At $38 an hour on a full-time 38-hour week, you earn $75,088 a year before tax in Australia. After income tax of $13,314.40 and the $1,501.76 Medicare levy, you keep $60,271.84 a year, or $1,159.07 a week. That is $30.50 of every hour worked actually landing in your bank account.
This guide works through the full calculation, shows what part-time and casual arrangements pay at $38 an hour, and explains how overtime and penalty rates change the result. To model your own hours and rate, use the hourly to salary calculator or the $38 an hour page.
From $38 an hour to $75,088 a year
The standard full-time week in Australia is 38 hours, so the annual figure is $38 × 38 hours × 52 weeks = $75,088. If you work a 40-hour week, the same rate is $79,040 a year. If you work part-time, scale it down: 24 hours a week at $38 an hour is $47,424 a year, and 30 hours is $59,280 a year.
| Hours per week | Annual salary | Take-home pay |
|---|---|---|
| 20 hours | $39,520 | $35,318 |
| 24 hours | $47,424 | $41,460 |
| 30 hours | $59,280 | $49,522 |
| 38 hours (full-time) | $75,088 | $60,272 |
| 40 hours | $79,040 | $62,959 |
The part-time figures use the same 2025–26 resident tax rates and 2% Medicare levy, with no HECS repayment or salary sacrifice. They show why hours matter as much as rate: dropping from 38 to 30 hours at $38 an hour costs about $10,749 a year in take-home pay.
The tax calculation, bracket by bracket
The 2025–26 resident rates are: 0% up to $18,200, 16% from $18,201 to $45,000, 30% from $45,001 to $135,000, 37% from $135,001 to $190,000, and 45% above $190,000. On $75,088, the calculation is:
| Income slice | Rate | Tax on this slice |
|---|---|---|
| $0 – $18,200 | 0% | $0 |
| $18,201 – $45,000 ($26,800) | 16% | $4,288.00 |
| $45,001 – $75,088 ($30,088) | 30% | $9,026.40 |
| Total income tax | $13,314.40 |
Add the Medicare levy of 2% of $75,088, which is $1,501.76, and total deductions are $14,816.16. Take-home pay is $60,271.84 a year: $1,159.07 a week, $2,318.15 a fortnight and $5,022.65 a month. Your effective tax rate is 19.7%, while your marginal rate is 30% — every extra dollar up to $135,000 is taxed at 30% plus 2% Medicare levy, so you keep 68 cents of each overtime dollar.
Your employer also pays superannuation on top of your hourly rate. At the 12% guarantee rate, a full-time $38-an-hour worker receives $9,010.56 a year in super, taking the total package to $84,098.56 before tax. Casual workers receive the same 12% super on their ordinary time earnings, though overtime and some allowances may be excluded depending on the award.
What $38 an hour pays as a casual
Casual workers receive a 25% loading in place of paid leave and other permanent entitlements. A casual rate equivalent to a $38 permanent rate is $47.50 an hour. Over a full-time pattern of 38 hours a week, that is $93,860 a year before tax — but casual hours are not guaranteed, and weeks without work mean weeks without pay.
On $93,860, income tax is $18,946 and the Medicare levy is $1,877.20, leaving take-home pay of $73,036.80 a year, or $1,404.55 a week in a full 38-hour week. The trade-off is security: permanent workers on $38 an hour get four weeks of paid annual leave, ten days of paid personal leave and paid public holidays, while casuals are paid only for hours worked. Use the casual loading calculator to compare the two arrangements for your situation.
For context, $38 an hour is well above the national minimum wage of $26.44 an hour from 1 July 2026 (casual minimum $33.05 an hour). It sits in the range of many trades, experienced retail and hospitality supervisors, aged care workers with qualifications, and entry-level professional roles.
Overtime and penalty rates at $38 an hour
Overtime and penalty rates can lift weekly earnings substantially, though the exact multipliers depend on your award or enterprise agreement. Common patterns include time-and-a-half ($57 an hour) for the first overtime hours and double time ($76 an hour) thereafter, with weekend and public holiday loadings on top. A worker on $38 an hour who picks up five overtime hours a week at time-and-a-half adds $285 a week before tax — about $194 a week after tax at the 30% marginal rate plus Medicare levy.
Remember that overtime is taxed at your marginal rate, not at a special overtime rate. The extra income pushes your annual total higher, and if it pushes you past $135,000 the slice above that threshold is taxed at 37%. Model extra hours with the overtime calculator before committing to a roster change.
Is $38 an hour a good wage in Australia?
For a single person, $1,159 a week after tax is a workable income in most Australian cities, though Sydney and Melbourne rents will absorb a large share. For a couple, or as part of a dual income, it is comfortable. As a sole household income supporting a family, it requires careful budgeting, particularly around housing and childcare.
The comparison that matters most is against your own costs: $5,022.65 a month after tax covers a modest rent, transport, food and bills in Brisbane, Perth, Adelaide or regional areas with room to save. In inner Sydney or Melbourne, the same income demands tighter housing choices. If you are weighing a job offer at $38 an hour against a salaried role, compare the full package — super, leave entitlements, penalty rates and job security — not just the headline rate.
How $38 an hour compares with nearby rates
Small differences in hourly rate compound into large annual differences, because every extra dollar an hour is worth $1,976 a year before tax on a full-time pattern. At $35 an hour, full-time annual pay is $69,160 and take-home pay is about $56,241. At $38 an hour, you earn $75,088 and keep $60,272. At $40 an hour, annual pay is $79,040 and take-home pay is about $62,959. And at $45 an hour, annual pay reaches $88,920 with take-home pay of roughly $69,678. Each $1 an hour step is worth about $1,350 a year after tax at these levels, so a $2 or $3 raise is worth negotiating firmly.
The comparison also depends on what sits behind the rate. A $38 an hour permanent role with paid leave, sick leave and penalty rates can be worth more than a $42 an hour casual role with no leave and variable hours, once you price in four weeks of paid annual leave and the risk of quiet weeks. Similarly, a role with regular overtime at penalty rates can out-earn a higher base rate with no overtime available. When comparing offers, convert everything to annual take-home pay including super and leave, not just the headline hourly figure.
Finally, consider the path, not just the rate. Some $38 an hour roles lead to $48 or $55 an hour within a few years through qualifications, tickets or experience, while others plateau. If the role includes paid training, a clear progression or a skill shortage premium, its long-term value may exceed a slightly higher rate in a dead-end position. Check the award rate for your classification too — many workers are paid above award without realising their minimum entitlement has risen, and underpayment is common in hospitality, retail and care work.
Frequently asked questions
How much is $38 an hour after tax in Australia?
Full-time at 38 hours a week, $38 an hour is $75,088 a year before tax and $60,271.84 after tax and Medicare levy in 2025–26 — $1,159.07 a week, $2,318.15 a fortnight and $5,022.65 a month.
What is $38 an hour a year?
$38 an hour × 38 hours × 52 weeks = $75,088 a year. On a 40-hour week it is $79,040 a year.
How much is $38 an hour casual?
With the 25% casual loading, the equivalent casual rate is $47.50 an hour. Over a full 38-hour week that is $1,805 a week before tax, or about $1,405 a week after tax.
Is $38 an hour good in Australia?
Yes, it is well above the $26.44 national minimum wage and supports a comfortable life for a single person or as part of a dual income in most cities, though housing costs in Sydney and Melbourne can make it tight for a single-income household.
How much tax do I pay on $38 an hour?
Full-time, you pay $13,314.40 in income tax plus a $1,501.76 Medicare levy, for total deductions of $14,816.16 a year. Your effective rate is 19.7% and your marginal rate is 30%.
Does overtime change my $38 an hour take-home pay?
Yes. Overtime is usually paid at penalty rates under your award, and the extra income is taxed at your 30% marginal rate plus 2% Medicare levy. Five hours a week at time-and-a-half adds roughly $194 a week after tax.
Conclusion
$38 an hour full-time means $75,088 a year, $60,271.84 in hand, and $30.50 kept from every hour worked. The rate is solidly above the minimum wage, the super on top adds $9,010.56 a year, and overtime at penalty rates can lift weekly pay meaningfully. Run your exact hours, including casual loading or overtime, through the hourly to salary calculator to get your personal figure.