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 weeks. For a standard full-time worker on 38 hours per week, the formula is hourly rate × 38 × 52. This gives your gross annual pay before tax and super. Remember that super is paid on top of this amount, and casual loading (if applicable) is added to the hourly rate before the calculation.

What is casual loading and how does it affect my pay?

Casual loading is an extra 25% paid to casual employees instead of entitlements like paid leave. It is applied on top of the base hourly rate. For example, the National Minimum Wage from 1 July 2026 is $26.44 per hour; with casual loading it becomes $33.05 per hour. When converting to annual pay, use the loaded rate if you are a casual worker. Do not add casual loading to a rate that already includes it.

How does salary packaging for employers work?

Salary packaging for employers allows you to offer employees certain benefits (like a car or laptop) using pre-tax salary. This reduces the employee's taxable income and can save on tax. The employer still pays super on the employee's ordinary earnings, but packaged amounts may affect the super guarantee calculation. It's important to check the Australian Taxation Office rules and the employee's award or agreement before setting up a salary packaging arrangement.

Hourly to Annual Pay: A Guide to Salary Packaging for Employers

Annual gross pay is calculated as hourly rate × 38 hours × 52 weeks, assuming a standard full-time week.

Converting Hourly Pay to Annual Pay

If you earn an hourly wage or are considering a salary offer, understanding how to convert your hourly rate to an annual figure is essential. The standard formula is straightforward: multiply your hourly rate by the number of hours you work each week, then multiply by 52 weeks. For most full-time employees, the assumed week is 38 hours, as set by the Fair Work Commission. This gives you your gross annual pay before tax, super, and any deductions.

The Formula in Practice

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

For example, if your hourly rate is $30.00 and you work 38 hours each week:

$30.00 × 38 × 52 = $59,280 per year.

This calculation assumes you work the same number of hours every week, with no unpaid overtime, penalty rates, or allowances. It also assumes no salary sacrifice arrangements. If you are a casual employee, remember to include the 25% casual loading on top of your base rate before using the formula. The the timesheet on this site lets you enter your base hourly rate and optionally add casual loading to see your annual equivalent.

The 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 a 38-hour week. Casual employees covered by the minimum wage receive $33.05 per hour, which includes the 25% casual loading. However, many employees are covered by an award or enterprise agreement that sets higher minimum rates. The Fair Work Ombudsman provides pay guides for specific industries and roles. Always check the applicable award, as it may include additional allowances or penalty rates that affect your hourly rate.

Fortnightly Pay and Budgeting

Many Australian employers pay their staff fortnightly. To find your fortnightly gross pay, simply multiply your weekly pay by two. Using the example above, weekly pay is $30.00 × 38 = $1,140.00, so fortnightly pay is $2,280.00. This can help with budgeting and comparing salary offers that are quoted annually or fortnightly.

Tax and Superannuation

Income Tax for 2026–27

The Australian Taxation Office uses a progressive tax scale for residents. For the 2026–27 financial year, the tax-free threshold is $18,200. Income above that is taxed at:

15% for income between $18,201 and $45,000
30% for income between $45,001 and $135,000
37% for income between $135,001 and $190,000
45% for income above $190,000

In addition, most residents pay the Medicare levy of 2% of taxable income. The reduction thresholds for singles (based on 2025–26 figures) are used here because the 2026–27 thresholds were not confirmed in this estimate. This estimate does not include the Medicare levy surcharge, HELP repayments, or any salary packaging arrangements.

Superannuation Guarantee

Employers must pay superannuation guarantee contributions on top of your ordinary earnings. From 1 July 2026, the super guarantee rate is 12% of your ordinary time earnings, up to the maximum contribution base of $270,830 per year. Super is not deducted from your pay; it is paid separately by your employer. For example, on an annual salary of $59,280, the super contribution would be $7,113.60 (12% of $59,280), added to your retirement savings. You can read more about super and packaging on this site.

Salary Packaging for Employers

Salary packaging for employers is an arrangement where an employee agrees to forgo part of their salary in exchange for benefits such as a car, laptop, or additional super contributions. This can reduce the employee's taxable income and save on tax, while the employer may also benefit from Fringe Benefits Tax concessions. When converting an hourly rate to annual pay for a packaged salary, the base hourly rate remains the same, but the packaged amount is deducted before tax. Employers must ensure that packaging does not reduce the employee's ordinary time earnings below the relevant minimum wage or award rate. The Australian Taxation Office sets rules for what can be packaged and how it affects super guarantee obligations. For more details, see the reference tables on salary sacrifice limits.

Important Considerations

The annual pay calculated here is an estimate. It assumes the same hourly rate every week, no unpaid overtime, no penalty rates or 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 because the 2026–27 reduction thresholds were not confirmed here. HELP, the Medicare levy surcharge, and salary packaging are not deducted. This is an estimate, not a determination of your pay or tax.

Using the Timesheet Tool

Our the timesheet tool lets you enter your base hourly rate and see the annual, fortnightly, and weekly equivalents. A checkbox adds 25% casual loading on top of the base rate. Never enter a rate that already includes casual loading. The tool uses the 38-hour week assumption and applies the formula described above.

Summary

Converting hourly pay to annual pay is simple: hourly rate × hours per week × 52. For full-time workers, assume 38 hours per week. Remember to include casual loading if applicable, and always check your award or agreement for the correct minimum rate. Tax and super are calculated separately, and salary packaging for employers can affect both. Use the resources on this site, including pay guides and reference tables, to get a more accurate picture of your take-home pay.