Engineer Salary: Converting Hourly Rates to Annual Pay Under the Professional Employees Award
For a Level 1 graduate engineer at $33.71 per hour working 38 hours a week, the annual salary is approximately $66,825 before tax and super.
Engineer Salary: From Hourly Rate to Annual Pay
If you're an engineer in Australia, your pay is likely covered by the Professional Employees Award 2020. Understanding how your hourly rate translates into an annual salary is essential for budgeting, comparing job offers, and planning your tax and super. This guide walks you through the conversion, using the award's minimum rates and the latest national figures.
The Basic Formula
The standard conversion is straightforward: multiply your hourly rate by the number of hours you work each week, then by 52 weeks. For full-time engineers, the award sets ordinary hours at 38 per week. So the formula is:
Annual gross pay = hourly rate × 38 × 52
For example, a Level 1 graduate engineer (3-year degree) under the award has a minimum hourly rate of $33.71. That gives an annual salary of $66,825. If you're paid fortnightly, your gross pay would be $2,570.19 (weekly × 2). This is the starting point before any loadings, super, or tax.
Award Rates for Engineers
The Fair Work Ombudsman's Professional Employees Award 2020 sets minimum wages for engineers from graduate to experienced levels. The rates are updated each year, typically from 1 July. For 2026-27, the award minimums increased by 4.75% in line with the Fair Work Commission's decision. The table below shows key classifications:
| Classification | Annual wage (full-time) | Hourly rate |
|---|---|---|
| Level 1 Graduate (3-year degree) | $66,825 | $33.71 |
| Level 1 Graduate (4 or 5-year degree) | $68,538 | $34.57 |
| Level 2 Experienced professional | $78,836 | $39.77 |
| Level 3 Professional / senior | $86,157 | $43.46 |
| Level 4 Professional | $97,173 | $49.02 |
These are minimum rates. Many engineers earn above award, especially with experience or in specialised fields. Always check your specific award classification using the pay guides or reference tables on this site.
Casual Loading and Super
If you're employed as a casual engineer, you're entitled to a 25% loading on the base hourly rate. This compensates for not receiving paid leave or other entitlements. For the graduate engineer above, the casual rate becomes $33.71 × 1.25 = $42.14 per hour. The annual equivalent would be $42.14 × 38 × 52 = $83,531.
Superannuation is paid on top of your gross earnings. From 1 July 2026, the super guarantee is 12% of ordinary earnings, up to the maximum contribution base of $270,830. So for a full-time engineer on $66,825, the employer contributes an additional $8,019 per year. For a casual on $83,531, super adds $10,024. This is not deducted from your pay – it's an extra contribution to your super fund.
Use the casual loading tool to see how the loading affects your take-home pay.
Tax and Take-Home Pay
Once you have your gross annual salary, you can estimate your tax using the 2026-27 resident tax rates:
- $0 – $18,200: nil
- $18,201 – $45,000: 15%
- $45,001 – $135,000: 30%
- $135,001 – $190,000: 37%
- $190,001+: 45%
Plus the Medicare levy of 2% (with reductions for low-income earners). For a graduate engineer on $66,825, the tax would be approximately $11,342 plus $1,336 Medicare levy, leaving a take-home of about $54,147. This is an estimate; your actual tax may vary depending on deductions, HELP repayments, or the Medicare levy surcharge.
For a more detailed breakdown, see the take-home pay page.
Part-Time and Pro-Rata Pay
If you work part-time, your annual salary is calculated pro-rata based on your agreed weekly hours. For example, an engineer working 20 hours per week at $39.77 per hour (Level 2) earns $39.77 × 20 × 52 = $41,361 per year. All award conditions, including penalty rates and overtime, apply on a pro-rata basis.
National Minimum Wage vs Award Rates
It's important to distinguish the National Minimum Wage from award rates. The National Minimum Wage from 1 July 2026 is $26.44 per hour ($1,004.90 per week for 38 hours). This applies to employees not covered by any award or agreement. Engineers are almost always covered by the Professional Employees Award, so their minimum pay is higher. For example, the lowest graduate rate ($33.71) is 27% above the national minimum.
Using the Timesheet Calculator
Our the timesheet lets you enter your base hourly rate and optionally add the 25% casual loading. It then calculates your annual, fortnightly, and weekly gross pay, plus estimated tax and super. Remember: enter your base rate without the casual loading – the checkbox adds it for you. The result is an estimate based on 38 ordinary hours per week, no unpaid overtime, and no penalty rates.
Summary
Converting an engineer salary from hourly to annual is simple: hourly rate × 38 × 52. But always check your award classification, consider casual loading if applicable, and remember that super is paid on top. Use the tools on this site to get a personalised estimate, and refer to the Fair Work Ombudsman for official rates. Whether you're negotiating a new role or planning your finances, understanding these figures puts you in control.
For more on super and salary packaging, visit super and packaging. For average earnings comparisons, see average pay.
Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.