What is OTE salary and why does it matter?

OTE stands for ordinary time earnings. It is the amount you pay an employee for their ordinary hours of work, including casual loading, shift penalties, and most allowances. The Australian Taxation Office uses OTE to calculate the minimum super guarantee contribution (currently 12%). Overtime payments are not OTE unless ordinary hours are not clearly defined. Your OTE salary is the base for super, so it's important to know it.

Does casual loading count towards my OTE salary for super?

Yes. According to the Australian Taxation Office, casual loading is part of ordinary time earnings. So if you are a casual employee receiving a 25% loading on top of the base rate, that total hourly rate is your OTE. Superannuation is then calculated on that higher amount. For example, on the National Minimum Wage, a casual earns $33.05 per hour, and super is 12% of that.

What if I work more than 38 hours a week?

The calculator on this site assumes you work the same number of hours every week with no overtime. If you regularly work more than 38 ordinary hours, your annual OTE salary will be higher, but overtime payments are generally not OTE for super purposes (unless your award does not clearly separate ordinary hours). For a precise estimate, use your ordinary hours only. You can adjust the hours per week in the formula: hourly rate × hours per week × 52.

How to calculate your OTE salary from an hourly rate

For a full-time employee working 38 hours per week, annual gross pay is hourly rate × 38 × 52, and your OTE salary is the same amount used for super guarantee calculations.

How to convert your hourly rate to annual pay

Knowing your annual OTE salary helps you compare job offers, budget for tax, and understand your superannuation. The standard formula is simple: multiply your hourly rate by the hours you work each week, then by 52 weeks.

The formula

Annual gross pay = hourly rate × hours per week × 52

For a full-time employee, the typical week is 38 ordinary hours (the standard set by the Fair Work Commission). So:

Annual gross = hourly rate × 38 × 52

This gives you your OTE salary if all your hours are ordinary time. The Australian Taxation Office defines ordinary time earnings as the amount you pay for ordinary hours of work, including casual loading, shift penalties, and most allowances. Overtime is not OTE unless your award does not clearly identify ordinary hours.

Fortnightly pay

Many Australian employees are paid fortnightly. To find your fortnightly gross, multiply your weekly pay by 2:

Fortnightly gross = (hourly rate × hours per week) × 2

For 38 hours per week: fortnightly = hourly rate × 38 × 2 = weekly × 2.

National Minimum Wage vs award rates

From 1 July 2024 the National Minimum Wage is $26.44 per hour, or $1004.90 per 38-hour week. This is the base rate for award/agreement-free adult employees. However, most employees are covered by a specific award that sets higher minimum rates. You can find your award rate using the Fair Work Ombudsman’s pay guides is included in OTE for super. The calculator on this site has a checkbox to add 25% loading on top of the base rate. Do not type a rate that already includes casual loading – let the calculator add it.

Superannuation and OTE salary

Super guarantee is 12% of your ordinary time earnings, paid on top of your gross pay. The maximum contribution base for 2024–25 is $270,830 per year. If your OTE salary exceeds that, super is capped. For most workers, super is calculated on the full OTE amount.

Using the ATO’s list, casual loading, shift penalties, and most allowances are OTE. Overtime is not, unless your award does not separate ordinary hours. For a standard full-time role with no overtime, your annual gross equals your OTE salary.

Tax and take-home pay

For 2024–25 resident tax rates:

$0 – $18,200: nil
$18,201 – $45,000: 15% of excess over $18,200
$45,001 – $135,000: $4,032 + 30% of excess over $45,000
$135,001 – $190,000: $31,032 + 37% of excess over $135,000
Over $190,000: $51,092 + 45% of excess over $190,000

Medicare levy is generally 2% of taxable income (with reductions for low income). The calculator uses the 2024–25 single reduction thresholds because 2025–26 thresholds were not confirmed here. This is an estimate only.

Limitations

This conversion 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 2024–25 resident scale with full tax-free threshold. HELP, Medicare levy surcharge, and salary packaging are not deducted. For a personalised calculation, see the super and packaging guide.

Always check your specific award or agreement for exact pay conditions. The Fair Work Commission sets the National Minimum Wage, but many employees earn more under an award or enterprise agreement. Use the reference tables for award rates.