How do I convert an hourly rate to an annual salary?

Multiply your hourly rate by the number of hours worked per week, then multiply by 52. For a standard full-time week of 38 hours, the formula is: hourly rate × 38 × 52. For example, at the national minimum wage of $26.44 per hour, the annual salary is $26.44 × 38 × 52 = $52,254.80. This assumes no unpaid overtime or penalty rates.

What is casual loading and how does it affect my pay?

Casual loading is an additional 25% paid on top of the base hourly rate to compensate for lack of paid leave entitlements. For example, the national minimum wage for a casual employee is $33.05 per hour ($26.44 + 25%). This loading is paid on top of the base rate and is not included in the base rate you enter into a calculator.

What Is the Difference Between a Wage and a Salary? A Guide for Australian Workers

Q: What is the difference between a wage and a salary?

A wage is typically paid by the hour and varies with hours worked, while a salary is a fixed annual amount regardless of hours. In Australia, award-covered employees often receive wages, while salaried roles are common in management. The Fair Work Ombudsman explains that minimum pay rates apply to both, but salaried employees may need to ensure their annual pay covers all hours worked.

For a full-time employee working 38 hours per week, the national minimum wage is $26.44 per hour, equating to $1,004.90 per week or $52,254.80 per year before tax.

What Is the Difference Between a Wage and a Salary?

In Australia, the terms "wage" and "salary" are often used interchangeably, but they have distinct meanings in employment law and practice. Understanding what is the difference between a wage and a salary is essential for both employees and employers to ensure correct pay and entitlements.

A wage is usually paid by the hour and varies with the number of hours worked. Employees on wages are often covered by an award or enterprise agreement that sets minimum hourly rates, penalty rates, and allowances. For example, the Fair Work Commission sets the national minimum wage at $26.44 per hour for a 38-hour week. Wage earners typically receive overtime pay for hours worked beyond ordinary hours.

A salary is a fixed annual amount paid in regular instalments, regardless of the exact hours worked each week. Salaried employees are often in managerial or professional roles and may not receive overtime pay. However, their salary must still meet or exceed the minimum wage when divided by the hours worked. The Fair Work Ombudsman states that all employees have a minimum pay rate, whether paid by the hour or annually.

Key Differences at a Glance

Aspect	Wage	Salary
Payment basis	Hourly	Annual
Overtime	Usually paid	Often not paid
Leave entitlements	Accrued (unless casual)	Accrued
Common in	Trades, retail, hospitality	Management, professional

Converting Hourly Rates to Annual Salaries

To compare a wage offer with a salary offer, you need to convert the hourly rate to an annual figure. The standard formula is:

Annual gross pay = hourly rate × hours per week × 52

For full-time employees, we assume 38 hours per week, which is the standard ordinary hours under the National Employment Standards. For example, at the national minimum wage:

Hourly rate: $26.44
Weekly pay: $26.44 × 38 = $1,004.90
Fortnightly pay: $1,004.90 × 2 = $2,009.80
Annual pay: $26.44 × 38 × 52 = $52,254.80

This calculation assumes the same rate every week with no unpaid overtime, penalty rates, or allowances. Use our hourly conversion tool to do this quickly.

Fortnightly Pay

Many Australian employees are paid fortnightly. To estimate your fortnightly gross pay, simply double your weekly pay. For the minimum wage example, that is $2,009.80 per fortnight before tax and super.

Award Rates and the National Minimum Wage

The national minimum wage is the base rate for award/agreement-free employees. However, most workers are covered by an award that sets higher minimum rates for their industry or occupation. The Fair Work Ombudsman provides pay guides for each award that list the correct minimum rates, allowances, and penalty rates.

Award rates can be significantly higher than the national minimum wage, especially for skilled trades or shift work. Always check the relevant award before setting a pay rate.

Casual Loading

Casual employees receive a 25% loading on top of the base hourly rate to compensate for not receiving paid sick leave or annual leave. For the national minimum wage, the casual rate is $33.05 per hour ($26.44 + 25%). This loading is paid on top of the base rate. When using our calculator, enter the base hourly rate and tick the casual loading checkbox to add the 25%. Never enter a rate that already includes casual loading. Learn more on our casual loading page.

Superannuation Guarantee

Employers must pay superannuation on top of your ordinary earnings. From 1 July 2026, the super guarantee rate is 12%. This is paid in addition to your wages or salary, up to the maximum contribution base of $270,830 per year. For example, on a $52,254.80 annual wage, the employer would contribute $6,270.58 in super. See our super and packaging page for details.

Tax and Take-Home Pay

Your take-home pay depends on your taxable income and the tax rates for 2026–27. The resident tax brackets 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% (with reductions for low-income earners). Use our take-home pay calculator to estimate your net income after tax and Medicare.

Summary

Understanding what is the difference between a wage and a salary helps you evaluate job offers and ensure you are paid correctly. Wages are hourly and flexible; salaries are fixed and predictable. Both must meet minimum legal standards. Use the formula hourly × hours per week × 52 to compare, and remember to factor in casual loading, super, and tax. For more details, refer to our reference tables or the official Fair Work resources.