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

Multiply your hourly rate by the number of hours you work each week, then multiply by 52 weeks. For a standard full-time role of 38 hours per week, the formula is: hourly rate × 38 × 52 = annual gross pay. This assumes you work the same hours every week with no unpaid overtime or penalty rates.

What is the difference between the National Minimum Wage and award rates?

The National Minimum Wage is the base rate for employees not covered by an award or agreement. From 1 July 2026 it is $26.44 per hour ($1004.90 per week for 38 hours). Award rates are higher minimums set for specific industries and occupations, and they include penalty rates, allowances, and other entitlements. Most employees are covered by an award.

How is casual loading calculated and does super apply on top?

Casual loading is an extra 25% on the base hourly rate to compensate for not receiving paid leave. For example, the casual National Minimum Wage is $33.05 per hour ($26.44 + 25%). Superannuation is paid on top of the total ordinary earnings, including the casual loading, at 12% up to the maximum contribution base of $270,830.

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

For a full-time employee working 38 hours per week, the annual salary is the hourly rate multiplied by 38 and then by 52 weeks.

What Is the Difference Between Salary and Wages?

If you are trying to compare a job offer or understand your pay, you have probably asked: what is the difference between salary and wages? In Australia, the terms are often used interchangeably, but they have distinct meanings under employment law. A wage is typically paid by the hour, while a salary is a fixed annual amount that may cover a range of entitlements. The Fair Work Ombudsman explains that an annualised wage (or salary) can include minimum pay rates, penalties, overtime, allowances, and annual leave loading, provided the total paid is at least what the employee would have received under the applicable award.

Understanding this difference is crucial when using our hourly conversion tool. If you are paid a salary, your contract may already include penalty rates and allowances. If you are paid an hourly wage, you should receive those extras separately. The Fair Work Commission sets the National Minimum Wage, which from 1 July 2026 is $26.44 per hour for a 38‑hour week, or $1004.90 per week. Casual employees receive a 25% loading, making the minimum $33.05 per hour.

Converting Hourly Rates to Annual Pay

Our calculator uses the standard formula: hourly rate × hours per week × 52 weeks. For a full‑time employee, we assume 38 hours per week, as this is the ordinary hours for many awards. For example, if you earn $40 per hour:

Weekly pay: $40 × 38 = $1,520
Fortnightly pay: $1,520 × 2 = $3,040
Annual gross pay: $40 × 38 × 52 = $79,040

This estimate assumes the same rate every week, no unpaid overtime, no penalty rates, and no salary sacrifice. If you work part‑time or casual hours, adjust the weekly hours accordingly. You can also use our the timesheet to track your actual hours.

National Minimum Wage vs Award Rates

The National Minimum Wage is the floor for employees not covered by an award or agreement. However, most workers are covered by a modern award that sets higher minimum rates for their industry or role. For example, a retail employee may have a higher base rate plus penalty rates for evenings and weekends. The Fair Work Ombudsman provides pay guides to help you find the correct award rate. Always check your award before relying on the National Minimum Wage.

Award rates also determine how annualised salaries are calculated. If your contract includes a salary that offsets award entitlements, your employer must review it every 12 months to ensure you are not worse off.

Casual Loading and Superannuation

Casual employees receive a 25% loading on top of the base rate. This compensates for not receiving paid sick leave or annual leave. When using our calculator, you can check the ‘casual loading’ box to add 25% to your hourly rate. Never enter a rate that already includes the loading – the tool adds it for you. For more details, see our casual loading page.

Superannuation is paid on top of your ordinary earnings at 12% (from 1 July 2026). This means if your gross pay is $79,040, your employer must contribute an additional $9,484.80 to your super fund, up to the maximum contribution base of $270,830. Super is not deducted from your pay; it is an extra cost to the employer. Learn more about super and packaging.

Tax and Take‑Home Pay

Once you have your annual gross pay, you can estimate your take‑home pay using the 2026–27 resident tax rates:

Nil tax on the first $18,200
15% on income from $18,201 to $45,000
30% on income from $45,001 to $135,000
37% on income from $135,001 to $190,000
45% on income above $190,000

Plus a 2% Medicare levy (based on 2025–26 single reduction thresholds). Our take-home pay page provides a detailed breakdown. Note that HELP repayments, the Medicare levy surcharge, and salary packaging are not included in this estimate.

Using the Calculator

Our hourly conversion tool lets you enter your base hourly rate and choose whether you are casual. It then calculates weekly, fortnightly, and annual gross pay, plus estimated tax and super. Remember that this is an estimate only – your actual pay may differ due to award conditions, overtime, or salary sacrifice.

Summary

Understanding what is the difference between salary and wages helps you evaluate job offers and ensure you are paid correctly. Wages are paid by the hour and often include penalty rates and allowances. Salaries are fixed annual amounts that may cover those extras. Always check your award or agreement, and use our calculator to compare your current or potential pay. For more information, visit the minimum wage page or the average pay page for industry benchmarks.