TimesheetGuidesSuper and packaging
Annual Pay from Hourly Rate: Including a Salary Packaging Vehicle for Your 38-Hour Week
For a 38-hour week and 52-week year, annual gross pay is hourly rate × 38 × 52, with super paid on top.
Converting Your Hourly Rate to Annual Pay
If you have an hourly rate or a salary offer, understanding the annual equivalent helps you compare jobs and plan your budget. The standard calculation in Australia uses a 38-hour week and a 52-week year. This guide explains the formula, the role of tax and super, and how a salary packaging vehicle can affect your take-home pay.
The Basic Formula
Annual gross pay = hourly rate × hours per week × 52 weeks.
For a full-time employee working 38 hours each week, the formula becomes:
Annual gross = hourly rate × 38 × 52
This gives a straightforward annual figure. For example, if you earn $30 per hour, your annual gross is $30 × 38 × 52 = $59,280.
If you work a different number of hours each week, adjust the hours accordingly. The the timesheet lets you enter any weekly hours and see the annual result instantly.
Why 38 Hours and 52 Weeks?
The Fair Work Act defines a full-time week as 38 hours for the National Minimum Wage. Most awards and agreements also use 38 hours. The 52-week year assumes you work every week of the year with no unpaid leave. If you take annual leave or public holidays, your actual annual pay may be similar because leave is paid at your base rate.
The Fortnightly View
Many employers pay fortnightly. Your fortnightly gross is simply your weekly pay multiplied by two. For a 38-hour week, fortnightly gross = hourly rate × 38 × 2. Using the $30 example, that’s $30 × 76 = $2,280 per fortnight before tax and super.
National Minimum Wage and Award Rates
The Fair Work Commission sets the National Minimum Wage. From 1 July 2026, it is $26.44 per hour, or $1,004.90 per week for 38 hours. Casual employees receive an extra 25% loading, making the casual minimum $33.05 per hour. This loading is paid on top of the base rate, not included in it.
Award rates are higher minimums for specific jobs. For example, the pay guides list rates for retail, hospitality, and other industries. Your actual pay may be above the minimum if your employer pays more or if an enterprise agreement applies.
Casual Loading and Super
If you are a casual employee, your hourly rate typically includes a 25% loading to compensate for lack of paid leave. When using our the timesheet, you can check a box to add 25% casual loading on top of your base hourly rate. Do not enter a rate that already includes the loading; the tool adds it for you.
Superannuation is paid on top of your gross earnings. The super guarantee is 12% of your ordinary time earnings, up to the maximum contribution base of $270,830 per year (2026–27). For a $30/hour employee, the employer pays an extra $3.60 per hour into super, so total cost to employer is $33.60 per hour. Super is not deducted from your pay; it is an additional contribution.
Tax and Take-Home Pay
Your annual gross pay is not what you take home. The Australian Taxation Office applies the 2026–27 resident tax rates:
- Nil on the first $18,200
- 15% on income between $18,201 and $45,000
- 30% on income between $45,001 and $135,000
- 37% on income between $135,001 and $190,000
- 45% on income above $190,000
Plus the Medicare levy of 2% (generally). The take-home pay page shows how these rates affect your net income.
How a Salary Packaging Vehicle Affects Your Pay
A salary packaging vehicle is an arrangement where you lease a car through your employer using pre-tax salary. This reduces your taxable income, so you pay less tax and Medicare levy. Your gross annual pay remains the same, but your taxable income decreases by the lease amount. The super and packaging page explains how packaging interacts with super and tax.
For example, if you package a vehicle costing $10,000 per year, your taxable income drops by $10,000. At the 30% tax bracket, you save $3,000 in tax plus $200 in Medicare levy (2% of $10,000). Your take-home pay increases accordingly. However, super is still calculated on your ordinary time earnings before packaging, so your super contributions are unaffected.
Average Weekly Earnings for Context
The Australian Bureau of Statistics reports Average Weekly Earnings (AWE) for May 2026. Full-time adult ordinary time earnings average $2,083.70 per week. All employees (including part-time) average $1,579.20 per week. These are averages, not medians for any specific job. Use average pay to compare your rate to these benchmarks.
Important Notes
This conversion assumes the same hourly rate every week, no unpaid overtime, no penalty rates, no allowances, and no salary sacrifice (except where noted). 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.
For a precise calculation tailored to your hours and rate, use our hourly conversion tool or the the timesheet on the home page.
Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.