The quick answer most people use:
hourly rate = annual salary ÷ 2,080
2,080 is 40 hours × 52 weeks. For a 60,000 salary, that's 28.85 an hour. To skip the maths, use the Salary to Hourly Calculator.
That figure is right for paid hours. It's wrong if you want what you earn for each hour you actually work, because those 52 weeks include holidays you're paid for but don't work.
Two different hourly rates
1. Paid hourly rate. What your employer pays per contracted hour, holidays included.
salary ÷ (hours per week × 52)
2. Effective hourly rate. What you earn per hour you actually work.
salary ÷ (hours per week × 52 − paid leave hours − public holiday hours)
Example
Salary 60,000, 40-hour week, 20 days paid leave + 10 public holidays = 30 days = 240 hours.
- Paid hours: 2,080 → 28.85 / hour
- Hours actually worked: 2,080 − 240 = 1,840 → 32.61 / hour
The second number is the one to use when you compare a job with freelancing.
Other weekly hours
| Hours per week | Paid hours per year | 60,000 per hour |
|---|---|---|
| 35 | 1,820 | 32.97 |
| 37.5 | 1,950 | 30.77 |
| 40 | 2,080 | 28.85 |
| 45 | 2,340 | 25.64 |
| 48 | 2,496 | 24.04 |
Unpaid overtime quietly cuts your rate. If you're paid for 40 hours but regularly work 48, your real rate is about 17% lower than you think.
From monthly salary
hourly = monthly salary × 12 ÷ (hours per week × 52)
A quicker way: a 40-hour week averages 173.33 hours a month (2,080 ÷ 12).
hourly ≈ monthly salary ÷ 173.33
If you're paid a 13th-month salary or a festival bonus (like Dashain allowance in Nepal), add it to the annual total first.
From hourly to salary
annual = hourly rate × hours per week × 52
25 an hour × 40 × 52 = 52,000 a year, if you're paid for holidays. If you're hourly and unpaid for holidays, multiply by the hours you'll really work instead: 25 × 1,840 = 46,000.
Comparing a salary with freelance work
A freelancer charging the same hourly rate as an employee's salary earns less, because the freelancer:
- isn't paid for holidays, sick days or gaps between projects;
- pays their own equipment, software, insurance and (in many countries) both sides of social contributions;
- spends unbilled time on sales, admin and invoicing.
A common rule of thumb is that a freelance rate needs to be 1.5 to 2× the employee hourly rate to come out equal. Work out your own numbers with Day Rate to Salary.
Overtime
Where overtime is paid at 1.5×:
overtime pay = hourly rate × 1.5 × overtime hours
Use the paid hourly rate (salary ÷ contracted hours) unless your contract says otherwise.
Quick reference: 40-hour week, ÷ 2,080
| Annual | Hourly |
|---|---|
| 30,000 | 14.42 |
| 50,000 | 24.04 |
| 75,000 | 36.06 |
| 100,000 | 48.08 |
| 150,000 | 72.12 |