How much can I salary sacrifice into super from my hourly wage?

Salary sacrifice contributions are deducted from your before-tax pay, reducing your assessable income. The maximum you can sacrifice depends on the annual concessional cap ($27,500 for 2026–27) and your total ordinary earnings. For an hourly employee, your ordinary earnings are your base hourly rate multiplied by hours worked (excluding overtime). Super guarantee is 12% of those ordinary earnings, paid on top. Salary sacrifice is additional and cannot exceed the cap. Use the [super and packaging](/topics/super-and-packaging) page for more details.

Does casual loading affect how much super I can sacrifice?

Casual loading (25% on top of the base rate) is part of your ordinary earnings for super guarantee purposes. So if you earn $30/hour base plus $7.50 loading = $37.50/hour, your super is calculated on $37.50. Salary sacrifice is also based on your ordinary earnings, so a higher hourly rate from casual loading means you can potentially sacrifice more, but still within the concessional cap. See [casual loading](/topics/casual-loading) for more.

What is the super guarantee rate and how is it paid?

From 1 July 2026, the super guarantee rate is 12% of your ordinary earnings, paid on top of your hourly wage. For example, if your hourly rate is $30, your employer pays an extra $3.60 per hour into your super fund. This is not deducted from your pay. The maximum earnings base for super is $270,830 per year. For more, visit [super and packaging](/topics/super-and-packaging).

How Much Can I Salary Sacrifice Into Super? Hourly to Annual Guide

This guide converts an hourly rate to annual gross pay assuming 38 hours per week, 52 weeks, and includes casual loading and super paid on top.

How Much Can I Salary Sacrifice Into Super? Understanding Your Hourly to Annual Pay

If you are an employee paid by the hour—whether permanent part-time, full-time, or casual—you may wonder how much can I salary sacrifice into super and how your hourly rate translates to annual, fortnightly, and weekly amounts. This guide walks through the conversion, the role of casual loading, and the super guarantee, all using official Australian figures.

The Basic Conversion: Hourly to Annual

The standard formula for annual gross pay is:

Annual gross = hourly rate × hours per week × 52

We assume a 38-hour week (the full-time ordinary hours under the Fair Work Act). If you work fewer or more hours, adjust accordingly. For example, a $30/hour rate gives:

Annual: $30 × 38 × 52 = $59,280
Fortnightly: $30 × 38 × 2 = $2,280 (before tax and super)
Weekly: $30 × 38 = $1,140

This calculation assumes the same rate every week, no unpaid overtime, no penalty rates, no allowances, and no salary sacrifice. It is a starting point for budgeting and comparing offers.

Casual Loading: 25% on Top

Casual employees receive a 25% loading in lieu of paid leave (annual leave, sick leave, etc.). The loading is applied to the base hourly rate. For example, if the base rate is $26.44 (the National Minimum Wage from 1 July 2026), the casual rate is $33.05 per hour. Never type a rate that already includes casual loading into the timesheet; instead, use the base rate and check the casual loading box.

With casual loading, the annual gross becomes:

Base $26.44 × 38 × 52 = $52,245.44
Casual loading adds 25%: $52,245.44 × 1.25 = $65,306.80

This is the amount before super and tax. The loading is part of your ordinary earnings for super purposes.

Super Guarantee: Paid on Top

Employers must pay super guarantee (SG) of 12% of your ordinary earnings (from 1 July 2026). This is on top of your hourly wage, not deducted from it. For the $30/hour example:

Annual ordinary earnings: $59,280
Super: 12% × $59,280 = $7,113.60
Total cost to employer: $59,280 + $7,113.60 = $66,393.60

The SG is capped at the maximum contribution base of $270,830 per year. If your ordinary earnings exceed that, super only applies up to that limit.

Salary Sacrifice Into Super

Salary sacrifice is an arrangement where you forgo part of your before-tax salary in exchange for employer super contributions above the SG. This reduces your assessable income for tax purposes. The question how much can I salary sacrifice into super depends on:

Your ordinary earnings (hourly rate × hours worked)
The annual concessional cap ($27,500 for 2026–27)
Any SG already paid (which counts towards the cap)

For example, if your ordinary earnings are $59,280 and SG is $7,113.60, you can sacrifice up to $27,500 - $7,113.60 = $20,386.40 before exceeding the cap. However, you cannot sacrifice more than your ordinary earnings. Salary sacrifice reduces your taxable income, so you pay less tax, but the super contributions are taxed at 15% (or 30% if you exceed the cap).

For more details, see the super and packaging page.

Tax and Medicare

Using the 2026–27 resident tax rates:

$0 – $18,200: nil
$18,201 – $45,000: 15c for each $1 over $18,200
$45,001 – $135,000: $4,020 + 30c for each $1 over $45,000
$135,001 – $190,000: $31,020 + 37c for each $1 over $135,000
$190,001+: $51,420 + 45c for each $1 over $190,000

Medicare levy is generally 2% of taxable income. The 2025–26 single reduction thresholds are used because the 2026–27 thresholds were not confirmed. For a $59,280 gross, tax (including Medicare) would be approximately:

Tax: $4,020 + 30% × ($59,280 - $45,000) = $4,020 + $4,284 = $8,304
Medicare: 2% × $59,280 = $1,185.60
Total: $9,489.60

Take-home pay: $59,280 - $9,489.60 = $49,790.40 (before any salary sacrifice).

Award Rates and Minimum Wage

The National Minimum Wage is $26.44/hour for a permanent employee, or $33.05/hour casual. Many awards have higher minimum rates. The minimum wage page covers the latest. Award rates are set by the Fair Work Commission and may include allowances, penalty rates, and overtime. Our conversion assumes no such extras.

Fortnightly Pay

Many employees are paid fortnightly. To get your gross fortnightly pay:

Fortnightly = hourly rate × 38 × 2

For $30/hour: $30 × 76 = $2,280. Add casual loading if applicable: $2,280 × 1.25 = $2,850. Super is not deducted from this; it is paid separately.

Using the Timesheet

Our the timesheet lets you enter your base hourly rate and optionally add 25% casual loading. It calculates annual, fortnightly, and weekly gross, plus estimated super and tax. Remember: the annual figure is hourly × hours per week × 52, assuming 38 hours. Adjust if your hours differ.

Average Earnings Context

The Australian Bureau of Statistics reports Average Weekly Earnings (May 2026): full-time adult ordinary time $2,083.70 per week, and all employees total earnings $1,579.20 per week (including part-time). These are averages, not medians for any specific job. For job-specific pay, see job pay.

Key Points to Remember

Annual gross = hourly × 38 × 52 (or your actual hours)
Casual loading is 25% on top of base rate; do not enter a loaded rate
Super guarantee is 12% paid on top, up to $270,830 earnings base
Salary sacrifice reduces taxable income; the cap is $27,500 per year
Tax uses 2026–27 rates plus 2% Medicare
This is an estimate; see the full disclaimer below.

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.

For more guides, see pay guides and reference tables.