If you're paid hourly as an employee or a contract employee, calculating your hourly salary into your annual income is useful, either as a requirement for certain applications or to compare salaries between two workplaces. Whatever the goal, you can do it with a simple math formula.
Step
Method 1 of 3: For Workers with Fixed Hours Every Week
Step 1. Know your weekly salary
You may already know what your hourly salary is, for example Rp. 150 thousand. However, if not, find out the amount of your hourly salary in advance.
- Your hourly salary may be listed on the payslip if the company provides a payslip.
- If you're not sure, ask your manager or personnel department for hourly wages.
Step 2. Calculate the number of hours worked per year
Multiply your weekly hours worked by 52, which is the number of weeks in a year.
- Remember to include all annual leave or leave covered in a year. For example, if you work 50 weeks a year, and get 2 weeks of annual leave, the total paid work is 52 weeks. Also take into account if you take unpaid leave,
- For example, if you work 40 hours per week, multiply 40 by 52 to get 2,080 hours in a year.
Step 3. Once you know the hours worked per year, multiply the hourly salary by the hours worked per year
If your hourly salary is IDR 150,000, - then 150,000 * 2080 = IDR 312,000,000, -. This number is your annual income
Method 2 of 3: For Workers with Irregular Working Hours
Step 1. Record your working hours each day
At the end of the week, count the number of hours worked.
- To calculate hours worked, you can use various applications and software, or write them down manually with a notebook.
- If your working hours vary each week, record your hours worked over a long period of time, then average your hours worked.
- For example, if you work 10 hours one week, 25 hours the next week, 15 hours the next week, and 30 hours the last week, you work 80 hours a month. Divide those hours by 4, and you'll find that your average working hour is 20 hours per week.
- If your working hours vary by month or season, you may need to record your hours over a much longer period of time. For example, if you work 50 hours a week for 2 weeks on vacation but only 20 hours per week in the summer, you will have to make a lot of adjustments to your hours calculation. In some cases, you may even have to record the hours worked for a year to get an accurate calculation.
Step 2. Calculate overtime hours
If you work more than 40 hours in 7 days, your working hours must be counted as overtime, which is one and a half times your hourly salary (or according to company regulations). In other words, you'll get an extra half hour of pay per hour of overtime.
- The formula for calculating overtime is: Number of hours paid = Number of hours worked + (0, 5 * (hours worked - 40))
- For example, if you work 45 hours a week, multiply 5 by 0.5. You will get an additional 2.5 hours. Then, add those hours worked to 45 hours worked. With this calculation, your hours worked are 47.5, not 45.
Step 3. Calculate your hours worked per year by multiplying the average hours worked by 52
For example, if you generally work 45 hours, multiply 47.5 hours (after calculating overtime pay) by 52 to get 2,470.
If you're recording hours worked for a year, you can calculate hours worked by adding hours from your log instead of calculating the average weekly hours worked
Step 4. Once you know the hours worked per year, multiply the hourly salary by the hours worked per year
If your hourly salary is IDR 150,000, - then 150,000 * 2470 = IDR 370,500,000, -. This number is your annual income
Method 3 of 3: Other Calculations
Step 1. Calculate the bonuses, commissions, incentives or other income you earn into your annual income
Many positions with hourly pay offer additional incentives, such as performance bonuses, leadership, or years of service.
- Some companies provide holiday allowances for employees every year. For example, if you get a $20 bonus, add the bonus to your annual salary. IDR 312,000,000 + IDR 20,000,000 = IDR 332,000,000, -.
- Record any commissions or other bonuses that are variable to calculate those bonuses into annual income. For example, if you get a bonus of Rp. 500,000, - every time you get a sales contract worth Rp. 50,000,000, -, and you get the bonus 12 times a year, multiply Rp. 500,000, - by 12, so the result is Rp. 6,000,000, -. Add the bonus to your annual salary. IDR 332,000,000 + IDR 6,000,000 = IDR 338,000,000, -.
Step 2. Calculate salary deductions
If you follow JHT or health insurance, deduct monthly contributions from income to find out net salary.
- The money you pay for JHT or health insurance is still income, but it doesn't increase your purchasing power.
- To find out how much your salary deductions each month, read your payslip. Then, multiply the deduction by 12 and subtract it from the annual income.
- For example, if your JHT contribution is IDR 200,000 per month and your health insurance has a premium of IDR 1,500,000 per month, your salary deduction is IDR 1,700,000. IDR 1,700,000 * 12 = IDR 20,400,000, -. Subtract that number from your annual income.
Step 3. Know the amount of income tax you have to pay to find out the amount of salary before or after tax
- The amount of tax you have to pay will depend on your annual income level. Use an online tax calculator to find out how much tax you have to pay based on your income.
- If you live in the US, you may have to pay federal and state income taxes. Some states do not impose income taxes, but some states impose taxes that are around 5-6 percent. Find out the income tax in your state via the internet.
- Cut the tax percentage from 100 percent. For example, if you have to pay taxes of 20 percent, your net income is 80 percent.
- Change the percentage to a decimal number by shifting the decimal point two places to the left. For example, if your net income is 80 percent, change 80 percent to 0.80 or 0.8.
- Multiply your monthly income by the decimal number above to find your net income after tax. This way, you can calculate your monthly or yearly salary.
- If your salary is IDR 28,000,000, - per month, you have to pay 25% tax, so the decimal number of your multiplier is 0.75. Multiply IDR 28,000,000, - by 0.75, so the result is IDR 21,000,000, -. This figure is your net income after tax, but does not take into account PTKP.
Tips
- According to the law, hourly workers must be paid on-time wages. Waiting time is the time when you are required to be at work by your boss, even if there is no work. You should also get paid when you picket, that is, when you are called to wait for a job. In addition, you are entitled to pay for breaks and meals, which are generally shorter than 20 minutes.
- You can also reverse the calculation to find hourly pay if you know your annual income. Divide your annual income by the number of hours worked (if you work full time, your working hours are 2080 hours). For example, if your annual salary is IDR 312,000,000, - and you work 2080 hours a year, then your hourly salary is IDR 150,000, -.
- If you are on leave and have not worked for several weeks, do not adjust the number of weeks you receive pay (52), unless your leave is unpaid. If your leave is unpaid, subtract the number of weeks you are on leave from 52.
