How is super calculated on my salary?

Super is calculated as 12% of your ordinary time earnings, paid on top of your salary. From 1 July 2026, employers must pay super each payday under the new Payday Super rules. The maximum contribution base for 2026–27 is $270,830; once your earnings exceed that, your employer does not have to pay super on the excess.

Does the annual salary formula include casual loading?

No. The formula hourly rate × hours per week × 52 uses the base rate. For casual employees, a 25% loading is typically added to the base rate before calculating annual gross pay. Super is then calculated on the loaded rate. Our [casual loading](/topics/casual-loading) page explains how to apply it.

What tax is deducted from my fortnightly pay?

Your employer withholds tax using ATO tax tables. For 2026–27, resident tax rates are: nil up to $18,200; 15% to $45,000; 30% to $135,000; 37% to $190,000; 45% above that, plus a 2% Medicare levy. The ATO provides fortnightly tax tables to calculate the exact withholding amount based on your earnings and tax file number declaration.

Super Calculation on Salary: Converting Your Hourly Rate to Annual Pay

For a full-time employee working 38 hours per week, annual gross pay is hourly rate × 38 × 52, with super paid on top at 12%.

Introduction

Whether you're negotiating a new job or checking your current pay, understanding how your hourly rate translates to annual salary is essential. In Australia, the standard full-time week is 38 hours, and your annual gross pay is calculated as hourly rate × hours per week × 52. But that's only part of the picture. You also need to account for superannuation, tax, and whether you're covered by the National Minimum Wage or an award. This guide walks you through the super calculation on salary and what it means for your take-home pay.

Understanding the Annual Salary Formula

The basic formula is straightforward: annual gross salary = hourly rate × weekly hours × 52. For a full-time employee on 38 hours, that's hourly rate × 38 × 52. For example, the National Minimum Wage from 1 July 2026 is $26.44 per hour, giving an annual salary of $26.44 × 38 × 52 = $52,254.88. But remember, this is before tax and before super.

If you work part-time or casual, your weekly hours may vary. The formula still works: just use your usual weekly hours. For casual employees, a 25% loading is typically added to the base rate. So a casual on the minimum wage would receive $33.05 per hour (including loading), and their annual gross would be $33.05 × hours per week × 52. Our hourly conversion tool can help you do this quickly.

The National Minimum Wage vs Award Rates

The National Minimum Wage is the legal minimum for employees not covered by an award or registered agreement. However, most industries have specific awards that set higher minimum rates. For example, the Hospitality Industry General Award or the Manufacturing Award may have different rates for different classifications. Always check your award to ensure you're being paid correctly. You can find award pay guides on the Fair Work Ombudsman website. For more details, see our minimum wage page.

Award rates often include allowances and penalty rates for weekend or overtime work. The simple hourly × 38 × 52 formula assumes no overtime or penalties, so your actual annual earnings may be higher if you work extra hours. The Fair Work Ombudsman provides comprehensive information on award coverage and entitlements at.

Casual Loading and Super on Top

Casual employees receive a loading (usually 25%) to compensate for lack of paid leave. This loading is added to the base hourly rate before calculating super. Super guarantee contributions are 12% of ordinary time earnings, paid on top of your salary. That means your employer pays an additional 12% into your super fund, separate from your take-home pay. For example, on a $26.44 base rate, super is $3.17 per hour, making total employment cost $29.61 per hour. For casuals, super is calculated on the loaded rate because the loading is part of ordinary time earnings. See for details on super obligations.

Our casual loading page explains how to calculate it correctly.

Fortnightly Pay and Tax Withholding

Most Australian employees are paid fortnightly. Your fortnightly gross pay is your weekly pay multiplied by two. Tax is withheld by your employer using the ATO's tax tables. For the 2026–27 financial year, the resident tax rates are: nil up to $18,200; 15% from $18,201 to $45,000; 30% to $135,000; 37% to $190,000; and 45% above that. Plus a 2% Medicare levy (unless you qualify for an exemption or reduction). The ATO provides fortnightly tax tables to calculate withholding. For example, an employee earning $989 per fortnight (before tax) would have $42 withheld if claiming the tax-free threshold, according to the ATO fortnightly tax table. Note that this table applies from 1 July 2024 to 30 June 2026; for 2026–27, similar rates apply but check the latest.

If you want to estimate your take-home pay, use our take-home pay calculator.

Super Calculation on Salary: What You Need to Know

The super calculation on salary is straightforward: your employer must contribute 12% of your ordinary time earnings into your super fund. From 1 July 2026, under the new Payday Super rules, employers must pay super each payday, not quarterly. This means your super contributions are calculated on each pay cycle. The maximum contribution base for 2026–27 is $270,830 – once your earnings exceed that, your employer doesn't have to pay super on the excess.

Super is paid on top of your salary, so it doesn't reduce your take-home pay. However, it counts towards your concessional contributions cap ($30,000 for 2026–27). If you salary sacrifice additional amounts, those are also included. For more on how super affects your overall package, see super and packaging.

The ATO explains that super guarantee applies to all employees over 18, and to those under 18 who work more than 30 hours per week. Casual, part-time, and full-time employees are all eligible. See for full details.

Important Considerations

The annual salary formula assumes the same hourly rate every week, no unpaid overtime, no penalty rates, no allowances, and no salary sacrifice. If you work irregular hours or have shift penalties, your actual annual earnings will differ. Also, the super calculation on salary here is an estimate at 12% of ordinary earnings only, up to the maximum contribution base. Tax estimates use the 2026–27 resident scale with the full tax-free threshold, but Medicare levy reduction thresholds are not confirmed for 2026–27, so we use the 2025–26 single reduction thresholds. HELP repayments, Medicare levy surcharge, and salary packaging are not deducted.

For a more personalised estimate, use our take-home pay calculator or hourly conversion tool.

Conclusion

Converting your hourly rate to annual salary is simple with the 38-hour week formula. But remember to factor in super, tax, and whether you're on an award or the minimum wage. The super calculation on salary ensures you know what your employer is contributing to your retirement. Always check your pay against the relevant award or the National Minimum Wage, and consult the Fair Work Ombudsman if you have concerns.