What is the difference between a salary and a wage?

A wage is paid per hour worked, while a salary is a fixed annual amount. Under some awards, an annualised wage arrangement can cover entitlements like penalties and overtime, as long as the total paid is at least what the employee would have received under the award. The Fair Work Ombudsman explains that a salary in an employment contract may also offset award entitlements, but must still meet minimum pay and record-keeping obligations.

How does casual loading affect the conversion from hourly to annual?

Casual loading is an extra 25% on top of the base hourly rate, as set by the Fair Work Commission. For example, the national minimum wage of $26.44 per hour becomes $33.05 for casual employees. When converting to annual pay, you apply the loaded rate to the same hours formula: $33.05 × 38 × 52 = $65,306.80. Always use the rate that includes loading if you are a casual employee.

Is superannuation included in the annual salary figure?

No, super guarantee is paid on top of your salary or wage. The current rate is 12% of ordinary earnings, up to the maximum contribution base of $270,830. So if your annual gross pay is $60,000, your employer pays an extra $7,200 into your super fund on top, not included in the annual figure shown on your pay slip.

Salary vs Wage: How to Convert Your Hourly Rate to Annual Pay in Australia

For a full-time employee working 38 hours per week, annual gross pay is hourly rate × 38 × 52.

Understanding Salary vs Wage

When comparing job offers or negotiating pay, you’ll often hear the terms "salary" and "wage" used interchangeably, but they have distinct meanings under Australian workplace laws. A **wage is typically paid per hour worked, while a salary is a fixed annual amount agreed in an employment contract. The Fair Work Ombudsman explains that some awards allow **annualised wage arrangements, where a fixed regular amount each pay period that covers minimum pay, penalties, penalties, allowances, and annual leave loading. This arrangement must not pay less than what the employee would have earned under the award for the work performed. This is a key part of the salary vs wage distinction: a salary can offset award entitlements if properly documented, but it still must meet record-keeping and pay slip rules.

The Conversion Formula

The standard formula to convert an hourly rate to annual gross pay is:

Annual gross = hourly rate × hours per week × 52

For a full-time employee, the typical week is 38 ordinary hours as set by the Fair Work Commission. For example, if your base rate is $30.00 per hour, the annual calculation is $30 × 38 × 52 = $59,280. This assumes the same rate every week, no unpaid overtime, no penalty rates, and no allowances.

To find your fortnightly pay, multiply the weekly amount by 2. For $30 per hour, weekly gross is $1,140, so fortnightly is $2,280.

National Minimum Wage and Award Rates

The Fair Work Commission sets the national minimum wage from 1 July 2026 at $26.44 per hour or $1,004.90 per week for 38 hours. This is the base for award/agreement-free employees. Many awards have higher rates. Use the pay guides or reference tables to check your specific award.

Casual loading is 25% on top of the base rate. So a casual employee on the minimum wage gets $33.05 per hour. When converting to annual, apply the loaded rate: $33.05 × 38 × 52 = $65,306.80. Never enter a rate that already includes casual loading into the calculator; instead, use the base rate and check the casual loading box.

Tax and Medicare Levy

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

$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
Above $190,000: 45%

Plus the Medicare levy of 2% of taxable income (with reductions for low-income earners). For a gross of $59,280, tax is approximately $7,284 and Medicare $1,185.60, leaving a net of about $50,810. Use the take-home pay tool for a more precise estimate.

Superannuation Guarantee

Super is paid on top of your salary or wage. The current rate is 12% of ordinary earnings, capped at the maximum contribution base of $270,830. For a $59,280 gross, your employer adds $7,113.60 to your super fund. This is not included in the annual pay figure you see on your pay slip. See super and packaging for more.

Fortnightly Pay

Many employees are paid fortnightly. Simply double the weekly amount. For $30 per hour, weekly gross is $1,140, fortnightly $2,280. This helps when comparing salary packaging or budgeting.

Using the Timesheet

The timesheet) is where you enter your base hourly rate. If you are casual, check the 25% loading box. The tool then calculates annual, fortnightly, weekly, and hourly figures with tax and super estimates. Remember: this is an estimate, not a determination of your pay. Always refer to your award or agreement for exact entitlements.