What is the difference between a wage and a salary?

A wage is typically paid per hour worked, with overtime and penalties often added. A salary is a fixed annual amount, usually paid in equal instalments, and may cover additional entitlements like annual leave loading. Under some awards, an annualised wage can be used instead of an hourly rate, as explained by the Fair Work Ombudsman.

How do I calculate my annual salary from my hourly rate?

Multiply your hourly rate by the number of hours you work each week, then by 52. For a standard full-time week of 38 hours, the formula is: hourly rate × 38 × 52. For example, $30 per hour gives $30 × 38 × 52 = $59,280 per year. This is a gross estimate before tax and super.

Does superannuation count as part of my salary?

No. Superannuation is paid on top of your ordinary earnings at 12% (from 1 July 2026) up to the maximum contribution base of $270,830. It is not deducted from your salary or wage. For example, if your annual salary is $70,000, your employer pays an extra $8,400 into your super fund.

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

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

Understanding Wage vs Salary in Australia

The terms "wage" and "salary" are often used interchangeably, but they have distinct meanings in Australian employment. A wage is usually paid per hour worked, and your total pay varies with the number of hours you clock. A salary is a fixed annual amount, paid in equal instalments, regardless of the exact hours worked each week. Many awards and registered agreements allow employers to use an annualised wage arrangement, where a fixed regular amount covers entitlements like penalties, overtime, and annual leave loading. Understanding this distinction matters when comparing job offers or checking if your pay meets minimum rates.

Converting Hourly Rate to Annual Pay

The standard formula for converting hourly rate to annual gross pay is simple: hourly rate × hours per week × 52. For full-time employees, the typical week is 38 ordinary hours. For example, $26.44 per hour (the National Minimum Wage from 1 July 2026) gives $26.44 × 38 × 52 = $52,269.44 per year. If you work casual, a 25% loading applies, making the casual rate $33.05 per hour, which annualises to $33.05 × 38 × 52 = $65,336.80.

The Fortnight View

Many Australians are paid fortnightly. To find your fortnightly gross pay, multiply your weekly pay by 2. Using the above example, weekly pay at $26.44 per hour is $1,004.90, so fortnightly is $2,009.80. This helps when budgeting or comparing to salary offers that quote a fortnightly amount.

National Minimum Wage and Award Rates

The Fair Work Commission sets the National Minimum Wage each year. From 1 July 2026, it is $26.44 per hour or $1,004.90 per week for 38 hours. This is the base rate for adult employees not covered by an award or agreement. However, most employees are covered by an award that provides higher minimum rates. Use minimum wage to see current rates, or check pay guides for your industry.

Casual Loading

Casual employees receive a 25% loading on top of the base rate. The casual minimum wage is $33.05 per hour. This loading compensates for not receiving paid leave. When converting a casual hourly rate to annual, remember that the loading is already included in the rate you see. Our timesheet lets you enter your base hourly rate and optionally add the 25% casual loading.

Superannuation and Tax

Super Guarantee

Superannuation is paid on top of your ordinary earnings. From 1 July 2026, the super guarantee rate is 12% of ordinary time earnings, up to the maximum contribution base of $270,830. For example, if your annual salary is $80,000, your employer contributes an extra $9,600 to your super fund. This is not deducted from your pay. See super and packaging for more.

Tax and Medicare

Resident tax rates for 2026–27 are: nil up to $18,200; 15% from $18,201 to $45,000; 30% from $45,001 to $135,000; 37% from $135,001 to $190,000; 45% above $190,000. Medicare levy is generally 2% of taxable income. Use take-home pay to estimate your net income after tax and Medicare.

When a Salary Differs from a Wage

A salary often includes annual leave loading and may be set above award rates. Some employers use contractual offsetting arrangements where a salary covers minimum entitlements. The Fair Work Ombudsman advises that such arrangements must still meet record-keeping and pay slip obligations. Always check that your salary is at least what you would earn under the applicable award if paid hourly.

Important Considerations

The conversion assumes you work the same hours every week with no unpaid overtime, penalty rates, or allowances.
Annual pay is an estimate, not a determination of your actual pay or tax.
Super is estimated at 12% of ordinary earnings only, paid on top, and stops at the $270,830 maximum contribution base.
Tax uses the 2026–27 resident scale with full tax-free threshold. Medicare uses 2025–26 single reduction thresholds as 2026–27 thresholds were not confirmed in this estimate.
HELP, Medicare levy surcharge, and salary packaging are not deducted.

For more detailed calculations, visit hourly conversion or average pay.