Engineering Manager Salary in Australia: Gross Pay, Super, and Tax in 2026–27

What is an engineering manager salary in Australia?

An engineering manager salary in Australia reflects a senior role that combines technical expertise with leadership. Engineering Managers plan, organise, direct, control and coordinate engineering and technical operations. According to the Australian Bureau of Statistics (ABS), the median full-time weekly earnings for Engineering Managers are $3,519 as of May 2025. That annualises to about $183,000 before tax and super. On the Salary Index, where 100 equals full-time adult ordinary-time earnings of $2,083.70 per week, an engineering manager salary sits at approximately 169 – well above the national line.

How the salary index works for engineering managers

The Salary Index compares a role’s typical gross yearly earnings to the national benchmark. For engineering managers, the median weekly figure of $3,519 divided by the national line of $2,083.70 gives an index of 169. That means engineering managers earn about 69% more than the average full-time adult worker. The index uses ordinary-time earnings, not total cash earnings, so it’s a fair comparison across occupations. You can read more about how the index works.

Gross pay, super, and tax: the full picture

When looking at an engineering manager salary, it’s important to consider total remuneration. From 1 July 2026, the super guarantee is 12% of ordinary time earnings. On $183,000, that’s an extra $21,960 per year in employer super contributions, bringing total package to around $205,000. Super is paid on top of the base salary and taxed at 15% within the fund.

For tax, a resident engineering manager earning $183,000 in 2026–27 would fall into the 37% marginal tax bracket (income between $135,001 and $190,000). The estimated tax bill is about $50,167 plus the 2% Medicare levy ($3,660), totalling $53,827. After tax and Medicare, take-home pay is roughly $129,173 per year, or $2,484 per week. This ignores HELP repayments, salary sacrifice, or the Medicare levy surcharge, which could change the final figure.

Where engineering managers work and how pay varies

Engineering Managers are concentrated in three main industries: Professional, Scientific and Technical Services; Manufacturing; and Construction. These industries have different pay levels. For example, the industries page shows that Professional, Scientific and Technical Services has an index of 114.7, while Mining (where some engineering managers work) has an index of 154.7. Engineering managers in mining can earn significantly more than the median.

State differences also matter. The states page shows that Western Australia has an index of 106.9 and the ACT 109.9, while Tasmania is 88.6. An engineering manager in Perth or Canberra might earn above the national median, while one in Hobart might earn less. However, the national median figure of $3,519 is a good starting point.

Awards and agreements for engineering managers

Most Engineering Managers are not covered by modern awards because they have managerial responsibilities and are usually paid under individual arrangements or enterprise agreements. The Fair Work Ombudsman’s pay guides cover minimum rates for award-covered employees, but engineering managers typically earn well above those floors. The national minimum wage from 1 July 2026 is $26.44 per hour, or $1,004.90 per week – far below the engineering manager median.

Comparing engineering manager salary to other roles

The ABS data shows that the broad Managers occupational group had average weekly total cash earnings of $2,800.90 in May 2025. Engineering managers earn about 26% more than that average. Compared to all occupations (average $1,611.10 per week), engineering managers earn more than double. The median hourly rate for engineering managers is $91, versus $47 for all occupations.

What the data doesn’t tell you

The median figure of $3,519 is from the ABS Survey of Employee Earnings and Hours, May 2025, published by Jobs and Skills Australia. It represents full-time engineering managers. Individual salaries vary with experience, qualifications, company size, and location. A junior engineering manager might earn less, while a senior director in a large firm could earn much more. The figure is a guide, not a quote for a specific job.

Also note that the ABS uses a population of full-time non-managerial employees paid at the adult rate for cross-occupation comparisons, but the occupation data itself includes all full-time engineering managers. So the median is reliable for the occupation.

Key takeaways

• Median full-time engineering manager salary: $3,519 per week (annualised ~$183,000).
• Salary index: 169 – well above the national line of 100.
• Super guarantee (12%): adds ~$21,960 per year.
• Estimated tax (2026–27): ~$53,827 including Medicare levy.
• Take-home pay: ~$2,484 per week.
• Most engineering managers work in Professional Services, Manufacturing, or Construction.
• Pay varies by state and industry; check the states and industries pages for benchmarks.

For more on how salaries compare across Australia, see the Salary Index and topics pages.