Hourly rate converted to annual salary

[samfordtemp]

HI, this may be a dorky question, but I am reading a contract where it states the hourly rate, not the annual salary.

How do I work back to figure out the annual salary

Is it as simple as taking the hours per week and x 52 weeks? or is it x 48 weeks

Thanks!

[Tiger]

HI, this may be a dorky question, but I am reading a contract where it states the hourly rate, not the annual salary.

How do I work back to figure out the annual salary

Is it as simple as taking the hours per week and x 52 weeks? or is it x 48 weeks

Thanks!

Multiply your hourly rate by the number of hours per week (eg 38 is often general standard), then multiply that weekly amount by 52 and you have your annual salary
EG
Hourly Rate of $20 x 38 = $760 x 52 = $39,520 pa.

Of course if you are a casual employee ie an employee who does not have regular hours, that is a different story as your annual salary can't really be predicted which is why appointment letters/contracts for casuals will usually refer to an hourly rate as opposed to an annual salary.

Tiger

[Tasman McManis]

Multiply your hourly rate by the number of hours per week (eg 38 is often general standard), then multiply that weekly amount by 52 and you have your annual salary
EG
Hourly Rate of $20 x 38 = $760 x 52 = $39,520 pa.

Of course if you are a casual employee ie an employee who does not have regular hours, that is a different story as your annual salary can't really be predicted which is why appointment letters/contracts for casuals will usually refer to an hourly rate as opposed to an annual salary.

Tiger

It is worth talking to your payroll people to see what they determine as a year. In some payroll systems they use 4 years as the basis for calculating weeks in the year so that with the extra day for the leap year there is an average of 52.1786 weeks in a year.

[Qld IR Consultant]

That contract might be an hourly rate not salary because they work inconsistent hours each week? Maybe 38 one week and 50 the next?....Have to remember that not all contracts are salary based.........

[Cottoneyes]

Just to add more confusion to the issue, does the company have leave loading for hourly employees but not salaried employees (which is common)? Look at other issues which may impact it as well, shift rates, penalty rates (ie regular work day on Saturday / Sunday) etc. which do not get shown separately in a salary

[Moz]

I'm assuming samfordtemp is just trying to establish whether the offer is reasonable, in which case it is necessary to work out what the pro rata rate is for a normal woking week, then multiply this by the number weeks in the year.

This can then be multiplied by 52 if paid leave is applicable (if the worker still gets paid when they take leave)

Alternatively, if it is a casual/contract hourly rate which includes a loading for annual leave, personal leave and public holiday (meaning the employee is only paid for the hours they are actually at work), then the multiplication factor needs to be 52 weeks LESS the amount of paid leave and public holidays that would normally be applicable. This would be somewhere in the region of 43-44 weeks depending on the number of public hols.