The salary to hourly calculator is used to calculate the hourly wage, monthly pay, and weekly pay from the annual salary.
To calculate hourly wage using the annual salary, divide the salary amount by the number of hours worked per week. Then, divide the resultant value by the total number of weeks worked per year.
Hourly wage = Annual salary / Hours worked per week / Weeks per year
Suppose you earn $40,000 per year and work 40 hours per week for 52 paid weeks per year. Then, your hourly wage would be:
Hourly wage = 40000 / 40 / 52 = $19.23 per hour
Firstly, multiply the monthly salary by 12. Then, divide the resultant value by the number of hours worked per week. Lastly, divide the result by the number of weeks worked per year. The final figure will be your hourly wage.
Hourly pay = ( Monthly salary × 12 / Hours worked per week ) / Weeks per year
Let's say you earn $2500 per month and work 40 hours each week for 50 paid weeks per year. Then, the calculation will be:
Hourly pay = ( 2500 × 12 / 40 ) / 50 = $15 per hour
The following table defines the primary differences between salary and hourly wage jobs.
| Salary | Hourly Wage | |
|---|---|---|
| Payment Structure | Fixed amount per pay period | Paid based on hours worked |
| Income Predictability | Stable income | Variable income based on hours worked |
| Overtime Pay | Usually not eligible | Eligible for overtime pay |
| Tracking Hours | No need to track hours | Must track hours worked |
| Job Security | Generally more secure | Less secure due to variable hours |
| Benefits | Health insurance, retirement plans, and paid time off | Probably no benefits |
| Career Advancement | Associated with greater opportunities | May have limited advancement opportunities |
| Work-Life Balance | Can be more demanding on time | Offers more control over the schedule |
| Financial Planning | Easier due to consistent income | Harder due to income variability |
The hourly workers can use the work hours calculator to make their daily or weekly timesheet reports.