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How to calculate your engineer salary australia from an hourly rate

A Level 2 experienced engineer under the Professional Employees Award earns at least $39.77 per hour, which equates to $78,836 per year based on 38 ordinary hours per week.

Understanding the engineer salary australia landscape

When you search for an engineer salary australia, you often see annual figures quoted in job ads or industry surveys. But many engineers are paid by the hour under the Professional Employees Award 2020, which sets minimum rates for graduate, experienced, and senior professionals. Knowing how to convert an hourly rate to an annual salary helps you compare offers, budget for tax, and understand your total package including super.

This article uses the official award rates from the Fair Work Ombudsman and the latest National Minimum Wage from the Fair Work Commission to show you the calculation. We also cover casual loading, superannuation, and the tax you can expect on your annual pay.

How to convert an hourly rate to an annual salary

The standard formula for a full-time employee is:

Annual gross salary = hourly rate × hours per week × 52 weeks

For most award-covered employees, ordinary hours are 38 per week. So if you are a Level 2 experienced professional engineer earning $39.77 per hour (the minimum under the award), your annual salary is:

$39.77 × 38 × 52 = $78,836 (rounded to the nearest dollar)

This matches the annual wage listed in the Professional Employees Award for that classification. Always use 38 hours unless you have an agreement for fewer or more hours. Part-time employees are paid pro-rata based on their agreed weekly hours.

Fortnightly pay

Your fortnightly gross pay is simply your weekly pay multiplied by two. For the Level 2 engineer:

Weekly: $39.77 × 38 = $1,511.26 Fortnightly: $1,511.26 × 2 = $3,022.52

This is useful for budgeting if you are paid every two weeks.

The role of the National Minimum Wage and award rates

The National Minimum Wage from 1 July 2026 is $26.44 per hour for award-free employees. However, engineers covered by the Professional Employees Award are entitled to higher minimum rates. The award sets five levels, from Level 1 graduate ($33.71 per hour for a 3-year degree) up to Level 5 experienced medical research employee ($59.05 per hour).

If you are an engineer working in information technology, medical research, quality auditing, or telecommunications, you are likely covered by this award. Always check your classification with your employer or the Fair Work Ombudsman’s pay guides to ensure you are receiving the correct minimum rate.

Casual loading and superannuation

Casual loading

If you are employed as a casual engineer, you receive a 25% loading on top of the minimum hourly rate. This is instead of paid leave entitlements. For example, a Level 2 casual engineer would earn:

$39.77 × 1.25 = $49.71 per hour

Our timesheet tool has a checkbox to add this loading automatically when you enter your base rate. Never enter a rate that already includes casual loading – the tool adds it for you.

Superannuation

Superannuation is paid on top of your ordinary earnings. From 1 July 2026, the Super Guarantee rate is 12%, applied to your ordinary time earnings up to the maximum contribution base of $270,830 per year. For the Level 2 engineer earning $78,836, the employer would contribute:

$78,836 × 12% = $9,460.32

Your total remuneration (salary plus super) is $88,296.32. Super is not deducted from your hourly rate; it is an additional cost to your employer.

Tax and Medicare levy on your engineer salary

Once you have your annual gross salary, you can estimate your tax using the 2026–27 resident tax 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)
  • 45% above $190,000

Plus a Medicare levy of 2% of taxable income (with possible reductions for low-income earners).

Example: Level 2 engineer ($78,836)

  • Tax-free threshold: $18,200 → $0 tax
  • Next $26,800 at 15% → $4,020
  • Remaining $33,836 at 30% → $10,150.80
  • Total tax: $14,170.80
  • Medicare levy (2% of $78,836): $1,576.72
  • Total tax and Medicare: $15,747.52
  • Net annual pay: $78,836 – $15,747.52 = $63,088.48

Fortnightly net pay: $63,088.48 ÷ 26 = $2,426.48 (approximately).

Use our take-home pay guide for more detailed calculations, including HELP repayments and the Medicare levy surcharge.

Using the timesheet tool

Our timesheet is the home page where you can type your base hourly rate and instantly see your annual, monthly, weekly, and fortnightly figures. A checkbox adds 25% casual loading on top. The tool uses the same formula: hourly × hours per week × 52, with a default of 38 hours. You can adjust the hours if your agreement differs.

Remember that the annual estimate assumes the same rate every week, no unpaid overtime, no penalty rates, 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 and the 2025–26 Medicare reduction thresholds (as the 2026–27 thresholds were not confirmed at the time of calculation).

For more resources, see our reference tables for award rates and minimum wage information.

Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.

Try the rate on a timesheet

Adjust the timesheet

Year, gross$52,245.4452 weeks at this rate

Starts at the adult National Minimum Wage. Change the rate if the job pays more.

Level with the adult National Minimum Wage.

Mon$200.947.6 h
Tue$200.947.6 h
Wed$200.947.6 h
Thu$200.947.6 h
Fri$200.947.6 h
One fortnight$2,009.44 gross
  • Take-home
  • Tax
  • Medicare
Super 12%, paid on top$6,269.45 a year
Week
$1,004.72
Fortnight
$2,009.44
Take-home a year
$45,006.90
Tax + Medicare
$7,238.54

$52,245.44 gross a year, $2,009.44 a fortnight.

  • 16 h$21,998
  • 20 h$27,498
  • 24 h$32,997
  • 30 h$41,246
  • 38 h$52,245
  • 40 h$54,995

Resident tax for 2026–27 with the tax-free threshold. Medicare uses the 2025–26 single reduction thresholds. No HELP, no salary sacrifice, no Medicare levy surcharge. Super is 12% of ordinary earnings only, capped at the maximum contribution base.

Questions people ask next

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

The National Minimum Wage from 1 July 2026 is $26.44 per hour for award-free employees, but engineers covered by the Professional Employees Award 2020 are entitled to higher minimum rates. For example, a Level 1 graduate (3-year degree) earns $33.71 per hour, and a Level 2 experienced professional earns $39.77 per hour. Award rates are set by the Fair Work Commission and take precedence over the National Minimum Wage for those employees.

How is casual loading applied to an engineer's hourly rate?

Casual employees under the Professional Employees Award receive a 25% loading on top of the minimum hourly rate. For instance, a Level 2 engineer on $39.77 per hour would be paid $49.71 per hour as a casual. This loading compensates for entitlements like paid leave that casuals do not receive. Our timesheet tool has a checkbox to add this loading automatically.

Does superannuation come out of my hourly rate or is it paid on top?

Superannuation is paid on top of your ordinary earnings. Under the Superannuation Guarantee, your employer must contribute 12% of your ordinary time earnings to a super fund, up to the maximum contribution base of $270,830 per year. For example, if your annual salary is $78,836, your employer would add $9,460 in super, making your total remuneration $88,296. This is not deducted from your hourly rate.

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