Sample 3. Average hourly wage means the most current wage and employment data published by the Department for Employment Services in the Kentucky Cabinet for Workforce Development collectively translated into wages per hour based on a two thousand and eighty 2, hour work year for the following sectors :.
Average hourly wage means the weekly earnings , excluding overtime , bonuses , and company paid benefits , of all new full-time permanent employees hired after the date of the signed financial incentive agreement , divided by the number of new full-time permanent employees, divided by forty 40 ;. This reveals the existence of an outlier in the data: one data point significantly different from the rest that skews the averages.
Removing outliers gives a more accurate average. If possible, take a look at the raw data to confirm the accuracy of the average. Averages with a narrow focus also tend to be more accurate. For example, instead of looking at the average hourly wage of the entire company, looking at the average hourly wage of a particular position i.
If you've been given the option of having a salary or working on an hourly basis, you may be wondering which option gives you the highest income. You can convert hourly wages to an annual salary and vice versa , but keep in mind that each has its pros and cons. If you're an efficient salaried worker, you might end up receiving more assignments than your colleagues without a boost in pay. On the other hand, if you're a relatively slow hourly worker, your manager might constantly tell you to hurry up.
Regardless, to convert an annual salary to an hourly rate, divide the salary by 2, This number represents the amount of hours someone would work in one year if they always worked 40 hours a week for 52 weeks out of the year. If you do not receive paid time off, this figure may be lower.
Note that this is how the U. Bureau of Labor Statistics BLS converts between annual and hourly wages; it's a standard calculation. Which one actually pays best? Since federal law requires overtime for hourly employees, you could make hundreds of additional dollars per week if your job needs you for more than 40 hours a week during a busy time.
If you work in a field where overtime is common, you may earn more than you would if you had a salaried position with comparable pay. Overtime work and the extra pay associated with it is not necessarily guaranteed. You should make sure that it and any other promised benefits are part of your contract before you accept a job offer.
Having an hourly position allows you to schedule for other interests like improving skills, going to school, starting your own venture or working another full or part-time job. The income of an hourly employee might be more vulnerable to changes. Hourly positions typically feel the impact of a poor economy or economic downtown in their industry first. Many businesses choose to reduce the hours for hourly employees instead of laying off salaried employees.
Hourly employees can also be affected by missing their scheduled hours. While a salaried employee will have a somewhat flexible schedule that typically allows for sick days and paid time off, an hourly employee must arrive and clock in on time to start their shift. The Affordable Care Act requires businesses with 50 or more employees to help pay for health insurance for those who work 30 or more hours per week. Some companies have chosen to avoid this obligation by keeping each hourly employee from working more than 29 hours per week.
If your employer decides to reduce your hours permanently, you could have to find a second job or an altogether new position. Learning about salary vs.
Understanding the difference between a salary versus an hourly wage can help you choose the best position to suit your needs. Find jobs. Company reviews. Find salaries. Upload your resume. Sign in. This article has been approved by an Indeed Career Coach There are several differences between salaried and hourly positions. Image description Salary Pay vs. Hourly Pay Salary Pay Pros 1. More career advancement opportunities Hourly Pay Pros 1. Measure content performance. Develop and improve products.
List of Partners vendors. Table of Contents Expand. Table of Contents. Pay for Hourly Employees. Pay for Salary Employees. Exempt Salary Employees. Non-Exempt Salary Employees. State Overtime Rules. How to Calculate Your Paycheck. By Alison Doyle. Alison founded CareerToolBelt. Learn about our editorial policies. Article Sources. Your Privacy Rights. To change or withdraw your consent choices for TheBalanceCareers.
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