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How to Calculate Annual Salary From Hourly Wage

Thursday, April 23, 2009
Related Tags: 3.50/hour | wages | total | week | base
 

Instructions

Things You’ll Need:

  • Calculator
  • Base hourly rate
  • Information on adjustments to hourly wage
  • Step 1:
    Determine the actual hourly wage. This is not always the base wage you'll see listed on a paycheck stub. Some hospitals or round-the-clock manufacturing operations pay a shift differential that's added to the base wage. For example, your base wage might be $12.00/hour plus a 10 percent shift differential (an extra $1.20/hour) for a total of $13.20/hour.
  • Step 2:
    Figure the hourly wage if you receive tips as a regular part of your pay. Your total hourly wage is the base amount your employer pays you plus the average tips you earn each week divided by the average number of hours you work. For instance, you might be paid $3.50/hour for 30/hours per week and make an average of $300 in tips, which works out to $10/hour in tips. Your hourly wage works out to $3.50/hour plus $10.00 or $13.50/hour.
  • Step 3:
    Multiply the average hours worked per week up to 40 hours by the actual hourly wage to find your total regular wages per week. If you also work any overtime hours (in excess of 40 hours per week) multiply the overtime hours by the hourly wage and then by 1.5. Add the regular and overtime pay together. This is your total wages per week.
  • Step 4:
    Calculate annual salary from hourly wage by multiplying the total wages per week (from Step 3) by 52 weeks unless you work only part of the year. If you do work only part of the year, multiply by the number of weeks you actually work. For example, if your total wages per week are $450 and you work year-round, your annual salary is 52 times $450, or $23,400.

Resources


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