Your 2026–27 engineering salary: gross pay, package and take-home explained
Engineering salaries vary widely by role and experience. Award minimums start at $66,825 for graduates; ATO medians range from $89,634 for data analysts to $132,758 for software engineers.
Your engineering salary: gross, package and take-home
If you are an engineer or considering a career in engineering, you have probably seen job ads quoting a figure like “$120,000 plus super”. But what does that actually mean for your bank account? The mix-up between a gross salary, a total package, and take-home pay is one of the most common sources of confusion. This guide unpacks the numbers for the 2026–27 year using official Australian sources.
What the award says about engineering salary
The Professional Employees Award sets the legal minimum for professional engineers, IT professionals and scientists. From 1 July 2026, a graduate professional with a 3-year degree earns at least $66,825 a year, or $68,538 with a 4 or 5-year degree. Level 2 (experienced professional) is $78,836, Level 3 is $86,157, and Level 4 is $97,173. These are the floors – your actual engineering salary may be much higher, especially in private industry.
What engineers actually earn: ATO median salaries
The Australian Taxation Office publishes median salary or wage data from tax returns. For 2023–24, the figures show:
- Civil engineer: $120,000
- Electrical engineer: $130,630
- Mechanical engineer: $115,872
- Software engineer: $132,758
- Data analyst: $89,634
These medians include part-time and casual workers, so full-time pay is typically higher. They are a reliable benchmark for what people actually earned, not a minimum.
Average earnings across all occupations
The Australian Bureau of Statistics reports that in May 2025, the average weekly total cash earnings for all employees was $1,611.10. For professionals specifically, the average was $2,049.60 per week, or about $106,579 a year. Full-time adult ordinary time earnings (excluding overtime and employer super) averaged $2,083.70 per week, or $108,352 a year. These figures help you see where your engineering salary sits relative to the broader workforce.
From gross to take-home: what gets deducted
Your take-home pay is what remains after your employer withholds:
- Income tax – calculated on your taxable income using the 2026–27 resident rates: nil on the first $18,200, then 15c per dollar up to $45,000, 30c up to $135,000, 37c up to $190,000, and 45c above that.
- Medicare levy – 2% of your taxable income, unless you qualify for a reduction or exemption under the latest published single-person Medicare thresholds ($28,011 and $35,013).
- Other deductions – such as HELP/HECS repayments, salary sacrifice arrangements, or the Medicare levy surcharge if you do not have appropriate private hospital cover.
Your employer also pays 12% superannuation on top of your gross salary (from 1 July 2026), but that is not deducted from your pay – it goes into your super fund. When a job ad says “$120,000 plus super”, the $120,000 is your gross salary, and super is extra. If it says “total package $134,400”, that includes the super, so your gross salary is $120,000.
Example: take-home for a graduate engineer
Suppose you are a graduate engineer with a 4-year degree earning the award minimum of $68,538. Your fortnightly gross pay is about $2,636. After income tax (roughly $389) and the Medicare levy (about $53), your take-home is approximately $2,157 per fortnight. That is the amount that reaches your bank account.
If you earn the median civil engineer salary of $120,000, your fortnightly gross is about $4,615. After tax and Medicare, take-home is around $3,200. Use the Take-home pay calculator for your exact situation.
Common mistakes to avoid
- Confusing gross and package. Always check whether a quoted figure is “plus super” or “including super”.
- Forgetting the Medicare levy. It is 2% for most full-time earners.
- Assuming the award rate is what you will get. Many employers pay above the award, especially in high-demand fields like software engineering.
- Ignoring the tax-free threshold. The first $18,200 is tax-free, but the Medicare levy still applies.
For more details on how tax and Medicare work, see Tax and Medicare. To compare roles and typical pay, visit Roles. And remember, super is not part of your take-home – it is your future retirement savings.
Final thoughts
Your engineering salary is only one piece of the puzzle. Understanding the difference between gross, package, and take-home helps you evaluate job offers, negotiate confidently, and plan your budget. The official sources – the Professional Employees Award, ATO taxation statistics, and ABS earnings data – give you a solid foundation. Use them to make informed decisions about your career and finances.
Questions
What is the difference between gross salary and total package?
Your gross salary is the base amount before any deductions. A total package includes your gross salary plus employer superannuation (12% from 1 July 2026) and sometimes other benefits like a car or bonuses. Take-home pay is what lands in your bank after income tax and the Medicare levy are withheld.
How much tax and Medicare levy will I pay on an engineering salary?
For 2026–27, resident tax rates start at nil for the first $18,200, then 15c per dollar up to $45,000, 30c up to $135,000, and so on. The Medicare levy is 2% of your taxable income, but if you earn below the latest published single-person Medicare thresholds ($28,011 and $35,013) you may pay a reduced rate or none. Use the Take-home pay tool for a personalised estimate.
What is the take-home pay for a graduate engineer under the award?
Under the Professional Employees Award, a graduate with a 4-year degree earns at least $68,538 a year. After income tax and the Medicare levy (assuming no HELP debt or surcharge), your take-home pay is about $2,157 per fortnight. This is the minimum; many employers pay above the award.