Salary to Hourly – Paycheck Calculator
Salary to hourly wage calculator lets you see how much you earn over different periods. It is a flexible tool that allows you to convert your annual remuneration to an hourly paycheck, recalculate monthly wage to hourly rate, weekly rate to a yearly wage, etc. This salary converter does it all very quickly and easily, saving you time and effort. In the article below, you can find information about salary ranges, a closer look at hourly and annual types of employment, as well as the pros and cons for each of these. Moreover, you can find a step-by-step explanation of how to use this paycheck calculator down below.
Looking for a new job is a tough and stressful task. You need to change your community, coworkers, place, and even habits. But a job change can be essential for your career at a certain time. You will be better off if you face and overcome these difficulties.
Nowadays, thanks to the Internet, we have access to a huge amount of job offers globally. You can easily check your city, another state, nearby countries, or even another continent for new prospects. That might be confusing. However, a few factors might be decisive for your final choice. For many of us, salary is one of the most important aspects while choosing a particular job position. For the rest of us, even it is not the top priority element, it is still one of the most significant motivators that lead us to say: ok, I want to work here. So, let’s take a closer look at how to draw conclusions from the numbers. Your future employer may introduce a salary offer in a few different ways:
In fact, all of them sum up to the same value, if considered over the same period of time. However, when you take a first look at different job offers, where salary is presented in various ways, the whole issue may confuse you. You might be not able to easily compare the rates. To have a clear view, first, you need to do some math with the numbers. If you have many offers to recalculate, that will take a long time, and if you make a mistake the consequences could be dire. A much nicer and easier way is to use this paycheck calculator and have all the results immediately.
This salary to hourly converter can save a lot of your time and effort. And time is money, right? Imagine if you didn’t need to do all these boring calculations or to compare the salaries manually. Nice, isn’t it? Thanks to us, it is possible! We provide you the smart salary converter that recalculates all types of wages mentioned in the paragraph above. The only two things you need to do is enter how many hours per week you work and fill in the value for one type of wage, e.g., the monthly wage. Results for all other wage types will be shown automatically. That’s cool!
What is more, the appropriate currency for your country is already set by default. If you want to perform a few calculations in a row for different salaries, it won’t be a problem – simply lock the hours per week field and it will not change every time you type in a new value. Moreover, you can open the advanced mode and check how much you earn per each minute and second. Take a look at these values too, sometimes they’re really surprising!
In this salary converter, we made a few assumptions for the purpose of simplifying the calculations. By default, the week is 40 hours long, but you can freely configure it according to your needs. A year is 52 weeks, and a month is 1/12 of a year.
The Ideal Time to Ask for a Raise or Find a New Job
If economic conditions or work conditions at your employer sharply deteriorate, it may already be too late to look for another job, as increased stress and uncertainty will likely make applicants look less appealing to other employers. And it is hard to find a new job when the broader economy is in a downturn.
The lowering labor participation rates is due in large part to globalization. When it was coupled with low interest rates in the wake of the Great Recession, corporate profits jumped to record highs.
Labor has been receiving a lower share of productivity gains across the economy. If the rate of return on capital is greater than the rate of growth across the economy it leads to an increasing concentration of wealth.
Salary vs. hourly pros and cons
Pros of salary pay
1. Reliable Pay
Financial planning is important. Having a reliable paycheck allows you to plan for your future and feel secure in your decisions. And even though there are times you may end up working more on salary, a salary position affords the opportunity to budget in a much more effective way.
2. Benefits packages
Additionally, salaried positions are eligible for bonuses. And if a company is looking at promoting an employee, they will often favor salaried employees, leading to faster tracks of advancement within companies.
3. Higher income
As mentioned above, to be an exempt salaried employee, the law states your equivalent hourly wage must be above the federal minimum wage. And while there are hourly employees working in specialized fields who receive high hourly pay, you will often find higher paying jobs are salaried.
4. Overtime is still possible but rare
Keep in mind, some salaried employees can still get overtime pay. As of the end of 2016, some white-collar workers who make a salary of $47,476 or less (or $913 per week), and work over 40 hours in a week, can be eligible for overtime pay.
Cons of salary pay
Though there is considerably more financial reliability in salary positions, the salary vs. hourly pay debate is not without its own points against salary pay. This largely plays out in overtime.
1. Lack of overtime & less time to make money elsewhere if ever needed
Salaried employees are, more often than not, ineligible for overtime. Regardless of how many hours you have to work, you have no protections or assurances for overtime pay. Yes, working additional hours can present a reason for a bonus, but that is no guarantee.
Again, back to this example—you’re paid $60,000 per year, but each week, you’re constantly working more than 40 hours per week. Now, once you calculate hourly rate from salary, you could actually find you’re paid a much lower hourly rate with little to no time to make the money elsewhere.
Pros of hourly pay
1. Overtime compensation
Salary employee laws vs. hourly employee laws have distinct differences in their approach to overtime. If you work more than 40 hours per week, you will receive time and a half for all additional hours surpassing those first 40 hours. Depending on a variety of factors, overtime time rates will exceed time and a half.
Let’s say you’re working as a production assistant. Oftentimes, you will be putting in well over a 40-hour workweek. Though these positions may have a lower hourly wage, you will be fairly compensated for those extra hours unlike a salaried employee.
2. Holiday pay
In addition to time and a half, some employers will offer even higher compensation to employees working holidays. If you’re working these positions that also have you often working overtime, it can be a much better option.
3. Work flexibility
For many who are in school or are starting out their careers, hourly positions provide the flexibility that makes the most sense for their goals. Some entry level positions start off as hourly, so it may be the primary option for an entry level position. Especially now, in the gig economy, many companies are understanding the need for this kind of flexibility.
For flexibility with jobs and the freedom of freelance work, some might explicitly choose to take on hourly positions that pay higher in addition to other jobs or contract work.
Cons of hourly pay
1. Lack of regularity
Overtime is a great assurance of more fair compensation when you’re pulling in hours that exceed the typical 40-hour workweek. However, sometimes employers will cut costs by decreasing their employees’ hours. You may go into an hourly position with the expectation that you’ll be working 30-35 hours a week with the occasional overtime, but that doesn’t mean a company won’t cut back your hours when necessary or if your services are no longer needed.
Financial regularity is important for financial planning. Even if you’re working a well paid hourly position, that lack of regularity and reliability can be a significant source of stress. It can impede you from making resolute financial and budgeting decisions.
2. Constant job hunting
There’s also, usually, a ton of juggling involved. If your hours are cut, you’re likely bouncing around from job to job. This can get exhausting and you may find yourself feeling stressed from the never ending job hunt.
3. Fewer benefits
Many salaried positions include benefits. The Affordable Care Act mandates businesses with 50 or more employees help pay for health insurance for their employees that work 30 or more hours per week. However, employers will sidestep that by deliberately cutting your hours. You could regularly be kept at 29 hours per week and still not be eligible for health care.
How to calculate hourly rate from salary
If you’re looking at salaried positions, it’s still imperative that you calculate your hourly pay from that salary. If you’re deciding between different positions or salary vs. hourly options, you want to make sure that you’re calculating the number of expected hours worked with your annual pay.
All of these will sum up to the same annual salary value. Regardless of how an employer presents your offer to you, it’s helpful to break these down so that you know these values. Also be sure to know your pay cycle: monthly, biweekly, or weekly. This can also help you know how to plan ahead with your paychecks and financial obligations.
Annual salary to hourly wage
Though this is a standard formula, there are additional elements you will want to keep in mind. Though the typical work week is 40 hours, there are positions that may demand more than this. There’s also the production world where most jobs range greatly in hours worked per week.
Let’s say that you’re choosing between two jobs. One has a higher salary than the other. This might seem more persuasive up front, but you learn that this job comes with a much greater expectation for the hours you put in during the week.
This is a scenario where you would want to adjust the formula beyond the assumed 40-hour week. You could find that you’re working 50-60 hours per week, and that the seemingly lower paying job actually has a better hourly rate and provides you the flexibility to get another job to make up that money where you end up working the same amount of time anyway.
And even if you find that the position with more hours pays better at an hourly rate, also take into consideration your work/life balance. A higher salary is great, but sometimes a better workload and benefits can offset a greater salary.