If you are a salaried employee, your employer probably only told you your annual salary upon hiring you. Furthermore, unless there is a change in your deductions or pay rate, you are paid the same amount each pay date. But if you are seeking other employment, your prospective employer might ask for your hourly rate. If you are an hourly worker, your pay may fluctuate because you are paid based on the number of hours worked in a given week. Whether you are salaried or hourly, you should know how to compute your hourly pay.
Figure your hourly rate if you are paid on an hourly basis. Your pay stub should reflect your hourly rate, but you may also determine the rate using your gross pay (your total pay before deductions) for the pay period. For instance, £390 gross pay for a weekly pay schedule.
Divide your gross pay by the number of hours worked. If your gross pay is £390 and you work 40 hours a week, you would calculate as follows: £390 / 40 = £9 per hour.
Use the salaried formula if you are paid on a salary basis. Divide your annual salary by the number of hours you work in the year. The calendar year has 2080 work hours, including holidays and other benefit days, such as vacation and sick time, for which salaried employees are generally paid. So if your annual salary is £42,250, you would divide that by 2080 as follows: £42,250/2080 hours = £20.30/hour.
Things you need
- Pay stub