Q:

# How do you calculate an hourly salary?

A:

To calculate an hourly salary, add the number of working weeks to the number of weeks spent on paid vacation, multiply the sum by 40, and divide the annual salary by the product. This formula allows employees to convert their annual salaries into hourly salaries.

## Keep Learning

Credit: Ian Jeffrey E+ Getty Images

Employers calculate the annual salary by multiplying a fixed salary amount with the pay frequency. By dividing the annual salary by the number of paid weeks, both employers and employees can determine the hourly salary. The total number of salaried weeks includes the weeks that an employee spends on paid vacation. If an employee works for 48 weeks and enjoys four weeks of paid vacation, the total number of salaried weeks is 52.

Since there are 40 working hours in a week, multiply the number of salaried weeks by 40. This product is equal to the number of hours that you work in a year. To find your hourly salary, divide your annual salary by the number of hours that you put in every year.

Calculating an hourly salary allows employees to make comparisons with their peers in different companies. By using these comparisons, employees can determine whether they are being underpaid by their employers.

Sources:

## Related Questions

• A: To find your annual income, multiply your hourly wages by the number of hours you work every week, then by the number of weeks you work every year. You can... Full Answer >
Filed Under:
• A: To convert an annual salary into the equivalent hourly wage, calculate the number of weeks worked per year, multiply it by the number of hours worked per w... Full Answer >
Filed Under:
• A: Companies define the cost of labor as the sum of all wages paid to employees plus the cost of employee benefits and any payroll taxes paid by a company. Th... Full Answer >
Filed Under:
• A: Working a standard, 40-hour workweek at \$18 an hour, with two weeks of paid vacation, a person can earn \$37,400 per year. To be more accurate, calculate an... Full Answer >
Filed Under:
PEOPLE SEARCH FOR