What Is Gross Annual Salary and Where Does It Sit on the Australian Salary Index?
Gross annual salary is your total yearly pay before tax. See how it compares to the national benchmark of $108,352 and where your state or industry ranks on the index.
The national benchmark for full-time adult ordinary-time earnings is $108,352 per year (index 100), so a gross annual salary below that sits below average, while above it pushes the index higher.
What is gross annual salary?
Gross annual salary is the total amount of money you earn from your employer in a year before any tax or other deductions are taken out. It’s the figure you see on your employment contract, in job advertisements, and on your annual PAYG payment summary. It includes your base wage or salary, plus any overtime, bonuses, commissions, allowances, and penalty rates. It does not include employer superannuation contributions, which are paid on top of your salary at the current rate of 12% (from 1 July 2026).
Understanding your gross annual salary is the first step to knowing where you sit in the Australian pay landscape. The Salary Index uses this figure to give you a simple number that compares your earnings to the national average for full-time adult workers.
The national line: index 100
The Australian Bureau of Statistics (ABS) reports average weekly ordinary time earnings for full-time adults. In May 2026, that figure was $2,083.70 per week. Annualised (multiplied by 52), that comes to $108,352. This is the benchmark for the Salary Index – an index of 100 means you earn exactly the national average for full-time ordinary-time earnings.
If your gross annual salary is below $108,352, your index is under 100. If it’s above, your index is over 100. For example, the national minimum wage from 1 July 2026 is $26.44 per hour, or $1,004.90 per week, which annualises to about $52,255. That gives an index of 48.2 – less than half the national line.
How to use the index with your gross annual salary
To find your own index, divide your gross annual salary by $108,352 and multiply by 100. A salary of $80,000 gives an index of 73.8. A salary of $150,000 gives an index of 138.5. You can then compare your index to the averages for your state or industry.
State comparisons
Where you live makes a difference. The ABS data shows that full-time adult ordinary-time earnings vary across states and territories. Here are the annualised figures and their indices:
- Australian Capital Territory: $119,090 – index 109.9
- Western Australia: $115,825 – index 106.9
- New South Wales: $109,658 – index 101.2
- Victoria: $106,137 – index 98.0
- Queensland: $106,064 – index 97.9
- Northern Territory: $103,173 – index 95.2
- South Australia: $102,450 – index 94.6
- Tasmania: $96,008 – index 88.6
If you earn a gross annual salary of $100,000 and live in Tasmania, your index of 92.3 is actually above the state average of 88.6. But if you live in the ACT, the same salary gives an index of 92.3, which is below the ACT average of 109.9. You can explore more on the states page.
Industry comparisons
Your industry also matters. The ABS breaks down earnings by industry for full-time adults. Annualised figures and indices for selected industries:
- Mining: $167,658 – index 154.7
- Professional, scientific and technical services: $124,259 – index 114.7
- Education and training: $114,291 – index 105.5
- Health care and social assistance: $105,934 – index 97.8
- Retail trade: $82,243 – index 75.9
- Accommodation and food services: $78,515 – index 72.5
If you work in retail with a gross annual salary of $70,000, your index of 64.6 is below the industry average of 75.9. In mining, the same $70,000 would be far below the industry average. See more on the industries page.
Minimum wages and awards
Not everyone is paid the national average. Many workers are covered by modern awards or enterprise agreements that set minimum pay rates. The Fair Work Ombudsman publishes the national minimum wage, which from 1 July 2026 is $26.44 per hour or $1,004.90 per week. That annualises to $52,255 (index 48.2).
Awards often have higher minimum rates. For example, the entry-level rate in many awards is $25.74 per hour. Award minimum wages rose by 4.75% from 1 July 2026, as decided by the Fair Work Commission’s Annual Wage Review. The Commission also maintains a Modern Awards Pay Database that lists the exact minimum rates, allowances, and penalty rates for each award classification.
If you are a junior employee, the national minimum wage has set percentages based on age. For example, a 16-year-old earns $12.51 per hour (47.3% of the adult rate), while a 20-year-old earns $25.83 per hour (97.7%). Awards may set different junior rates, so always check the applicable award.
Tax and super on your gross annual salary
Your gross annual salary is the starting point for tax calculations. For the 2026–27 income year, resident tax rates (excluding Medicare) are:
- $0 – $18,200: nil
- $18,201 – $45,000: 15% on the excess over $18,200
- $45,001 – $135,000: 30% on the excess over $45,000
- $135,001 – $190,000: 37% on the excess over $135,000
- $190,001 and over: 45% on the excess over $190,000
Plus a 2% Medicare levy (unless you qualify for a reduction or exemption). Your take-home pay is your gross annual salary minus these deductions. For a quick estimate, you can use the how the index works page to see example net figures.
Superannuation is separate. Your employer must pay 12% of your ordinary time earnings into your super fund, up to the maximum contribution base of $270,830. This is on top of your gross annual salary, not deducted from it.
Why gross annual salary matters for the index
The Salary Index is built on gross annual salary because it’s the most consistent and widely reported measure. Net pay varies too much with individual tax situations, salary sacrifice, and family circumstances. By using gross figures, the index gives you a fair comparison to the national line.
Whether you are negotiating a raise, changing jobs, or just curious, knowing your gross annual salary and its index helps you see where you stand. You can explore more topics on the topics page.
Questions people ask
What does gross annual salary include?
Gross annual salary is the total amount you earn from your employer in a year before any deductions. It includes your base wage or salary, plus any bonuses, commissions, overtime, allowances, and penalty rates. It does not include employer superannuation contributions (which are extra) or any salary-sacrificed amounts that reduce your taxable income. When you see a job advertised as $80,000 per year, that is the gross annual salary.
How is gross annual salary different from net pay?
Net pay (or take-home pay) is what you actually receive after deductions. From your gross annual salary, your employer withholds Pay As You Go (PAYG) tax based on the tax tables, plus the 2% Medicare levy (unless you qualify for an exemption or reduction). Other deductions may include HELP or HECS-HELP repayments, salary sacrifice arrangements, and any court-ordered garnishments. For example, a gross salary of $80,000 might result in net pay around $62,000 after tax and Medicare, depending on your circumstances.
How do I calculate my salary index from my gross annual salary?
The Salary Index compares your gross annual salary to the national line of $108,352 (full-time adult ordinary-time earnings as of May 2026). Divide your annual salary by $108,352 and multiply by 100. For example, a $90,000 salary gives an index of 83.1, meaning you earn about 83% of the national benchmark. A $130,000 salary gives an index of 120.0. You can then compare your index to state and industry averages to see where you stand.