TimesheetGuidesSuper and packaging
Understanding the Disadvantages of Salary Sacrifice When Converting Hourly to Annual Pay
For a 38-hour week, annual gross pay is hourly rate × 38 × 52, with super paid on top.
Converting Your Hourly Rate to Annual Pay
When you have an hourly rate or a salary offer, the first step is to understand what that means over a full year. The standard formula is simple: multiply your hourly rate by the number of hours you work each week, then by 52 weeks. For a full-time employee working 38 hours per week, the calculation becomes:
Annual gross ≈ hourly rate × 38 × 52
This gives you the gross annual salary before tax, super, and any other deductions. But there are important nuances, especially if you are a casual worker receiving casual loading, or if you are considering salary sacrifice arrangements.
The Formula and Assumptions
The formula assumes you work the same number of hours every week, with no unpaid overtime, penalty rates, or allowances. It also assumes no salary sacrifice. If you are a casual employee, your base hourly rate may be lower, but casual loading of 25% is added on top of that base rate. For example, the National Minimum Wage from 1 July 2026 is $26.40 per hour for permanent employees, but casual employees receive $33.05 per hour including the 25% loading.
When using our the timesheet, you can enter your base hourly rate and check a box to add 25% casual loading on top. Do not enter a rate that already includes casual loading.
Fortnightly Pay
Many Australian employers pay fortnightly. Your fortnightly gross pay is simply your weekly pay multiplied by two. For a 38-hour week, fortnightly gross = hourly rate × 38 × 2. This can help you budget and compare with salary offers.
Superannuation Paid on Top
Super guarantee is currently 12% of your ordinary time earnings, paid on top of your gross salary. This means if your annual gross is $60,000, your employer must contribute an additional $7,200 into your super fund, up to the maximum contribution base of $270,830. Super is not deducted from your pay; it is an extra cost to the employer. When converting hourly to annual, remember that super is not included in your take-home pay.
Casual Loading and Award Rates
The National Minimum Wage is the legal minimum for award-free employees, but most workers are covered by an award or enterprise agreement. Award rates are often higher than the minimum wage and include specific penalty rates, allowances, and loadings. Casual employees are entitled to a 25% loading on top of the base award rate to compensate for lack of paid leave. Our casual loading page explains this in detail.
The Australian Bureau of Statistics (ABS) reports average weekly earnings. For May 2026, full-time adult ordinary time earnings were $2,083.70 per week. This is an average across all industries and states, not a median for any specific job. Your actual pay may differ.
Tax and Medicare
Income tax for 2026–27 is progressive: nil up to $18,200, 15% from $18,201 to $45,000, 30% from $45,001 to $135,000, 37% from $135,001 to $190,000, and 45% above $190,000. Most residents also pay a Medicare levy of 2% of taxable income. The tax-free threshold is included. Our take-home pay page provides more details.
Important Notes
This article provides estimates only. The annual pay calculation 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 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.
For more detailed information, see our reference tables.
Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.