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

Multiply your hourly rate by the number of hours you work per week, then by 52 weeks. For a standard full-time week of 38 hours, the formula is: hourly rate × 38 × 52. For example, at the National Minimum Wage of $26.44 per hour, the annual gross is $26.44 × 38 × 52 = $52,244.72. This assumes no unpaid overtime, penalty rates, or allowances.

What is casual loading and how does it affect my pay?

Casual loading is an additional 25% on top of the base hourly rate, compensating for the lack of paid leave entitlements. The Fair Work Commission sets the casual loading at 25% for award/agreement-free employees. For example, the National Minimum Wage for casuals is $33.05 per hour ($26.44 × 1.25). When using our timesheet, you can check a box to add the 25% loading on top of your base rate.

Understanding the Difference Between Wage and Salary for Your Hourly to Annual Conversion

Q: What is the difference between wage and salary in Australia?

A wage is typically paid per hour worked, while a salary is a fixed annual amount. Under the Fair Work Ombudsman's guidance, an annualised wage arrangement allows an employer to pay a regular amount that covers minimum pay rates, penalties, overtime, allowances, and annual leave loading. A salary under an employment contract can also offset these entitlements, but must still meet the National Minimum Wage and National Employment Standards if no award applies.

For a full-time employee on the National Minimum Wage, $26.44 per hour for 38 hours a week gives an annual gross of $52,244.72 before tax and super.

Understanding the Difference Between Wage and Salary

When you're comparing job offers or planning your finances, knowing the difference between wage and salary is essential. In Australia, a wage is usually paid per hour worked, while a salary is a fixed annual amount. However, the lines can blur with arrangements like annualised wages, which the Fair Work Ombudsman describes as a fixed regular payment that covers entitlements such as minimum pay rates, penalties, overtime, allowances, and annual leave loading. A salary under an employment contract can also offset these entitlements, but it must still meet the National Minimum Wage and National Employment Standards if no award applies.

Converting Hourly to Annual Pay

The standard method to estimate your annual gross pay from an hourly rate is:

Hourly rate × hours per week × 52 weeks

For a full-time employee working 38 hours per week (the standard ordinary hours under many awards), this formula gives a reliable annual figure. For example, at the National Minimum Wage of $26.44 per hour, the annual gross is $26.44 × 38 × 52 = $52,244.72. If you work a different number of hours, adjust accordingly. Our the timesheet tool lets you enter your base hourly rate and see the annual equivalent instantly.

National Minimum Wage and Award Rates

From 1 July 2026, the Fair Work Commission sets the National Minimum Wage at $26.44 per hour, or $1004.90 per week for 38 hours. This is the minimum for adult employees not covered by an award or agreement. Most employees are covered by an award, which may have higher minimum rates. The Australian Bureau of Statistics reports that full-time adult ordinary time earnings averaged $2083.70 per week in May 2026, well above the minimum. Use our minimum wage page to compare rates.

Casual Loading

Casual employees receive a 25% loading on top of the base rate, as set by the Fair Work Commission. For the National Minimum Wage, that means $33.05 per hour. When using our calculator, never enter a rate that already includes casual loading; instead, check the box to add the 25% on top of your base hourly rate. This ensures the calculation is accurate. Learn more on our casual loading page.

Superannuation and Tax

Superannuation is paid on top of your gross earnings. The super guarantee rate is 12% of ordinary time earnings, up to the maximum contribution base of $270,830 per year (2026–27). For example, on a $52,244.72 annual salary, super would be $6,269.37 extra. Tax is calculated using the 2026–27 resident rates: nil on the first $18,200, 15% on the next $26,800 (up to $45,000), 30% on the next $90,000 (up to $135,000), 37% on the next $55,000 (up to $190,000), and 45% above that. The Medicare levy is generally 2% of taxable income. Our super and packaging page has more details.

Fortnightly Pay

Many employers pay fortnightly. To find your fortnightly gross, multiply your weekly gross by 2. For the National Minimum Wage, weekly gross is $1004.90, so fortnightly is $2009.80. This can help with budgeting and comparing salary offers that are quoted annually or fortnightly.

Key Differences in Ordinary-Time Earnings

The difference between wage and salary also affects how ordinary-time earnings are calculated. A wage earner's ordinary-time earnings are simply their hourly rate times hours worked. A salaried employee's ordinary-time earnings are the annual salary divided by 52 weeks. Both are used for super guarantee calculations. The Fair Work Ombudsman emphasises that annualised wages must be reviewed every 12 months to ensure the employee received at least what they would have under the award.

Disclaimer

Annual pay here is 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 is 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 are not deducted. This is an estimate, not a determination of your pay or tax.