What is hourly to salary?
Hourly to salary means converting an employee’s hourly pay to salary. To calculate hourly to salary, add the total hours an employee works per year, and multiply it by the employee’s hourly wage. For example: for an employee who is paid $20/hr and works 1500 hours, the hourly to salary conversion is: 1500 hours X $20 per hour = $30,000.

Author: Brad Nakase, Attorney
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Dollars per hour salary describes how much an hourly worker would make if their employer paid them a yearly salary.
This calculation is called an “hour-to-year conversion” and adds up the person’s annual income.
In this article, our business lawyer in Los Angeles will explain the hourly to the salary concept and provide examples of dollars per hour salary, also known as hourly to yearly, as follows:
How to convert hourly to salary?
Hourly to salary refers to the act of taking a worker’s hourly pay and computing what their yearly pay projection would be.
When a worker wants to see what their dollars per hour salary would become if they were paid a yearly salary, they calculate their hourly to yearly salary.
Here is how a worker can use this equation to calculate their projected yearly pay:
First, how many hours does the person work?
To find this out, multiply the number of hours the individual works in a week times the number of weeks in a year.
For example, if the person works 20 hours per week, they would multiply 20 X 52 for 1040 hours.
Next, the employee divides this number by their annual “salary” or the amount they make per year currently.
If the employee makes $30,000 per year, for example, divide $30,000 by 1040 for $28.85.
Why do employees compare hourly to salary payments?
The hourly to yearly formula allows individuals to benchmark effectively. Some hourly employees, for example, wish to compare their pay to peers or friends who are on salary in order to see where their salaries rank within their industry.
Can individuals convert their yearly salary to an hourly pay rate?
Sometimes, salaried employees want to see what their hourly pay would be in unadjusted form. When they do, they use a specific formula.
The formula is slightly different from the “hourly to yearly” formula, but it is still easy.
First, identify the number of hours the individual works in one day. Then, multiply that number by the number of days the individual works per year.
For example, if the person works 8 hours per day, 200 days per year, that is 1600 hours.
Next, divide the person’s salary (in this case, 1600 hours) by the above figure. In this case, let’s say the person’s salary is $40,000 annually.
Divide $40,000 by 1600; the resulting figure, $25, is the person’s hourly wage.
In this case, the $25 per hour is the person’s gross pay, not take-home pay. Therefore, when their employer takes out deductions, their net pay will amount to less than $25 per hour.
Why Contact a Professional Attorney in California
For questions about pay rates in California, contact the licensed professionals at Nakase Wade.
Our California business lawyers and corporate attorneys provide legal counsel to employees and business owners throughout the state, and we offer free consultations.
For questions about compensation or problems with pay rates, contact us today.
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