If two friends both earn "$80,000 a year," but one gets paid weekly and the other monthly, do they actually take home the same amount each pay? What if one of them is paid by the hour — how would you even compare them? Before we touch any formulas, think about what it actually means to earn money "per hour" vs "per year."
Type your initial response below — you will revisit this at the end of the lesson.
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Key Relationships — This Lesson
$\text{Weekly wage} = r_h \times h$
$r_h$ = hourly rate ($/hr) | $h$ = hours worked per week
$A = W \times 52$
$A$ = annual salary ($) | $W$ = weekly pay ($) | 52 weeks per year
$F = A \div 26 \qquad M = A \div 12$
$F$ = fortnightly pay | $M$ = monthly pay | 26 fortnights, 12 months per year
To reverse-calculate hourly rate: $r_h = A \div 52 \div h$ |
Convert to annual first, then to any target period
Know
The difference between a wage and a salary
The key conversion formulas: weekly, fortnightly, monthly, annual
That there are 52 weeks, 26 fortnights and 12 months in a year
That "monthly pay = weekly × 4" is incorrect
Understand
Why all pay period conversions flow through annual salary
How to identify the pay unit given and the pay unit required
Why some months have 5 weeks and the impact on conversions
Can Do
Calculate weekly, fortnightly, monthly and annual pay from any given rate
Reverse-calculate an hourly rate from an annual salary
Compare two job offers expressed in different pay units
Misconceptions to Fix
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Wrong: Weekly pay is always hourly rate multiplied by 40 hours.
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Right: Weekly pay depends on the actual hours worked, including overtime, penalty rates, and allowances which increase the hourly rate for specific times.
Core Content
Key Terms
Hourly RateThe amount paid per hour of work.
Annual SalaryTotal yearly earnings, usually paid in equal portions each pay period.
Pay PeriodThe regular interval at which wages are paid (weekly, fortnightly, monthly).
Gross PayTotal earnings before any deductions are taken out.
Net PayThe amount received after all deductions have been subtracted from gross pay.
Wages vs Salaries — What's the Difference?
A wage varies with hours worked; a salary is fixed regardless of hours.
A wage earner is paid per hour. If they work more hours, they earn more; if they work fewer, they earn less. A salary earner receives the same total pay each year no matter how many hours they work.
In Australia, wages are common in casual and part-time roles (retail, hospitality, trades), while salaries are more common in professional and management positions. Both are quoted in different time units — hourly, weekly, fortnightly, or annually — but they all describe the same thing: how much a person earns. The skill in this topic is converting confidently between these units.
Feature
Wage
Salary
Pay basis
Per hour worked
Fixed annual amount
More hours = more pay?
Yes
No
Common in
Retail, hospitality, trades
Professional, management roles
Quoted as
$/hr or $/week
$/year (per annum)
Unit check: Always identify the unit of pay given and the unit asked for before writing any formula. Mixing annual and weekly values is the most common source of errors.
Common error — Months ≠ 4 weeks: Many students multiply weekly pay by 4 to get monthly pay. This gives the wrong answer — use $\div 12$ on the annual figure instead, because some months have 5 weeks.
Insight: A fortnight is exactly 2 weeks, so there are 26 fortnights in a year (not 24). Always use 26, not 24.
Converting Between Pay Periods
All pay period conversions flow through the annual salary as a common "hub."
The cleanest method is to always convert to annual first, then to the target period. For example: to convert a weekly wage to a fortnightly rate, multiply by 52 to get annual, then divide by 26. This avoids rounding errors that build up when converting directly.
From → To
Operation
Hourly → Weekly
× hours per week
Weekly → Annual
× 52
Annual → Weekly
÷ 52
Annual → Fortnightly
÷ 26
Annual → Monthly
÷ 12
Fortnightly → Annual
× 26
Annual salary is the central hub — convert through it to avoid rounding errors.
State the number of hours per week: Hourly → weekly conversions require the number of hours worked per week. If it is not given, you cannot complete the conversion — re-read the question.
Common error — Don't use 48 weeks: Some students subtract holidays (4 weeks) and use 48 weeks per year. Unless the question specifically says this, always use 52.
Reading Pay Information in Context
Real pay problems often give information in mixed units — your job is to standardise before comparing.
HSC questions often describe a job offer using a combination of units — for example, "$24.50 per hour for 38 hours per week" or "a salary of $67,600 per annum." Before doing any calculation, identify:
What unit is given
What unit is needed
Which formula bridges them
A common exam scenario asks you to compare two job offers expressed in different units. Always convert both to the same unit (annual is usually easiest) before comparing. Round only at the final step to maintain accuracy.
Round at the end only: Carry full decimal values through intermediate steps. Only round the final answer, and follow the question's rounding instruction (nearest cent, nearest dollar, etc.).
Common error — Salary ≠ take-home pay: The figures in this lesson are gross (before tax). Do not confuse annual salary with what a person actually receives — deductions are covered in later lessons.
Compare Like With Like
The best way to compare job offers is to put both options into the same unit before making any judgement.
In this topic, annual income is usually the best comparison unit because it lets you compare hourly jobs, weekly wages, fortnightly pay, and salaries on the same scale. Once both options are annualised, the comparison becomes simple.
Identify the unit given in each option
If a rate is hourly, calculate weekly pay first using the hours worked
Convert each option to annual pay
Compare the annual amounts
Write a conclusion in words, including how much more one option pays
Reasonableness check: If a job pays about $25 per hour for about 40 hours per week, the weekly pay should be about $1,000 and the annual pay should be about $52,000. Use mental estimates to catch calculator mistakes.
Exam technique: Even when the question only asks "Which job is better?", markers want to see both converted amounts and a clear statement like "Job A pays $3,120 more per year than Job B."
Worked Examples
Worked Example 1Hourly → Annual
Problem
Priya works 38 hours per week at $26.40 per hour. Calculate her annual income.
Solution
1$\text{Weekly income} = \$26.40 \times 38 = \$1{,}003.20$Multiply hourly rate by hours per week
2$\text{Annual income} = \$1{,}003.20 \times 52 = \$52{,}166.40$Multiply weekly income by 52 weeks
3$\text{Answer} = \$52{,}166.40 \text{ per year}$State units clearly in the final answer
Worked Example 2Annual → Fortnightly
Problem
Marcus earns an annual salary of $84,500. What is his fortnightly pay? Give your answer to the nearest cent.
Solution
1$\text{Fortnightly pay} = \$84{,}500 \div 26$There are 26 fortnights in a year
2$= \$3{,}250.00$Perform the division — this divides evenly
3$\text{Answer} = \$3{,}250.00 \text{ per fortnight}$No rounding needed here; state the unit
Worked Example 3Comparing Job Offers
Problem
Job A pays $58,240 per year. Job B pays $23.20 per hour for 40 hours per week. Which job pays more annually?
Solution
1$\text{Job A} = \$58{,}240 \text{ per year (already annual)}$No conversion needed
2$\text{Job B weekly} = \$23.20 \times 40 = \$928.00$Hourly × hours per week
3$\text{Job B annual} = \$928.00 \times 52 = \$48{,}256.00$Multiply by 52 to get annual
4$\$58{,}240 > \$48{,}256 \implies \text{Job A pays more}$Compare and state the conclusion clearly
Worked Example 4Annual -> Hourly
Problem
An apprentice earns a salary of $61,152 per year and works 36 hours per week. Calculate the equivalent hourly rate, correct to the nearest cent.
Solution
1$\text{Weekly pay} = \$61{,}152 \div 52 = \$1{,}176.00$Convert annual salary to weekly pay first
2$\text{Hourly rate} = \$1{,}176.00 \div 36$Weekly pay divided by hours worked each week
3$= \$32.666\ldots \approx \$32.67$Round to the nearest cent at the final step
4$\text{Answer} = \$32.67 \text{ per hour}$State the rate with units
Revisit Your Initial Thinking
Look back at what you wrote in the Think First section. What has changed? What did you get right? What surprised you?
Check Your Understanding
Checkpoint Questions
Select the best answer for each question. Feedback appears after you choose.
An employee's annual salary is $72,800. What is their fortnightly pay?
A) $1,400.00
B) $2,800.00
C) $3,033.33
D) $6,066.67
B is correct. $72,800 ÷ 26 = $2,800.00. Option A divides by 52 (gives weekly); C divides by 24 (a common error); D divides by 12 (gives monthly).
Which of the following represents the correct method to convert a fortnightly wage to an annual salary?
A) Multiply by 24
B) Multiply by 12
C) Multiply by 26
D) Multiply by 52
C is correct. There are 26 fortnights in a year. Multiplying by 24 is the most common error — it treats fortnights as "twice a month" rather than "every two weeks."
A worker earns $68,640 per year and works 40 hours each week. What is the equivalent hourly rate?
A) $30.00/hr
B) $31.20/hr
C) $32.50/hr
D) $33.00/hr
D is correct. Weekly pay = $68,640 ÷ 52 = $1,320. Then $1,320 ÷ 40 = $33.00 per hour.
Written Response Practice
Now write full solutions as if these were short-answer HSC questions. Show formulas, substitution, and units.
Short Answer 1
Leah earns $29.40 per hour and works 32 hours each week. Calculate her weekly pay and annual income.
Weekly pay: $29.40 × 32 = $940.80
Annual income: $940.80 × 52 = $48,921.60
Answer: Leah earns $940.80 per week and $48,921.60 per year.
Short Answer 2
Job A offers a salary of $63,500 per year. Job B pays $31.25 per hour for 38 hours per week. Which job pays more annually, and by how much?
Job A: $63,500 per year
Job B weekly: $31.25 × 38 = $1,187.50
Job B annual: $1,187.50 × 52 = $61,750.00
Comparison: $63,500 - $61,750 = $1,750
Answer:Job A pays more, by $1,750 per year.
Short Answer 3
A graduate role pays $74,880 per year for a 39-hour work week. Calculate the equivalent hourly rate, correct to the nearest cent.