Yearly Wage Calculator NZ
This turns an hourly rate into an annual figure, and into every pay period in between. It is the calculation behind comparing an hourly job against a salaried one, which is harder than it looks because the two are quoted in different units and one of them usually hides something. A salary is paid whether you work 38 hours that week or 45. An hourly rate is paid only for hours worked, so a week of unpaid leave, a public holiday you were not rostered for, or a quiet fortnight all come straight off the annual total. That is why the calculator asks how many weeks a year you are actually paid for rather than assuming 52. Set it to 52 for a role with paid leave and the figure is the straight comparison. Set it lower to see what a genuinely casual arrangement produces, and the gap between the two is the value of the paid leave you would be giving up. All figures here are gross, before PAYE, ACC levy, KiwiSaver and any student loan deduction, so treat them as the top of the calculation rather than what lands in your account.
Gross figures, before PAYE, ACC earners levy, KiwiSaver and any student loan deduction. Monthly is the annual divided by twelve, which does not match a four-weekly cycle.
How it works
The yearly figure is the hourly rate multiplied by the hours per week, multiplied by the weeks you are paid for. Weekly is the rate times the hours. Fortnightly is twice that. Monthly is the annual divided by twelve, which is deliberately not the weekly figure times four, because a month averages about 4.33 weeks and using four understates it by around eight percent. Daily is the weekly figure divided by the days you work. The comparison line shows the same rate paid for only 48 weeks, which is roughly what four weeks of unpaid leave costs.
Worked example
Take the defaults: $25.00 an hour, 40 hours a week, paid 52 weeks. Weekly is 40 x $25.00, which is $1,000. Yearly is $1,000 x 52, which is $52,000. Monthly is $52,000 divided by 12, which is about $4,333, and note that four weekly payments would be only $4,000, an $8,000 a year difference if you budget by the wrong one. Daily across five days is $200. Paid only 48 weeks instead, the annual falls to $48,000, so four weeks of unpaid leave costs $4,000.
Related calculators
- PAYE: what these figures look like after tax.
- Salary Per Hour: the same calculation in reverse.
- Time and a Half: hours paid at a penal rate.
- Hours to Decimal: converting a timesheet for payroll.