Salary to Hourly Converter
Convert between annual salary and hourly rate instantly. Full pay period breakdown with FLSA exempt threshold check.
Standard full-time is 40 hours/week (2,080 hours/year)
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Salary vs Hourly: What You Need to Know
The 2,080-hour standard
The standard work year used for salary-to-hourly conversions is 2,080 hours: 40 hours per week times 52 weeks per year. This is the figure used by the US Office of Personnel Management (OPM), the Bureau of Labor Statistics, and most private-sector employers. However, actual working hours vary. After accounting for typical paid holidays (10 days) and vacation (10-15 days), the effective working hours are closer to 1,920-2,000 per year.
Salaried vs hourly: key differences
Salaried (exempt) employees receive a fixed amount per pay period regardless of hours worked, are not eligible for overtime, and typically receive benefits like health insurance and retirement contributions. Hourly (non-exempt) employees are paid for actual hours worked, must receive overtime at 1.5x their regular rate for hours over 40 per week, and may or may not receive benefits. The FLSA determines exempt/non-exempt status based on both salary level and job duties.
FLSA exempt salary threshold explained
The Fair Labor Standards Act requires that most employees classified as exempt from overtime must earn at least $35,568 per year ($684 per week). This is the salary basis test. Employees must also pass a duties test for one of the exempt categories: executive (managing the enterprise or a department, directing two or more employees), administrative (office or non-manual work related to management or business operations), or professional (requiring advanced knowledge in science or learning). Both tests must be met for exempt classification.
Understanding pay frequencies
The four most common pay frequencies are: weekly (52 pay periods/year, common in construction and manufacturing), biweekly (26 periods, the most common overall at 36% of US employers), semi-monthly (24 periods, paid on specific dates like the 1st and 15th), and monthly (12 periods, less common, mainly in professional services). The pay frequency affects the per-period amount but not the annual total. Note that biweekly results in 2 months per year with 3 paychecks rather than 2.
Comparing job offers: salary vs hourly
When comparing a salaried offer to an hourly one, convert both to the same time period. Consider total compensation beyond base pay: health insurance ($7,911 average employer contribution for single coverage), retirement contributions (average 3-6% employer 401k match), paid time off value, and any bonuses or commissions. An hourly rate of $25/hr ($52,000 annual) with full benefits may be worth more than a $55,000 salary without benefits.
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