TimesheetGuidesSuper and packaging
What Does Salary Packaging Mean? A Guide to Hourly to Annual Pay for a 38-Hour Week
For a 38-hour week, your annual gross pay is your hourly rate multiplied by 38 hours per week times 52 weeks, with super paid on top at 12%.
Converting Your Hourly Rate to Annual Pay
If you are wondering what does salary packaging mean, it is a way to structure your pay with non-cash benefits, but for now let us focus on the basics: turning an hourly rate into an annual salary. The standard formula for a full-time worker is:
Annual gross pay = hourly rate × hours per week × 52 weeks
We assume a 38-hour week because that is the ordinary full-time hours used by the Fair Work Ombudsman and the Australian Bureau of Statistics. If you work different hours, adjust accordingly. Your fortnightly pay is simply your weekly pay multiplied by two — useful for budgeting or comparing to salary offers.
Example Calculation
Take an hourly rate of $35.00:
- Weekly gross: $35.00 × 38 = $1,330.00
- Fortnightly gross: $1,330.00 × 2 = $2,660.00
- Annual gross: $1,330.00 × 52 = $69,160.00
This is before tax, Medicare levy, and superannuation. The the timesheet on this site lets you enter your base rate and optionally add 25% casual loading — do not enter a rate that already includes loading.
Understanding Minimum and Award Rates
The National Minimum Wage from 1 July 2026 is $26.44 per hour, or $1,004.90 per week for 38 hours. Casual employees get an extra 25% loading, making it $33.05 per hour. However, most workers are covered by an award or enterprise agreement that sets a higher minimum. The Fair Work Commission sets award rates, and you can find your specific pay guide via the pay guides page. These are industry or occupation averages, not a median for your exact job.
Casual Loading and Super
Casual loading (25%) is paid on top of your base rate to compensate for not receiving paid leave. Superannuation guarantee is 12% of your ordinary earnings, paid on top by your employer, up to the $270,830 maximum contribution base. For example, on a $30 base rate:
- Casual rate: $30 + 25% = $37.50/hour
- Super: 12% of $30 (not the casual rate) = $3.60/hour, paid separately
This is explained further on the casual loading page.
Tax and Take-Home Pay
For the 2026–27 financial year, resident tax rates are:
- $0 – $18,200: nil
- $18,201 – $45,000: 15%
- $45,001 – $135,000: 30%
- $135,001 – $190,000: 37%
- Over $190,000: 45%
Plus the Medicare levy of 2% (using 2025–26 single reduction thresholds as 2026–27 thresholds are not confirmed here). The take-home pay page can help estimate your net pay.
Example Tax on $69,160 Annual Gross
- Tax-free threshold: $18,200
- Tax on next $26,800 ($18,201–$45,000) at 15% = $4,020
- Tax on remaining $24,160 ($45,001–$69,160) at 30% = $7,248
- Total tax: $11,268
- Medicare levy (2% of $69,160) = $1,383.20
- Net annual: $69,160 – $11,268 – $1,383.20 = $56,508.80
This is an estimate. It does not include HELP repayments, Medicare levy surcharge, or salary packaging.
What Does Salary Packaging Mean?
What does salary packaging mean in practice? It is an arrangement where you sacrifice part of your pre-tax salary for benefits such as a car, laptop, or additional super contributions. This can reduce your taxable income, but it affects your super guarantee base and may have fringe benefits tax implications. The super and packaging page covers this in more detail. Remember, the annual pay estimate here assumes no salary sacrifice.
Fortnightly Pay and Budgeting
Many employers pay fortnightly. Using the $35/hour example:
- Fortnightly gross: $2,660
- Estimated tax per fortnight: roughly $433 (based on annual tax divided by 26)
- Medicare levy: about $53
- Net fortnightly: around $2,174
Super is paid on top quarterly or monthly, not in your regular pay. The reference tables provide more breakdowns.
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.
For more details on average earnings, see the average pay page. The ABS Average Weekly Earnings (May 2026) for full-time adult ordinary time is $2,083.70 per week, but that is an average across all industries, not a median for your specific role.
Open the same rate on the home timesheet. Read the reference tables before treating a figure as your pay.