Turn an hourly rate into monthly and annual pay.
Annual salary
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Monthly salary
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Weekly pay
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Your breakdown
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Turning a per-hour rate into a yearly headline number
Recruiters quote annual packages, agencies quote hourly rates, and the two never feel comparable until you do the arithmetic. This tool does the bridge: it multiplies your hourly rate by the hours you work each week, then by 52 weeks, to give a gross annual figure, and divides that by 12 for a monthly equivalent. It is built for contractors weighing a day rate against a permanent offer, part-timers checking whether a raise keeps pace, and anyone who has been handed an hourly number and wants to know what it really means over a year.
One assumption worth naming up front. The calculator uses a flat 52 weeks and does not strip out unpaid leave, public holidays, or gaps between contracts. For a salaried employee that is fine, because paid leave is already baked into the salary. For a freelancer who only bills when working, the annual figure is a ceiling you will rarely hit, so mentally shave off the weeks you expect to be unbilled.
Working through $120 an hour over a 40-hour week
Take the default inputs. At $120 an hour for 40 hours a week, a full week pays $4,800. Across 52 weeks that is an annual gross of $249,600, which divides to $20,800 a month. The chart below shows how that single weekly figure compounds into the yearly total.
Gross is not take-home: MPF and salaries tax come next
The figures here are gross, before deductions. Two things sit between this number and your bank balance. The first is the Mandatory Provident Fund. Both you and your employer contribute 5 percent of relevant income, subject to a monthly ceiling, so on the $20,800 monthly figure above your own MPF slice is 5 percent, with your employer matching it on top. The MPFA sets the contribution floor and ceiling, so confirm the current bands with them. The second is salaries tax, charged by the Inland Revenue Department on a progressive scale after a basic allowance, with the bill capped at a standard rate on your net total income. Hong Kong has no separate payroll tax for social insurance beyond MPF, and no tax on savings interest or dividends, so for most employees MPF and salaries tax are the only two subtractions that matter.
Checking the rate against the legal floor
The calculator flags any rate that falls below the statutory minimum wage. The minimum wage figure this tool applies is $42.10 an hour, the level set by the Labour Department, which you should confirm against the latest gazette because it is reviewed periodically. If your rate is above that floor, you are clear on the legal minimum, though the floor is a long way below what most office and professional roles in Hong Kong pay.
A common slip is mixing up contracted hours with billed hours. If your offer is for 44 hours a week but you are routinely paid for 40, enter the figure you are actually paid for, not the one in the contract, or the annual total will overstate your pay.
Should a contractor charge more per hour than a permanent salary implies?
Usually yes. A permanent salary includes paid leave, MPF employer contributions, sick pay, and job security that an hourly contract does not. As a rough guide, if you want a contract to match a permanent package, the hourly rate needs to cover the weeks you will not bill plus the benefits you are giving up, which often means charging well above the simple hourly equivalent this tool produces from a salary.
Why does the annual figure differ from multiplying by the number of working days?
This calculator uses a clean 52 weeks rather than counting individual working days, public holidays, or leave. A day-rate model that counts only working days will produce a lower annual total because it excludes paid non-working time. Neither is wrong; they answer slightly different questions. Use the weekly-times-52 method here for a salaried comparison, and a working-day count when you want billable capacity.