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

Multiply your hourly rate by the number of hours you work per week, then by 52. For a standard full-time role of 38 hours, the formula is hourly × 38 × 52.

Does salary sacrifice affect my annual salary calculation?

Salary sacrifice reduces your taxable income but not your gross salary. For example, if you salary sacrifice a second hand car, your take-home pay may increase due to lower tax, but super and other entitlements may be affected. This estimate does not include salary sacrifice.

From Hourly to Annual: Tax, Super, and Salary Sacrifice Second Hand Car Explained

Q: What is the current National Minimum Wage?

From 1 July 2026, the National Minimum Wage is $26.44 per hour, or $1004.90 per week for 38 hours. Casual employees receive an additional 25% loading, making it $33.05 per hour.

Assuming a 38-hour week, your annual gross pay is your hourly rate multiplied by 38 hours per week times 52 weeks.

Understanding the Annual Pay Formula

When you have an hourly rate or a salary offer, the first step is to convert it to an annual figure. The basic formula is straightforward: hourly rate × hours per week × 52 weeks. This gives your gross annual pay before tax, super, and any deductions.

The Basic Calculation

For a standard full-time role, we assume a 38-hour week as set by the Fair Work Commission. So if you earn $30 per hour, your annual gross pay is:

$30 × 38 × 52 = $59,280

This calculation assumes the same rate every week, no unpaid overtime, no penalty rates, no allowances, and no salary sacrifice. It is a starting point for comparing offers or planning your budget.

Fortnightly Pay

Many employers pay fortnightly. To find your gross fortnightly pay, simply multiply your weekly pay by two. Using the example above, weekly pay is $30 × 38 = $1,140, so fortnightly is $2,280. This can help you match your pay cycle to your expenses.

National Minimum Wage and Award Rates

The Fair Work Commission sets the National Minimum Wage each year. From 1 July 2026, the minimum is $26.44 per hour, or $1,004.90 per week for 38 hours. Casual employees receive a 25% loading on top, making it $33.05 per hour.

However, many jobs are covered by awards or enterprise agreements that set higher minimum rates. Always check your award or agreement. The figures on this site are averages or minimums, not a median for your specific job. For example, the Australian Bureau of Statistics reports average weekly earnings for full-time adults at $2,083.70 (May 2026), but that is an average across all industries, not a median for your role.

Casual Loading

If you are a casual employee, your hourly rate typically includes a 25% loading to compensate for lack of leave entitlements. When using our timesheet, you can check a box to add the 25% loading on top of your base rate. Never enter a rate that already includes casual loading – the tool will calculate it correctly.

Superannuation and Salary Packaging

Superannuation is paid on top of your ordinary earnings. The super guarantee rate is 12% of your gross pay, up to the maximum contribution base of $270,830 (2026–27). This means if your annual salary is $60,000, your employer must contribute $7,200 to your super fund. Super is not deducted from your pay – it is an additional cost to your employer.

Salary Sacrifice Second Hand Car

Some employees use salary sacrifice to reduce their taxable income. For example, you might arrange to salary sacrifice a second hand car through a novated lease. This reduces your gross salary for tax purposes, but your employer’s super obligation is based on your ordinary earnings, which may be lower after the sacrifice. Our estimate does not include salary sacrifice, so if you use this option, your take-home pay and tax will differ. For more details, see our guide on super and packaging.

Tax and Medicare Levy

Once you have your annual gross pay, you can estimate your tax using the 2026–27 resident tax rates:

Nil on the first $18,200
15% on income from $18,201 to $45,000
30% on income from $45,001 to $135,000
37% on income from $135,001 to $190,000
45% on income above $190,000

In addition, the Medicare levy is generally 2% of your taxable income. Low-income earners may receive a reduction, but the 2026–27 reduction thresholds were not confirmed at the time of this guide, so we use the 2025–26 single thresholds for estimation. The Medicare levy surcharge (for those without private hospital cover) is not included here.

Example Tax Calculation

For a gross annual salary of $59,280:

Tax-free threshold: $18,200 → taxable $41,080
Tax on first $45,000: 15% on $26,800 (from $18,201 to $45,000) = $4,020
Remaining $14,080 taxed at 30% = $4,224
Total tax: $8,244
Medicare levy (2% of $59,280) = $1,185.60
Total deductions: $9,429.60
Estimated take-home pay: $49,850.40

This is an estimate only. Your actual tax may vary due to offsets, deductions, or salary sacrifice. For a more detailed breakdown, visit our take-home pay page.

Important Disclaimer

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.

For more information, see our minimum wage page or explore reference tables for industry averages.