Converting salary to hourly pay

[eggchaser1987]

I have no idea why but this is confusing me a lot at the moment.

I am currently on a salary and my employers want to change everyone onto an hourly wage.

Say I have a salary of £25,000 and I want to convert this to an hourly wag, what am I doing wrong?

£25,000/25=£480.77 per week

£480.77/40=£12.01 per hour

Work it back

£12.01*40=£480.40 per week

£480.40*4= £1,921.60 per month

1,921.60*12= £23,059.20 per year. Working it out this way leaves me £1940 out of pocket per year.

Can someone please tell me how I am going wrong, I'm tiered and don't want to be left out of pocket.

Thanks all

[DuraAce]

I'm no expert but each month of the year might not contain exactly four weeks...

[Wilmslowboy]

In the first example you work on the bases that there is 52 weeks in a year (you divide by 52)
In the second example only 48 weeks (you times by 4 then times by 12)


If you assume there is 4.33 weeks in a month (and then times by 12 months) it will work out correctly.

[Jasandjules]

You are converting from weekly to monthly but months are 4.5 weeks etc so easier to keep it all on the basis of a week i.e. £12.01 *40 = one week * 52 weeks = £25,000

[Countdown]

Actual working days = (52 x 5) less Annual Leave less bank holidays
Hours per day = 8 ( or 36 if you're a PH Director)

Hourly wage = Annual salary / (annual working days x hours)

[MHB]

If I was working this out, I'd do so as follows

Salary £25k per year
Assume you get 5wks holiday and bank holidays paid too?

52 weeks x 5 days = 260 days possible to work
less 25 days holiday and 8 bank holidays

So a total of 227 working days
Assume 8hrs per day
227 x 8hrs = 1,816hrs

£25,000 / 1,816hrs = £13.77/hr

I think the problem with the way you were working it out was that you were dividing annual salary by 52 weeks to equate a weekly wage - but only multiplying this by 48 weeks (4wks per month x 12 months = 48 weeks) - hence the difference, as you were 4 weeks short.

[eggchaser1987]

Thanks all.

No excuses for my stupidity! Now I know why I don't get a normal PH wage and drive around in a 15 year old estate.

[creampuff]

eggchaser1987 said:

I am currently on a salary and my employers want to change everyone onto an hourly wage.

You must find out exactly what is meant by an "hourly wage".

Does this mean you get paid when you turn up for work, but you no longer get holiday or sick pay?

[Rich1973]

Holiday entitlement is generally paid. I have been salaried previously, but paid overtime at an hourly rate.
The calculation using your figures was £25k / 52 = £480.77 per week.
If you work a 40 hour week £480.77 / 40 = £12.02 per hour.

[eggchaser1987]

Thanks creampuff, that's something I will have to ask about when it comes to it.

Thanks for the advice.

[mikebradford]

http://www.thesalarycalculator.co.uk/hourly.php