**To work out the hourly rate of an employee using their annual salary divide the annual salary by the number of hours worked during the year.** A similar calculation can also be done using a monthly salary.

**Calculate the number of hours worked****Divide salary by hours worked****To base the calculation by month**

To calculate the number of hours worked in a year, take the amount of hours worked in a week and multiply that by 52. So assume the person works 37.5 hours a week. The calculation in this example would be 37.5 multiplied by 52, which equals 1,950 hours. So this employee works 1,950 hours in a year.

To get the hourly rate for the employee, divide the annual salary by the number of hours worked in the year. In the example mentioned above, assume the employee received a salary of $36,000 a year. That calculation would therefore be 36,000 divided by 1,950, which equals $18.46 an hour.

Sometimes it is easier to work out the hourly rate using a monthly salary rather than an annual salary. The number of hours worked in a month is required. If this is not available it can be worked out by multiplying the number of hours worked in a week by 52, and then dividing that by 12. To get the hourly rate divide this figure into the monthly salary.