What is the difference between an annualised wage and a salary?

An annualised wage is a fixed amount paid each pay period under an award or registered agreement, covering entitlements like penalties and overtime. A salary is an agreed annual amount in an employment contract, which may offset award entitlements. Both must meet the National Minimum Wage and applicable award rates. The Fair Work Ombudsman explains that annualised wages follow award rules, while salaries can be used when no award applies, provided they cover the National Employment Standards.

How does casual loading affect the hourly-to-annual conversion?

Casual employees receive a 25% loading on top of the base hourly rate, as set by the Fair Work Commission. For example, the National Minimum Wage of $26.44 per hour becomes $33.05 for casuals. When converting to annual pay, use the loaded rate (e.g., $33.05 × 38 hours × 52 weeks = $65,346.80 gross). Super is paid on the ordinary earnings, which includes the loading. The calculator has a checkbox to add 25% loading to the base rate you enter.

Is superannuation included in the annual salary figure?

No, superannuation is paid on top of your gross salary. The super guarantee rate is 12% of ordinary earnings, up to the maximum contribution base of $270,830 per year. For example, if your annual gross is $60,000, your employer pays an additional $7,200 into your super fund. The annual pay shown on this site is the gross amount before super, tax, and other deductions.

Salary Definition: How to Convert Hourly Pay to Annual Salary in Australia

For a full-time employee working 38 hours per week, annual gross pay is hourly rate × 38 × 52, with super paid on top at 12% of ordinary earnings.

Understanding the Salary Definition for Hourly-to-Annual Conversion

When you’re offered an hourly rate or a salary, knowing how they compare is essential. The salary definition in Australia typically refers to a fixed annual amount paid to an employee, often under an employment contract. However, many awards and agreements allow annualised wages, which are a fixed regular payment covering entitlements like penalties and overtime. The Fair Work Ombudsman explains that an annualised wage must not be less than what the employee would have received under the award for the work performed.

The Basic Conversion Formula

To convert an hourly rate to an annual salary, use this formula:

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

We assume a standard full-time week of 38 hours, as set by the Fair Work Commission. For example, at the National Minimum Wage of $26.44 per hour:

Annual = $26.44 × 38 × 52 = $52,245.44 (before tax and super)
Fortnightly = $26.44 × 38 × 2 = $2,009.44 (gross)

If you work different hours, adjust the weekly figure accordingly. The timesheet lets you enter your base hourly rate and choose whether to add casual loading.

Distinguishing Pay Types

Australia has several minimum pay standards:

National Minimum Wage: $26.44 per hour ($1,004.90 per week for 38 hours) for award/agreement-free employees. From 1 July 2026, this rate applies.
Award rates: Higher than the NMW for specific industries and roles. Use the pay guides or reference tables to find your award.
Casual loading: An additional 25% on the base rate, making the casual NMW $33.05 per hour. The casual loading page explains more.
Superannuation: Paid on top of your gross salary at 12% of ordinary earnings, up to the $270,830 maximum contribution base. See super and packaging for details.

How Tax Affects Your Take-Home Pay

Tax is deducted from your gross pay. The 2026–27 resident tax rates are:

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

Plus a 2% Medicare levy (using 2025–26 single reduction thresholds as 2026–27 thresholds are not yet confirmed). The take-home pay topic provides estimates.

Fortnightly Pay and Budgeting

Many employers pay fortnightly. To find your fortnightly gross, multiply your weekly pay by 2. For example, at $30 per hour for 38 hours:

Weekly = $1,140
Fortnightly = $2,280
Annual = $59,280

This helps with budgeting and comparing salary offers.

Important Notes on the Calculator

The annual pay shown on this site is an estimate. It assumes:

The same rate every week (no unpaid overtime, penalties, or allowances)
No salary sacrifice or packaging
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 (2026–27 not confirmed)

HELP, Medicare levy surcharge, and salary packaging are not deducted. This is an estimate, not a determination of your pay or tax.

Using the Timesheet Calculator

On the timesheet, you type your base hourly rate. If you are a casual employee, check the box to add 25% casual loading. Never enter a rate that already includes casual loading – the calculator adds it for you. The result shows your annual gross, fortnightly gross, estimated tax, Medicare, and super.

For more details on average earnings, visit average pay. The Australian Bureau of Statistics reports full-time adult ordinary time earnings of $2,083.70 per week (May 2026), which is about $108,352 annually. All employees total earnings average $1,579.20 per week (including part-time).

Summary

Understanding the salary definition helps you compare hourly and annual offers. Use the formula hourly × 38 × 52 for a quick annual figure, add 25% for casual loading, and remember super is on top. Check your award or agreement for specific rates, and use the hourly conversion page for more examples.