Are you trying to figure out how many work hours in a year to determine a salaried employee’s hourly rate for payment purposes? Well, number of working hours and wages vary country to country and after the industrial revolution, there’s a significant decline in working hours. The formula to determine working hours in a year is simple, but it varies based on how many hours the employee works in a typical week and how many vacation days and holidays the employee receives in a year.
Simple formula to figure out how many hours are in a work year:
- Multiply the number of work hours in a week by the number of weeks in a year. In other words, multiply a typical 40 hour work week by 52 weeks. That makes 2,080 hours in a typical work year.
- There are 2080 work hours in a year based on a typical 40 hour work week multiplied by 52 weeks in a year.
How to find out number of hours worked?
- Convert all times to 24 hour clock (military time):
- Convert 7:45 am to 07:45 hours.
- Convert 2:45 pm to 14:45 hours.
- Next, Subtract the start time from the end time.
- Now you have the actual hours and minutes worked for the day.
- Finally to determined total wage, you will need to convert this to a decimal format.
Average Working hours per year in Various Countries
A longer working week does not necessarily result in higher levels of productivity and in some developed countries such as France, overtime is regulated. In France, time worked after the standard legal limit of 35 hours is considered overtime.
The Graph below shows who works the most hours every year.
Working hours in UK – On average, a full-time employee in the United Kingdom works 1,538 hours per year, or 36.6 hours per week, which is below the average for OECD countries.
Working hours in Germany – On average, a full-time employee in Germany works 1,363 hours per year, or 34.3 hours per week, which is far less than most other OECD countries.
Working hours in EU – On average, a full-time employee in the European Union works 36.2 hours per week. By EU labor law, working hours are limited to 48 hours per week, including overtime (if permitted by national law, you may have an agreement with a staff member to work beyond the 48-hour limit).
Working hours in US – On average, a full-time employee in United Stats works 1,768 hours per year, or 38.6 hours per week, which is more than other OECD countries. Europeans work up to 19 percent fewer hours annually compared to those working in the US. For Americans that’s 258 hours extra per year, or about an hour per working day.
The chart below shows the annual average of the length of a working week in the United States, for all employees from 2007 to 2019.
Working hours in Japan – On an average, a full-time employee in Japan works 1,729 hours in a year or 36.02 hours per week which is lesser number of working hours in a year compared to OECD countries.
Working hours in India – On an average, a full-time employee in India works 2,162 hours in a year or 45.04 hours per week which is much greater number of working hours in a year compared to Japan and OECD countries.
How to Calculate Total Work Hours in a Year?
To figure out how many hours are in a “work year,” multiply the number of work hours in a week by the number of weeks in a year. In other words, multiply a typical 40 hour work week by 52 weeks. That makes 2,080 hours in a typical work year.
Here’s a useful calculator for calculating working hours in a year for employees.
Remember that not all employees work 40 hours. Some full-time employees only work 35 hours a week (which comes to 1,820 hours per year) and working hours may also vary depending on the country. Also part-time employees may work any number of hours less than that in a week.
How to Calculate Full-Time Hours per Year?
Of course, most people don’t work five days every week, they usually have some holidays and vacation days. When calculating full-time hours, it is important to subtract these hours from the total work hours to figure out how many hours an employee will be working. For example, if a person works 8 hours a day, but gets 8 holidays a year and 12 vacation days, you would subtract 160 hours from the total 2,080 work hours per year to learn that the employee works 1,920 hours per year.
How to use Work Hours Calculation (Sample Calculations)?
The number of work hours in a year can be useful when you want to calculate an employee’s yearly pay for a salary or to calculate salary into an hourly rate if schedules are changing. To figure out an employee’s yearly pay for a salary, just multiply the suggested hourly rate by the number of work hours in a year. Your business may choose to pay for vacation days or even holidays and if that is the case, you will need to use the number of hours in a year before subtracting vacation days or holidays.
For example, if Lisa earns $19 an hour, works 40 hours a week, gets 10 holidays off a year and 14 vacation days per year, he should earn $39,520 if she receives paid holidays and vacations. If he gets paid vacation days, but holidays are unpaid, he should earn $38,000 ($39,520 less his hourly rate multiplied by the 8 hours from each of the 10 holiday days). If all of his vacation days and holidays are unpaid, he should receive $35,872 ($39,520 less his hourly rate multiplied by the 8 hours from each of the 24 holiday and vacation days).
To convert an employee’s salary into an hourly rate, simply divide the yearly salary by the number of work hours in a year. Again, remember to include any vacation or holiday hours that the employee is paid. For example, if Amanda earns $42,000 a year, works 40 hours a week and gets 7 paid holidays and 10 unpaid vacation days, she would work a total of 2,000 hours (2,080 less 80 vacation hours). This means she would earn $21 an hour.
How to Calculate Hourly wage
Calculating the Salaries of Employees
An employer can choose to pay employees at the end of the month or every fortnight, but employers will need to know the employee’s per-hour rate to calculate their pay in a given period. A weekly paycheck for an employee that works 40 hours a week should be for 40 hours, for fortnight payments, the amount should cover 80 hours and for semi-monthly payments, the pay period should be 86.67 hours long (24 pay periods divided by 2,080 standard work hours per year). Any unpaid holidays or vacation days should be deducted from the hours used in the pay period calculation. There are hundreds of free and paid software to manage payroll of employees that are very useful in calculating work hours in a year and paying employees’ salaries.
How to Track Hours Worked in Excel + How to Calculate Pay in Excel – Tutorial
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Chris Fluent says
Great post about learning work hours calculations. I am able to figure out actual work hours in a year and work hours in a day. Very useful for employers to calculate salaries of employees and process payroll. Thanks for the great work!