TimesheetGuidesSuper and packaging
Convert Your Hourly Rate to Annual Pay with a Novated Lease Smart Salary
Annual pay is your hourly rate multiplied by 38 hours per week and 52 weeks, before tax and super.
Understanding Your Annual Pay from an Hourly Rate
Whether you're negotiating a salary, budgeting for a big purchase, or planning a novated lease smart salary arrangement, knowing your gross annual pay is essential. Our hourly-to-annual calculator does the maths for you: simply enter your base hourly rate, and we'll show you the annual figure based on a standard 38-hour week.
The Basic Formula
The calculation is straightforward: hourly rate × hours per week × 52 weeks. For a full-time employee working 38 ordinary hours, that's:
Annual gross pay = hourly rate × 38 × 52
This assumes you work the same number of hours every week, with no unpaid overtime, penalty rates, or allowances. It's a starting point for understanding your total remuneration.
National Minimum Wage and Award Rates
From 1 July 2026, the National Minimum Wage is $26.44 per hour, or $1,004.90 per week for 38 hours. This is the minimum for award/agreement-free adult employees. However, most employees are covered by an award or enterprise agreement that sets higher minimum rates. You can find the correct rate for your job using our pay guides or the Fair Work Ombudsman's Pay and Conditions Tool.
Casual Loading
If you're a casual employee, you're entitled to a 25% loading on top of the base rate. For the national minimum wage, that's $33.05 per hour. Our the timesheet includes a checkbox to add casual loading automatically. Never enter a rate that already includes casual loading – let the calculator add it for you.
Fortnightly Pay
Many Australian employees are paid fortnightly. To find your fortnightly gross pay, simply multiply your weekly pay by two. For example, at the national minimum wage:
- Weekly: $1,004.90
- Fortnightly: $2,009.80
This can help you match your budget to your pay cycle.
Superannuation
Employers must pay superannuation guarantee contributions of 12% on top of your ordinary earnings, up to the maximum contribution base of $270,830 per year. Super is not deducted from your pay – it's an additional cost to your employer. Our calculator shows an estimate of the super amount, but remember it's paid on top of your gross annual figure.
Tax and Medicare Levy
Your gross annual pay is before tax. For the 2026–27 financial year, the resident tax rates are:
- $0 – $18,200: nil
- $18,201 – $45,000: 15% on excess over $18,200
- $45,001 – $135,000: $4,020 plus 30% on excess over $45,000
- $135,001 – $190,000: $31,020 plus 37% on excess over $135,000
- $190,001+: $51,420 plus 45% on excess over $190,000
Most residents also pay a Medicare levy of 2% of taxable income. The calculator uses the 2025–26 single reduction thresholds, as the 2026–27 thresholds were not confirmed at the time of this guide. For a detailed breakdown of your take-home pay, visit our take-home pay page.
Using Your Annual Figure for a Novated Lease Smart Salary
A novated lease smart salary arrangement allows you to salary-sacrifice a car lease from your pre-tax income, reducing your taxable income. To assess affordability, you need your gross annual pay. Our calculator gives you that figure, but it does not account for salary packaging deductions. Once you have your annual gross, you can work with your employer or a salary packaging provider to estimate the impact of a novated lease on your take-home pay. For more on super and packaging, see super and packaging.
Important Disclaimer
Annual pay shown here is an estimate: 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.
Award and Agreement-Free Employees
If you are not covered by an award or enterprise agreement, the National Minimum Wage applies. Special rates exist for juniors, apprentices, trainees, and employees with disability. See the Fair Work Commission's National Minimum Wage Order 2026 for full details.
Annualised Wages and Salaries
Some awards allow annualised wage arrangements where you receive a fixed amount each pay period that covers minimum rates, penalties, overtime, and allowances. If you're on such an arrangement, your annualised wage must be at least what you would have earned under the award. The Fair Work Ombudsman provides guidance on annualised wages. Our calculator can still give you a baseline hourly equivalent, but check your award's rules.
Next Steps
Once you have your annual gross figure, you can:
- Estimate your take-home pay using our take-home pay tool.
- Compare your rate to industry averages with average pay.
- Learn about casual loading if you're a casual.
- Explore super and packaging for salary sacrifice options like a novated lease smart salary.
Remember, your hourly rate is just one part of your total employment package. Always consider leave entitlements, super, and other benefits when evaluating a job offer.
Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.