Working out hourly rate from monthly pay

cookie365

This might just be a maths question rather than an employment question, but I'm no good at either

I get paid monthly, same amount each month whether it's got 28,29,30 or 31 days.

My contracted times are 37.5 hours a week.

I've been offered overtime at 1.75 times hourly rate - but I don't know what that is!

I did think of just dividing my monthly wage by 4 (weeks) then 37.5 (hours) until I realised that there are more than 48 weeks in a year

If we assume that i earn £50k a year (I so so don't!) can someone tell me what that is per hour? Or what I need to do to calculate it myself?

Thank you

zagfles

Usual method for daily rate on monthly payroll is annual pay/261 (assuming you work 5 days a week).

So hourly would be annual pay/(261*7.5) as 7.5 is daily hours. So £50k would be £25.54 an hour.

ec07733

Hi,

You would do the following based on 50k:

50,000 / 52 (weeks) = £961.54

961.54 / 35 (hours per week) = £27.47 per hour

ec07733

961.54 / 37.5 = £25.64

stix62

I'd multiply your monthly wage by 12.
Divide the answer by 52
Divide that answer by 37.5

Hey presto = hourly rate.

Multiply that by 1.75 = o/t rate

sensibleadvice

You have to take account there are more than 52 weeks per year:

50,000 / 52.143 = 958.90

958.90 / 37.5 = 25.57

Overtime at 1.75 = 1.75 x 25.57 = 44.75

cookie365

Thank you both

I never realised it would be that simple - that's why I didn't ask at work, in case everyone though it was an idiot

If zagfles calculation is a standard accounting one I should probably go for that, though that extra 10p in ec07733's method is tempting

Thanks!

agrinnall

It's worth knowing how it's done, but far simpler to just input the figures into a calculator such as http://www.thesalarycalculator.co.uk/salary.php
(although it only goes down to days, so you'd still have to do the final step to get down to hours).

Savvy_Sue

I'd still ask, because you never know if they'll work it out correctly or not ...

cookie365

agrinnall, that site is amazing

It gets my actual salary amount correct, to the penny.

And Sue, yes, I'm going to see if what I calculate based on this thread matches what shows on my payslip first though. Otherwise I can see this conversation:

cookie365: "I'm not sure it's right!"
boss: "I am. What makes you think that?"
cookie365: "Errrrr"