Use paid hours, not a slogan
The familiar 2,080-hour shortcut assumes 40 paid hours for 52 weeks. Reduce that number for unpaid leave or seasonal gaps, and increase it only when extra hours are actually paid.
Put benefits into a separate column
Employer health contributions, retirement matches, paid leave, bonuses, and commuting costs do not belong in the base-wage conversion. Keeping them separate makes the comparison auditable.
Check overtime status and schedule variability
Some salaried workers are overtime-eligible and some are exempt; job title alone does not settle the question. For hourly work, compare a normal, low-hour, and high-hour year instead of relying on one schedule.
Example: $30 per hour vs $62,000 salary
$30 × 40 × 52 equals $62,400 before unpaid time. With two unpaid weeks it becomes $60,000. The salary is then $2,000 higher before comparing benefits, overtime, and work hours.
What to check before you decide
- Do not value uncertain bonuses as guaranteed pay.
- Employment law and benefit eligibility vary by role and location.
Sources behind this guide
These official and primary sources let you verify rules, definitions, and terms that may change.
U.S. Department of Labor — Wages and the FLSA↗