how do you calculate your hourly rate

jamminjamaica

hi there

i am trying to calculate my hourly rate. currently earn £16,000 per annum. i work mon to fri 9-5 and get a hour for lunch.

a1969baby

Hiya

Based on a 35 hour week, presuming you don't get paid for your lunchbreaks, it works out as about £8.80 an hour.

(£16000, divided by 52, divided by 35)

gingerdad

8.79 per hour

taxi97w

Or £7.69p/h if you work 40 hrs a week.

mutley74

a1969baby wrote: »

Hiya

Based on a 35 hour week, presuming you don't get paid for your lunchbreaks, it works out as about £8.80 an hour.

(£16000, divided by 52, divided by 35)

You have not allowed for annual leave and stat. holidays.

Allowing for 25 days paid holiday, and approx 1 week for stat. days.
Leaves about 46 working weeks.

9-5 with 1hr for lunch (not paid) = 7hrs per day, 35 hs per week.

Therefore, 35x 46 = 1610 hours per year

Approx. hourly wage – 16000/1610 = £9.90

Why do you need to know your hourly rate? Are you intending to go as agency hourly rate worker? If so rate will be higher to cover your unpaid holidays, risks in having shorter term contract rights and other costs.

a1969baby

Ooh I didn't know you had to count all that in as well!

Its the first time I've ever seen it done that way

Surely you would need to leave the paid holidays in though, as although you're not at work, you are getting paid as though you were?

liney

Temporary workers are entitled to 4 weeks paid holiday per year.

As you are paid for your holidays, i dont think you need deduct them from the total. 16000/52 = 307 pw/35 = £8.79 per hour.

mutley74

liney wrote: »

Temporary workers are entitled to 4 weeks paid holiday per year.

As you are paid for your holidays, i dont think you need deduct them from the total. 16000/52 = 307 pw/35 = £8.79 per hour.

no it depends if you get your "holiday pay" included within your rate or you opt for paid holiday leave (which means teh agent keeps the "holiday allowance" and thus pays you when you are on leave) - but all this depends on what type of agency work you do.


The rate depends on why you need to know. If your a company and wish to work out your staff overheads, then you need to include paid holidays plus taxes, NI etc.
But if youre an employee wishing to go contracting, then i personally dont count in the holidays.

tigtag02

atpug wrote: »

You have not allowed for annual leave and stat. holidays.

Allowing for 25 days paid holiday, and approx 1 week for stat. days.
Leaves about 46 working weeks.

9-5 with 1hr for lunch (not paid) = 7hrs per day, 35 hs per week.

Therefore, 35x 46 = 1610 hours per year

Approx. hourly wage – 16000/1610 = £9.90

Why do you need to know your hourly rate? Are you intending to go as agency hourly rate worker? If so rate will be higher to cover your unpaid holidays, risks in having shorter term contract rights and other costs.

This is crazy!!! Not only are you assuming holiday entitlement but that holiday will be paid!!
The figure of £8.80 is the correct figure for a 35 hour week!!

tigtag

LittleVoice

atpug wrote: »

no it depends if you get your "holiday pay" included within your rate or you opt for paid holiday leave (which means teh agent keeps the "holiday allowance" and thus pays you when you are on leave) - but all this depends on what type of agency work you do.

Agencies should not now be rolling up holiday pay in the hourly rate - it has been deemed not to be compliant with working time regulations.

mutley74

LittleVoice wrote: »

Agencies should not now be rolling up holiday pay in the hourly rate - it has been deemed not to be compliant with working time regulations.

it used to be the case a few years ago when i wa working PAYE via agency.

as i said it depends on what basis one needs the hourly rate. Is one looking for the total staff employment cost or does one want an idea what there should be asking if they go contracting. Thats how its worked for me and always has done. The reverse is also true. I have been an hourly paid worker since 2002 and now i work backwards to see what i should be worth if i was a staff employee.