Note: Figures represent Gross Income before tax and Superannuation. Based on standard 52-week year.
How to Convert Annual Salary to Hourly Rate in Australia
Understanding your hourly rate is crucial for Australian employees and contractors alike. Whether you are negotiating a new contract, comparing a full-time role against casual work, or simply budgeting, breaking down your annual salary into an hourly figure provides clarity on your actual earnings.
This Annual to Hourly Rate Calculator uses standard Australian employment metrics to perform the conversion. By default, it uses the 38-hour work week, which is the standard maximum under the National Employment Standards (NES) for full-time employees in Australia.
The Conversion Formula
To manually calculate your hourly rate from your annual salary, you can follow this simple formula used by payroll professionals across Australia:
- Step 1: Determine your Weekly Pay.
Formula: Annual Salary ÷ 52 weeks - Step 2: Determine your Hourly Rate.
Formula: Weekly Pay ÷ Hours worked per week
For example, if you earn $80,000 AUD per year and work a standard 38-hour week:
- $80,000 ÷ 52 = $1,538.46 per week
- $1,538.46 ÷ 38 = $40.49 per hour
Full-Time vs. Casual Loading
It is important to note that this calculator determines the base hourly rate for a permanent employee. In Australia, casual employees typically receive a "casual loading" (usually 25%) on top of the base hourly rate. This loading compensates for the lack of permanent entitlements such as sick leave and annual leave.
If you are comparing a permanent salary to a casual hourly rate, ensure you account for this loading. A permanent hourly rate of $40 might be equivalent to a casual rate of $50 ($40 + 25%).
Superannuation and Gross Income
The figures generated above represent Gross Income (before tax). In Australia, your employer is also required to pay the Superannuation Guarantee (SG) into your super fund. Currently, the SG rate is 11.5% (rising to 12% by July 2025). Unless your employment contract states "Total Remuneration Package" (TRP), superannuation is paid on top of the annual salary figure you input above.