What does 'salary sacrifice super' mean and how does it affect my pay?

Salary sacrificing super means you ask your employer to pay some of your before-tax salary into your super fund instead of giving it to you as cash. This reduces your taxable income, so you pay less tax now, but the money is locked away until retirement. It can be a smart move if you want to boost your super and are in a higher tax bracket, but it also lowers your take-home pay. The Australian Taxation Office sets annual caps on concessional contributions. Always check with your employer or a financial adviser.

How is casual loading applied when converting hourly to annual pay?

Casual loading is an extra 25% on top of the base hourly rate, as set by the Fair Work Commission for many awards. When converting to annual pay, you multiply the casual rate (base × 1.25) by your hours per week and 52 weeks. Super is still paid on top of the ordinary earnings (the base rate plus casual loading, but only up to the maximum contribution base). The timesheet on this site has a checkbox to add 25% casual loading automatically – never type a rate that already includes it.

What is the difference between the National Minimum Wage, award rates, and average earnings?

The National Minimum Wage (from 1 July 2026: $26.44 per hour) is the legal floor for most employees not covered by an award or agreement. Award rates are higher minimums for specific industries and roles, set by the Fair Work Commission. Average earnings, such as the ABS Average Weekly Earnings for full-time adults ($2,083.7 per week in May 2026), reflect what people actually earn, including overtime and bonuses. Your own pay may differ – the conversion on this site is an estimate based on your hourly rate, not a job median.

Should I Salary Sacrifice Super? Converting Your Hourly Rate to Annual Pay

For a 38-hour week, annual gross pay is your hourly rate multiplied by 38 hours per week and 52 weeks, with super paid on top at 12% of ordinary earnings.

Converting Your Hourly Rate to Annual Pay: A Practical Guide

If you’re paid by the hour or considering a salary offer, you probably want to know what that works out to over a year. The basic formula is simple: hourly rate × hours per week × 52 weeks. But there’s more to it – casual loading, superannuation, tax, and the question many workers ask: should I salary sacrifice super? This guide walks you through the numbers using Australian standards.

The Standard 38-Hour Week

Most full-time roles in Australia are based on a 38-hour week, as defined by the Fair Work Act. When you use the timesheet on this site, it assumes 38 hours unless you change it. So if you earn $30 per hour, your annual gross pay is:

$30 × 38 × 52 = $59,280

That’s before tax, super, and any deductions. If you work part-time or different hours, adjust the weekly figure accordingly.

Fortnightly Pay: A Handy Check

Many employers pay fortnightly. To get your fortnightly gross, simply double your weekly pay. Using the same $30/hour example:

Weekly: $30 × 38 = $1,140 Fortnightly: $1,140 × 2 = $2,280

This is useful for budgeting and comparing with salary offers that quote a fortnightly amount.

Minimum Wage, Award Rates, and Casual Loading

It’s important to know what rate applies to you. The National Minimum Wage from 1 July 2026 is $26.44 per hour for a permanent employee. But many workers are covered by an award – a legal minimum for their industry – which may be higher. Check the pay guides for your award.

If you’re a casual employee, you’re entitled to a 25% casual loading on top of the base rate. That means the minimum casual rate is $33.05 per hour ($26.44 × 1.25). The casual loading page explains more. When using the timesheet, tick the casual loading checkbox – never type a rate that already includes it.

Superannuation: Paid on Top

Your employer must pay super guarantee at 12% of your ordinary earnings (from 1 July 2026) into a super fund. This is on top of your salary, not deducted from it. So if your annual gross is $59,280, your employer adds $7,113.60 in super, up to the maximum contribution base of $270,830. The super and packaging page has full details.

Should I Salary Sacrifice Super?

Salary sacrificing super means you forgo some of your before-tax pay to boost your super. It can reduce your taxable income – for example, if you earn $90,000 and sacrifice $10,000, you only pay tax on $80,000. But the money is locked away until retirement. The Australian Taxation Office caps concessional contributions at $30,000 per year (2026–27). Whether it’s right for you depends on your tax bracket, your retirement goals, and your need for cash now. For many, it’s a smart way to save tax, but it lowers your take-home pay. Always consider your personal situation.

Tax and Take-Home Pay

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

$0 – $18,200: nil
$18,201 – $45,000: 15c for each $1 over $18,200
$45,001 – $135,000: $4,020 plus 30c for each $1 over $45,000
$135,001 – $190,000: $31,020 plus 37c for each $1 over $135,000
$190,001+: $51,420 plus 45c for each $1 over $190,000

Plus the Medicare levy of 2% (with reductions for low incomes). The take-home pay page can help you estimate after-tax amounts.

Average Earnings vs Your Pay

The Australian Bureau of Statistics reports Average Weekly Earnings for full-time adult ordinary time at $2,083.7 per week (May 2026). That’s an average across all industries – not a median for your job. Your pay may be higher or lower. The average pay page has more 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.

Next Steps

Use the timesheet to enter your hourly rate and see the annual, fortnightly, and weekly figures with super and tax estimates. For more on salary sacrifice, visit super and packaging. And if you’re comparing job offers, check the job pay page for guidance.