TimesheetGuidesSuper and packaging
From Hourly to Annual: Salary Sacrifice to Super and the National Minimum Wage
Assuming a 38-hour week, your annual gross pay is your hourly rate multiplied by 38 then by 52.
Understanding the Hourly-to-Annual Conversion
When you have an hourly rate or a salary offer, converting between the two helps you compare jobs or plan your budget. The basic formula is:
Annual gross pay = hourly rate × hours per week × 52
This assumes you work the same number of hours every week, with no unpaid overtime, penalty rates, or allowances. For a standard full-time role, we assume 38 hours per week, as set by the Fair Work Ombudsman. If your hours differ, adjust accordingly.
Why 38 Hours and 52 Weeks?
The 38-hour week is the standard full-time hours under many awards and the National Employment Standards. Multiplying by 52 weeks gives a full year. If you take unpaid leave, work part-time, or have irregular hours, the annual figure will be lower. Our calculator on the timesheet uses this assumption unless you change the hours.
The Fortnightly View
Many employers pay fortnightly. To get your gross fortnightly pay: multiply your weekly pay (hourly rate × 38) by 2. For example, at the National Minimum Wage of $26.44 per hour, weekly pay is $1,004.90, so fortnightly is $2,009.80. This can help with budgeting between pay cycles.
National Minimum Wage vs Award Rates
The National Minimum Wage (NMW) is the legal minimum for employees not covered by an award or registered agreement. From 1 July 2026, the NMW is $26.44 per hour, or $1,004.90 per week for 38 hours. Casual employees get an extra 25% loading, making it $33.05 per hour.
Award rates are set by the Fair Work Commission for specific industries or occupations. They often include higher minimums, penalty rates for weekends or nights, and allowances. For example, a retail award might pay $28 per hour for a Level 1 employee, plus overtime. If you are on an award, your actual rate may be higher than the NMW. Always check your award classification using the pay guides or the Fair Work Ombudsman website.
Casual Loading and Super
Casual loading (25%) is paid on top of the base rate to compensate for no paid leave. In our timesheet, you can toggle a checkbox to add casual loading. Do not enter a rate that already includes casual loading. The super guarantee (12%) is paid on top of your ordinary earnings, including casual loading, but only up to the maximum contribution base of $270,830 per year. Super is not deducted from your pay; it is an extra cost for the employer.
Salary Sacrifice to Super
Salary sacrifice to super is an arrangement where you agree to forgo part of your before-tax salary in exchange for additional super contributions. This reduces your taxable income, potentially lowering the tax you pay. For example, if you earn $70,000 and salary sacrifice $5,000 to super, your taxable income becomes $65,000. The super guarantee (12%) is still calculated on your ordinary earnings (the $70,000), not on the sacrificed amount. However, the sacrificed contributions count towards the concessional contributions cap ($27,500 per year from 2026–27).
In our annual estimate, we do not deduct salary sacrifice. The figure shown is your gross ordinary earnings. To estimate your take-home pay after salary sacrifice, subtract the sacrificed amount from your annual gross before applying tax. For more details, see our page on super and packaging.
Tax and Medicare
For the 2026–27 income year, the resident tax rates are:
- Nil on the first $18,200
- 15% on the next $26,800 (up to $45,000)
- 30% on the next $90,000 (up to $135,000)
- 37% on the next $55,000 (up to $190,000)
- 45% on amounts over $190,000
Medicare levy is generally 2% of taxable income. The low-income thresholds for Medicare reduction are based on 2025–26 figures (not yet confirmed for 2026–27), so our estimate uses the 2025–26 single threshold of $24,276. This means if your taxable income is below that, you may not pay the full Medicare levy. HELP repayments, the Medicare levy surcharge, and other deductions are not included in this estimate.
Example: National Minimum Wage
For a full-time employee on the NMW ($26.44 per hour, 38 hours, 52 weeks):
- Annual gross: $26.44 × 38 × 52 = $52,245.44
- Super (12%): $6,269.45 (paid on top, total employer cost $58,514.89)
- Tax (2026–27): approximately $5,092 (based on $52,245 taxable income)
- Medicare (2%): $1,044.91
- Net pay: $46,108.53 per year, or $886.70 per week
If you salary sacrifice to super, say $100 per week ($5,200 per year), your taxable income drops to $47,045.44, reducing tax and Medicare. The sacrificed amount goes into your super, boosting retirement savings.
Using the Timesheet
Our timesheet lets you enter your base hourly rate and optionally add casual loading. It calculates annual, monthly, fortnightly, and weekly gross pay, plus estimated tax, Medicare, and super. Remember: the super is an estimate at 12% of ordinary earnings, capped at the $270,830 maximum contribution base. The tax estimate uses the 2026–27 resident scale with the full tax-free threshold. For a more precise calculation, consult the Australian Taxation Office or a tax professional.
Important Notes
- This estimate assumes no unpaid overtime, penalty rates, allowances, or salary sacrifice.
- Super is paid on top of your ordinary earnings, not deducted from your pay.
- Casual loading is added to the base rate; do not enter a rate that already includes it.
- The National Minimum Wage and award rates are minimums; your actual pay may be higher.
- For award-specific rates, refer to the pay guides or the Fair Work Ombudsman.
Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.