Hourly vs Salary
Understand the practical differences between hourly pay and salary before comparing offers.
Open the Hourly to Salary CalculatorThe basic difference
Hourly pay is based on a rate for each hour worked. Salary is usually stated as an annual amount, then paid across regular pay periods.
Neither label tells the whole story by itself. The real comparison depends on expected hours, overtime, paid time off, benefits, commute, and work-related costs.
Overtime matters
In the United States, federal overtime rules generally require covered nonexempt employees to receive overtime pay for hours worked over 40 in a workweek at not less than time and one-half their regular rate.
Some salaried workers are nonexempt and may still be eligible for overtime. Some roles are exempt. The job classification matters more than the word salary.
Examples
Example comparison
- $25 per hour at 40 hours per week is $52,000 per year before taxes.
- A $55,000 salary may look higher, but if it regularly requires 50 hours per week, the practical hourly comparison changes.
- Use a salary-to-hourly or true hourly wage calculator to compare the time commitment.
Try it with your numbers
Use the calculator to check the examples against your own pay, hours, PTO, or raise assumptions.
Open the Hourly to Salary Calculator