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Who doesn’t like getting paid for their hard work? No matter what anyone says, the first thing one looks for is the salary.
If you’re providing value for an organization or a client, you need to know what you’ll get in return for your grueling efforts. However, most employers provide a salary offer in the form of yearly or monthly figures.
That’s where most people fall into the trap.
You see, figures represented in yearly or monthly formats always seem appealing initially, but sometimes they’re not. We’re not saying your employers are cutting out on your worth, but we’ve got an idea for you to find out for sure.
Converting your yearly income into hourly wages can help you put things into perspective, and figure out whether you’re getting the value you deserve. Calculating your hourly wage can also help you balance your expenses and map out your plans.
Without further ado, here’s our take on how much is $50,000 a year hourly so that you can find your hours’ worth.
What Is Your Salary Package?
First of all, before you begin calculating your salary, you’ll need to go through your baseline offer once again. How much of the salary is actually going into your account?
Everyone gets paid differently, and every employer sets his terms, apart from the mandatory wages. Some of you might be lucky enough to get two weeks of paid vacation leave, while others may have two weeks of unpaid vacation, or some might have no vacation at all.
All these factors will affect your hourly wage. If you work without any leaves throughout the year, you’re ultimately getting paid less by the hour. Similarly, if you have a paid vacation, regardless of the duration, you’re getting paid relatively more per working hour.
When you take this into account, you’ll find out whether the Europe trip you’re planning this year is worth the hours of work you put into it.
Let’s Do the Math
Now that you know that several factors might affect your hourly wage, use these calculations to figure out where you stand.
First of all, let’s suppose you take two weeks of unpaid vacation every year, with a $50,000 salary. Then, you’re working for almost 50 weeks every year.
An average person has about 40 working hours every week if it’s a typical 9-5 job. So this means you’re working a freaking 2000 hours every year.
Now, coming to the easy part, divide $50,000, or your salary sum by 2000 to get your exact hourly wage. In the case of $50,000, your hourly wage will turn out to be $25.
Paid or No Vacation
Secondly, what comes next is quite ironic. If you’re getting two weeks of paid vacation or no vacation at all, your hourly rate will remain the same. That’s because, even when you’re on vacation, you’re getting the same amount according to your working hours.
The calculation for this is simple. You’re getting $50,000 a year with paid or no vacation for two weeks, which means you’re getting paid every working hour of the year. This makes 52 weeks and a total of 2080 hours a year.
Instead of 2000, you’ll divide your salary by 2080, according to your 40 working hours per week. Again, presuming that you’re getting $50,000 a year, your hourly rate falls at about $24.04.
Use this hourly rate calculator to make better decisions about how much you are worth on an hourly basis.
Do You Want to Be More Accurate?
If you want to find out the exact number for how much is $50,000 a year hourly, you can do so by counting the total working days in the current year.
First and the Last Day of the Year
First, get your calendar, and figure out what day the year starts from, and when it ends. For example, in 2020, 1st January falls on a Wednesday, while 31st December will be a Thursday.
Number of Weekends
You can start by counting the exact number of weekends in the year. Then, minus them from the total number of days that year. In this case, the year had 366 days, out of which you have 262 weekdays.
Convert into Hours
After that, multiply the number of working days according to the hours you put in each day. Supposing, for a typical 8-hour employee, the total working hours in 2020 would be 20,96 hours. That is if he doesn’t work any overtime or take sick leave.
Again, you can divide $50,000 by 2096 hours and the exact hourly wage, which falls at $23.85 for 2020.
Counting the Holidays
Who can forget the holidays? If your employer is generous enough to give you paid holidays, you don’t have to worry about this. However, in the case of unpaid holidays, you’ll have to minus those days as well apart from the weekends.
The tricky part is, this depends entirely on the country you live in, including the religion or ethnicity of your workplace. In the US, most employers give days off on major holidays like Christmas, New Year, and Thanksgiving. Some may also give some extra leaves to make it a long weekend for employees during the holiday season.
You can refer to your company’s calendar to take these days into account. After that, subtract the number of days from the number of year’s working days we mentioned earlier, and multiply it by 8 to get the number of working hours for the year.
For example, you have a total number of 262 working days in 2020, minus the weekends. If your company allows six holidays over the year, your working days will become 256. This means 2048 working hours in 2020.
Divide $50,000 by 2048, and you’ll get your hourly wage of $24.4.
For those of you who want a straight answer for how much is $50,000 a year hourly, it’s around $25 per hour. There might be a few variations in the rate depending on your employer’s policy, and the year you’re calculating your wage for.
Knowing your hourly wage helps you set a realistic budget for yourself and plan your future expenses smartly. If you earn $50,000 a year, you can easily afford a $200 meal at an expensive restaurant.
However, when you take your hourly wage into account, you’ll find out that it takes almost a day’s work to pay for one meal. That might make you rethink whether you need that luxury after all.