Salary to Hourly Rate: Convert and Compare with Australia’s Minimum Wage

Converting Salary to Hourly Rate: A Practical Guide

If you’re looking to convert a salary to hourly rate—whether to compare job offers, check your pay against the legal minimum, or budget your time—the process is straightforward once you know your ordinary weekly hours. In Australia, the standard full‑time week is 38 hours, but part‑time and casual arrangements may differ.

The Basic Formula

To convert an annual salary to an hourly rate:

1. Divide the annual salary by 52 weeks to get a weekly figure.
2. Divide the weekly figure by your ordinary hours per week.

For a full‑time employee on 38 hours:

Hourly rate = Annual salary ÷ 52 ÷ 38

For example, a $60,000 annual salary gives $60,000 ÷ 52 = $1,153.85 per week, then $1,153.85 ÷ 38 = $30.36 per hour. This is your base rate before tax and before super.

Where the National Minimum Wage Fits In

The **national minimum wage from 1 July 2026 is **$26.26 per hour or $1,004.90 per week for an adult award‑free employee. This is the legal floor for award‑free employees. If your converted hourly rate is below $26.44, your employer must be paid at least the higher of the award or the award rate or the national minimum.

**Super guarantee is paid on top of your ordinary time earnings. From 1 July 2026, the employer must contribute 12% of your base rate into super. So if your salary is $60,000, the employer pays $7,200 in super separately. When comparing salaries, remember that super is not part of your take‑home pay.

Tax and Medicare

Your converted hourly rate is gross. From that, the ATO withholds tax based on the tax‑free threshold and your earnings. For the 2026‑27 year, resident rates apply. Once your annualised ordinary gross exceeds $30,000, Medicare levy of 2% applies. The low‑income tax offset and other offsets can reduce tax, but this guide does not calculate exact withholding. Use the ATO’s tax tables for accurate figures.

Award and Agreement Rates

Many employees are covered by a modern award or enterprise agreement. These can set higher minimum rates than the national minimum. For example, a retail award may require $28 per hour for a Level 1 employee. Always check your award at the Fair Work Ombudsman website. If you are award‑free and agreement‑free, the national minimum applies.

Junior, Apprentice, and Trainee Rates

Not every worker receives $26.44 per hour. Award‑free juniors (under 21) receive a percentage of the adult rate. Apprentices and trainees follow the Miscellaneous Award rates. Introductory award rates (first 6 months) are capped at $25.74 per hour. These are all legal minima; your employer may pay more.

Using the Weekly Packet Approach

When converting salary to hourly rate, consider the whole weekly packet: base pay, super, and any loadings. For a casual employee, the national minimum includes a 25% loading: $33.05 per hour. That loading compensates for lack of paid leave. For permanent employees, the base rate is $26.44 plus 12% super on top.

Internal Resources

For more details on which minimum applies to you, see our guide Which minimum wage applies. To compare rates across awards and years, visit the Rate tables.

Summary

Converting salary to hourly rate is simple: divide by 52 and then by your weekly hours. Compare that rate to the national minimum of $26.44 per hour (adult, award‑free). Remember that super is paid on top, tax is deducted, and award or agreement rates may be higher. Juniors, apprentices, and trainees have lower legal minima. Always verify your classification with the Fair Work Ombudsman or your employer.

For the published floors, see the rate tables and how the figures work.