Are you curious as to how to calculate hourly wage from salary? For many people, this is a confusing task, as some people work 40 hours per week, some work part time, and others get in lots of overtime or work at night when there may be a shift differential. If you are having a hard time determining how much you make per hour, the information in this article will help you understand how to calculate hourly wage from salary.
1. Realize you may make more than you think.
If you are paid bonuses, your company contributes to your 401K, and you have other benefits, this all adds up to what you REALLY earn each year. You may have a salary that is set at $30,000, but in reality you may make $40,000 by the time all of the fringe benefits are added in. Trying to calculate an hourly wage from all of this information may be impossible; in any event, it will take some effort.
2. Do this simple calculation.
If you do know your annual salary, here is an easy way to determine your hourly wage if you work 40 hours per week. Take your annual salary, and divide by 52 weeks if you are paid weekly. When you arrive at this figure, divide again by 40 (hours worked) to determine your hourly wage.
If you get paid once per month, you will have to determine how many hours you worked during that month, as some months have five weeks and the month may end in the middle of a week.
3. Do you work overtime frequently?
In this case, you would less per hour than in the example above. If you typically earn $15 for a 40 hour week ($600), you would make only $12 per hour if your worked a 50 hour week. Consider all of the overtime you put in when calculating your hourly wage, especially if you work overtime most weeks.
4. Do you get paid overtime?
Most people in salaried positions do not get paid at an increased rate when they work over 40 hours. If you do, you most likely make 50% more when you work holidays or more than 40 hours in one week. This means if you normally earn $15 per hour, you would earn $22.50 per hour for those hours over 40 worked in a single week.
5. Consider other benefits.
Once you calculate your hourly wage from the salary you earn, you may think that is is too low, or in some cases it may be more than you thought. If you feel that you do not earn enough, consider other factors before you search for another job such as health insurance coverage, paid vacation time, etc. These things should all factor in to your decision; if you had to pay for your own individual health insurance coverage, you would see that you would spend a substantial amount of money.
The information contained in this article should help you understand how to calculate hourly wage from salary. There are other sources online that will help you understand how this is done as well.
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