Converting salaried to hourly

[nomnom]

If I switch from salaried to hourly at my current job, I would no longer have sick leave, vacation leave, or paid holidays. How would you calculate an hourly wage from an annual salary? Would you divide the salary by 261 (the number of weekdays in a year) or by the actual hours worked (261 minus vacation minus sick leave minus holidays)?

[2chatter]

2080 is the hours worked in a year (on average). So you can use that figure. When I consulted my rate was 45 percent more hourly than what I am paid salaried, FWIW.

[k3am]

When I audited, we calculated hourly rates as salary divided by 2080 (52weeksx40hours). This is usually what the payroll systems tied out to.

Not sure how helpful that is.

[liziz]

I just saw a change come through our system for someone doing this - it said exactly what you did - no leave accrues, but the hourly rate is Annual Salary/2080.

[rach]

If you're asking for the change, I would personally factor in/try to negotiate for the loss of the benefits you're mentioning. If you anticipate getting any OT, include that into your equation as well though.

[nomnom]

Thanks for the feedback. I currently have 52 days of PTO and holiday time in a calendar year, so it'd effectively mean about a 20% pay cut if I don't account for it in my calculations. 😕

rach I will try to do that, but based on the prevailing answers here it seems like it may be a difficult sell. I would not be allowed OT.

@kitchen 2chatter I wonder if that would be a better way to go. Problem is that the university takes *forever* to process outside contracts. What is ER?