How to Calculate Hourly Salary Rate

If you know your yearly salary, you can easily calculate your hourly pay rate.

As a salaried employee, you are probably paid the same amount each pay date. Your net pay typically changes only when you have had a change in your deductions or a pay adjustment, such as a raise. Furthermore, upon hiring you, your boss probably told you only your annual salary amount. Consequently, when asked to state your hourly pay in certain situations, such as when completing a job application, you may be unsure of the amount. To calculate your hourly salary rate, start with your salary amount.

Instructions

1. Figure your annual salary; for example, $60,000. Then determine your work hours for the calendar year. Salaried employees receive paid days off, such as holidays, vacation and personal and sick time. The calendar year has 2,080 work hours, including benefit days.

2. Divide your yearly salary by your yearly work hours. The result is your hourly salary rate. For instance, $60,000 / 2,080 = $28.85, the hourly salary rate.

3. Double-check your hourly salary rate using your work hours and hourly rate. For instance, 2,080 x $28.85 = $60,000, the annual salary.

References

• U.S. Department of Labor: Salary Basis

Resources

• Salary Calculator