TimesheetGuidesSuper and packaging
How to Convert Your Hourly Rate to Annual Pay: Including Salary Sacrifice Car Loan Options
Annual pay is estimated as hourly rate × 38 hours × 52 weeks, with super paid on top and tax deducted according to 2026–27 rates.
Converting Your Hourly Rate to Annual Pay
If you’re paid by the hour or considering a salary offer, the standard way to compare is to convert your hourly rate to an annual figure. The basic formula is:
Annual gross pay = hourly rate × hours per week × 52
For a full-time employee working 38 hours each week (the standard under the Fair Work Act), that becomes:
Annual gross = hourly rate × 38 × 52
This gives you a before-tax, before-super number. It assumes you work the same hours every week, with no unpaid overtime, penalty rates, allowances, or salary sacrifice arrangements. If you work a different pattern, adjust the hours per week accordingly.
Why 38 hours is the benchmark
The National Minimum Wage and many awards are set on a 38-hour week. The Fair Work Commission uses this as the ordinary hours for full-time work. So when you see a weekly minimum wage figure – for example, $1004.90 per week from 1 July 2026 – it’s based on 38 hours at $26.44 per hour. Casual employees get an extra 25% loading, making the casual minimum $33.05 per hour, but that loading is paid on top of the base rate, not included in it.
On the timesheet you can enter your base hourly rate. There is a checkbox to add 25% casual loading. Do not type a rate that already includes casual loading – the calculator adds it for you.
Differences in ordinary-time earnings
Not every job pays the same. The Australian Bureau of Statistics publishes average weekly earnings, which are useful for comparison but are averages, not medians for your specific job. For May 2026, the ABS reported:
- Full-time adult ordinary time earnings: $2083.70 per week
- All employees total earnings (including part-time): $1579.20 per week
These are averages across all industries and states. Your actual pay may be higher or lower depending on your award, enterprise agreement, or individual contract. If you’re looking for a job median, you’ll need to consult industry-specific data – this site does not provide that.
Award rates and the National Minimum Wage
The National Minimum Wage applies to employees not covered by an award or agreement. From 1 July 2026 it is $26.44 per hour. Many workers are covered by modern awards, which set higher minimum rates for particular occupations. Always check your award via the Fair Work Ombudsman’s pay guides or reference tables.
Casual loading (25%) is paid on top of the base hourly rate for casual employees. It compensates for not receiving paid leave. Superannuation is also paid on top of your ordinary earnings, not deducted from your pay.
Tax and super
Once you have your annual gross figure, you can estimate tax using the 2026–27 resident tax rates:
- $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
- $190,001+: 45% on excess over $190,000
Plus the Medicare levy of 2% (using the 2025–26 single reduction thresholds as 2026–27 thresholds are not confirmed here). This estimate does not include HELP repayments, the Medicare levy surcharge, or salary packaging.
Super guarantee is 12% of your ordinary earnings, paid by your employer on top of your salary. It stops once your earnings reach the maximum contribution base of $270,830. So if your annual gross is $100,000, your employer pays an extra $12,000 into your super fund. That money is not part of your take-home pay.
Fortnightly pay
If you are paid fortnightly, multiply your weekly pay by 2. For example, a $30 per hour full-time worker earns $1140 per week ($30 × 38), so $2280 per fortnight before tax and super. This can help you budget between pay cycles.
Salary sacrifice car loan
A salary sacrifice car loan (or novated lease) allows you to pay for a car from your pre-tax salary. This reduces your taxable income, which can lower the tax you pay. However, it also reduces the ordinary earnings base for super guarantee, and may affect other entitlements like leave loading or redundancy pay. The calculator on this site does not include salary sacrifice – it assumes no packaging. If you are considering a salary sacrifice car loan, speak to a tax professional or your employer’s payroll team to understand how it changes your net pay.
Putting it all together
To get a quick estimate of your annual pay, use the formula above. Then check your award or agreement to see if you’re entitled to more than the minimum. Remember that super is paid on top, and tax is deducted from your gross. For a more detailed breakdown, see the take-home pay page or super and packaging page.
This site’s hourly conversion tool can help you switch between hourly, weekly, fortnightly, and annual figures. Just remember the assumptions: 38-hour week, no overtime, no penalties, no salary sacrifice.
Important note
Annual pay here is hourly rate × hours per week × 52. It assumes the same rate every week, no unpaid overtime, no penalty rates, no 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 is 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.
Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.