What Net Pay Means on a Payslip
A payslip works from the top down. It starts with gross pay, everything you earned in the pay period: ordinary hours, overtime, penalties, allowances, leave and any bonus. It then subtracts the tax withheld (PAYG withholding, which includes the Medicare levy), any HELP or study loan amount, and any other deductions you have agreed to. What is left is net pay. Your employer’s super contribution is listed too, but it goes to your fund on top of your wages and is not part of net pay (Fair Work Ombudsman).
This calculator starts from the numbers you know, your hourly rate and your hours, rather than an annual salary. If you have a salary, the take-home pay calculator gives the year-end view, and the gross vs net pay page explains each term in detail.
Net Pay Per Hour at Common Hourly Rates
The table shows what a full-time week of 38 hours pays after tax at each rate, paid fortnightly, and what each hour is really worth once tax is withheld.
| Hourly rate | Gross a fortnight | Tax withheld | Net a fortnight | Net per hour |
|---|---|---|---|---|
| $25.00 | $1,900 | $244 | $1,656 | $21.79 |
| $30.00 | $2,280 | $366 | $1,914 | $25.18 |
| $35.00 | $2,660 | $488 | $2,172 | $28.58 |
| $40.00 | $3,040 | $610 | $2,430 | $31.97 |
| $50.00 | $3,800 | $854 | $2,946 | $38.76 |
| $60.00 | $4,560 | $1,096 | $3,464 | $45.58 |
| $80.00 | $6,080 | $1,646 | $4,434 | $58.34 |
38 ordinary hours a week, resident, tax-free threshold claimed, no HELP debt, no deductions. Withholding from the ATO’s 2026-27 Schedule 1 tables (ATO), read 23 September 2026.
The share you keep shrinks as the rate rises, because each higher band is taxed at a higher rate. The marginal rate on your next dollar is on the marginal tax rates page.
Worked Example: $40 an Hour, 38 Hours, Paid Fortnightly
- Gross: $40 × 38 hours × 2 weeks = $3,040.00.
- PAYG withholding (tax and Medicare levy), tax-free threshold claimed: $610.00.
- Net pay: $3,040.00 − $610.00 = $2,430.00, or $31.97 for each of the 76 hours.
- Employer super on top: $364.80, paid to the fund and not part of net pay.
For a casual on $30 an hour base plus 25% loading for 20 hours a week, gross is $750.00 a week and net is $676.00. See the casual loading calculator for how the loading compares with permanent pay.
Why Your Net Pay Can Be Lower Than Expected
| Cause | Effect on the $40 an hour example (fortnightly) |
|---|---|
| Tax-free threshold claimed (the default for your main job) | Net $2,430 |
| Threshold not claimed, as on a second job | Net $2,210, $220 less |
| A HELP or study loan | Net $2,374, $56 less |
| No tax file number given to your employer | Withholding at 47% for residents |
Each row changes one thing against the first. The tax withheld is an estimate; any over-withholding is refunded when you lodge your return.
The second-job case is common: only one employer should apply the tax-free threshold. See the second job tax calculator and the TFN declaration guide. If a HELP debt is the cause, the HECS-HELP calculator shows the repayment, and STSL on your payslip explains the line.
Checking Your Payslip Against the Calculator
Work out your gross for the pay period first: hours paid × rate, plus any penalties, overtime or allowances on the payslip. Then compare the tax withheld with the ATO table for that gross. If your payslip shows less net than the calculator, look at the deductions listed between gross and net; if the gross is lower than expected, check the hours and rate, then your award’s minimum with the award rates and penalty rates guide. For a line-by-line walk through a payslip see understanding your payslip, and to produce a sample payslip use the payslip generator.
Related Calculators and Guides
- Take-Home Pay Calculator: annual salary to net pay, with HELP and super
- Gross Pay Calculator: work back from the net pay you want
- Fortnightly Pay Calculator: tax on each fortnight’s pay
- Tax Withheld Calculator: PAYG withholding each pay
- Hourly to Annual Salary Calculator: your rate as a yearly figure
Frequently Asked Questions
Net pay questions and answers
What is net pay?
Net pay is the amount that is paid into your bank account after tax and every other deduction have been taken out of your gross pay. It is the 'net pay' line at the bottom of your payslip. Employer super is paid on top and is not part of either gross or net pay.
How do I calculate net pay from my hourly rate?
Multiply your hourly rate by the hours you are paid for to get gross pay, then subtract the tax withheld (PAYG withholding, which includes the Medicare levy), any HELP amount, and any after-tax deductions such as union fees. The calculator above does this using the ATO's 2026-27 weekly, fortnightly and monthly tax tables.
What is the difference between net pay and take-home pay?
On a payslip they mean the same thing: the money that reaches your account. 'Take-home pay' is more often used for the annual figure after tax in a salary calculator, while 'net pay' is the figure for one pay period. The two can differ slightly because withholding during the year is an estimate and your final tax is settled when you lodge your return.
Why is my net pay lower than the calculator shows?
The usual causes are: you did not claim the tax-free threshold or have a second job (so more tax is withheld), you have a HELP/HECS-HELP or other study loan, you have not given your employer a tax file number declaration (the withholding rate without one is 47% for residents), you salary sacrifice, or you have after-tax deductions such as union fees. Check each line on your payslip.
Is net pay the same each pay?
Not always. Net pay changes when your gross changes (hours, overtime, penalty rates, leave, a bonus) and when your tax changes. A pay containing a bonus or back pay is often withheld using a different ATO method, which can take proportionally more tax than a normal pay.
How much of an hour's pay do I keep after tax?
It depends on your income. On $40 an hour for 38 hours a week you keep about 80c in the dollar, or about $32 an hour; at $80 an hour you keep about 73c. The more you earn, the smaller the share, because higher bands are taxed at higher rates. The table on this page shows net pay per hour at common hourly rates.
Does casual loading count as part of my gross pay?
Yes. Casual loading, usually 25% on top of the base hourly rate, is part of your gross pay and is taxed like the rest of your wages. If your payslip hourly rate already includes the loading, enter that rate and leave the casual loading box unticked.
Is super included in net pay?
No. Your employer pays superannuation guarantee contributions to your super fund on top of your wages. It is shown on your payslip but is not deducted from your pay and is not part of net pay. If you choose to salary sacrifice extra into super, that comes out of your pay before tax and reduces your net pay.
What if I want a specific net pay and need to know the gross?
Use the gross pay calculator, which works backwards from the net amount you want to the gross pay that delivers it. This page works forward from your hourly rate and hours.
How we worked this out▼
Gross pay = hourly rate (plus 25% casual loading if selected) × hours a week × weeks in the pay period (1 for weekly, 2 for fortnightly, 52 ÷ 12 for monthly). Tax withheld is calculated with the ATO’s Schedule 1 coefficients for 2026-27, using the scale for claiming or not claiming the tax-free threshold, plus the Schedule 8 study and training loan amount if selected. Salary sacrifice reduces the amount tax is calculated on; other deductions come off after tax. Net pay = gross − salary sacrifice − withholding − other deductions. Net per hour = net pay ÷ hours paid in the period.
Assumes an Australian resident for tax purposes and regular salary and wages. Withholding is an estimate and does not include bonuses or back pay, which are withheld by a different method, or any offsets or deductions you claim at tax time. General information, not advice.
Sources & References
- 1Pay slips: what a pay slip must show— Fair Work Ombudsman
- 2Schedule 1: statement of formulas for calculating amounts to be withheld— Australian Taxation Office
Last verified: 23 September 2026. Our content is based on the latest information from official Australian government sources.
Anita Bell
AuthorFounder & Senior Bookkeeper
Accountancy degree (2015); certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One
Anita Bell earned her accountancy degree in 2015 and has worked as a senior bookkeeper with Prime Bookkeeping for over 5 years. This built her skills in Australian and New Zealand tax legislation and industry regulations. She is certified in Xero, QuickBooks Online, MYOB, Saasu, Zoho and Reckon One, and works with payroll and rostering software including Gusto, Deputy, Tsheets and KeyPay. She has strong experience in hospitality, building and construction, financial services, real estate, ecommerce, and medical and health services.
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