How to Compare Job Offers Using Super Calculation on Salary and Take-Home Pay
The amount that reaches your bank account depends on your salary, super guarantee (12% from 1 July 2026), income tax, and Medicare levy. Use the ATO's super guarantee rules and our take-home pay calculator.
Super Calculation on Salary: What You Need to Know
When comparing job offers, it's essential to understand how super calculation on salary works. Super guarantee (SG) is a compulsory contribution your employer must make to your super fund. From 1 July 2026, the SG rate is 12% of your qualifying earnings, paid each payday. The Australian Taxation Office sets the rules, including the maximum contribution base of $270,830 for 2026–27 .
What Counts as Qualifying Earnings?
Qualifying earnings include your ordinary time earnings (what you earn for your usual hours), commissions, allowances, bonuses, paid leave, and salary sacrifice amounts that would otherwise be qualifying earnings. Overtime is not included. The ATO provides a full list on its website.
Super Is Not Deducted from Your Salary
A common confusion is thinking super is taken out of your pay. In fact, super guarantee is paid on top of your salary. When a job ad says '$80,000 plus super', your employer pays an additional 12% ($9,600) into your super fund. Your take-home pay is calculated from the $80,000 salary, not the total package. Use our Take-home pay guide to estimate what reaches your bank account.
How to Compare Job Offers Using Take-Home Pay
To compare offers, focus on the amount that lands in your bank account after tax and the Medicare levy. Here's how:
- Start with your base salary – the figure before super.
- Apply income tax using the 2026–27 resident tax rates:
- Nil up to $18,200
- 15c per $1 over $18,200 up to $45,000
- $4,020 plus 30c per $1 over $45,000 up to $135,000
- $31,020 plus 37c per $1 over $135,000 up to $190,000
- $51,370 plus 45c per $1 over $190,000
- Subtract the Low Income Tax Offset (LITO) if eligible – up to $700 for taxable incomes below $37,500, then phasing out.
- Add the Medicare levy – 2% of taxable income, but with a shade-in for singles between $28,011 and $35,013. Full-time salaries typically pay the full 2%.
- The result is your annual take-home pay. Divide by 26 for fortnightly pay.
Example: National Minimum Wage
The national minimum wage from 1 July 2026 is $26.44 per hour, $1,004.90 per week, or $52,255 annually (based on 38 hours per week). For a single person earning this amount:
- Tax: approximately $5,108 (after LITO)
- Medicare levy: $1,045 (full 2%)
- Take-home: about $46,102 per year, or $1,773 per fortnight.
This is a resident estimate only. It excludes HELP/HECS, the Medicare levy surcharge, and salary sacrifice. For a personalised calculation, use our Clearance tool.
Super Guarantee and Your Job Offer
When you see a salary figure, check whether it's 'plus super' or 'including super'. Most professional roles advertise base salary plus super. The super guarantee rate is 12% for 2026–27, but your employer may pay more if your award or agreement requires it. The Moneysmart employer contributions calculator can help you check if you're receiving the correct amount .
Maximum Contribution Base
Your employer only needs to pay super on earnings up to $270,830 per year. If your salary exceeds that, the super guarantee stops at the cap. This is important for high-income earners comparing offers.
Benchmarks for Comparison
Use these benchmarks from the Australian Bureau of Statistics and Fair Work Ombudsman to see where an offer sits:
- National minimum wage: $26.44/hour, $1,004.90/week, $52,255/year
- All employees average weekly total earnings: $1,579.20/week, $82,118/year (includes part-time)
- Full-time adult ordinary time earnings: $2,083.70/week, $108,352/year (excludes overtime and employer super)
These figures are from May 2026 (ABS) and 1 July 2026 (Fair Work). See our Benchmarks page for more.
Key Takeaways
- Super calculation on salary is straightforward: 12% of qualifying earnings, paid by your employer.
- Super does not reduce your take-home pay – it's additional.
- To compare offers, calculate after-tax and Medicare levy income using the 2026–27 rates.
- Use the ATO's super guarantee page and Moneysmart's calculator to verify contributions.
- Remember the Medicare levy thresholds: $28,011 and $35,013 for singles.
For more on salary packaging, super, and tax, visit our Super and Tax and Medicare guides.
Questions
How is super calculated on my salary?
From 1 July 2026, your employer must pay super guarantee at 12% of your qualifying earnings each payday, up to the maximum contribution base of $270,830 per year. Qualifying earnings include your ordinary time earnings, commissions, and salary sacrifice amounts that would otherwise be qualifying earnings. Overtime is excluded. The Australian Taxation Office explains the rules in detail.
Does super affect my take-home pay?
No. Super guarantee contributions are paid by your employer on top of your salary, not deducted from it. When you see a job offer advertised as '$80,000 plus super', the super is additional. Your take-home pay is your salary after income tax and the Medicare levy, not including super. However, salary sacrifice arrangements can reduce your taxable income and increase your super, which may affect your take-home pay.
What are the Medicare levy thresholds for 2026-27?
For single people, the Medicare levy lower threshold is $28,011 and the upper threshold is $35,013. If your taxable income is below $28,011, you pay no Medicare levy. Between $28,011 and $35,013, you pay a reduced rate of 10 cents per dollar over the lower threshold. Above $35,013, you pay the full 2% Medicare levy. These are the latest published thresholds from the ATO.