Hourly Rate Calculator
Calculate the hourly rate of an employee from their annual salary with a free hourly rate calculator.
How to calculate hourly rates from a salary
An employee's hourly rate can be calculated by simply taking their annual salary, the number of hours they work in a week, and the number of paid weeks in a year.
With an overview of the hourly rates you pay your employees, processes such as budgeting, minimum wage compliance and recruitment become much more efficient.
For your employees, hourly rates are a great way to indicate how much they could make if they choose to work a few hours of overtime.
Looking for a simple way to keep track of overtime or calculate your employee's overtime pay? Discover overtime tracking with BrightHR.
Calculate hourly rate
Annual gross salary / total annual working hours
For example, if someone earns €40,000 a year and works 37.5 hours a week, their hourly pay is €20.51 per hour
The benefits of paying employees by the hour
In some industries, paying employees by the hour is a common approach. Employers in sectors such as hospitality and retail may advertise roles with an hourly rate, particularly where working hours vary.
Paying employees an hourly rate can offer employers several benefits, including:
- Simpler overtime tracking
- The flexibility to scale staffing in line with demand
- Paying employees based on the hours they work
- More flexibility when managing part-time and casual staff
- Easier integration between staff schedules and payroll reporting
In some industries, hourly rates are the preferred method of payment. With employers in the hospitality and retail sectors opting to advertise open job roles at an hourly rate.
Manage hourly rates with a digital HR solution
Call for Advice
Speak to an expert for answers to any queries you have about employee pay and benefits
Integrate HR & Payroll
Merge your HR records with your payroll process for accurate hourly wages, paid on time
Calculate Shift Costs
Make smarter scheduling decisions by instantly seeing how much each shift will cost you
Comply with NMW
Keep your hourly rates compliant with the Irish National Minimum Wage thanks to automatic calculations