The HR Dictionary

Hourly to Annual Salary

To determine how much an employee's compensation would be for an year based on their hourly pay, hourly to annual salary conversions are used. To figure this out, multiply the total number of hours an employee works in a year by their hourly compensation. For instance, if a worker earns $25 per hour and puts in 2,080 hours a year (the average number of hours most salaried workers put in based on a 40-hour workweek), their annual pay would be $52,000.