How to Calculate the Semi-Monthly Gross Earnings of an Hourly Employee

Calculating semi-monthly wages is a straightforward computation.

Employees who earn an hourly wage generally do not have an annual salary figure to break down into smaller pay periods. If you earn wages by the hour and receive paychecks twice each month, you may wish to calculate the semi-monthly gross earnings to help you anticipate and budget your earnings. Use basic math computations to determine what your paychecks will be.

Instructions

1. Determine the number of hours worked each day by the employee. If the hours each day vary, compile a chart that lists the hours worked each day during a pay period.

2. Add the number of hours worked during the entire pay period. For example, if the employee works eight hours each day for 12 days in the pay period, multiply 8 * 12 = 96. The employee worked 96 hours in the pay period.

3. Multiply the number of hours worked by the hourly wage. For example, if the employee earns $11.50 per hour, multiply 11.50 * 96 = 1,104. The employee earns $1,104 in regular wages.

4. Calculate applicable overtime pay, if necessary. If the employee worked six hours of overtime at time-and-a-half, multiply 6 * 1.5 * 11.50 = 103.50. The employee earns $103.50 in overtime pay.

5. Add the overtime earnings to the base wages. Using the same example, add 1,104 + 103.50 = 1,207.50. The employee earns $1,207.50 in semi-monthly gross earnings.

References

• Payroll Taxes; Calculating Salaries for Non-Exempt Employees; Robert W. Ditmer
• Washington State University: Pay Calculations