If you’re earning $25 an hour in Australia, you’re sitting right on the edge of the national minimum wage — and wondering exactly how much of it you actually keep. Between income tax, the Medicare levy and the occasional year-end tax refund, your gross hourly rate tells only part of the story.
Here’s the headline figure first: $25 an hour on a full-time 38-hour week works out to $49,400 a year before tax, and roughly $42,804 a year in your pocket after income tax and the Medicare levy under 2025-26 rates. That breaks down to about $823.15 a week in take-home pay, or $21.66 per hour after tax.
This guide walks through every number — gross pay across every pay period, the exact tax calculation step by step, how $25 compares to the minimum wage, what changes if you’re casual, and the factors that can shift your real take-home pay. You can also run your own $25/hour after-tax calculation with our calculator at any point.
$25 an Hour in 2026: The Key Numbers
Before diving into the detail, here are the headline figures for a full-time worker on $25 an hour, based on a standard 38-hour week and 2025-26 tax rates for an Australian resident with no other income:
| Measure | Gross (before tax) | Take-home (after tax) |
|---|---|---|
| Hourly | $25.00 | $21.66 |
| Weekly | $950.00 | $823.15 |
| Fortnightly | $1,900.00 | $1,646.31 |
| Monthly | $4,116.67 | $3,567.00 |
| Annual | $49,400.00 | $42,804.00 |
In other words, of every dollar you earn at $25 an hour, you keep about 86.7 cents. The remaining 13.3 cents goes to income tax and the Medicare levy. That’s a notably lighter overall tax burden than higher earners face — a direct consequence of Australia’s progressive tax system, where lower incomes are taxed at lower marginal rates.
$25/Hour Gross Pay by Pay Period
Gross pay is simply your hourly rate multiplied by the hours in each pay period. These figures assume you work the full 38-hour standard week every week of the year:
| Pay period | Calculation | Gross pay |
|---|---|---|
| Hourly | $25 | $25.00 |
| Weekly | $25 × 38 hours | $950.00 |
| Fortnightly | $950 × 2 | $1,900.00 |
| Monthly (average) | $49,400 ÷ 12 | $4,116.67 |
| Annual | $25 × 38 × 52 | $49,400.00 |
A quick note on monthly pay: because months aren’t all the same length, monthly gross is usually calculated as annual pay divided by 12. If your employer pays you weekly or fortnightly instead, your actual monthly amount will fluctuate slightly — but your annual total stays the same. If you’re converting between rates and salaries often, our hourly-to-salary calculator handles all of these conversions instantly.
How the $49,400 Is Taxed in 2025-26
Now for the part everyone wants to see: the actual tax calculation. For the 2025-26 financial year, the modified Stage 3 tax rates apply to Australian residents. These have been in place since 1 July 2024, and they’re what determines your income tax bill.
Here are the resident tax brackets for 2025-26:
| Taxable income | Tax on this income |
|---|---|
| $0 – $18,200 | Nil |
| $18,201 – $45,000 | 16c for each $1 over $18,200 |
| $45,001 – $135,000 | $4,288 plus 30c for each $1 over $45,000 |
| $135,001 – $190,000 | $31,288 plus 37c for each $1 over $135,000 |
| $190,001 and over | $51,638 plus 45c for each $1 over $190,000 |
A common misconception: if you earn $49,400, you do not pay 30% on all of it. The rates apply in slices — only the portion of your income that falls inside each bracket is taxed at that bracket’s rate. Here’s how $49,400 breaks down:
- $0 – $18,200: taxed at 0% = $0
- $18,201 – $45,000: ($45,000 − $18,200) × 16% = $4,288
- $45,001 – $49,400: ($49,400 − $45,000) × 30% = $1,320
Total income tax: $5,608. Then comes the Medicare levy — a flat 2% of your taxable income that funds Australia’s public health system: $49,400 × 2% = $988.
Add them together and the full deduction is $6,596, leaving an annual take-home of $42,804.
One more nuance worth knowing: at $49,400, you’re likely eligible for the Low Income Tax Offset (LITO), which reduces your tax at year end. LITO phases down between $37,500 and $66,667, so you may receive a small additional refund when you lodge your tax return. The take-home figure of $42,804 above is based on income tax plus the Medicare levy only — a modest LITO benefit could nudge your final annual position slightly higher. You can see the full calculation on our income tax calculator.
$25 an Hour vs the Minimum Wage
How does $25 an hour compare to the legal minimum? Since 1 July 2025, Australia’s national minimum wage has been $24.95 per hour (or $948 per week for a full-time adult), following a 3.5% increase set by the Fair Work Commission.
That means $25 an hour is exactly 5 cents above the national minimum wage — essentially a minimum-wage job. This is worth understanding for two reasons:
- Your employer cannot legally pay you less. If you’re not covered by a modern award or enterprise agreement, $24.95 an hour is the absolute floor for an adult. At $25, you’re earning just barely above it.
- Most workers are covered by awards with higher rates. Around one in five Australian workers has their pay set by a modern award, and many award classifications pay above the national minimum. If you’re on $25 an hour, it’s worth checking whether an award or enterprise agreement covers your role — you may be entitled to a higher rate, penalty rates, or allowances.
It’s also worth noting the broader context: the superannuation guarantee rose to 12% from 1 July 2025. Your employer must contribute 12% of your ordinary earnings to your super fund on top of your wages — on a $49,400 salary, that’s an extra $5,928 a year building your retirement savings, separate from your take-home pay.
Casual Workers: $25 an Hour Plus 25% Loading
If you’re a casual employee rather than a permanent one, you don’t get paid annual leave or sick leave — but you’re compensated for that with casual loading, which is typically 25% on top of the base hourly rate.
On a $25 base rate, the casual loading adds $6.25 an hour, bringing your casual rate to $31.25 an hour. Here’s how that compares across pay periods, again assuming 38 hours a week:
| Pay period | $25/hr permanent (gross) | $31.25/hr casual (gross) | Casual take-home (est.) |
|---|---|---|---|
| Hourly | $25.00 | $31.25 | ~$25.91 |
| Weekly | $950.00 | $1,187.50 | ~$984.65 |
| Fortnightly | $1,900.00 | $2,375.00 | ~$1,969.31 |
| Annual | $49,400.00 | $61,750.00 | ~$51,202.00 |
The casual take-home estimates use the same 2025-26 methodology (income tax plus 2% Medicare levy, no offsets applied): on $61,750, income tax comes to $9,313 and the Medicare levy to $1,235, for a total deduction of $10,548.
Keep in mind that casual hours are rarely as consistent as a full-time roster — most casuals work fewer than 38 hours a week, so actual annual earnings vary. The table above shows the full-time-equivalent comparison so you can judge the true value of the loading. Also note that casual employees earning under the $450 monthly super threshold rules of the past are no longer affected — that threshold was abolished in July 2022, so casuals receive super on all earnings regardless of how few hours they work in a month.
What Could Change Your Actual Take-Home Pay
The $42,804 figure is accurate for a straightforward case: an Australian resident, working full-time, with one job, no HECS/HELP debt, and claiming the tax-free threshold from their employer. Real life is messier. These are the factors that can shift your take-home pay up or down:
- HECS/HELP repayments. If you have a student loan, compulsory repayments start once your income reaches the threshold ($67,000 for 2025-26) — but at $49,400 you’re below it, so no HECS repayment would be withheld from your pay.
- Not claiming the tax-free threshold. If you have a second job and claim the tax-free threshold from the wrong employer, too little tax gets withheld and you’ll face a tax debt at year end. If too much is withheld, you get a refund.
- Overtime and penalty rates. Weekend and public holiday shifts are often paid at penalty rates (1.5× or 2×), which lifts your gross — and pushes a little more of your income into the 30% bracket.
- Salary sacrifice. Directing part of your pre-tax pay into super reduces your taxable income, which can lower your income tax — and it comes out before tax is calculated.
- Deductions. Work-related expenses you can substantiate — tools, uniforms, union fees, home-office costs — reduce your taxable income when you lodge your return, potentially generating a refund.
Frequently Asked Questions
What is $25 an hour annually in Australia?
On a standard full-time 38-hour week, $25 an hour equals $49,400 per year before tax ($25 × 38 hours × 52 weeks). After income tax and the Medicare levy under 2025-26 rates, the take-home is approximately $42,804 a year.
What is $25 an hour weekly after tax?
Your gross weekly pay is $950, and your estimated weekly take-home is $823.15 after income tax and the Medicare levy. If you’re paid fortnightly, that works out to $1,646.31 in hand per fortnight.
Is $25 an hour a good wage in Australia?
$25 an hour is essentially at the national minimum wage ($24.95/hour from 1 July 2025), so it’s an entry-level rate rather than a high one. It’s roughly 5 cents above the legal minimum for adults. Whether it’s “good” depends on your costs: in regional areas it can support a modest lifestyle, while in Sydney or Melbourne it will be tight. Award-covered roles and jobs with penalty rates or overtime can pay noticeably more.
How much tax do I pay on $25 an hour?
On a $49,400 full-time salary in 2025-26, you pay $5,608 in income tax (16% on the portion between $18,201 and $45,000, 30% on the portion above $45,000) plus $988 in Medicare levy (2%), for a total of $6,596 — an effective rate of about 13.4%. You may also qualify for a partial Low Income Tax Offset at tax time, which could reduce this slightly.
What is $25 an hour for a casual worker?
Casuals typically receive 25% casual loading on top of the base rate, so a $25 base becomes $31.25 an hour. On a full-time-equivalent 38-hour week, that’s $61,750 a year gross, with an estimated take-home of about $51,202 a year after income tax and the Medicare levy.
Does $25 an hour include superannuation?
Your $25 hourly wage is separate from super. Your employer must also pay the superannuation guarantee of 12% (from 1 July 2025) into your nominated super fund — that’s an additional $5,928 a year on a $49,400 salary, on top of your wages and take-home pay.
The Bottom Line
$25 an hour in Australia means $49,400 a year before tax and roughly $42,804 in your pocket — about $823 a week to live on. You’re taxed lightly at this income level: an effective rate of around 13.4%, with the bulk of the deduction coming from income tax of $5,608 and the Medicare levy of $988. And because you sit just above the $24.95 national minimum wage, it’s worth checking whether an award or enterprise agreement entitles you to more.
Want to explore your own numbers — different hours, a pay rise, or the casual loading? Check the $25/hour after-tax breakdown on our calculator, convert any rate with the hourly-to-salary calculator, or see exactly where your income sits with the income tax calculator.