How to caculate yearly salary with hourly rate

[nikipaper]

Hi,
I am new here, I am still don't understand how to caculate year salary base on hourly rate after checking at glassdoor I still very confused.
Anyone have experience about this stuffs ? I plan open a burger restaurant but if setup a fixed contract: 8 hours/day, 5 days/week, 52 week a year, then the cost it would be too expensive.
I wonder how subway, mcdonalds can pay their salves too little?

Thank you everyone,

 

[japancool]

Multiply the hourly rate by the number of hours worked?

 

[simon field]

I wonder how subway, mcdonalds can pay their salves too little?

Assuming you mean 'slaves', it's because McSalty charges £1.99 for a burger which has in fact cost them approximately 11 pence to produce.

 

[billmccallum1957]

8 hours x 5 days x 52 weeks x £7.50 = £15,600, not exactly a big wage.

 

[UKSBD]

8 hours x 5 days x 52 weeks x £7.50 = £15,600, not exactly a big wage.

A couple of kids and you can add about £7k on to that tax free in tax credits.

 

[Swisaw]

8 hours x 5 days x 52 weeks x £7.50 = £15,600, not exactly a big wage.

Don't mention that over £1000.00 of it goes to the tax.

 

[Newchodge]

If you are paying minimum wage you have to calculate the total number of hours worked in an entire year and ensure that the staff are paid minimum wage for every hour, full payment to be made either in the payment period that the hours are worked or in the following period. It is complicated getting it right.

 

[Talay]

8 hours x 5 days x 52 weeks x £7.50 = £15,600, not exactly a big wage.

Or £7.50 x 40 / 7 * 365 =£15,642.86 per annum or £1303.57 per month.

 

[billmccallum1957]

Or £7.50 x 40 / 7 * 365 =£15,642.86 per annum or £1303.57 per month.

Not entirely sure why you would need the 40/7 calc, as the OP stated a 5 day week, which I based my response on. My reply was not intended as an adding up exercise, more a critical comment about the level of salary, which the OP thought was excessive.

 

[Newchodge]

One common error, committed by the DSS as well as many others, is believing that there are 52 weeks in a year.

365/7 is 52.1428......
366/7 is 52.2857......

This matters if you are paying minimum wage and want to pay it as an annual salary.

 

[Talay]

One common error, committed by the DSS as well as many others, is believing that there are 52 weeks in a year.

365/7 is 52.1428......
366/7 is 52.2857......

This matters if you are paying minimum wage and want to pay it as an annual salary.

Though I believe it is generally accepted to use 52 weeks in calculations, I have no cross reference for NLW/NMW but I have had staff (at different levels) note that there are more than 52 weeks in the year, hence my use of 365 days.

 

[Newchodge]

Though I believe it is generally accepted to use 52 weeks in calculations, I have no cross reference for NLW/NMW but I have had staff (at different levels) note that there are more than 52 weeks in the year, hence my use of 365 days.

Lots of organisations use 52 weeks, and it doesn't matter a lot in most cases. But where the law requires payment at a minimum level you would be committing a criminal offence if you calculated the rate using a flat 52 weeks, as you would be paying less than minimum wage.

 

[Talay]

Lots of organisations use 52 weeks, and it doesn't matter a lot in most cases. But where the law requires payment at a minimum level you would be committing a criminal offence if you calculated the rate using a flat 52 weeks, as you would be paying less than minimum wage.

Not if the accepted calculation is 52 weeks you would not.

 

[Newchodge]

The accepted calculation for minimum wage is not 52 weeks. It is the total number of hours worked in the year. Which will vary year to year.

 

[myself]

If you are paying minimum wage you have to calculate the total number of hours worked in an entire year and ensure that the staff are paid minimum wage for every hour, full payment to be made either in the payment period that the hours are worked or in the following period. It is complicated getting it right.

Yeah I think this way better hire who did it many times and knows how the system is working!