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What Can Be Salary Sacrificed? A Guide to Your Hourly to Annual Pay in Australia
For a full-time employee working 38 hours per week, annual gross pay is your hourly rate multiplied by 38 and then by 52 weeks.
Converting Your Hourly Rate to Annual Pay
Understanding your annual pay from an hourly rate is straightforward: multiply your hourly rate by the hours you work each week, then by 52 weeks in a year. For a standard full-time employee, we assume a 38-hour week, as this is the ordinary hours under many awards and the National Employment Standards. If you work part-time or casual hours, adjust the weekly hours accordingly.
For example, if you earn $30 per hour and work 38 hours per week:
$30 × 38 × 52 = $59,280 gross per year.
This figure is before tax, the Medicare levy, and any salary sacrifice arrangements. It also assumes you work the same hours every week with no unpaid overtime, penalty rates, or allowances.
Fortnightly Pay
Your fortnightly gross pay is simply your weekly pay multiplied by two. Using the same example, weekly pay is $30 × 38 = $1,140, so fortnightly is $2,280. Many employers pay fortnightly, making this a useful figure for budgeting.
National Minimum Wage vs Award Rates
The National Minimum Wage, set by the Fair Work Commission, is the legal minimum for employees not covered by an award or registered agreement. From 1 July 2026, it is $26.44 per hour for a full-time adult employee working 38 hours, equating to $1,004.90 per week. Casual employees receive an additional 25% loading, making the casual minimum $33.05 per hour.
However, most employees are covered by an award that sets higher minimum rates for their industry or occupation. Award rates vary widely and often include additional entitlements like penalty rates, overtime, and allowances. The Fair Work Ombudsman provides pay guides for each award. Our pay guides and reference tables can help you find the correct rate for your role.
It is important to note that the Australian Bureau of Statistics (ABS) Average Weekly Earnings (May 2026) for full-time adult ordinary time employees is $2,083.70 per week. This is an average across all industries and occupations, not a median or a specific job rate. Your actual pay may be higher or lower depending on your role, experience, and location.
What Can Be Salary Sacrificed?
Salary sacrifice is an arrangement where you agree to forgo part of your pre-tax salary in exchange for benefits provided by your employer. Common examples include additional superannuation contributions, a car (via novated lease), or electronic devices. The Australian Taxation Office (ATO) sets rules on what can be salary sacrificed, and there are limits, such as the concessional superannuation contributions cap ($30,000 per year in 2026–27).
What can be salary sacrificed depends on your employer’s policy and your award or agreement. For instance, many public sector employees can sacrifice into super, while private sector workers may have access to a range of benefits. Salary sacrifice reduces your taxable income, which can lower the tax you pay, but it also reduces your super guarantee base and may affect other entitlements like the Medicare levy surcharge.
Our calculator does not include salary sacrifice because it is highly individual. You should consult the ATO or a financial adviser to understand how salary sacrifice affects your specific situation. For more details, see our super and packaging topic.
Estimating Your Take-Home Pay
To estimate your annual after-tax pay, apply the 2026–27 resident tax rates:
- $0 – $18,200: nil
- $18,201 – $45,000: 15% of excess over $18,200
- $45,001 – $135,000: $4,020 plus 30% of excess over $45,000
- $135,001 – $190,000: $31,020 plus 37% of excess over $135,000
- $190,001 and over: $51,370 plus 45% of excess over $190,000
Plus the Medicare levy of 2% (using 2025–26 single reduction thresholds as 2026–27 thresholds are not confirmed).
For example, on $59,280 gross:
- Tax: $4,020 + 30% × ($59,280 – $45,000) = $4,020 + $4,284 = $8,304
- Medicare: 2% × $59,280 = $1,185.60
- Total deductions: $9,489.60
- Net annual pay: $49,790.40
Superannuation guarantee is paid on top of your ordinary earnings at 12% (up to the maximum contribution base of $270,830). On $59,280, that is an extra $7,113.60 contributed to your super fund, not included in your take-home pay.
Using Our Timesheet
Our timesheet lets you enter your base hourly rate and, if you are casual, check a box to add 25% loading on top. Do not enter a rate that already includes casual loading. The calculator then shows your annual, fortnightly, and weekly gross pay, along with estimated tax and super. It is a helpful starting point for understanding your pay.
For more detailed comparisons, explore our hourly conversion and take-home pay topics. You can also learn about casual loading and job pay averages.
Important Disclaimer
Annual pay shown here is your hourly rate multiplied by hours per week and 52 weeks. 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 uses 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.
Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.