Hourly pay:
monthly salary / (days x hours)

How do you convert salary to an hourly rate?

Divide the monthly salary by the work days in the month times the hours per day. Rs 60,000 over 22 days of 8 hours gives Rs 340.91 an hour. Multiply the monthly salary by 12 for the annual figure, here Rs 7,20,000.

The Hourly Pay calculator starts from a monthly salary, with work days from 1 to 31 and hours per day from 1 to 16. This is useful when you want to compare a salaried offer with a freelance or hourly rate.

Employers use the same sum to cost an hour of staff time, and freelancers use it to set a rate that matches a former salary. Start with the figure on your offer letter and the schedule you actually keep.

The formula and a worked example

Notice that the formula divides by hours, not days. Raise the hours per day from 8 to 9 and the hourly pay falls, because the same monthly pay now covers more working time.

From an hourly rate to annual salary

To go the other way, multiply the hourly rate by hours per day, days per month and 12. At Rs 400 an hour, 22 days and 8 hours, the month is Rs 70,400 and the year is Rs 8,44,800. Cross-check by dividing: 70,400 / 176 returns Rs 400.

Annual salary is not always twelve equal months. Overtime, bonuses and unpaid leave change the real total, so treat the figure as a base.

For a part-time role, change the days or hours before you annualise. Rs 400 an hour for 4 hours on 20 days is Rs 32,000 a month, which is Rs 3,84,000 over twelve months.

How days and hours change the rate

The same Rs 60,000 salary gives different hourly rates depending on your schedule.

Another method uses a 52-week year: Rs 7,20,000 / (52 x 40 hours) is Rs 346.15, slightly higher than 340.91 because it counts fewer paid hours in the year.

Common mistakes with hourly pay

• Using calendar days (30) instead of work days.
• Forgetting that salaried staff often work more than the contract hours, so the true hourly pay is lower.
• Comparing gross salary with a net hourly rate, or the other way round.
• Ignoring paid leave and holidays when you compare with a freelance rate that pays only for hours worked.

If your contract includes paid holidays, your effective hourly pay for hours actually worked is higher than the simple figure, so say which basis you are using when you negotiate.

When you need this conversion

Typical uses: pricing freelance work against a former salary, comparing a part-time hourly offer with a monthly package, and estimating the cost of an hour of an employee's time for planning.

Check your result with the reverse calculation whenever you are comparing offers. If both routes agree, your days and hours are consistent.