2.9 How do I calculate salary and remuneration data?

This section helps you calculate annualised full-time equivalents for an employee’s earnings. This can be:

  • base salary (the employee’s salary before tax, including salary sacrificed items)
  • total remuneration (the base salary plus all bonuses, allowances, superannuation and other benefits).

Including annualised full-time equivalents in your workplace profile helps us compare your employees as if they all worked full-time for the whole reporting period.

Remember that you do not need to calculate equivalents for every part of an employee’s total remuneration. 

Read more on what to include in your calculations and what to leave as an actual amount. 

You can also download the WGEA salary calculator below. 

Salary calculator

This calculator helps organisations convert the salaries of casual, part-time, contract or part-year employees to annualised, full-time equivalent salaries for use in the workplace profile.

Full-time employees

12 months - No conversion is needed. Use the employee’s actual earnings for the 12-month period.

Under 12 months - To calculate the annualised equivalent salary:

  • Divide the employee’s earnings by the number of weeks they worked during the 12-month period. This is the weekly pay rate.
  • Multiply the weekly pay rate by 52 (weeks in a year). This is the annualised equivalent salary.

Part-time employees

12 months (regular days) - To calculate the full-time equivalent salary:

  • Divide the employee’s earnings by the number of days they worked per week.
  • Multiply this number by 5 (the number of days per week for a full-time workload). This is the full-time equivalent salary.

Example:

  1. Employee A earned $45,000, working 3 days a week. $45,000/3 = $15,000.
  2. $15,000 x 5 = $75,000 full-time equivalent salary.

You can use Microsoft Excel to calculate this. Using the screenshot below as a guide, enter:

  • data for each employee in columns A and B
  • number of days in a week in column C
  • formulas in columns D and E, down all rows.

12 months (varying days) - To calculate the full-time equivalent salary:

  • Calculate the employee’s earnings (actual amount paid).
  • Calculate how many days the employee worked in the 12-month period.
  • Calculate how many days a full-time employee would have worked during the same period.
  • Divide the earnings by the total days worked. This is the daily pay rate.
  • Multiply the daily rate by the total full-time days. This is the full-time equivalent salary.

Example:

  1. Employee B earned $30,000.
  2. Employee B worked 188 days: 3 days a week for 20 weeks and 4 days a week for 32 weeks.
  3. A full-time workload is 260 days (5 days x 52 weeks).
  4. $30,000/188 = $159.57 daily rate.
  5. $159.57 x 260 = $41,489 full-time equivalent salary.

Under 12 months - To calculate the annualised full-time equivalent salary:

  1. Divide the total days worked by the total days in a full-time working week to get the full-time equivalent fraction.
  2. Divide the employee’s earnings by the full-time equivalent fraction. This is the full-time equivalent salary.
  3. Divide the number of weeks the employee worked by 52 (the number of weeks in a year).
  4. Divide the full-time equivalent salary by your step 2 result by your step 3 result. This is the annualised full-time equivalent salary.

Example:

  1. Employee C worked 3 days a week, and a full-time workload is 5 days a week. 3/5 = 0.6 full-time equivalent fraction.
  2. Employee C earned $30,000. $30,000/0.6 = $50,000.
  3. Out of 52 weeks in a year, employee C worked 26. 26/52 = 0.5.
  4. $50,000/0.5 = $100,000 annualised full-time equivalent salary.

Casual employees

12 months or less, paid an hourly rate - To calculate the annualised full-time equivalent salary:

  1. Divide the employee’s earnings for the 12-month period by the number of hours they worked in the year. This is their hourly rate.
  2. Calculate how many hours a full-time employee works in a year.
  3. Multiply the casual employee’s hourly rate by the number of full-time hours. This is the annualised full-time equivalent salary. 

Example:

  1. Employee D earned $20,000 over 520 hours in the year. $20,000/520 = $38.46 hourly rate.
  2. A full-time employee works 38 hours a week for 52 weeks, for 1,976 hours a year.
  3. $38.46 x 1,976 = $76,000 annualised full-time equivalent salary.

You can use Microsoft Excel to calculate this, as shown below. Remember to copy the formulas in columns C, F and G into each row. Column G gives each employee’s annualised full-time equivalent salary.

12 months or less, paid a daily rate - To calculate the annualised full-time equivalent salary:

  1. Multiply the employee’s day rate by the number of days a full-time employee works in a week.
  2. Multiply this number by the number of weeks in a year. This is your annualised full-time equivalent salary.

Example:

  1. Employee E’s day rate is $300, and a full-time employee works 5 days a week. $300/5 = $1,500 full-time equivalent salary.
  2. $1,500 x 52 weeks in a year = $78,000 annualised full-time equivalent salary.

Employment status changes

12 months - An employee may have had more than one employment status during the 12-month period, such as changing from:

  • part-time to full-time
  • casual to part-time
  • full-time to part-time.

To calculate the full-time equivalent salary:

  1. Determine the employee’s earnings for the 12-month period.
  2. Calculate the number of hours the employee worked.
  3. Calculate how many hours are in a full-time working week.
  4. Divide the total full-time hours by the hours the employee worked, and multiply that number by the earnings. This is the full-time equivalent salary.

Example:

  1. Employee F earned $50,000 dollars during the period.
  2. Employee F worked casually at 10 hours a week over 12 weeks, then full-time at 40 hours a week for 40 weeks, for a total of 1,720 hours.
  3. A full-time employee works 40 hours a week. This is 2,080 hours over 52 weeks.
  4. 2,080/1,720 x $50,000 = $60,465 full-time equivalent salary.

Under 12 months

To calculate the full-time equivalent salary:

  1. Determine the employee’s earnings for the period they worked.
  2. Calculate the number of hours the employee worked.
  3. Calculate how many hours a full-time employee would work in that same period.
  4. Divide the total full-time hours by the hours the employee worked, and multiply that number by the earnings. This is the full-time equivalent salary.

Then, to annualise the full-time equivalent salary:

  1. Divide the number of weeks the employee worked by the number of weeks in a year. This is the annualised fraction.
  2. Divide the full-time equivalent salary by the annualised fraction. This is your annualised full-time equivalent salary.

Example:

  1. Employee G earned $25,000 over the 26 weeks they worked.
  2. Employee G worked casually at 10 hours a week over 12 weeks, then full-time at 40 hours a week for 14 weeks, for a total of 680 hours.
  3. A full-time employee works 40 hours a week. This is 1,040 hours over 26 weeks.
  4. 1,040/680 x $25,000 = $38,235 full-time equivalent salary.

To annualise this:

  1. 26/52 = 0.5 annualised fraction.
  2. $38,235/0.5 = $76,470 annualised full-time equivalent salary.