How do I convert my hourly rate to annual salary?

Multiply your hourly rate by the number of hours you work per week, then multiply by 52. For a standard full-time role, we assume 38 hours per week. For example, $30 per hour × 38 hours × 52 weeks = $59,280 per year. If you are casual, include the 25% loading in your hourly rate before multiplying.

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

The National Minimum Wage is the minimum pay rate for employees not covered by an award or registered agreement. Award rates are set by the Fair Work Commission for specific industries and occupations and are generally higher. Many awards also include penalty rates, allowances, and overtime provisions. You can find award rates on the Fair Work Ombudsman website or our pay guides page.

How does salary sacrifice affect my take-home pay and super?

Salary sacrifice reduces your taxable income, so you pay less tax and Medicare levy. The sacrificed amount goes into your super fund (or other benefits). However, there is a maximum salary sacrifice limit (concessional contributions cap) set by the ATO. Exceeding this cap incurs extra tax. Your take-home pay decreases because you are directing pre-tax money away from your salary, but your super balance grows faster. Use our super and packaging page to understand the trade-offs.

Convert Hourly Rate to Annual Salary: State Differences and Max Salary Sacrifice Explained

This guide explains the hourly to annual conversion based on a 38-hour week, highlighting state differences in ordinary-time earnings and how max salary sacrifice affects your total package.

Understanding the Hourly to Annual Conversion

To convert your hourly rate to an annual salary, use the formula: hourly rate × hours per week × 52. This assumes you work the same number of hours every week with no unpaid overtime, penalty rates, or allowances. For a standard full-time role, we assume 38 hours per week, as set by the Fair Work Commission. For example, at the National Minimum Wage of $26.44 per hour, the annual gross pay would be $26.44 × 38 × 52 = $52,261.44. If you are a casual employee, your hourly rate typically includes a 25% casual loading, bringing the minimum casual rate to $33.05 per hour. On our the timesheet page, you can enter your base hourly rate and check a box to add casual loading automatically.

State Differences in Ordinary-Time Earnings

The Australian Bureau of Statistics (ABS) reports Average Weekly Earnings for full-time adult ordinary time. Nationally, this was $2,083.70 per week in May 2026. However, earnings vary significantly by state and territory due to differences in industry mix, cost of living, and labour market conditions. For instance, the Australian Capital Territory often records the highest average earnings, driven by a large public sector and professional services, while Tasmania tends to have lower averages. For detailed state-level data, consult our reference tables. Understanding these differences can help you benchmark your salary offer against local averages.

Fortnightly Pay and Budgeting

Many employers pay fortnightly. To find your fortnightly gross pay, multiply your weekly pay by two. For a full-time worker on the national average weekly earnings of $2,083.70, the fortnightly amount would be $4,167.40. This can be useful for budgeting and comparing salary packages.

Tax and Medicare Levy

Your annual gross salary is subject to income tax and the Medicare levy. For the 2026–27 financial year, the resident tax rates are:

$0 – $18,200: nil
$18,201 – $45,000: 15%
$45,001 – $135,000: 30%
$135,001 – $190,000: 37%
Over $190,000: 45%

Plus a Medicare levy of 2% (with reductions for low-income earners). Note that the Medicare levy reduction thresholds used here are from 2025–26, as the 2026–27 thresholds were not confirmed at the time of this guide. For a more precise estimate of your take-home pay, use our take-home pay calculator.

Superannuation Guarantee

Employers must pay superannuation guarantee contributions of 12% of your ordinary earnings, on top of your salary. This is capped at the maximum contribution base of $270,830 per year. For example, if your annual salary is $80,000, your employer would contribute an additional $9,600 into your super fund. Super is not deducted from your salary; it is paid in addition. Learn more about super and packaging.

Max Salary Sacrifice Considerations

Salary sacrifice allows you to redirect part of your pre-tax salary into superannuation or other benefits, reducing your taxable income. The Australian Taxation Office (ATO) sets a maximum salary sacrifice amount each year, known as the concessional contributions cap. For the 2026–27 year, this cap is $30,000 (subject to indexation). Exceeding the cap results in additional tax. When negotiating a salary package, consider your max salary sacrifice to optimise your total remuneration. For example, if you earn $100,000 and salary sacrifice $10,000 into super, your taxable income reduces to $90,000, potentially lowering your tax bracket. However, remember that salary sacrifice agreements must be in place before the income is earned. Our super and packaging page has more details.

Award Rates and Casual Loading

The National Minimum Wage applies to employees not covered by an award or agreement. However, most industries have award rates that are higher. The Fair Work Ombudsman provides pay guides for each award. Casual employees receive a 25% loading on top of the base rate to compensate for lack of leave entitlements. Never enter a rate that already includes casual loading into our calculator; instead, enter the base rate and check the casual loading box.

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.