Employment & leave Australia
Salary to Hourly Calculator Australia
Converting a salary to an hourly rate sounds simple, but there are two answers. Divide by every paid hour and you get one figure; divide by only the hours you actually work, after leave and public holidays, and you get a higher one. Enter your salary and hours to see both.
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Four weeks of annual leave is 20 days, plus the public holidays that fall on weekdays where you live, which vary by state and year.
Hourly rate on paid hours
—Hourly rate on hours worked
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Daily
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Weekly
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Fortnightly
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Monthly
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The working
How do I convert a salary to an hourly rate?
Divide the salary by the hours you are paid for in a year: hours a week times 52. $85,000 on 38 hours a week is $43.02 an hour on paid hours. If you take 28 paid days off, you actually work fewer hours, and the rate for the hours worked is $48.21. Use the second figure to compare with contractor or casual rates.
Two ways to see the same pay
Salary is a package: a year's pay for a year's work, including the weeks you do not work. Hourly pay prices each hour of work, and a casual or contract worker must include the time off in the rate. That is why a salary that looks like $43 an hour on paid hours is closer to $48 an hour on hours worked.
Using the numbers
Use the paid-hours rate when you compare salaried jobs, the hours-worked rate when you compare a salary with a contract or casual offer, and the daily rate to price a day of work. Remember employer retirement contributions and other benefits are on top of salary, so add them when you compare totals.
To go the other way, use the hourly to annual salary calculator.
How this is calculated
The rule, step by step, so you can check any figure by hand.
hourly rate on paid hours = salary ÷ (hours a week × 52)hours worked = (260 − paid days off) × hours a week ÷ 5hourly rate on hours worked = salary ÷ hours workeddaily = salary ÷ 260; weekly = salary ÷ 52; fortnightly = salary ÷ 26; monthly = salary ÷ 12
An employee is paid for annual leave, sick leave and public holidays, so the paid-hours rate is the right figure for comparing one salary with another. A contractor or casual worker is not paid for time off, so to compare fairly with a salary, use the hourly rate on hours worked, which is higher.
The tool uses 260 working days a year, which is 52 weeks of five days. Four weeks of annual leave is 20 days, plus the public holidays that fall on weekdays where you live, which vary by state and year. Salary here is before tax: use the take-home pay calculator to see what you receive.
A worked example
A salary of $85,000, 38 hours a week, 28 paid days off.
- Hourly rate on paid hours$43.02
- Hours worked a year1,763
- Hourly rate on hours worked$48.21
- Daily$326.92
- Monthly$7,083.33
$43.02 paid, $48.21 worked.
Use the worked figure to compare with a contractor rate.
Overtime and unpaid breaks
If your hours include unpaid breaks, enter only the paid hours. Overtime, penalty rates and allowances are not part of a base salary and are not included. Use the overtime calculator for extra hours.
What it leaves out
Tax, retirement contributions and leave loading are not modelled. A leap year or an unusual number of public holidays shifts the figures slightly.
What this calculator does not do
- Before tax
- Five-day working weeks
- Paid days off are your input
- General information, not advice
Common questions
How do I convert salary to hourly?
Divide by hours a week times 52.
Why are there two hourly rates?
One divides by paid hours, the other only by hours worked.
Which rate should I use to compare with a contractor?
The hourly rate on hours worked.
How many working days are in a year?
About 260, before leave and public holidays.
Is the rate before tax?
Yes.
Where these numbers come from
- Fair Work Ombudsman — hours of work and leave The National Employment Standards on hours and four weeks of annual leave
Method last reviewed 2026-10-28 This calculator uses fixed rules rather than rates that change, and its method is re-checked against the sources above at least once a year. Out of date? Tell us and we will fix it.
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