What is pay to pay?

Salary to salary is a method that calculates how much an hourly wage worker would earn if he or she received the same salary. This calculation is known as the salary to salary conversion.

Does wage-to-salary conversion change a worker's income?

No. Hourly employees continue to earn the same hourly wage. The conversion is simply a way to show how much they would earn if their employer paid them an annual salary.

Why is there a change from salary to pay?

Employees who are paid hourly may wonder how their pay compares to other employees' wages. Also, a salary to wage conversion can help employers see at a glance whether hourly and salaried employees are receiving the same pay for the same work.

How to convert salary to salary

You can calculate what an hourly employee's salary would be worth as an annual salary in two simple steps.

1. Multiply the number of hours they worked per week by their hourly wage to show a week's earnings.
2. Multiply that number by 52, which is the number of weeks in a year.

The resulting figure is their equivalent annual income.

For example, if Jonas earns $25 per hour and works 40 hours per week, multiplying these figures shows that he earns $1,000 per week. Multiply this by 52 and you will see that his equivalent annual salary will be $52,000 per year.

Overtime rates, bonuses, holiday pay, and other adjustments to the employee's normal pay are generally not included in this basic calculation.

Converting Salary to Wages

A different formula lets a salaried employee figure out what his or her hourly wage will be.

1. Multiply the number of hours they work each day by the number of days they work in a year to find out how many hours they work per year.
2. Divide that figure by their annual salary.

The result is their hourly wage.

For example, if Maria works eight hours a day for 240 days a year, that's 1,920 hours. Divide her annual salary of $75,000 by 1,920 and you'll find her hourly wage is $39.06.

Whether you convert hourly wages to salaries or salary to hourly wages, remember that these figures do not include any salary deductions for taxes, employee benefits, etc. The take-home pay after the deductions will be lower.