Convert your salary to hourly rate and see what changes your take-home pay

Understanding your salary to hourly rate

When you look at a job offer, you often see an annual salary. But to really understand what lands in your bank account each fortnight, it helps to convert your salary to hourly rate. This lets you see how tax brackets, the Medicare levy, and superannuation affect your take-home pay.

The national minimum wage as a benchmark

Fair Work sets the national minimum wage. From 1 July 2026, it is $26.44 per hour or $1,004.90 per week before tax. If you are not covered by an award or enterprise agreement, this is the minimum you must be paid. Casual employees also get a 25% loading on top.

For a full-time employee working 38 hours a week, that works out to an annual salary of about $52,255. But your take-home pay will be less after tax and the Medicare levy.

How tax brackets change your fortnightly pay

The Australian Taxation Office publishes resident tax rates for each income year. For 2026-27, 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

These rates do not include the Medicare levy of 2%. Also, the Low Income Tax Offset (LITO) can reduce your tax if you earn under $66,667. For example, if your taxable income is $45,000, you get a maximum LITO of $700, which phases out as income rises.

When you convert your salary to hourly rate, you can see how each bracket affects your take-home. For instance, someone earning $80,000 a year (about $40.49 per hour) falls into the 30c bracket above $45,000. Their annual tax before offsets is $4,020 + 30% of ($80,000 - $45,000) = $4,020 + $10,500 = $14,520. After LITO (which phases out to $325 at $80,000), the tax is about $14,195. Plus Medicare levy of 2% = $1,600. Total deductions ~$15,795, leaving take-home ~$64,205 per year, or about $2,469 per fortnight.

The Medicare levy: a fixed 2% with a safety net

The Medicare levy is 2% of your taxable income, but there are lower thresholds for singles. The latest published single-person thresholds are $28,011 and $35,013. If you earn below $28,011, you pay no Medicare levy. Between $28,011 and $35,013, you pay 10c for each dollar over $28,011. Above $35,013, you pay the full 2%. This shading means your take-home pay increases gradually as you cross into the full levy.

For a full-time salary, you almost always pay the full 2%. So when you calculate your hourly rate, remember that 2% of your gross pay goes to Medicare, not to your bank account.

Superannuation: 12% from 1 July 2026

From 1 July 2026, the super guarantee rate is 12%. Your employer must contribute this on top of your ordinary time earnings, up to a maximum contribution base of $270,830 per year. Importantly, super is not deducted from your salary if the job ad says "plus super". It is an extra cost to the employer. If the ad says "including super", then the super component is part of your total package and reduces your take-home pay.

When you convert your salary to hourly rate, check whether the figure is base salary or total package. For example, a $100,000 package including super at 12% means your base salary is $100,000 ÷ 1.12 ≈ $89,286, and your hourly rate is about $45.20. The super goes into your super fund, not your bank account.

Putting it all together: your fortnightly take-home

Your fortnightly take-home pay is your gross pay minus:

• Income tax (using the 2026-27 brackets and LITO)
• Medicare levy (usually 2%)
• Any other deductions like HELP/HECS or salary sacrifice (not covered here)

To estimate, use our Take-home pay guide or the Clearance tool. Remember that the figures above are estimates only and do not include the Medicare levy surcharge or payroll tax-table rounding.

Benchmarks for comparison

• National minimum wage: $26.44/hour, $1,004.90/week, about $52,255/year
• All employees average weekly total earnings: $1,579.20/week (ABS May 2026, includes part-time)
• Full-time adult ordinary time earnings: $2,083.70/week (ABS May 2026, excludes overtime and employer super)

These benchmarks help you see where your salary sits relative to the market. For more, see our Benchmarks page.

Summary

Converting your salary to hourly rate is a simple way to understand your true earnings per hour. But your take-home pay depends on tax brackets, the Medicare levy, and whether super is included. Use the ATO tax rates and Fair Work minimum wage as your starting points, and always check if a salary is plus or including super. For a detailed estimate, visit our Tax and Medicare guide.