How to Convert an Annual Salary to an Hourly Wage
Many people who earn a yearly salary don't tend to know what they are being paid per hour. By doing some simple math you can quickly determine your hourly pay rate.
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Instructions
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If you are earning an annual salary, you can determine your hourly rate by dividing your salary by 52 (the number of weeks in a year) and then dividing that number by the number of hours you work per week, such as 40.
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So taking a $40,000 per year salary as an example would be:
40,000 divided by 52 = 769.23. Then 769.23 divided by 40 = $19.23 per hour.
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Next you should figure out exactly how many hours you really do work per week, as most salaried jobs will require unpaid overtime. So people may end up working more than 40 hours for their pay.
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Lets say that you were working around 55 hours per week for your salary. Taking the same example as above, you would divide 769.23 by 55 to get $13.98 per hour.
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Obviously if the figure you end up with seems very low, then it might be time to look for a new job. However, there are other things which should be factored in as well, such as what kind of health plan your work offers, how much vacation your receive and whether you get any other benefits such as a company vehicle of gas allowance.
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Tips & Warnings
Always be aware that sometimes increases in income can mean your taxes will increase significantly.
Some employers offer salaries purely so that they can pay their employees a flat rate and can then make them work additional hours each and every week.
References
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