Wage Converter: Detailed Usage Guide

There are several times in life when an employee's wage is needed to convert from salary to hourly or vice versa. Whether it be a new job, job promotion, a new position, or additional responsibilities. This conversion can be done manually while dealing with one or two employees. However, a larger number can make confusion or increase the chance of human error that would eventually cause a financial loss. This is where our salary to hourly wage converter steps in. This tool can convert the wage instantly in multiple pay periods like annual wage or hourly, daily, weekly, bi-weekly, and monthly.

So, if you are wondering about how to use our wage converter, then we would suggest you to continue reading as the following ultimate guide would answer almost every question related to wage conversion from salary to hourly or vice versa.

Advantages of using our Hourly to Salary Wage converter:

Our state-of-the-art wage converter can be used for numerous purposes, both by the employers and the employees. Here are some of the common advantages and uses:

• Our converter can help hourly employees to calculate their annual income.
• This tool can help the employees to compare several job offers, having different pay periods.
• This calculator can help the employers to estimate the promotion cost of an employee, especially the one being promoted from hourly wage to a higher salary based position.
• Our calculator can help the employers to determine whether their paid salaries comply with minimum wage laws provided by federal and state authorities, to prevent any penalties.
• Unlike many other converters and calculators available online, our wage converter can convert a single input into eight different wage types instantly and accurately.
• Our calculator can help the employee to decide whether the salary based job offer is better or hourly based.

How to Use our Wage Converter?

Our Salary to Hourly Wage converter is user-friendly and convenient that it requires just a single input to get your results. But before jumping on to its usability, you must know about some terms, that you may encounter through-out this guide:

Types of Wages

1. Hourly Rate: In this type of wage, the employer pays the employee for each hour worked in a specific period. The hourly rate for each hour worked is decided between the employer and the employee. However, an employer must comply with Federal and State Wage Laws, including Minimum Wage and Overtime.
2. Daily Wage: It is a type of hourly wage, where the employer pays its employees for total hours worked in a day at a decided hourly rate. Usually, most of the states in the US require the employer to pay overtime for each additional hour worked after eight regular hours in a day. Typically overtime rate is time and half of the regular hourly rate.
3. Weekly wage: it is one of the most common types of Hourly Wage offered by the employer, where an employee is paid for total hours worked in a workweek. Usually, the regular working hours in a workweek are 40 hours, and every additional hour worked after regular hours is considered overtime.
4. Bi-Weekly: This type defines that the employer pays its employees once every two weeks.
5. Monthly: Here, the employee is paid once every month, even if the employee is on an hourly basis or salary basis.
6. Annual: This type is usually for salary-based employees, where their yearly salary is decided; however, their salary is divided and paid in shorter pay frequencies like bi-monthly or monthly.
7. Per Minute: Although this wage type is not practical or offered by the employers, employees or employers can use this type to analyze or compare different wages.
8. Per Second: Like Per Minute, this Wage type is not practical, but can be used for comparison or analysis.

Pay Frequencies:

Pay frequency is how often an employee is paid. There are several types of pay frequencies offered by the employers, below are some of the common among them:

1. Daily Wage: The employee is paid every day.
2. Weekly Wage: The employee is paid once every week, usually at the start or end of the week.
3. Bi-Weekly Wage: The employee is paid one every two weeks.
4. Semi-Monthly: The employee is paid twice a month, usually on the 15^th and 1^st of every month.
5. Monthly: The employee is paid once every month.
6. Quarterly: The employee is paid every three months (or four times a year).
7. Annually: The employee is paid each year.

Possible Conversions:

Unlike many other calculators available online, that requires a separate calculator for different wage type conversions. Our Hourly Wage Converter can single-handedly handle all conversion through a single input. Here are some of the possible conversion you can perform:

Instructions:

Follow the steps below, to operate our calculator like a Pro:

Step 1:

Our calculator is divided into three sections, where section one (as shown in the image above) is for the regular working hours, days, and weeks. We have set the default values according to FLSA Law that is followed across the United States. However, there might be some changes in the state law, for which you are allowed to change these values accordingly. Else keep it unchanged.

Step 2:

The second section is for "Types of Wages" (as shown in the image above). It requires you to input a single value in any one format of "Wage Types" among eight available. Once you have input the value, our calculator will instantly calculate and display the results in all other wage types.

Step 3:

The Last Section is to reset, print, or share your work, by:

1. Clicking on the "Clear" button, the calculator will reset to a default value.
2. Clicking on the "Print" button, you can print the entire result sheet.
3. You can also input the recipient's email address and click on the "Email" button to share your results.

How to Calculate Annual Salary?

Annual salary is one of the standard wage types that is offered by the employer, however, it is divided and paid in shorter pay periods, usually weekly, bi-weekly-semi-monthly, or monthly. Annual salary can also be used by the employee to compare different job offers. So here is the manual method that you can use to convert different types of wages into Annual Salary.

Hourly Rate to Annual Salary:

Assuming that your Hourly Rate is $18, then your Annual Salary would be:

Daily Wage to Annual Salary:

Assuming that your wage is $100, then your Annual Salary would be:

Weekly Wage to Annual Salary:

Assuming that your Weekly Wage is $450, then your Annual Salary would be:

Bi-Weekly Wage to Annual Salary:

Assuming that your Bi-Weekly Wage is $1000, then your Annual Salary would be:

Semi-Monthly Salary to Annual Salary:

Assuming that your Semi-Monthly Salary is $600, then your Annual Salary would be:

Monthly Salary to Annual Salary:

Assuming that your Monthly Salary is $1250, then your Annual Salary would be:

Quarterly Salary to Annual Salary:

Assuming that your Quarterly Salary is $3000, then your Annual Salary would be:

How to Calculate Hourly Rate from different Types of Salaries?

Do you want to know how much you are earning on an hourly basis while you are being paid on a weekly, monthly, or annual basis? Then you must follow the steps below:

Calculating Hourly Rate from Annual Salary:

Assuming that you have an annual salary of $26500, and you have worked regularly, with no overtime or leaves, then your hourly rate would be:

According to FLSA, regular working hours for a workday are 8 and for workweek are 40 hours, so:

Calculating Hourly Rate from Quarterly Salary:

Assuming that your employer pays you quarterly, with a salary of $10500, then hour hourly rate would be:

Calculating Hourly Rate from Monthly Salary:

Assuming that you have a monthly salary of $2560, and you have worked regularly, with no overtime or leaves, then your hourly rate would be:

** For better results, it is suggested to convert your Salary to Annual Salary then back to Hourly Rate**

Calculating Hourly Rate from Semi-Monthly Salary:

Assuming that you are paid on a semi-monthly pay frequency with a salary of $1540, and you have worked regularly, with no overtime or leaves, then your hourly rate would be:

Calculating Hourly Rate from Bi-Weekly Wage:

Assuming that your bi-weekly salary is $700, and you have worked regularly, with no overtime or leaves, then your hourly rate would be:

Calculating Hourly Rate from Weekly Wage:

If your Weekly Salary is $500, with no leaves or overtime, then your hourly rate would be:

Calculating Hourly Rate from Daily Wage:

If your Daily Wage is $50, with no overtime, then your Hourly rate would be:

Calculating different types of Wages from Hourly Rate:

Whether comparing two jobs as an employee or calculating the salary of the promoted hourly based employee as an employer, we somehow are stuck in a situation when we need to calculate different types of salary from the hourly rate. Even this conversion is also beneficial while calculating the minimum gross income from the minimum wage rate provided by the Federal, State, or Local authorities.

Wherefore, here are some examples that would help you to calculate different types of wages from the hourly rate:

Calculating Daily Wage from Hourly Rate:

Assuming that you have an hourly rate of $14, with no overtime, as you have only worked 8 hours in a day, then your daily wage would be:

Calculating Weekly Wage from Hourly Rate:

Assuming that you have an hourly rate of $12, with no overtime or leave, and have worked completely 40 regular hours (as required by FLSA), them your Weekly Wage would be:

Calculating Bi-Weekly Wage from Hourly Rate:

Assuming that your employer pays you with bi-weekly pay frequency, at the hourly rate of $15, and you have 5 hours of overtime and no leaves, then your bi-weekly pay would be:

Calculating Semi-Monthly from Hourly Rate:

Assuming that the Minimum Wage per hour in your state is $12.5, and you are offered a semi-monthly Salary of $2200. Now, if you want to know whether the offered salary is equal or higher than the minimum wage, you need to calculate the Semi-monthly Salary according to State Minimum Wage Rate and compare it with your proposed salary. For which, follow the steps below:

First, calculate weekly wage according to the minimum wage rate (Assuming that you have not worked overtime or have a leave):

As offered Salary of $2200 is higher than State Minimum Salary $1080 for bi-weekly pay frequency, so this job offer is according to State Minimum Wage Law (Note: Some other exceptions may apply).

Calculating Monthly Salary from Hourly Rate:

Assuming that you are offered an hourly rate of $15 for a new job, where your current salary based job is $5000 a month, and you need to know whether your new job is good or not. Wherefore, you need to calculate your monthly wage for a new job (having no overtime or leaves) and compare it with current job salary:

Assuming that you don't work any excess hours after (usually eight) regular hours in the workday for your current job, then your monthly gross earnings from a current job are far better than a new job offer.

Calculating Quarterly Salary from Hourly Rate:

For instance, your hourly rate is $16, then your quarterly salary (without overtime or leaves) would be:

Calculating Annual Salary from Hour Rate:

As shown in the examples above, to convert Hourly Rate to Salary, it is essential to convert Hourly Wage type into Annual Salary.

For example: if an hourly employee, having an hourly rate of $18, is promoted to a salary based job with an Annual Salary of $45000. Now, an employee wants to know how much appraisal he/she has received (without overtime, leaves, or any other supplementary wages):

You can also refer to this table for calculating Annual income from basic hourly rate:

Hourly pay to annual salary

Hourly pay	Weekly pay (40 hrs)	Monthly pay (avg)	Annual salary (50 weeks)
$10 per hour	$400	$1,666.67	$20,000
$11 per hour	$440	$1,833.33	$22,000
$12 per hour	$480	$2,000.00	$24,000
$13 per hour	$520	$2,166.67	$26,000
$14 per hour	$560	$2,333.33	$28,000
$15 per hour	$600	$2,500.00	$30,000
$16 per hour	$640	$2,666.67	$32,000
$17 per hour	$680	$2,833.33	$34,000
$18 per hour	$720	$3,000.00	$36,000
$19 per hour	$760	$3,166.67	$38,000
$20 per hour	$800	$3,333.33	$40,000
$21 per hour	$840	$3,500.00	$42,000
$22 per hour	$880	$3,666.67	$44,000
$23 per hour	$920	$3,833.33	$46,000
$24 per hour	$960	$4,000.00	$48,000
$25 per hour	$1,000	$4,166.67	$50,000
$26 per hour	$1,040	$4,333.33	$52,000
$27 per hour	$1,080	$4,500.00	$54,000
$28 per hour	$1,120	$4,666.67	$56,000
$29 per hour	$1,160	$4,833.33	$58,000
$30 per hour	$1,200	$5,000.00	$60,000

Comparing different Job offers as an employee:

These were some of the common types of wages that an employer provides to their employees. So if you want to compare different jobs, having different pay types, then you must convert them into a common pay period, for a fair comparison.

For Example: If an employee has two job offers:

Now to compare both jobs offers, we must convert both wages into a common wage type like a monthly wage.

So for JOB 1, we will convert Hourly Wage in Monthly Salary Wage, assuming that employee has worked for 100 regular hours and 5 Overtime Hours in a month:

So according to the results, Job 2 is slightly better than Job 1. These above-stated steps seem simple. However, they may get complicated while dealing with different pay types. Hours worked, and a large number of jobs offers. Therefore, employees are suggested to use our Hourly to Salary Wage converter for accurate results.

Salary Vs. Hourly Wage – Which one is better?

You must have read a lot about hourly wages and salary in this article. But are you still confused about which one is better?

Don't Worry! This section will help you decide!

It would be unfair to rank one type of wage over another, as both of them have their perks and cons. Therefore, it depends on your skills, annual pay, working hours, net pay, state policies, employer, etc. to decide whether a salary based job or hourly rate is suitable for you.

Here are a few points that would give a general idea of what you should choose:

Salary Employees:

Pros:

• Salary based employees are paid a fixed amount for a decided period, regardless of how many hours you have worked. Usually, it is an Annual Salary that is divided into several paychecks that are paid on a weekly, semi-monthly, or monthly basis (as per employer's policies or mutual agreement). This method gives the employee a relief of knowing they will receive the same amount on every payday.
• In compensation to overtime, usually company provides several other substantial benefits including 401(k) plans, health insurance, free tickets to cultural institutions, and parental leave, which are even more significant than those offered to the hourly employees.
• If the salaried employee is non-exempted according to eligibility criteria provided by the Fair Labor Standards Act (FLSA), the employee is entitled to receive overtime at the rate of one and half of regular hourly rate, for every excess hour worked after 40 hours in a workweek.
• Usually, salary based employees are at a higher, responsible, and influential rank than the hourly employees.
• Job timings and days are usually fixed. Therefore, you can easily plan your day.

Cons:

• Most of the salary Based employees are exempted by FLSA and State laws from receiving overtime for any extra hour worked after regular hours in a workday or a workweek. Therefore, no matter how long they work, they won't get paid.
• Usually, salary based jobs are 9 am to 5 pm and five days a week, which may become boring as to follow the same old routine. Eventually, affecting your performance.

Hourly Employees

Pros:

• Hourly employees are required to be paid at a decided hourly rate for each hour they work in a workweek. Moreover, they get an additional benefit of overtime and double time.
• Overtime is paid in time and half of the regular hourly rate, for every excess hour worked after 8 hours workday or 40 hours workweek. However, double time is compulsory in only some of the states.
• The FLSA, State, and Cities have their minimum wage rates, which are required to follow by the employers while paying the hourly employees.
• Sometimes the hourly employees earn a lot more than salary employees due to overtime.
• Hourly employees have flexible timing that provides better time management and more freedom.

Cons:

• Work hours in a workweek are not fixed or equal. Therefore, it is hard for them to deduce the amount they are going to earn in the upcoming period. Hence, making it difficult for them to budget their expenses.
• Hourly Employees won't get the same or better benefits than salary-based employees like health insurance.
• The irregular work schedule can make your routine disorganized and frustrating.

Federal Wage Facts and Laws:

Here are some of the important Federal Wage laws (Fair Labor Standard Act – FLSA Laws) that one must know while dealing with Wages. Moreover, they are also suggested to refer to their respective State laws for further assistance.

• The federal minimum wage (2019) for employees is $7.25.
• The federal cash minimum wage for Tipped Employees is $2.13.
• Employers are required to pay overtime to non-exempted employees at the rate of one and half of the regular hourly rate for all excess work after 40 hours during the workweek.
• There is no limit of hours that an employee can work in a day. However, employers are not required to pay overtime for more than 8 hours a day or work on weekends like Saturday or Sundays or holidays.
• Employers are required to pay overtime to the Employees earning less than $23,660per year.
• Some employees are exempted from Federal Minimum Wage and Overtime Law. For further details, you must refer to FLSA.
• There are some Child labor laws under FLSA, which an employer must consider while hiring an employee.

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