What is the minimum hourly rate for a graduate engineer under the Professional Employees Award?

For a Level 1 Graduate professional with a 4- or 5-year degree, the minimum hourly rate is $34.57, equating to an annual salary of $68,538 for 38 ordinary hours per week. For a 3-year degree, the rate is $33.71 per hour ($66,825 annually). These rates are set by the Fair Work Ombudsman in the Professional Employees Award 2020.

How do I calculate annual salary from an hourly rate for a graduate engineer?

Multiply the hourly rate by 38 (ordinary hours per week under the award) and then by 52 weeks. For example, $34.57 × 38 × 52 = $68,538. This assumes full-time employment with no unpaid overtime, penalty rates, or allowances. Superannuation (12%) is paid on top of this figure.

Does casual loading apply to graduate engineers?

Yes. Casual graduate engineers receive a 25% loading on the minimum hourly rate. For a 4-year degree graduate, the casual rate is $34.57 × 1.25 = $43.21 per hour. This loading compensates for the lack of paid leave entitlements such as annual and personal leave.

Graduate Engineer Salary: Converting Hourly Rates to Annual Pay Under the Professional Employees Award

A Level 1 graduate engineer (4-year degree) earns a minimum of $34.57 per hour, or $68,538 per year for 38 hours per week under the Professional Employees Award.

Understanding the Graduate Engineer Salary: From Hourly to Annual

If you’re a graduate engineer or an employer setting a starting salary, the first step is converting an hourly rate to an annual figure. The standard formula is simple: multiply the hourly rate by the number of ordinary hours per week, then by 52 weeks. For full-time employees under most awards, including the Professional Employees Award 2020, ordinary hours are 38 per week. So annual gross = hourly rate × 38 × 52.

This article uses the graduate engineer salary as an example, drawing on the minimum rates set by the Fair Work Ombudsman’s Professional Employees Award. We’ll walk through the conversion, explain casual loading, superannuation, tax, and Medicare, and show what a graduate engineer might expect to take home each fortnight.

The Professional Employees Award and Graduate Engineer Rates

The Professional Employees Award 2020 (MA000065) covers graduate engineers among other professionals. According to the award’s minimum rates clause, a Level 1 Graduate professional with a 4‑ or 5‑year university degree receives an annual wage of $68,538, which equates to an hourly rate of $34.57. For a 3‑year degree holder, the annual wage is $66,825, or $33.71 per hour. These are the legal minimums; many employers offer above‑award rates, especially in competitive fields.

To calculate the annual salary from the hourly rate: $34.57 × 38 × 52 = $68,538 (rounded). The award also provides for higher pay points as the engineer gains experience, up to Level 5 at $117,064 annually.

Casual Loading for Graduate Engineers

If a graduate engineer is employed on a casual basis, the award requires a 25% loading on top of the minimum hourly rate. For a 4‑year degree graduate, the casual rate becomes $34.57 × 1.25 = $43.21 per hour. If that casual worked 38 hours every week for a year, the annual equivalent would be $43.21 × 38 × 52 = $85,422. However, casual employees do not receive paid leave (annual, personal, or public holidays) – the loading compensates for that. Our casual loading page explains how to apply the loading correctly.

Superannuation: Paid on Top

Under the Superannuation Guarantee, employers must contribute 12% of an employee’s ordinary earnings into a super fund. This is paid on top of the salary, not deducted from it. For a full‑time graduate engineer on $68,538, the annual super contribution would be $8,224.56 (12% of $68,538). The contribution is capped by the maximum contribution base of $270,830 for 2026‑27. For most graduate engineers, the full 12% applies. See our super and packaging page for more details.

Tax and Medicare on the Graduate Engineer Salary

Once you have the annual gross salary, you can estimate tax using the 2026‑27 resident tax rates. For a graduate engineer earning $68,538:

Tax‑free threshold: $0 on the first $18,200
15% on the next $26,800 ($18,201 to $45,000) = $4,020
30% on the remaining $23,538 ($45,001 to $68,538) = $7,061.40
Total tax = $11,081.40

Medicare levy is generally 2% of taxable income, so $1,370.76. Total deductions = $12,452.16. Take‑home pay = $68,538 – $12,452.16 = $56,085.84 per year.

Fortnightly, that’s $56,085.84 ÷ 26 = $2,157.15 net. Gross fortnightly pay would be $68,538 ÷ 26 = $2,636.08. Our take-home pay page can help you estimate your own situation.

Fortnightly Pay and Budgeting

Many Australian employers pay wages fortnightly. Knowing your gross and net fortnightly amounts helps with budgeting. For a graduate engineer on the award rate, the gross fortnight is $2,636.08. After tax and Medicare, you’ll receive around $2,157. If you’re paid hourly, you can use our the timesheet to convert your hourly rate to annual, fortnightly, and weekly figures.

Comparing with National Minimum Wage and Averages

The national minimum wage from 1 July 2026 is $26.44 per hour for a 38‑hour week, or $1,004.90 per week. The graduate engineer award rate of $34.57 is well above that. The Australian Bureau of Statistics reports that full‑time adult average weekly ordinary time earnings were $2,083.70 in May 2026, equating to an annual salary of about $108,352. Graduate engineers typically start below that average but progress quickly.

Using the Pay Guides

The Fair Work Ombudsman publishes pay guides for each award, including the Professional Employees Award. These guides summarise minimum rates, allowances, and penalty rates. You can access them via our pay guides page.

Summary

To convert a graduate engineer hourly rate to annual salary: multiply by 38 (hours per week) and by 52 (weeks). For a 4‑year degree graduate, that’s $34.57 × 38 × 52 = $68,538. Add 12% super on top. Deduct tax and Medicare to find take‑home pay. Use our tools to run your own numbers.