The arithmetic of salary-to-hourly.
Two multiplications, one division, and one decision about how to treat paid leave. The decision matters more than the arithmetic.
The two formulas
For an annual salary S, hours per week h, and weeks per year w:
hourly = S / (h × w)
salary = hourly × h × w
Symmetric. Edit either side and the other updates.
The 2,080-hour standard
In the US, federal labour-statistics convention is 2,080 hours per year (40 × 52). This treats the salaried employee as if they work 52 full weeks — including the weeks they're on paid leave. The reasoning: a salaried employee continues to earn during paid leave; the “hours” in the denominator should reflect the contractually-paid period, not just the worked period.
The UK ONS uses 1,950 hours per year (37.5 × 52) by the same convention. The European average is closer to 1,750 hours per year reflecting shorter standard work weeks (35–37 hours) and longer paid leave (28–30 days plus public holidays).
Reference: hours-per-year by country
| Country | Standard hours/week | Paid leave days | Implied hours/year (full pay) | Realised hours worked |
|---|---|---|---|---|
| US | 40 | ~10–15 | 2,080 | ~1,960 |
| UK | 37.5 | ~28 | 1,950 | ~1,740 |
| Ireland | 39 | ~29 | 2,028 | ~1,802 |
| Germany | 36 | ~30 | 1,872 | ~1,656 |
| France | 35 | ~30 | 1,820 | ~1,610 |
| India | 48 | ~21 | 2,496 | ~2,332 |
| Australia | 38 | ~20 | 1,976 | ~1,824 |
| Japan | 40 | ~20 | 2,080 | ~1,920 |
| Singapore | 44 | ~14 | 2,288 | ~2,180 |
The right denominator depends on what you're computing. For comparing salary offers across jurisdictions, use the standard-hours figure (column 4). For computing the “true” hourly cost of your time worked, use the realised-hours figure (column 5).
Worked example
$75,000 annual salary in the US, standard 40h/52w convention:
- Hourly:
75,000 / (40 × 52) = 75,000 / 2,080 = $36.06/hour - Weekly:
75,000 / 52 = $1,442.31/week - Daily (5-day week):
75,000 / (52 × 5) = $288.46/day - Monthly:
75,000 / 12 = $6,250.00/month
The same salary in a UK 37.5/52 convention produces a higher hourly: 75,000 / 1,950 = $38.46/hour. The salary is identical; the implied per-hour figure depends entirely on the convention used.
The biweekly / semimonthly question
US payroll often runs on biweekly or semimonthly schedules. Common conversions:
- Biweekly: 26 paychecks per year. Per-paycheck = annual / 26.
- Semimonthly: 24 paychecks per year (1st and 15th). Per-paycheck = annual / 24.
- Monthly: 12 paychecks per year.
- Weekly: 52 paychecks per year.
Note that biweekly is not equivalent to semimonthly: biweekly produces 26 paychecks (52 weeks / 2), semimonthly produces 24 (12 months × 2). Per-paycheck amounts differ by ~8 %.