Salary to hourly wage calculator lets you see how much you earn in different periods. It is a flexible tool that allows you to convert your annual remuneration to an hourly paycheck, recalculate monthly wage to hourly rate, weekly rate to a yearly wage, etc. This salary converter does it all very quickly and easily, saving your time and effort. In the dedicated article, you can find information about salary ranges, a closer look at hourly and salary types of employment, as well as pros and cons for each of them. Moreover, you can find a step-by-step explanation of how to use this paycheck calculator down below.
Salary to hourly
Looking for a new job is a tough and stressful task. You need to change your community, coworkers, place, and even habits. But you have already made the decision, a job change is essential in your career at this time. Now, you need to face and overcome those difficulties.
Nowadays, thanks to the Internet, we have access to a huge amount of job offers globally. You can check them in your city, another state, in the countries abroad, or even on another continent. That might be confusing. However, a few factors might be decisive for your final choice. For many of us, salary is one of the most important aspects while choosing a particular job position. For the rest of us, even it is not the top priority element, it is still one of the most significant motivators that lead us to say: ok, I want to work on this exact position. It is, so let’s take a closer look at how to draw conclusions from the numbers. Your future employer may introduce a salary offer in a few different ways:
- hourly wage
- daily wage
- weekly wage
- monthly wage
- annual wage
In fact, all of them sum up to the same value, if considered in the same period of time. However, when you take a first look at different job offers, where salary is presented in various ways, the whole issue may confuse you. You might be not able to easily compare the rates. To have a clear view, first, you need to do some math with the numbers. If you have many offers to recalculate, that will take a long time, and you have a huge chance for a mistake. The much nicer and easier way is to use this paycheck calculator and have all the results immediately.
This salary to hourly converter can save lots of your time and effort. Imagine that you don’t need to do all these boring calculations or compare the salaries manually. Nice, isn’t it? Thanks to us, it is possible! We provide you the smart salary converter that recalculates all types of wages mentioned in the paragraph above. The only two things you need to do is enter how many hours per week you work and fill the value for one type of wage, e.g., the monthly wage. Results for all other wage types will be shown automatically. That’s cool!
What is more, the appropriate currency for your country is already set by default. If you want to perform a few calculations in a row for different salaries, it won’t be a problem – simply lock the week hours field and it will not change every time when you type in new values. Moreover, you can open the advanced mode and check how much you earn per each minute and second. Take a look at these values too, sometimes they’re really surprising!
In this salary converter, we made a few assumptions for the purpose of simplifying the calculations. By default, the week is 40 hours long, but you can freely configure it according to your needs. A year is 52 weeks, and a month is 1/12 of a year.
How to calculate an hourly rate?
Here, we would like to explain you the math behind the calculations. Let’s see how to get the hourly rate based on given other wages. Follow the step-by-step example below to understand everything correctly. For this purpose, let’s assume some numbers: the annual salary in our case is $50,000, and we work 40 hours per week.
- Annual salary to hourly wage
$50000 per year / 52 weeks / 40 hours per week = $24.04 per hour
- Monthly wage to hourly wage
$5000 per month * 12 / 52 weeks / 40 hours per week = $28.85
- Weekly paycheck to hourly rate
$1500 per week / 40 hours per week = $37.50 per hour
- Daily wage to hourly rate
$120 per day / 8 hours = $15 per hour
When talking about payments in specific job positions, we often use the term salary range. What does it mean? In fact, the meaning is different for you as an individual and for company’s financiers. From an employee’s viewpoint, salary range includes compensation parameters that they wants to earn. On the other hand, for the company, it will be an amount that it is able to pay a new employee in the particular position and how much current employees can expect to earn in that specific position. Usually, companies cannot make exceptions from the salary ranges, because the numbers are strictly determined by its budget.
We can consider the salary range for a particular job position on three levels:
- low (bottom of the range)
- median (mid-point)
- maximum (the maximal amount that you can expect)
For example, the yearly limits for the job position named XYZ are:
- $20,000 (bottom)
- $25,000 (median)
- $30,000 (maximum)
In this case, the range is $20,000 – $30,000.
Again, a salary range grants both sides a certain flexibility. From a perspective of a potential employee, they can choose the job position which will be financially satisfying; moreover, it gives them some room for negotiating the salary. On the other hand, the employer knows if the offer they make is reasonable and has a good benchmark to assess whether they can afford hiring that kind of worker.
Some aspects determine if the worker will be given an offer from the bottom of the range or if he can expect the top level amounts. These aspects might be qualifications, review scores, commitment, and work experience. Some individual achievements/successes will, of course, increase the worker’s value and, in result, improve the payment level. In general, someone who is highly qualified for sure can count on significantly higher payments than somebody with the minimal required skills.
Hourly rate vs. monthly salary
There is a significant difference in payment between hourly and salary employees. For the first ones, an employer pays for each hour they have worked, including overtime pay (if they have done more than 40 hours per week or other contracted number). For the second group, payment for overtime is not so obvious, and it depends on internal country (or local state) law regulations. We can find many more differences between these payment types. Let’s face some of them now.
Workers paid hourly are compensated by multiplying the agreed hourly rate by the total number of hours worked in a given period (e.g., month, week or day). Let’s assume that hourly rate equals $14 and the employee has worked 120 hours per month (with no overtime). So, the salary looks like this:
$14/hour * 120 hours= $1680. That is the compensation transfer that will be sent to our worker at the end of the month.
According to the Fair Labour Standards all hourly workers are non-exempt and have to be paid overtime. The overtime hours are calculated as 1.5 standard hourly rate. For our example it gives
$14/hour * 1.5 = $21/hour. So, if the example worker from above would have an additional 10 overtime hours, their salary will be:
$14/hour * 120 hours + $21/hour * 10 overtime hours = $1890.
How much does an hourly employee work? It depends, because they usually don’t have a guaranteed number of hours per week, and the amount of working time is determined by a weekly schedule. It can vary a lot, especially when a shift schedule changes from week to week. However, all that time might be clearly covered by the personal contract. This type of employees must be paid with the minimum wage at least (the amount varies across the U.S. states).
Let’s take a closer look at salary employees. One of the main differences is that they have a guaranteed minimal annual level of compensation. Annual wage is divided by a number of pay periods to find, e.g. the monthly salary. Great majority of those workers are exempt employees. What does this weird term mean?
In the U.S. according to the payment rules regulated by the Fair Labour Standards, salary workers are not covered by overtime (because mostly they are exempt). It is worth mentioning, that in many countries (even in the USA) companies offer their workers various kind of compensations for overtime hours. That might be just additional money, time off adequate to the number of overtime hours, or other benefits. When a salary employee is classified as non-exempt under Fair Labour Standards, an employer has to pay one and a half for each extra hour over standard 40 per week. There are a few jobs which are exceptions from that rule (it might also differ between the states). To avoid misunderstandings, clear all your doubts in your state’s Department of Labour or your country’s labour law.
Pros and cons between salary vs. hourly
Let’s consider some pros and cons of both types of employment. As it usually is while comparing two things, we have both + and – for each of them. For example, if you are a monthly salary employee, you can count on more social benefits, like health insurance, parental leave, a 401(k) plan (percentage of your gross income, which you put into taxable differed retirement account) and free tickets to cultural institutions. For sure, full-time jobs consume much more of your time, the level of responsibility is higher, but they offer a possibility to develop your career. What might be motivating is a feeling of stability, thanks to the same amount of money you receive every month. One of the crucial drawbacks of that kind of work might be not being paid overtime so you will not be compensated for any extra activities (but as mentioned above, that may vary between countries).
One of the hourly-employee profits may be the flexible work time – non strict 8 hour, every 5 days per week. That provides for sure more freedom and can lead to better time management. On the other hand, while your weekly shifts are very irregular, it might be frustrating because of feeling disorganized. It can also lead to the shifting number of work hours weekly (monthly, etc.) While working hourly, you can earn even more than when being involved in a full-time job, especially if you put in a lot of overtime – you are compensated for each extra hour of work.
As you can see, lots of aspects depend on that what is important for you, what kind of contract you have and what your employer offers you in this particular company. For some people, health insurance might be more important than flexibility in working hours. Some of you might prefer to get the same monthly salary, a fixed amount of money, while others would prefer to decide on their own whether to work more or less in a given month, according to their financial needs. Consider all of the pros and cons if you are choosing between salary and hourly employment.