How to Compare Job Offers Using the Hays Salary Guide and Take-Home Pay

Why Take-Home Pay Matters When Comparing Job Offers

When you receive a job offer, the headline salary can be misleading. What really matters is the amount that lands in your bank account each fortnight after tax and the Medicare levy. That’s your take-home pay, and it’s the figure you should use to compare offers, plan your budget, and negotiate with confidence.

To do this properly, you need two things: a reliable salary benchmark for your role, and a clear understanding of how tax and Medicare affect your income. The Hays Salary Guide FY26/27 is Australia’s most trusted source for salary data, covering over 1,000 roles across 23 industries and 11 regions. Combined with the latest tax rates from the Australian Taxation Office, you can turn any gross salary into a meaningful take-home figure.

Using the Hays Salary Guide to Benchmark Your Salary

The Hays Salary Guide FY26/27 is based on responses from over 7,000 professionals and provides salary ranges for specific job titles and locations. Whether you’re in IT, engineering, construction, or marketing, the guide gives you a realistic idea of what employers are paying. The figures are base salaries exclusive of super, so you know exactly what the cash component is.

To use it, find your role and region in the guide. For example, a mid-level software developer in Sydney might have a range of $120,000–$140,000. That’s your starting point. Then, when you receive an offer, you can see whether it falls within that range. But don’t stop there – the next step is to calculate what you’ll actually take home.

From Gross to Net: Understanding Tax and Medicare

Australia uses a progressive tax system. For the 2026–27 income year, the rates are:

• $0–$18,200: Nil
• $18,201–$45,000: 15c for each $1 over $18,200
• $45,001–$135,000: $4,020 plus 30c for each $1 over $45,000
• $135,001–$190,000: $31,020 plus 37c for each $1 over $135,000
• $190,001 and over: $51,370 plus 45c for each $1 over $190,000

In addition, most people pay the Medicare levy of 2% of taxable income. If you’re on a lower income, the levy may be reduced or waived. The latest single-person Medicare levy thresholds are $28,011 and $35,013 – below the lower threshold you pay no levy; between the thresholds you pay a reduced amount (10c per $1 over $28,011); above $35,013 you pay the full 2%.

You may also be eligible for the Low Income Tax Offset (LITO), which can reduce your tax by up to $700. For 2026–27, LITO phases out between $37,500 and $66,667.

For a full breakdown of how these rates apply, see our Tax and Medicare page.

Calculating Your Take-Home Pay

Let’s walk through an example. Suppose you’re offered a role with a base salary of $100,000 (plus super). Here’s how to estimate your take-home pay:

1. Tax on $100,000:

• First $18,200: $0
• Next $26,800 (to $45,000) at 15c = $4,020
• Remaining $55,000 (to $100,000) at 30c = $16,500
• Total tax before offsets: $20,520

2. Medicare levy: 2% of $100,000 = $2,000

3. LITO: At $100,000, LITO is $325 (reduced from $700 by 1.5c per $1 over $45,000).

4. Total tax and Medicare: $20,520 + $2,000 – $325 = $20,195

5. Annual take-home: $100,000 – $20,195 = $79,805

6. Fortnightly take-home: $79,805 ÷ 26 = $3,069

This is the amount you’d see in your bank account each fortnight, assuming no other deductions like HELP/HECS or salary sacrifice. Super is paid on top by your employer, so your total remuneration package is $100,000 plus 12% super ($12,000) = $112,000.

Other Factors That Affect Take-Home Pay

• Superannuation: From 1 July 2026, the super guarantee rate is 12%. If an offer says “$100,000 plus super”, the employer contributes an extra $12,000 to your super fund. If it says “$100,000 inclusive of super”, your base salary is lower. Always clarify which format is used.
• Salary packaging: You can reduce your taxable income by packaging items like a car or additional super. This increases your take-home pay but reduces the amount of tax you pay. See our Salary packaging page for details.
• Medicare levy surcharge: If you don’t have appropriate private hospital cover and your income is above a threshold, you may pay an extra 1.0%–1.5% surcharge. This is separate from the standard Medicare levy.

Putting It All Together: Comparing Offers

Now you have the tools. Use the Hays Salary Guide to check that the base salary is competitive for your role and location. Then convert each offer to a take-home figure using the method above. Don’t forget to factor in super – a lower base salary with higher super might actually give you better long-term savings.

Finally, consider non-salary benefits like flexible work, leave entitlements, and career development. But when it comes to cash in hand, take-home pay is the number that counts.

For a quick estimate, use our Take-home pay calculator. And remember, this is an estimate only – your actual tax assessment may differ due to rounding, deductions, or other factors.