Hourly employees are paid based on the number of hours they work for the pay period. Furthermore, most hourly workers qualify for overtime pay. Consequently, the hourly worker’s paycheck may fluctuate each pay date. Contrarily, a salaried employee is usually paid a set wage each pay period. Upon being hired, hourly workers are usually given their starting hourly pay, but a salaried worker may receive his yearly salary amount. Whether you are hourly or salaried, if you do not know your hourly wage, you can figure it out.
Hourly Pay Rate
Figure your total hours worked for the pay period. For instance, you worked 39 regular hours for the week. If unsure, check your pay stub or ask your supervisor/payroll department to give you a printout of your hours.
Divide your gross pay by your hours worked for the related pay period. Your gross pay is your pay before taxes and other deductions. For instance, if your gross pay was $540.15: Calculation: $540.15 / 39 regular hours = $13.85, hourly income.
Verify your calculation. The result is your gross pay. Calculation: 39 regular hours x $13.85 = $540.15.
Salary Pay Rate
Start with your annual salary amount, such as $49,000.
Calculate based on your work hours for the calendar year. If you work 40 hours per week for 52 weeks: Calculation: $49,000 / 2,080 hours (40 hours x 52 weeks) = $23.56, hourly income.
Verify your calculation. The result is your annual salary. Calculation: 2,080 work hours x $23.56 = $49,000.