Salary Calculator
Australia

A salary calculator for Australia helps you estimate gross and net earnings by considering key factors. It starts with the gross salary, covering base pay, bonuses, and other compensation. Then, it applies the tax rate according to the income amount as well as social security contributions. After deducting all taxes and contributions, the calculator reveals the net salary — the amount the employee takes home.

In Australia, employees contribute 2% to the Medicare levy. On the other hand, employers are obliged to pay a minimum of 11% of an employee's base salary towards superannuation, which is a retirement savings system. Compensation insurance, around 2% of the basic salary, also falls under the employer's costs. Plus, they must incur the costs for annual leave loading (1.35%) and long service leave levies (3.5%). 

Australia uses a progressive tax system, meaning that the higher your income, the more taxes you’ll have to pay. As of 2025, the tax rates for personal income are the following:

-$0 – $18,200 — 0%

-$18,201 – $45,000 — 16%

-$45,001 – $135,000 — 30%

-$135,001 – $190,000 — 37%

-Over $190,000 — 45%

*Note that these rates were accurate at the time of writing. 

Aussie employees enjoy a range of benefits, including at least 20 days of paid leave and 10 days of paid personal/carer's leave per year. Eligible employees can also take up to 18 weeks of unpaid parental leave, with some employers offering paid parental leave as a voluntary benefit. 

In addition, employees are entitled to 2 days of paid compassionate leave per occasion when a family member or household member passes away or is seriously ill. They also have access to 5 days of unpaid family and domestic violence leave annually.

Employees have the right to disconnect from work-related tasks outside work hours and can request flexible work arrangements. Lastly, long service leave is available after a long tenure with the same employer, though the specifics vary by state and territory.

It’s common for employers in Australia to offer additional benefits to attract and retain their employees. Some of these benefits include life and disability insurance, which typically ranges from 0.5% to 0.8% of the employee's salary. Additionally, some employers offer health insurance or discounts on health insurance premiums.

Bonuses and allowances are another common benefit, which is used to reward performance. Moreover, employers often provide skills training and development opportunities to help employees grow professionally. 

In the context of Australia, gross pay is the total amount of money the employee earns before any deductions are taken out. This includes the base salary or wages, as well as any overtime pay, commissions, or tips.

Net pay, on the other hand, is the amount the employee actually receives in their bank account after deductions. These deductions typically include income tax (such as PAYG tax), the Medicare levy, and student loan repayments (like HELP/HECS). Superannuation isn’t a deduction from gross pay but rather a separate payment made by the employer.