What a $38 per hour annual salary means when comparing job offers

What does a $38 per hour annual salary really mean?

When you see a job ad offering $38 per hour, the first thing to work out is what that adds up to over a full year. In Australia, full-time work is normally 38 hours a week, so the annual salary is $38 multiplied by 38 hours, multiplied by 52 weeks – that’s $75,088 gross. That figure is your starting point for comparing offers, but it only tells part of the story.

Where $38 per hour sits on the Salary Index

The Salary Index uses a national line of 100, which is the full-time adult ordinary-time earnings of $108,352 per year (from the ABS Average Weekly Earnings, May 2026). Your $75,088 annual salary gives an index of about 69. That means you’re earning roughly 69% of the national benchmark. It’s a solid wage, but it’s below the average across most states and industries.

For context, the national minimum wage from 1 July 2026 is $26.44 per hour (index 48.2), so $38 per hour is well above the legal floor. The entry-level award floor is $25.74 per hour, so you’re also above that. But if you’re comparing offers, you need to look at the industry and location.

How your offer stacks up by industry

Different industries have different average earnings. For example:

• Retail trade index is 75.9 – so a $38 per hour role (index 69) is below the retail average.
• Accommodation and food services index is 72.5 – again, below the industry line.
• Professional, scientific and technical services index is 114.7 – a $38 per hour role would be well below that field’s average.
• Health care and social assistance index is 97.8 – still below.

This doesn’t mean $38 per hour is a bad rate; it just means you’re earning less than the typical full-time worker in those sectors. If you’re in a lower-paying industry like retail or hospitality, $38 per hour might actually be above the award rate for your classification. Check the relevant pay guides to see the minimums for your role.

State-by-state comparison

Where you live also matters. The states page shows how each state compares to the national line:

• New South Wales index 101.2 – $38 per hour is below the state average.
• Victoria index 98 – still below.
• Queensland index 97.9 – below.
• South Australia index 94.6 – below.
• Western Australia index 106.9 – below.
• Tasmania index 88.6 – below, but closer.
• Northern Territory index 95.2 – below.
• ACT index 109.9 – well below.

So in every state, a $38 per hour annual salary is below the state average. That’s expected for many entry-level or mid-level roles. The key is whether the offer is fair for the specific job and location.

What about take-home pay?

Gross pay is only half the picture. After tax and the Medicare levy, your take-home from $75,088 would be roughly $60,540 (using 2026–27 rates, excluding HELP or other deductions). That’s a resident estimate with the tax-free threshold and a flat 2% Medicare levy. Remember, this doesn’t include the Medicare levy surcharge or any salary sacrifice arrangements.

Superannuation on top

From 1 July 2026, the super guarantee is 12% on top of your ordinary-time earnings. So your employer must pay an extra $9,010.56 into your super fund each year. That’s not part of your salary, but it’s a valuable benefit. The maximum contribution base is $270,830, so you’re well under that.

Reading between the lines of a job ad

When you see $38 per hour in an ad, ask yourself:

• Is it permanent or casual? Casual roles get a 25% loading (so $47.50 per hour), but no paid leave.
• What award or agreement applies? Awards can set higher minimums for your classification.
• Are there penalty rates for weekends or nights? Those can boost your effective hourly rate.
• Is the role full-time, part-time, or casual? Full-time gives you 38 hours a week consistently; part-time might be fewer hours.

Use the industries page to see typical pay ranges for your field. And if you’re comparing two offers, convert both to an annual figure using the same 38-hour week assumption, then check the index to see where they sit against the national line.

The bottom line

A $38 per hour annual salary of $75,088 is a decent wage, but it’s below the national average and below most state and industry benchmarks. It’s well above the minimum wage, so it’s a fair starting point for many roles. To really judge an offer, look at the total package: super, leave entitlements, and any allowances. The how the index works page explains more about how we calculate these comparisons.

If you want to explore related topics, check out our topics page for more guides on pay rates and negotiations.