Annual salary to an effective hourly rate.
Hourly rate (gross)
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Daily
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Weekly
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Monthly
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Worked example
Take an $80,000 salary based on a 40 hour week worked 52 weeks a year. The total hours in the year are 40 times 52, which is 2,080 hours. Dividing the $80,000 salary by 2,080 hours gives an effective gross hourly rate of $38.46. The weekly figure is the salary divided by 52 weeks, which is $1,538, and the monthly figure is the salary divided by 12, which is $6,667. A daily rate based on a five day week is the salary divided by 260 working days, about $308.
These are gross figures, before PAYE, the ACC levy and KiwiSaver come out. This matters most when comparing a salaried role against contract work. A contractor charging $38.46 an hour is not on equal footing with an $80,000 salary, because the contractor gets no paid leave, no public holidays, and no employer KiwiSaver, and they carry their own ACC and downtime. As a rough guide, contractors often add 20 to 30 percent to the salaried hourly rate to stay level.
| Period | Gross rate |
|---|---|
| Hourly (2,080 hours a year) | $38.46 |
| Daily (260 days) | $308 |
| Weekly | $1,538 |
| Monthly | $6,667 |
| Annual salary | $80,000 |
How it is calculated
The conversion rests on how many hours you actually work in a year. Multiply your hours per week by the number of weeks you work to get annual hours, then divide your salary by that figure for the hourly rate. The standard full-time assumption is 40 hours across 52 weeks, giving 2,080 hours, though you can lower the weeks to reflect unpaid leave. The weekly rate divides the salary by the weeks worked, the monthly rate divides by 12, and the daily rate divides by the number of working days, here 260 for a five day week. Every figure is gross, so it ignores PAYE, the ACC levy, KiwiSaver and student loan. Use the take-home pay tool to see the net version, and the contractor tool when pricing contract work.