compare them is to convert your hourly rate to an annual figure. The standard formula is:
Annual gross annual pay = hourly rate × hours per week × 52 weeks
For a full-time employee working 38 hours per week, that means:
Annual pay = hourly rate × 38 × 52
This assumes you work the same rate every week, with no unpaid overtime, penalty rates, or allowances. It also assumes no salary sacrifice, such as car lease salary packaging, which can reduce your taxable income but is not included in this estimate.
Using the Timesheet Calculator
Our the timesheet lets you type your base hourly rate. If you are a casual employee, tick the 25% casual loading checkbox. Do not enter a rate that already includes casual loading – the calculator adds it on top. For example, the National Minimum Wage from 1 July 2026 is $26.44 per hour for permanent employees. With casual loading, the calculator shows $33.05 per hour.
The Fortnightly View
Many people are paid fortnightly. To get your gross fortnightly pay, multiply your weekly pay by 2. Weekly pay is hourly rate × hours per week. For a 38‑hour week at $26.44 per hour, weekly pay is $1,004.90, so fortnightly pay is $2,009.80 before tax and super.
National Minimum Wage vs Award Rates
The National Minimum Wage is the legal floor for all employees not covered by an award or registered agreement. The Fair Work Commission reviews it each year. From 1 July 2026, the rate is $26.44 per hour, or $1,004.90 per week for 38 hours. Casual employees receive a 25% loading, making the casual rate $33.05 per hour.
However, most employees are covered by an award – a industry‑specific set of minimum pay rates and conditions. Award rates are often higher than the National Minimum Wage. For example, a retail employee under the General Retail Industry Award may earn more than $26.44 per hour depending on their classification. The Fair Work Ombudsman provides pay guides for each award.
If you are not covered by an award, your minimum is the National Minimum Wage. But if your award says you should be paid more, your employer must pay that higher rate.
Casual Loading and Super
Casual employees get a 25% loading on top of the base rate to compensate for not receiving paid leave. This loading is part of your hourly rate. Superannuation guarantee is 12% of your ordinary time earnings, paid on top of your gross pay. For casuals, the loading is included in ordinary earnings for super purposes.
Important: Super is paid on top of your gross pay. It is not deducted from your pay. Our calculator estimates super at 12% of ordinary earnings, up to the maximum contribution base of $270,830 per year. If your annual pay exceeds that, super is capped.
Tax and Take-Home Pay
Once you have your gross annual pay, you can estimate tax using 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 over $190,000
Plus the Medicare levy of 2% (generally). Our calculator uses the 2025–26 single reduction thresholds because the 2026–27 thresholds were not confirmed in this estimate. If you have a HELP debt, Medicare levy surcharge, or salary packaging, those are not deducted. Car lease salary packaging can reduce your taxable income, but our estimate does not include it. See take-home pay for more.
Example: National Minimum Wage Worker
A full‑time permanent worker on the National Minimum Wage ($26.44 per hour, 38 hours per week) earns:
- Weekly: $1,004.90
- Fortnightly: $2,009.80
- Annual: $52,254.80 (26.44 × 38 × 52)
Super (12%): $6,270.58 per year, paid on top.
Tax estimate (2026–27):
- Tax‑free threshold: $18,200
- Next $26,800 taxed at 15% = $4,020
- Remaining $7,254.80 taxed at 30% = $2,176.44
- Total tax: $6,196.44
- Medicare levy (2% of $52,254.80) = $1,045.10
- Total deductions: $7,241.54
- Take‑home pay: $45,013.26 per year, or about $865.64 per week.
This does not include any car lease salary packaging arrangements, which could lower your taxable income further.
Average Weekly Earnings and Comparisons
The Australian Bureau of Statistics publishes Average Weekly Earnings (AWE) data. For May 2026, full‑time adult ordinary time earnings were $2,083.70 per week. All employees total earnings (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 are comparing your pay, remember that averages can be skewed by high earners. See average pay for more context.
Important Notes and Disclaimer
- Annual pay is calculated as hourly rate × hours per week × 52. It assumes the same rate every week, no unpaid overtime, no penalty rates, no allowances, and no 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, the Medicare levy surcharge, and salary packaging (including car lease salary packaging) are not deducted.
- This is an estimate, not a determination of your pay or tax.
For more detailed information, refer to our reference tables and hourly conversion guide.
Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.