How to calculate salary: gross pay, super, and tax explained
Learn how to calculate salary in Australia using gross pay, superannuation, and tax. Understand the salary index and see real examples with award rates.
The national line for full-time adult ordinary-time earnings is $2,083.70 per week (index 100); your salary index is your yearly gross divided by $108,352 times 100.
What does 'calculate salary' mean in Australia?
When you hear "calculate salary," it usually means working out your gross pay, what you take home after tax, and how super fits in. In Australia, your salary is more than just the number on your contract. It's the starting point for understanding your financial position relative to the national average, your industry, and your state.
This guide explains how to calculate salary using the salary index, award rates, superannuation, and tax. We'll use real figures from the Australian Bureau of Statistics and the Fair Work Commission so you can see where your pay sits.
The national line: full-time adult ordinary-time earnings
The Australian Bureau of Statistics publishes Average Weekly Earnings each quarter. In May 2026, full-time adult ordinary-time earnings (seasonally adjusted) was **$2,083.70 per week. That annualises to $108,352 (multiply by 52.18 weeks). This figure is the benchmark for the salary index.
Salary index 100 = $108,352 per year gross. If your gross ordinary-time earnings are exactly that, your index is 100. If you earn less, your index is below 100; if more, above.
For example:
- National minimum wage (from 1 July 2026): $26.44 per hour, $1,004.90 per week, annualised $52,255. Index = 48.2.
- A retail worker on $55,000 gross: index = 55,000 ÷ 108,352 × 100 = 50.8.
- A professional on $120,000 gross: index = 110.8.
You can compare your own salary using the how the index works page.
Gross pay: what counts?
Gross pay includes your ordinary-time earnings, overtime, allowances, bonuses, and commissions. But the salary index uses ordinary-time earnings only – that's the base rate for normal hours. Overtime and irregular bonuses are excluded from the benchmark.
When you calculate salary for yourself, use your annual gross ordinary-time earnings. If you're paid hourly, multiply your hourly rate by your guaranteed weekly hours, then by 52.18.
Example: A hospitality worker on the Hospitality Industry (General) Award 2020 at level 2 gets $26.44 per hour (national minimum wage) plus casual loading of 25% = $33.05 per hour. If they work 38 hours per week, gross ordinary-time = $33.05 × 38 × 52.18 = $65,500 per year. Index = 60.5.
But remember: modern awards can set higher rates. The Fair Work Commission's Modern Awards Pay Database shows minimum rates for each classification. From 1 July 2026, award minima rose 4.75%. The entry-level award floor is $25.74 per hour.
Super: the 12% on top
Since 1 July 2026, the super guarantee is **12% of your gross salary. Your employer must pay this into your super fund. It's not deducted from your pay – it's on top. For example, if your gross salary is $80,000, your employer adds $9,600 to your super. Your total remuneration is $89,600.
But the super guarantee has a maximum contribution base of $270,270,830. If you earn above that, super only applies to the first $270,830.
When calculating salary, always separate gross pay and super. Your salary index uses gross pay only.
Tax: what you take home
Resident tax rates for 2026-27 (excluding Medicare):
- Nil: $0 – $18,200
- 15%: $18,201 – $45,000
- 30%: $45,001 – $135,000
- 37%: $135,001 – $190,000
- 45%: $190,001+
Plus Medicare levy: 2% of taxable income.
Example: A full-time worker on $80,000 gross:
- Tax: $5,092 + 30% on $35,000 = $10,092
- Medicare: $1,600
- Total tax: $11,692
- Net pay: $68,308
- Net weekly: $1,309
But this ignores HELP, salary sacrifice, or Medicare levy reduction.
Using the salary index for comparison
The index helps you see where your pay sits against the national line. You can also compare by state or industry:
- NSW: index 101.2 (annualised $109,658)
- VIC: 98 ($106,137)
- QLD: 97.9 ($106,064)
- SA: 94.6 ($102,450)
- WA: 106.9 ($115,825)
- TAS: 88.6 ($96,008)
- NT: 95.2 ($103,173)
- ACT: 109.9 ($119,090)
Industries:
- Mining: 154.7
- Retail trade: 75.9
- Accommodation and food services: 72.5
- Professional, scientific and technical: 114.7
- Education and training: 105.5
- Health care and social assistance: 97.8
These are benchmarks, not quotes for a specific job. Your actual pay may be higher or lower.
How to calculate your own salary index
- Find your gross annual ordinary-time earnings (before tax, before super).
- Divide by $108,352.
- Multiply by 100.
Example: You earn $65,000 gross. Index = 65,000 ÷ 108,352 × 100 = 60.0.
You can also use the pay guides to see typical awards, or check industries for sector averages.
Common questions about calculating salary
What about junior rates?
Junior employees (under 21) may be paid a percentage of the adult national minimum wage. From 1 July 2026:
- Under 16: $9.73/hr
- 16: $12.51/hr
- 17: $15.28/hr
- 18: $18.06/hr
- 19: $21.81/hr
- 20: $25.83/hr
But modern awards can set different junior rates. Always check the award.
What about casual loading?
Casual employees get a loading (usually 25%) instead of paid leave. That loading is part of gross pay. For the salary index, use the loaded rate if that's your ordinary-time rate.
What about salary sacrifice?
Salary sacrifice reduces your gross salary for tax purposes but doesn't change your salary index (which uses gross before sacrifice).
Final thoughts
Calculating salary in Australia means understanding gross pay, super, and tax. The salary index gives you a quick way to see where you stand. Use the topics page for more guides on pay, awards, and entitlements.
Remember: the figures here are benchmarks. Your actual pay depends on your award, agreement, or contract. Always check the Fair Work Ombudsman's Pay Calculator or your award for exact rates.
Questions people ask
What is the difference between gross salary and taxable income?
Gross salary is your total earnings before any deductions. Taxable income is gross salary minus allowable deductions (e.g., work-related expenses, charity donations). Your employer withholds tax based on your gross salary, but you may get a refund if you have deductions. The salary index uses gross ordinary-time earnings, not taxable income.
How do I include super when calculating my salary?
Super is paid on top of your gross salary. For example, if your gross annual salary is $80,000, your employer must contribute 12% super ($9,600) into your super fund. Your total remuneration (salary plus super) is $89,600, but your salary index is based on the $80,000 gross. The super guarantee rate is 12% from 1 July 2026, up to the maximum contribution base of $270,830.
What is the salary index and how do I calculate mine?
The salary index compares your gross annual ordinary-time earnings to the national line. The national line is full-time adult ordinary-time earnings: $2,083.70 per week, annualised $108,352 (index 100). To calculate your index, divide your yearly gross ordinary-time pay by $108,352 and multiply by 100. For example, a retail worker on $55,000 gross has an index of 50.8. A professional on $120,000 has an index of 110.8.