How is casual loading applied in the hourly to annual conversion?

Casual loading is an extra 25% on top of the base hourly rate, as set by the Fair Work Ombudsman. 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 using the timesheet, you check a box to add 25% casual loading on top of your base rate. The annual conversion then uses the loaded rate for calculations.

Does the calculator include penalty rates, allowances, or overtime?

No. The conversion assumes the same hourly rate every week, with no unpaid overtime, penalty rates, allowances, or salary sacrifice. It uses a standard 38-hour week. For award-specific rates, refer to the Fair Work Ombudsman's pay guides. The estimate is a starting point only; your actual pay may vary.

Convert Hourly to Annual Pay with Casual Loading and Salary Sacrifice Super

Q: What is salary sacrifice super and how does it affect my take-home pay?

Salary sacrifice super is an arrangement where you forgo part of your pre-tax salary to have it paid into your superannuation fund. This reduces your taxable income, potentially lowering the tax you pay. However, the annual estimate on this site does not include salary sacrifice; it assumes no salary packaging. If you salary sacrifice super, your take-home pay will be lower than the estimate, but your super balance grows faster. Always check with the Australian Taxation Office for contribution caps.

For a 38-hour week, annual gross pay is hourly rate × 38 × 52, with super paid on top and casual loading added where applicable.

How to Convert Your Hourly Rate to Annual Pay

If you're paid by the hour or considering a salary offer, understanding your annual gross pay is straightforward. The basic formula is: hourly rate × hours per week × 52. This article explains the conversion for a standard 38-hour week, including casual loading and super paid on top, and touches on salary sacrifice super.

The 38-Hour Week Assumption

Most full-time roles in Australia are based on a 38-hour week, as defined by the Fair Work Ombudsman. When converting your hourly rate to annual pay, we assume you work 38 hours every week, 52 weeks a year. For example:

National Minimum Wage (from 1 July 2026): $26.44 per hour
Annual gross = $26.44 × 38 × 52 = $52,245.44

If you work fewer or more hours, adjust the weekly figure. The the timesheet on this site lets you enter your base hourly rate and choose whether to include casual loading.

Casual Loading and Super Paid on Top

Casual employees receive a 25% loading in lieu of paid leave. The Fair Work Commission sets the casual loading as part of award rates. On the timesheet, you tick a checkbox to add 25% casual loading on top of your base rate. For the minimum wage:

Base rate: $26.44 per hour
Casual rate: $26.44 × 1.25 = $33.05 per hour
Annual gross (casual) = $33.05 × 38 × 52 = $65,306.80

Superannuation guarantee is 12% of your ordinary earnings, paid on top of your hourly rate. So if your annual gross is $65,306.80, your employer must contribute an additional $7,836.82 to super (up to the $270,830 maximum contribution base). The super is not deducted from your pay; it's extra. For more details, see super and packaging.

Fortnightly Pay and Weekly Breakdown

Many employers pay fortnightly. To find your fortnightly gross:

Weekly gross = hourly rate × hours per week
Fortnightly gross = weekly gross × 2

Using the casual minimum wage example:

Weekly = $33.05 × 38 = $1,255.90
Fortnightly = $1,255.90 × 2 = $2,511.80

This can help you budget between pay cycles.

Tax and Medicare Levy

The 2026–27 resident tax rates (with full tax-free threshold) are:

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

Medicare levy is generally 2% of taxable income. The estimate uses the 2025–26 single reduction thresholds as the 2026–27 thresholds were not confirmed. For a casual worker earning $65,306.80 annual gross, tax would be approximately:

$0 on first $18,200
15% on $26,800 ($18,201–$45,000) = $4,020
30% on $20,306.80 ($45,001–$65,306.80) = $6,092.04
Total tax ≈ $10,112.04
Medicare (2%) ≈ $1,306.14
Net income ≈ $65,306.80 – $10,112.04 – $1,306.14 = $53,888.62

Note: This is an estimate. HELP repayments, Medicare levy surcharge, and salary packaging are not deducted. See take-home pay for more.

Salary Sacrifice Super Explained

Salary sacrifice super is an arrangement where you agree to reduce your pre-tax salary in exchange for additional employer super contributions. This lowers your taxable income, potentially moving you into a lower tax bracket. For example, if you earn $65,306.80 and salary sacrifice $5,000 into super, your taxable income becomes $60,306.80, saving you $1,500 in tax (at the 30% marginal rate). However, the annual estimate on this site does not include salary sacrifice; it assumes no salary packaging. If you use salary sacrifice super, your take-home pay will be lower than the estimate, but your super balance grows faster. Always check the Australian Taxation Office's contribution caps and your employer's policy.

Distinguishing Minimum Wage, Award Rates, and Averages

The National Minimum Wage ($26.44 per hour) is the legal floor. Award rates for specific industries may be higher. The Australian Bureau of Statistics' Average Weekly Earnings (May 2026) for full-time adult ordinary time is $2,083.70 per week, which is an average across all jobs, not a median for your specific job. That equates to approximately $54.31 per hour (based on 38 hours). This is an average, not a median for your role. Use average pay for context.

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 detailed calculations, use the timesheet and refer to casual loading for award-specific rates.