TimesheetGuidesSuper and packaging
How Much Should I Salary Sacrifice Into Super? A Guide to Hourly to Annual Pay
For a full-time employee working 38 hours per week, your annual gross pay is your hourly rate multiplied by 1,976 hours (38 × 52), providing a base to estimate tax and super.
Converting Your Hourly Rate to Annual Salary
If you’re paid by the hour or considering a salary offer, the first step is to convert your hourly rate into an annual figure. The standard formula is:
Annual gross pay = hourly rate × hours per week × 52
For a full-time employee, we assume 38 hours per week (the standard under the Fair Work Act). That gives you 1,976 hours per year. If you work fewer or more hours, adjust accordingly. For example, a part-time worker on 20 hours a week would use 20 × 52 = 1,040 hours.
Once you have your annual gross, you can estimate your fortnightly pay (weekly pay × 2) and your take-home pay after tax and super.
National Minimum Wage vs Award Rates
The National Minimum Wage from 1 July 2026 is $26.44 per hour for a full-time adult employee, or $1,004.90 per week for 38 hours. However, most employees are covered by an award or registered agreement that sets a higher minimum. Award rates vary by industry and occupation – for instance, a retail employee may have a different minimum than a hospitality worker. The Fair Work Ombudsman publishes pay guides for each award. If you’re not covered by an award, the National Minimum Wage applies.
Casual employees receive a 25% loading on top of the base rate. For the National Minimum Wage, that’s $33.05 per hour. When using our timesheet, do not enter a rate that already includes casual loading – tick the checkbox instead.
Superannuation Is Paid on Top
Your employer must pay superannuation guarantee contributions of 12% of your ordinary earnings, on top of your salary. This is not deducted from your pay. For 2026–27, the super guarantee applies up to a maximum contribution base of $270,830 per year. If your annual earnings exceed that, super is only paid on the first $270,830.
Salary Sacrifice Into Super
Salary sacrifice is an arrangement where you agree to forgo part of your pre-tax salary in exchange for additional super contributions from your employer. This reduces your taxable income, so you pay less income tax and Medicare levy. The super fund pays a 15% contributions tax on the sacrificed amount (up to the concessional cap).
You might be wondering, how much should I salary sacrifice into super? The answer depends on your tax bracket and long-term goals. For 2026–27, the resident tax rates are:
- 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
- 45% above $190,000
Plus a 2% Medicare levy (based on 2025–26 thresholds as 2026–27 thresholds are not yet confirmed).
If you’re in the 30% bracket, each dollar sacrificed saves you 30¢ in tax plus 2¢ Medicare, but incurs 15¢ contributions tax – a net saving of 17¢. The higher your bracket, the greater the saving. However, you must stay within the annual concessional contributions cap (set by the ATO) to avoid extra tax. A common approach is to sacrifice enough to bring your taxable income down to the top of a lower bracket, but this is not right for everyone. Consult a financial adviser for personal advice.
Estimating Your Take-Home Pay
Our take-home pay calculator can help you see the effect of salary sacrifice. Remember that the annual pay shown here is an estimate: 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 uses 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.
Fortnightly Pay Example
If your hourly rate is $30 and you work 38 hours a week, your weekly gross is $1,140. Fortnightly that’s $2,280. After tax and Medicare (assuming no other deductions), your take-home might be around $1,960, depending on your tax bracket. Super of 12% ($273.60 per week) is paid on top by your employer.
Using the Timesheet
Our timesheet lets you enter your base hourly rate and optionally add casual loading. It calculates your annual, monthly, fortnightly, and weekly gross pay. From there you can estimate tax and super. It’s a handy tool whether you’re comparing a salary offer or planning your budget.
For more detailed pay guides and award rates, visit our pay guides page. You can also explore reference tables for tax brackets and super caps.
Key Takeaways
- Annual gross = hourly rate × hours per week × 52 (assume 38 hours for full-time)
- The National Minimum Wage is $26.44/hour; most awards pay more
- Casual loading is 25% on top; do not include it in your base rate
- Super is 12% paid on top by your employer, up to $270,830
- Salary sacrifice reduces taxable income but has caps; consider your tax bracket
- Use the timesheet to estimate your pay, but remember it’s an estimate
Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.