Salary or Hourly: Which Pays You More?
Conversions, differences, and what each means for your real take-home.
By the Easy Guides Editorial Team
Quick conversions
Most people work 2,080 hours per year (40 hours/week × 52 weeks). Here are common salary-to-hourly conversions assuming a full-time schedule:
| Annual Salary | Hourly Rate | Weekly Pay | Biweekly Pay |
|---|---|---|---|
| $30,000 | $14.42 | $577 | $1,154 |
| $40,000 | $19.23 | $769 | $1,538 |
| $50,000 | $24.04 | $962 | $1,923 |
| $60,000 | $28.85 | $1,154 | $2,308 |
| $75,000 | $36.06 | $1,442 | $2,885 |
| $100,000 | $48.08 | $1,923 | $3,846 |
| $150,000 | $72.12 | $2,885 | $5,769 |
| $200,000 | $96.15 | $3,846 | $7,692 |
The conversion formulas
Salary to hourly: Annual salary ÷ 2,080 = hourly rate
Hourly to salary: Hourly rate × 2,080 = annual salary
Salary to weekly: Annual salary ÷ 52
Salary to biweekly: Annual salary ÷ 26
Salary to semimonthly: Annual salary ÷ 24
Salary to monthly: Annual salary ÷ 12
What "salary" really means (exempt vs non-exempt)
The salary vs hourly distinction is more than just how you're paid. It's tied to a federal labor law concept: exempt vs non-exempt.
- Exempt employees (usually salaried): Not entitled to overtime pay. Get the same paycheck regardless of hours worked. Must meet specific criteria, minimum salary threshold ($684/week federal in 2024), executive/professional duties.
- Non-exempt employees (usually hourly): Entitled to overtime pay at 1.5x their rate for hours over 40/week. Time tracking is required.
Some salaried employees are non-exempt and DO get overtime, common in operational, technical, and lower-level admin roles. Some hourly employees can be exempt, though rarer.
Why salaried jobs aren't automatically better
The common assumption is that salaried = professional and better. Sometimes that's true, but consider the trade-offs:
- Salary, predictable income, often comes with benefits and PTO, but no overtime pay. Companies sometimes expect 50, 60 hour weeks for the same salary.
- Hourly, variable income, but every extra hour = more money. Overtime at 1.5x can mean significant earnings during busy periods.
Calculate your effective hourly rate based on actual hours worked. A $70,000 salaried job that requires 60-hour weeks ($22.43/hour effective) may pay less per hour than a $30/hour job at 40 hours per week ($62,400 annually).
Net pay calculations
The tables above show gross pay. Your actual take-home (net) pay is reduced by federal income tax, FICA (7.65%), state income tax, and pre-tax deductions. Net pay is typically 65, 75% of gross. Use our paycheck calculator to see your real take-home.
Common questions
Is it better to be salary or hourly?
Salary means predictable pay and usually better benefits, but no extra money for long weeks. Hourly means every extra hour pays, with overtime after 40 hours, but income swings with your schedule.
Do hourly workers get overtime and salaried workers do not?
Mostly, but the real test is exempt status, not how you are paid. Non-exempt employees get time and a half past 40 hours regardless of salary or hourly. Exempt employees do not.
How do I compare an hourly rate to a salary?
Multiply the hourly rate by your weekly hours and by 52. At 40 hours a week, $25 an hour is about $52,000 a year. Then compare benefits, since health coverage and retirement matching can be worth thousands more.