Salary vs Hourly Comparison
Determine which pay structure offers better compensation for your situation.
Salaried Position
$
Actual hours worked (may be > 40)
Hourly Position
$
Enter both salary and hourly rate to compare
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Salary vs Hourly: Key Differences
Salaried (Exempt) Employees
- Fixed annual pay regardless of hours worked
- No overtime pay (in most cases)
- Often expected to work until the job is done
- More predictable income for budgeting
- Usually have more benefits
Hourly (Non-Exempt) Employees
- Paid for exact hours worked
- Overtime pay for hours over 40/week (1.5x)
- Income varies with hours worked
- Protected by FLSA wage and hour laws
- Clearer work-life boundaries
When Salary Is Better
- You typically work 40 hours or less per week
- The salary position includes better benefits
- You value income predictability
- The role offers better career advancement
When Hourly Is Better
- You can regularly work overtime hours
- The hourly rate is significantly higher
- You prefer clear boundaries between work and personal time
- The industry commonly offers overtime opportunities
The Effective Hourly Rate
For salaried employees, your "effective" hourly rate is your salary divided by actual hours worked. If you earn $80,000 but regularly work 50 hours/week, your effective rate is:
$80,000 ÷ (50 × 52) = $30.77/hour
Compare this to an hourly position to see which truly pays more.