The hourly to salary wage calculator (also called an annual salary calculator) is tool that helps you determine your wages and salaries depending on the time period you take into account. So, you know your hourly wage and wander what is your annual income? Or maybe you want to compare a couple of job offers where the amount of money employers offer you is expressed for different time periods? Use our hourly to salary wage calculator.
How to use the wage calculator
To convert hourly to salary, do the following:
- Enter the hourly rate in the "Hourly wage box".
- Enter the number of hours you're going to work in a week (it defaults to 40).
- See how much are you going to earn weekly, monthly or annually.
- It works in all directions, you may provide your hourly, daily, weekly monthly or annual salary and get all the other values.
Wage vs salary
Wages and salaries denote different methods of remuneration that an employer pays to an employee in exchange for their work. Wage is a payment calculated based on either a completed task or a measured amount of work, or an hourly or daily rate multiplied by a number of hours/days that an employee has worked. In contrast, salary is a specified amount of money paid by the employer to the employee at equal intervals (such as a week or a month). This is irrespective of how many hours an employee has worked. Even though salary can be paid semi-monthly or monthly it is usually associated with compensation quoted on an annual basis (check our salary to hourly converter for a tool that's better suited for the reversed task (they do calculate the same way, but fields are rearranged). Sometimes the term "wage" is used to indicate all forms of remuneration simply because "wage labor" is the most common form of work.
History of wages and salaries.
You already know that "wage" is compensation for a standard unit of working time. The earliest used unit, which still is quite popular, was a day of work. However, invention of clocks enabled the division of a day of work into smaller units. Ever since the "hourly wage" has become the predominant unit of employee remuneration. We don't know when the first salary has been paid but some estimate it could have been between 10,000 and 6000 BCE. Some connect the word "salary" with the Roman Empire and salt - Roman soldiers were presumed to have been paid in salt - a compensation called "salarium". Irrespectively of the exact story, Roman Empire established a form of work-for-hire, which also existed in medieval Europe, although it was rather rare. Salaried work became more widespread during the Second Industrial Revolution (1870-1930). Its expansion is connected with the rise of modern business corporations and difficulties in measuring office work output in terms of hours or pieces. 20th century saw another rise in salaried employment due to the development of service economy where the share of industrial jobs declined.