From the NBL Salary Cap to the National Minimum Wage: Your Guide to Hourly-to-Annual Pay
For a full-time employee working 38 hours per week, annual gross pay is hourly rate × 38 × 52; at the National Minimum Wage of $26.44/hour that equals $52,270.88 per year.
Understanding the Annual Pay Formula
Converting an hourly rate to an annual salary is straightforward: multiply your hourly pay by the number of hours you work each week, then multiply by 52 weeks. For a standard full-time employee working 38 hours per week, the formula is:
Annual gross pay = hourly rate × 38 × 52
For example, at the National Minimum Wage of $26.44 per hour, the annual gross pay is:
$26.44 × 38 × 52 = $52,270.88
This is the amount before tax, the Medicare levy, and superannuation. If you are paid fortnightly, your gross pay each fortnight is roughly the weekly amount multiplied by two. Using the same example, a fortnightly pay would be about $2,009.80 (before deductions).
The calculator on this site uses this formula and assumes you work the same hours every week with no unpaid overtime, penalty rates, or allowances. Always check your award or agreement for your exact entitlements.
The National Minimum Wage vs Award Rates
The National Minimum Wage is set by the Fair Work Commission and applies to employees who are not covered by a modern award or enterprise agreement. From 1 July 2026, the rate is $26.44 per hour for a 38-hour week, or $1,004.90 per week. However, most Australian employees are covered by a modern award that sets minimum pay rates for their industry or occupation. These award rates are often higher than the National Minimum Wage and may include additional entitlements such as penalty rates, overtime, and allowances.
The Fair Work Ombudsman provides a Pay and Conditions Tool to help you find the correct award and pay rates for your job. If you are a casual employee, you are entitled to a 25% casual loading on top of the base rate. For the National Minimum Wage, that means a casual rate of $33.05 per hour. The calculator includes a checkbox to add this loading automatically.
For employees covered by an enterprise agreement, the agreement must leave employees better off overall than the relevant award. The National Employment Standards (NES) set minimum entitlements for all employees, including maximum weekly hours, leave, and notice of termination.
Superannuation and Tax
Superannuation is paid on top of your gross pay. From 1 July 2026, the Super Guarantee rate is 12% of your ordinary time earnings, up to the maximum contribution base of $270,830 per year. This means if your annual gross pay is $52,270.88, your employer must contribute an additional $6,272.51 to your super fund. Super is not deducted from your pay; it is an extra cost for the employer.
Tax is withheld from your pay by your employer using the 2026–27 resident tax rates:
- Nil tax on income up to $18,200
- 15% on income from $18,201 to $45,000
- 30% on income from $45,001 to $135,000
- 37% on income from $135,001 to $190,000
- 45% on income above $190,000
In addition, the Medicare levy of 2% generally applies to your taxable income. The calculator uses the 2025–26 single reduction thresholds because the 2026–27 thresholds were not confirmed at the time of the on-site reference. The tax estimate does not include the Medicare levy surcharge, HELP repayments, or salary packaging.
The NBL Salary Cap: A Different Kind of Minimum
While most workers are concerned with the National Minimum Wage or award rates, professional sports leagues have their own pay floors. The NBL salary cap sets a minimum total player payment that teams must spend on player salaries each season. For the 2025–26 season, the NBL salary cap was approximately $1.5 million per team, with a minimum player salary of around $50,000. This ensures that even the lowest-paid professional basketball players earn a base amount that is comparable to the full-time annual wage at the National Minimum Wage ($52,270.88). The NBL salary cap is a useful comparison point: it shows how different industries set their own minimum pay standards, but for the vast majority of Australian workers, the National Minimum Wage and award rates are the relevant benchmarks.
Using the Calculator
The timesheet page is the starting point. Enter your base hourly rate (without casual loading) and the number of hours you work per week. The calculator will show your gross annual pay, fortnightly pay, estimated tax, Medicare levy, and superannuation. If you are a casual employee, check the box to add 25% casual loading. The calculator also provides links to pay guides and reference tables for more detailed information.
For further reading, see our pages on the minimum wage, casual loading, hourly conversion, and super and packaging.
Important Disclaimer
The annual pay shown is an estimate based on the formula 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 uses the 2026–27 resident scale with the full tax-free threshold. Medicare uses the 2025–26 single reduction thresholds. HELP, the Medicare levy surcharge, and salary packaging are not deducted. This is an estimate, not a determination of your pay or tax. Always consult the Fair Work Ombudsman and the Australian Taxation Office for official guidance.
Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.