How do I convert my hourly rate to an annual salary?

Multiply your hourly rate by the number of hours you work each week, then multiply by 52. For a standard full-time week of 38 hours, the formula is: hourly rate × 38 × 52. This gives your gross annual pay before tax and super. If you work different hours, adjust accordingly.

What is the difference between the National Minimum Wage and an award rate?

The National Minimum Wage ($26.44 per hour from 1 July 2026) is the legal minimum for award/agreement-free employees. Award rates are set by the Fair Work Commission for specific industries and occupations and are often higher. Most employees are covered by an award, so check your applicable award using the Fair Work Ombudsman’s pay guides.

What does 'salary continuance' mean in an employment context?

Salary continuance refers to an arrangement where an employee receives a consistent annual salary that covers minimum pay, penalties, allowances, and leave loading, rather than being paid by the hour. It is often called an annualised wage. The Fair Work Ombudsman requires that such arrangements be reviewed annually to ensure the employee is paid at least what they would have earned under the award.

From Hourly to Annual: Understanding Salary Continuance and the National Minimum Wage

Based on a 38-hour week, the National Minimum Wage is $26.44 per hour, giving an annual gross of $52,254.80 before tax and super.

Converting Your Hourly Rate to Annual Pay

If you’re paid by the hour or considering a salary offer, understanding how your hourly rate translates into annual earnings is essential. The basic formula is straightforward: multiply your hourly rate by the number of hours you work each week, then multiply by 52 weeks. For a standard full-time week of 38 hours, the calculation is:

Hourly rate × 38 × 52 = annual gross pay

This assumes you work the same hours every week with no unpaid overtime, penalty rates, or allowances. It’s a useful starting point, but your actual pay may differ depending on your employment type, award coverage, and whether you receive casual loading or salary continuance.

The National Minimum Wage vs. Award Rates

From 1 July 2026, the National Minimum Wage is $26.44 per hour, or $1,004.90 per week for 38 hours, as set by the Fair Work Commission. This is the legal minimum for employees not covered by an award or agreement. However, most Australian workers are covered by a modern award, which often sets higher minimum rates for specific industries and roles. For example, a retail or hospitality award may require a higher base rate plus penalty rates for evenings, weekends, or public holidays.

To find your correct minimum, use the pay guides from the Fair Work Ombudsman. These guides list the minimum pay rates, allowances, and penalty rates for each award classification. If you’re paid a salary that covers these entitlements—known as salary continuance or an annualised wage—your employer must ensure it’s at least equal to what you would have earned under the award over the year.

Casual Loading and Superannuation

If you’re a casual employee, you’re entitled to a 25% loading on top of the minimum hourly rate. For the National Minimum Wage, that’s $33.05 per hour. This loading compensates for the lack of paid leave entitlements. When converting to annual pay, include the loading in your hourly rate before multiplying by hours and weeks.

Superannuation is paid on top of your ordinary earnings at 12% (from 1 July 2026). It does not reduce your take-home pay; it’s an additional contribution to your super fund. The super guarantee has a maximum contribution base of $270,830 per year, so if your annual earnings exceed that, super is capped.

Fortnightly and Monthly Pay

If you’re paid fortnightly, multiply your weekly pay by 2. For a full-time employee on the National Minimum Wage, that’s $2,009.80 per fortnight before tax. This can help you budget and compare with salary offers that quote a fortnightly or monthly figure.

Tax and Take-Home Pay

Your annual gross pay is subject to income tax and the Medicare levy. For the 2026–27 financial year, the resident tax rates are:

$0 – $18,200: nil
$18,201 – $45,000: 15% on the excess over $18,200
$45,001 – $135,000: 30% on the excess over $45,000
$135,001 – $190,000: 37% on the excess over $135,000
$190,001+: 45% on the excess over $190,000

Plus a Medicare levy of 2% (with possible reductions for low-income earners). Use our take-home pay calculator for a more precise estimate.

Salary Continuance and Annualised Wages

The term salary continuance describes an arrangement where you receive a fixed annual salary that covers multiple entitlements—such as minimum pay, penalties, overtime, allowances, and annual leave loading—rather than being paid separately for each. The Fair Work Ombudsman explains that annualised wage arrangements must be reviewed every 12 months to ensure the employee hasn’t been underpaid. If the actual entitlements exceed the salary, the employer must pay the difference.

This is common in professional roles where hours vary, but it’s important to check that your salary continuance meets the minimum requirements of your award or agreement. If no award applies, your salary must at least equal the National Minimum Wage for your hours worked.

Using Our Calculator

Our timesheet lets you enter your base hourly rate and optionally add 25% casual loading. It then calculates your annual gross pay, fortnightly pay, estimated tax, and super. Remember: the results are estimates. They assume consistent hours, no unpaid overtime, and no salary sacrifice. For a full picture, consult your pay slip and the Fair Work Ombudsman’s resources.

Summary

Converting hourly to annual pay is simple with the 38-hour week formula. But the real value depends on your award, casual status, and whether you have a salary continuance arrangement. Always check your award’s minimum rates and ensure your pay—whether hourly or salaried—meets legal requirements. For more details, explore our minimum wage and casual loading guides.