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Minimum Wage Increase 2025: How to Convert Hourly Rate to Annual Pay for a 38-Hour Week

For a 38-hour week, your annual gross pay is your hourly rate multiplied by 1,976 hours (38 × 52).

How to Convert Your Hourly Rate to Annual Pay

When you’re offered an hourly rate or a salary, the first step is to compare them on the same scale. The standard formula in Australia is:

Hourly rate × hours per week × 52 weeks = annual gross pay

For a full-time employee, the typical week is 38 hours. That means you multiply your hourly rate by 1,976 (38 × 52). If you work a different number of hours each week, this estimate assumes the same hours every week with no unpaid overtime, penalty rates, or allowances.

Why 38 hours?

The Fair Work Act defines full-time as 38 hours per week for most awards. The hourly conversion tool on this site uses that assumption unless you change it. Your actual hours may vary, but 38 hours is the benchmark for comparing offers.

The minimum wage increase 2025

The Fair Work Commission’s minimum wage increase 2025 raised the National Minimum Wage. For the 2026-27 financial year, the rate is $26.44 per hour, or $1,004.90 per week for a 38-hour week. Casual employees receive $33.05 per hour including the 25% loading. This loading is paid on top of the base rate – never include it in the hourly rate you type into a calculator.

Award rates are often higher than the National Minimum Wage. Check your specific award on the Fair Work Ombudsman’s pay guides or reference tables. The minimum wage page has more details on current rates.

From weekly to fortnightly

Your fortnightly pay is simply your weekly pay multiplied by two. For a minimum wage worker on 38 hours:

  • Weekly: $26.44 × 38 = $1,004.90
  • Fortnightly: $1,004.90 × 2 = $2,009.80

This helps when your employer pays you every two weeks. The same formula works for any hourly rate.

Superannuation is paid on top

Super guarantee is 12% of your ordinary earnings (as of 2026-27) and is paid by your employer on top of your hourly rate. It is not deducted from your pay. For a minimum wage worker, that’s an extra $3.17 per hour ($26.44 × 0.12). The super contribution stops once your earnings reach the maximum contribution base of $270,830 per year. See super and packaging for more.

Tax and Medicare

Your take-home pay depends on the 2026-27 resident tax rates:

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

Plus the Medicare levy of 2% (using the 2025-26 single reduction thresholds as the 2026-27 thresholds were not confirmed here). The take-home pay calculator can estimate your net income.

Example: minimum wage worker

  • Hourly rate: $26.44
  • Weekly: $1,004.90
  • Annual gross: $26.44 × 38 × 52 = $52,254.88
  • Super (12% on top): $6,270.59
  • Tax (2026-27): approximately $6,388 (using the tax-free threshold)
  • Medicare: $1,045
  • Estimated annual take-home: $44,821

This is an estimate. Your actual pay may differ due to HELP repayments, Medicare levy surcharge, or salary packaging.

Important 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.

Using the timesheet calculator

For a quick conversion, visit the timesheet. Type your base hourly rate (without casual loading) and check the box if you’re casual. The tool will show your annual, fortnightly, and weekly figures including super and estimated tax.

Award rates vs National Minimum Wage

The National Minimum Wage applies to employees not covered by an award or registered agreement. Most workers are covered by an award, which sets higher minimum rates. The average pay page shows ABS data: full-time adult ordinary time earnings were $2,083.70 per week in May 2026. That’s an average, not a median for any specific job. Use job pay to find industry-specific information.

Casual loading explained

Casual employees get a 25% loading on top of the base hourly rate. This compensates for not receiving paid leave. When using the calculator, never type a rate that already includes casual loading – the tool adds it if you select the casual option. The casual loading page explains the rules.

Final thoughts

The minimum wage increase 2025 shows how annual reviews affect your pay. Whether you’re negotiating a salary or checking an offer, the formula hourly × 38 × 52 gives you a clear annual figure. Remember to add super on top and subtract tax for your net income.

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 from 1 July 2026.

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

How do I calculate my annual salary from my hourly rate?

Multiply your hourly rate by the number of hours you work per week, then by 52 weeks. For a standard full-time week of 38 hours, the formula is hourly × 38 × 52. This gives your gross annual pay before tax and super.

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

The National Minimum Wage is the base rate set by the Fair Work Commission for employees not covered by an award. Award rates are higher and specific to industries or occupations. Casual employees also receive a 25% loading on top of the base rate.

How is superannuation calculated on my hourly pay?

Superannuation is paid on top of your ordinary earnings at 12% (as of 2026-27). It is not deducted from your hourly rate. For example, if your hourly rate is $30, your employer contributes an additional $3.60 per hour to your super fund, up to the maximum contribution base.

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