Receiving an hourly wage is still pretty much a joint drill in many workplaces. It includes restaurants, warehouses, construction sites, stores, and companies. This method of paying employees is a century old and is still practiced in several countries, including the USA.

The hourly wage method is more convenient for employers rather than the monthly salary package. Hourly wage is just a wage, but in monthly salary, they may have to add other allowances as well. So, if you are working on an hourly wage and don’t know **how to calculate salary from hourly pay, **then don’t worry, my friend.

In this article, we will together figure out how to calculate a monthly salary from an hourly wage with the help of a few easy steps.

**Calculating Salary from Hourly Pay**

As I have mentioned earlier, it is really easy to calculate your monthly salary if you are receiving an hourly wage. Just follow these steps below, and by the end of this article, you will have your salary amount with you:

USE THIS: adp hourly calculator

**Step 1: Determining Hourly Pay Rate**

Before starting with the calculations, you must know about your hourly rate. Usually, it is general information, and you know it, but if you have no idea or you receive a total paycheck per day, then it is okay.

You can find your hourly rate from your employer, or it is also mentioned on your paycheck. Read it carefully to find the hourly pay rate and get started with salary calculations.

In case you are an employer, then you know the decided hourly rate of each employee depending on their working level or category. Hourly rates are different for different levels of employment.

**Step 2: Determining the Number of Hours**

The next step is to find out the total number of hours for a particular period of the salary. This can be weekly, half-month, or monthly, depending on the rules of the place you are working in. For example, if you are working 8 hours per day for five days a week, then this means you will be working 40 hours per week.

You can also calculate the total hours you worked for a month by counting the days of the month, excluding weekends, and multiplying it by hours per day. The result is your hours worked per month.

SEE THIS: How to Calculate Pay per Hour?

**Step 3: Calculate Regular Earnings**

Now, it’s time to do the real calculations to determine your salary for the month or particular period. You will be using this formula; no matter how long the term period is, it will work for monthly and yearly salaries from hourly wages.

**Total Salary= Hours Worked × Hourly Pay rate**

**Example 1: Weekly Salary**

If you have a $20 wage per hour and you work for 40 hours in a week, and you want to find out your weekly salary, it will go like this:

Weekly Salary= 40 hours’ x $20 = $800

**Example 2: Monthly Salary **

If you have a $20 wage per hour and you work for 160 hours in a month (regular quota), and you want to find out your monthly salary, it will go like this:

Monthly Salary= 160 hours’ x $20 = $3200

You have to change the number of hours you are working for a particular period, and you will get your salary for that period. Isn’t it simple?

**Step 4: Overtime Earnings**

Now, there can be another exception: what if you have to work overtime some days of the week? It can be due to personal reasons or your workplace running short on employees.

Usually, the overtime pay rate is slightly more than your regular pay, so you cannot calculate it with your regular pay; you have to calculate it separately and then add it. Generally, it is 1.5 times more than your regular hourly pay rate. So, here is how to calculate it:

**Overtime Earnings = Overtime Hours x (1.5 x Hourly Pay Rate)**

**Example 1: Weekly Overtime**

If you have work 5 hours extra in a week, then this is how your calculations will look like:

Overtime Earnings: 5 hours’ x (1.5x $20) = $150

**Example 2: Monthly Overtime**

If you have worked 25 hours extra for a full month, then that’s how your calculations will look like:

Overtime Earnings: 25 hours’ x (1.5x $20) = $750

CHECK: How to Calculate Holiday Pay for Hourly Employees?

**Step 5: Add Overtime Earnings in Regular Salary**

Now, to determine the total salary with overtime salary too, you will add both of the values to get the total amount that you have earned over a specific period.

**Total Gross Pay = Regular Earnings + Overtime Earnings**

**Example 1: Weekly Total with Overtime**

Continuing the above example of weekly pay, this is how you can calculate:

Total Weekly Gross Pay = $800+$150= $950

**Example 2: Monthly Total with Overtime**

Continuing the above example of monthly pay, this is how you can calculate:

Total Weekly Gross Pay = $3200+$750= $3950

**FAQs**

**How do you calculate pay on an hourly basis?**

It is pretty simple: if you want to calculate your hourly wage from your weekly salary, then divide your total salary for the week by the total number of hours you work in a week. You will get your per-hour wage.

**What is the hourly rate?**

Hourly rate is the defined amount of wage an employee gets after working for one hour. This is the standard rate determined by the government for different levels and hourly wages are usually the same all over the country.

**What is the annual salary?**

Annual salary is the total amount an employer pays you in exchange for providing your services for a year. Although you get the payment monthly or weekly, if you add them for the tenure of one year, then it would be your annual salary.

**Conclusion**

**How to calculate salary from hourly pay** is pretty simple. All you have to know is your hourly wage and the total number of hours you worked in a specific period.

Using the same method, you can also calculate your yearly earnings. This is the gross salary; if you have taxes and other deductions, you will subtract them from your total salary.