38 per hour annual salary: How it compares to the national minimum wage and average earnings

38 per hour annual salary: a practical check

If you are earning $38 per hour and want to know how that compares with Australia’s legal pay floors, you have come to the right place. This guide separates the legal minimum from a survey average, an award rate, and a negotiated salary. It also explains the role of superannuation and tax.

The legal minimum: national minimum wage

For employees not covered by a modern award or enterprise agreement, the national minimum wage from 1 July 2026 is $26.44 per hour or $1004.90 per week for 38 ordinary hours. The Fair Work Commission sets this rate each year in its Annual Wage Review. The Fair Work Ombudsman explains and enforces it. At $38 per hour you are earning about 44% above this floor.

However, the national minimum does not apply to everyone. Juniors, apprentices, trainees, and employees with disability may be paid less under special national minimum wages. For example, an award‑free junior aged 18 is entitled to $18.06 per hour (68.3% of the adult rate). Always check your age and employment type.

Award and agreement rates can be higher

Most employees are covered by a modern award or an enterprise agreement. These instruments often set minimum rates above the national minimum. For instance, the lowest ongoing classification in a modern award cannot fall below $26.44 per hour, but many classifications are higher. Introductory rates (limited to the first six months) can be as low as $25.74 per hour. If you are under an award, use the Fair Work Ombudsman’s Pay and Conditions Tool or check the Modern Awards Pay Database from the Fair Work Commission to find your exact rate.

An enterprise agreement negotiated with your employer and employees can also set higher rates. Your $38 per hour may already be above the award minimum, but it is wise to confirm.

How $38 per hour compares with average earnings

The Australian Bureau of Statistics (ABS) reported in May 2026 that full‑time adult ordinary‑time earnings averaged $2,083.70 per week, or about $54.83 per hour based on 38 hours. All employees (including part‑time and casual) averaged $1,579.20 per week. At $38 per hour, your weekly pay for 38 hours is $1,444, which is below the full‑time average but above the all‑employees average. Remember that averages include higher‑paid workers, so your rate may still be competitive in many industries.

Superannuation is on top

Employers must pay superannuation guarantee contributions of 12% of your ordinary time earnings. On $38 per hour, that is an extra $4.56 per hour paid into your super fund. This is not deducted from your $38; it is an additional cost to the employer. Your total remuneration package is therefore $38 + $4.56 = $42.56 per hour in base pay plus super.

Tax considerations

Your $38 per hour annual salary of about $75,088 (38 hours × 52 weeks) is subject to PAYG withholding. For the 2026–27 tax year, resident rates with the full tax‑free threshold apply. Medicare levy of 2% applies once annualised ordinary gross pay exceeds $30,000. The low‑income tax offset and other offsets may reduce your tax, but this guide does not provide tax advice. Use the ATO’s tax calculator for a precise estimate.

What if you are casual?

Casual employees receive a 25% loading on top of the minimum rate. The casual national minimum wage is $33.05 per hour. At $38 per hour you are above that too. However, casuals under awards may have different loadings or penalty rates.

Summary

• $38 per hour is well above the national minimum wage of $26.44 per hour.
• Your award or agreement may set a higher minimum; check your instrument.
• The average full‑time hourly rate is about $54.83, so $38 is below that average.
• Super is paid on top at 12%.
• Tax is deducted from your gross pay.

For more details, see Which minimum wage applies and Rate tables.

Frequently Asked Questions

(FAQs are listed above in the faqs array.)

For the published floors, see the rate tables and how the figures work.