Have your hourly wage and wonder what is your annual income? Or maybe you want to compare a couple of job offers where the amount of money employers offer is expressed in various periods? Check this flexible annual salary calculator to recalculate all your payments. In the article below, you can find information about salary ranges, comparison of salary vs. hourly employment and a brief history of wages and salaries. As an addition, we will tell you how to convert the hourly rate to salary and guide you through the proper usage of this wage calculator.
Hourly to salary - types of wages
You never know when it might happen, but at one point in your life you may meet an uncertain moment in your life or career. We're talking about a job change. There are many factors that may lead you to this decision, such as problems in your current work, a willingness to try something new, or needing a higher salary to afford some new investment. This is not usually an easy task at all - it can cost you a lot of time and effort browsing through job offers, working out if this particular one is right for you. You'll need to change your coworkers, working place, community - things already part of your daily routine. These circumstances might demotivate or frustrate you (hopefully not both at once). However, do not give up! You need to face your fears and overcome these difficulties!
Nowadays, the Internet allows you to access job offers in not only your city, but also in your state, country, and even abroad. We can say with the utmost certainly that there is a vast amount of job offers available online; there is no need to leave home when looking for the best offers. But there is another side to this coin - so many potential possibilities might overwhelm you. With so much choice, how do you know you're making the right decision? Fortunately, there are a few factors that can help you make the correct choice.
Salary seems to be one of the, if not the, most crucial factors when we're choosing a particular job position. Even if it's not your top priority, it's still one of the most important factors. Keep in mind that income might be presented in various ways, and it might be not so obvious which deal is best for you. Your future employer may present your earnings in the following ways:
- annual salary
- monthly salary
- weekly wage
- daily wage
- hourly rate
Without converting these amounts so they all fit the same period, you won't be able to compare the offers. For example, you have three different proposals expressed as a monthly income, an annual salary, and a weekly wage. First, decide to which wage you will recalculate (e.g., the annual income). Doing the maths might be a bit tricky, but once it's over, you'll have a clear comparison between the three offers.
If you have many offers to recalculate, though, it's bound to take a long time, and you have a considerable chance of making a mistake. A much more convenient way is to use this wage calculator and have all the results immediately.
Wage calculator - discover its features
This hourly to salary calculator has some cool features - let's take a closer look at them. You can save yourself lot of time and effort, as you don't need to do all these tedious math calculations to standardize those salary offers. We have created a user-friendly wage calculator that recalculates all types of income (listed in the previous chapter). The only thing you need to do is to enter two initial values necessary for computations: the amount of money for one chosen wage type and the number of hours you work per week. After that, you will see five different wages results of the same salary, ready to compare with other offers. Sounds great to us!
We know that this salary converter is used by people from the USA, Canada, Europe, Asia, and other continents, so the appropriate currency for your country is already set by default. You can see it after the numbers (e.g., $, €, £, ¥, etc.). Good to have it, isn't it?
For the sake of simplicity and clarity, we made some assumptions when creating this paycheck calculator. We assumed that the work-week has 40 hours (but you can easily configure it according to your preferences); a year has 52 weeks, and one month is 1/12 of a year.
How to calculate the annual income?
Are math calculations a closed book to you? Don't worry, follow the example below to see how this salary converter performs it's calculations for particular wages. This step-by-step tutorial will help you understand how to get from the hourly rate to the annual income. Let's choose some numbers first: assume that in our case the hourly wage is $18, and we work 40 hours a week (8 hours per day). Based on that information, the calculations look like this:
- Hourly rate to daily wage
18$ per hour * 8 hours = $144 daily
- Hourly wage to weekly wage
18$ per hour * 40 hours per week = $720 weekly
- Hourly wage to monthly salary
18$ per hour * 40 hours per week * (52 weeks per year / 12 months) = $3,120 monthly
$720 of weekly rate * (52 weeks per year / 12 months) = $3,120 monthly
- Hourly rate to annual income
$720 weekly wage * 52 weeks = $37,440 annually
$2,880 monthly wage * 12 months = $37,440 yearly wage
Salary range is one of the most significant factors when considering a particular job. Maybe you don't know what that is. If that's the case - focus on this paragraph. Wage range describes the limits of earnings for a particular position. Most companies usually don't make exceptions from these salary ranges. The money they can spend on a particular specialist is strictly defined in their budget (that's the main reason why they don't offer increased payments).
Notice that salary means something different for you as the individual and for company's financiers. From an employee's viewpoint, salary range includes compensation parameters on their earnings. For the company, it will be an amount that it is able to pay a new employee in a particular position and how much current employees can expect to earn in a specific position. In reality, an employer has to pay much more for you than your salary is. You "cost" them more, because of the mandatory taxes that they are obliged to pay for each employee. What might be not so obvious from the business point of view, each staff member is an expense for the company. It's the effects of their work that brings real income.
The salary range for a particular job position should be considered on three levels:
- low (bottom of the range)
- median (mid-point)
- maximum (the maximal amount that you can expect)
For example, the salary limits for the job position XYZ might equal:
- $2,500 (bottom)
- $3,000 (median)
- $3,500 (maximum)
In this example, the monthly salary range is $2,500 - $3,500.
These wage ranges give flexibility for both sides - the employee and the employer. It offers you (the individual) the possibility to choose the most satisfying job (moneywise), and the ability to negotiate your salary level. On the other hand, the company's representatives know if their offer is competitive in the labor market and whether they can afford to hire that specific specialist.
The salary your future employer will offer you depends on a few aspects. In general, the expected payment for someone who is highly qualified and experienced should be around the maximum. Somebody who was just finished an internship or is starting in a particular field must count on accordingly lower wages (usually equal to the minimum salary). This is normal, and you should be patient while climbing up your career ladder. Factors like commitment, review scores, and individual achievements may highly influence your value as a worker and help you earn more money (if the scores are positive, of course).
Salary vs. hourly employment - comparison
What suits you better - being a salary worker or working for hourly payments? There are differences between them, and it is good to know them. Hourly workers get the remuneration for each hour they work, and that includes overtime (if they have done more than 40 hours per week or another contracted number). If you work as a salaried employee, getting overtime payments is not a rule; it depends on the local country (or state) work-law regulations. Keep in mind to check whether your company compensates for the overtime before signing a contract.
How to calculate your wage while working an hourly contract? To do this, you should multiply your hourly rate by the total number of worked hours over the considered period (e.g., week, month, etc.). Assume that the hourly rate is $18 (as mentioned in the previous example). The worker did 100 hours in a month (with no overtime). In this case, their monthly payment will be:
$18/hour * 100 hours = $1800.
According to the Fair Labor Standards, all hourly workers are non-exempt (term clarification below) and have to be paid for overtime hours. The rate for extra hours is different from the standard and equals 1.5x the basic hourly rate. In the case of our example, the overtime rate is equal:
$18/hour * 1.5 = $27/hour. So, to have clarity, let's recalculate the monthly payment to include overtime hours. Let's say for a month our employee worked for 100 basic hours and an extra 8 of overtime. Their salary in that case would be calculated respectively:
$18/hour * 100 hours + $27/hour * 8 hours = $1800 + $216 = $2016.
The earnings of hourly workers may vary wildly. The reason is, they usually don't have a guaranteed number of working hours per week (or any other contracted timespan). Its amount is determined by a monthly/weekly schedule, and shifts in some companies may vary a lot over each period. This type of employee must be paid at least the minimum wage (the amount varies across the U.S. states). All the other regulations must be clearly covered in a personal contract.
Let's focus on salary employees now. The main difference between these and hourly staff is that they have a guaranteed minimum annual level of compensation. Their yearly wage is divided by a number of pay periods (usually 12 months) to find the period salary. Sometimes, in the U.S. you can come across the enigmatic term, exempt employee. According to the Fair Labor Standards (regulation of payment rules), the term exempt is related to salary workers, and their exclusion from paid overtime (mostly they are excluded, but it's not a rule). However, in many countries (even in the USA) companies offer various ways of compensation for overtime. For example, additional money (calculated according to the number of extra hours), days off (related to the amount of overtime), free tickets to cultural institutions, or other benefits are popular options.
Salary worker can also be classified as non-exempt under Fair Labor Standards. Thus, the company has to pay respectively 1.5 wages for each hour of overtime during a standard 40 hour week. We suggest checking in your country's Labor law or state's Department of Labor whether your job is exempt from that rule (it may differ between locations) and you might be unpleasantly surprised.
How to use the wage calculator
To convert hourly to salary, do the following:
- Enter the hourly rate in the "Hourly wage" box.
- Enter the number of hours you're going to work in a week (it defaults to 40).
- See how much are you going to earn weekly, monthly or annually.
- It works in all directions - you can provide your hourly, daily, weekly monthly or annual salary and get all the other values.
History of wages and salaries
You already know that "wage" is a compensation for a standard unit of working time. The earliest used unit, which still is quite popular, was a day of work. However, the invention of clocks enabled the division of a day of work into smaller units. Ever since, "hourly wage" has become the predominant unit of employee remuneration.
We don't know when the first salary was paid, but some estimate it could have been between 10,000 and 6,000 BC. Some connect the word "salary" with the Roman Empire and salt - Roman soldiers were presumed to have been paid in salt - a compensation called "salarium". Regardless of the exact story, Roman Empire established a form of work-for-hire, which also existed in medieval Europe, although it was rather rare. Salaried work became more widespread during the Second Industrial Revolution (1870-1930). Its expansion is connected with the rise of modern business corporations and difficulties in measuring office work output in terms of hours or pieces. The 20th century saw another rise in salaried employment due to the development of the service economy where the share of industrial jobs declined.