Project Engineer Salary: How to Convert Your Hourly Rate to Annual Pay
A project engineer on the Professional Employees Award Level 2 earns $39.77 per hour, or $78,836 per year for a 38-hour week, before super and tax.
Understanding a Project Engineer Salary
If you're a project engineer or considering a role in this field, knowing how to convert an hourly rate into an annual salary is essential. Most engineering roles in Australia are covered by the Professional Employees Award 2020, which sets minimum pay rates for different classifications. A typical project engineer salary is based on a 38-hour week, and the annual figure helps you compare job offers, budget, and plan for tax and super.
This guide explains the conversion formula, the role of the 38-hour week, and how casual loading, superannuation, and tax affect your take-home pay. We'll use the latest Fair Work Ombudsman rates and the Australian Taxation Office guidelines.
How to Convert Hourly to Annual Pay
The standard formula for converting an hourly rate to an annual salary is:
Annual gross pay = hourly rate × hours per week × 52 weeks
For a full-time employee, we assume 38 ordinary hours per week, as defined in the Fair Work Ombudsman pay guides. This is the typical full-time week under most awards, including the Professional Employees Award.
For example, a Level 2 experienced professional engineer (a common project engineer classification) earns a minimum hourly rate of $39.77. Using the formula:
$39.77 × 38 × 52 = $78,836 per year
This is the gross annual salary before tax and super. You can also calculate the fortnightly amount by multiplying the weekly pay by two. Weekly pay is $39.77 × 38 = $1,511.26, so fortnightly pay is $3,022.52.
What If You Work More or Fewer Hours?
The formula assumes you work exactly 38 hours every week with no unpaid overtime. If your role involves regular overtime or a different roster, your actual annual earnings may differ. The hourly conversion tool on this site lets you adjust the hours per week to match your situation.
Award Rates for Project Engineers
The Professional Employees Award 2020 includes several pay levels relevant to project engineers. The table below shows the minimum annual wages and hourly rates for key classifications from 1 July 2026:
| Classification | Annual wage | Hourly rate |
|---|---|---|
| Level 1 Graduate (3-year degree) | $66,825 | $33.71 |
| Level 1 Graduate (4/5-year degree) | $68,538 | $34.57 |
| Level 2 Experienced professional | $78,836 | $39.77 |
| Level 3 Professional/senior | $86,157 | $43.46 |
| Level 4 Professional | $97,173 | $49.02 |
These rates are the minimum. Many project engineers earn above the award, especially with experience or in specialised industries. The job pay page provides more context on typical earnings.
The 38-Hour Week and Fortnight
A 38-hour week is the standard for full-time employees under the award. Your ordinary hours can be averaged over up to 13 weeks by agreement. For part-time employees, the hourly rate is the same, but the annual salary is pro-rata based on agreed weekly hours.
When converting to a fortnight, simply double the weekly amount. This is useful for budgeting if you are paid fortnightly, as many employers do.
Casual Loading for Project Engineers
If you work as a casual project engineer, you are entitled to a 25% loading on top of the minimum hourly rate. This loading compensates for not receiving paid leave entitlements. For a Level 2 casual project engineer:
$39.77 × 1.25 = $49.71 per hour
Casual employees must be paid for at least 2 consecutive hours per shift. The casual loading page explains how to calculate your rate correctly.
Superannuation on Top
Superannuation is paid by your employer on top of your ordinary earnings. From 1 July 2026, the super guarantee rate is 12%. For a full-time project engineer earning $78,836 per year, the employer contributes an additional $9,460.32, up to the maximum contribution base of $270,830.
Super is not deducted from your salary; it is an extra payment into your super fund. The super and packaging page covers salary sacrifice and other options.
Tax on Your Project Engineer Salary
Your annual salary is subject to income tax and the Medicare levy. For the 2026–27 financial year, the resident tax rates are:
- Nil on the first $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
Plus a Medicare levy of 2% (with reductions for low-income earners). For a project engineer earning $78,836, the tax would be approximately:
- $0 on first $18,200
- 15% on $26,800 ($18,201–$45,000) = $4,020
- 30% on $33,836 ($45,001–$78,836) = $10,150.80
- Total tax = $14,170.80
- Medicare levy (2%) = $1,576.72
- Total deductions = $15,747.52
- Take-home pay ≈ $63,088.48 per year
Use the take-home pay calculator for a personalised estimate.
National Minimum Wage vs Award Rates
The National Minimum Wage from 1 July 2026 is $26.44 per hour, or $1,004.90 per week for 38 hours. This is the legal minimum for award-free employees. However, project engineers are covered by the Professional Employees Award, which has higher minimum rates. The minimum wage page compares different wage levels.
Putting It All Together
When evaluating a project engineer salary offer, start with the hourly rate and apply the 38-hour week formula. Check the award classification to ensure the rate meets the minimum. Add super (12% on top) and estimate tax using the ATO scales. Remember that casual roles include a 25% loading but no paid leave.
For a quick conversion, use the reference tables on this site, which show annual salaries for common hourly rates. The timesheet tool also helps you track hours and calculate pay.
By understanding these components, you can confidently compare job offers and plan your finances.
Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.