The HR Dictionary
Hourly to Yearly
The term hourly to yearly refers to the conversion of calculating how much an employee who is contracted to the organization under hourly wages would earn in a year. Similarly, yearly salary can also be calculated to show how much they earn per hour the formula for both calculations are listed below.
- Hourly to Yearly = Total number of hours worked in a year x Hourly wage rate
- Yearly to Hourly = (Total number of hours worked in a day x Total number of days worked in a year) / Annual Salary
A comprehensive HRIS can facilitate automatic payroll calculations such as above based on pre-configured pay policies. This usually require Time Tracking, and Payroll modules to work together and avoids any room for human error which can result in large costs for the company in the long run.