You're comparing job offers. One pays $52,000 per year salary. The other pays $28 per hour. Which is better?
The answer isn't as simple as running the math (though we'll do that too). Hourly and salary pay structures come with completely different trade-offs for your lifestyle, income stability, and long-term career.
Let's dive deep into the hourly vs salary debate and help you figure out which is actually better for your situation.
🧮 Convert Hourly to Salary (and Back)
Use our Hourly to Salary Calculator to quickly convert between hourly wages and annual salaries, including overtime scenarios.
The Basic Math: How to Convert Hourly to Salary
Before we compare, let's make sure we're comparing apples to apples.
To convert hourly wage to annual salary:
Hourly Rate × Hours Per Week × 52 Weeks = Annual Salary
For a standard full-time job (40 hours/week):
Hourly Rate × 2,080 = Annual Salary
Quick shortcut: Double your hourly rate and add three zeros.
• $25/hour ≈ $50,000/year
• $30/hour ≈ $60,000/year
• $40/hour ≈ $80,000/year
Hourly to Salary Quick Reference
$15/hour = $31,200/year
$20/hour = $41,600/year
$25/hour = $52,000/year
$30/hour = $62,400/year
$35/hour = $72,800/year
$40/hour = $83,200/year
$50/hour = $104,000/year
$75/hour = $156,000/year
To convert salary to hourly:
Annual Salary ÷ 2,080 = Hourly Rate
• $50,000 salary = $24.04/hour
• $75,000 salary = $36.06/hour
• $100,000 salary = $48.08/hour
Advantages of Hourly Pay
Hourly workers often get a bad reputation as "not real jobs," but there are significant advantages to hourly pay that salaried workers miss out on.
1. Overtime Pay
This is the big one. Under the Fair Labor Standards Act (FLSA), hourly workers must be paid 1.5x their regular rate for any hours over 40 per week.
At $25/hour, working 50 hours in a week:
• 40 hours × $25 = $1,000
• 10 hours × $37.50 (overtime) = $375
• Total: $1,375 (vs $1,000 for a salaried employee working the same hours)
Over a year, if you consistently work 5 hours of overtime per week, that's an extra $9,750 on a $25/hour wage.
2. Pay Matches Effort
Work 50 hours? Get paid for 50 hours. Work 30 hours? Get paid for 30 hours. There's a direct connection between time worked and money earned.
Salaried employees often work 50+ hours but get paid the same as if they worked 40.
3. Clearer Work-Life Boundaries
When you're hourly, there's a clear distinction: you're either on the clock or you're not. Many hourly workers find it easier to "leave work at work."
Salaried employees often face expectations to answer emails at night, work weekends, or be "always available."
4. No Unpaid Extra Work
Asked to stay late? You're getting paid for it. Salaried workers often absorb extra responsibilities without extra compensation.
5. Flexibility in Some Roles
Some hourly positions offer scheduling flexibility — you can pick up extra shifts when you need money or reduce hours when you don't.
Disadvantages of Hourly Pay
1. Income Variability
Your paycheck depends on hours worked. Slow weeks, holidays, or business downturns can mean smaller paychecks.
2. No Paid Time Off (Often)
Many hourly positions don't offer paid vacation, sick days, or holidays. If you don't work, you don't get paid.
Taking a week's vacation at $25/hour costs you $1,000 in lost income.
3. Fewer Benefits
Hourly workers often have limited or no access to:
• Health insurance
• 401(k) with employer match
• Life insurance
• Professional development
These benefits can be worth $5,000-$20,000+ per year in additional compensation.
4. Perceived as "Less Professional"
Fair or not, some industries view salaried positions as more senior or professional. This can affect career advancement.
5. Hours Can Be Cut
If business is slow, your hours might be reduced. Salaried employees typically maintain their pay even during slow periods.
Advantages of Salary Pay
1. Predictable, Stable Income
You know exactly what you'll earn each month. This makes budgeting, planning, and securing loans much easier.
2. Better Benefits Package
Salaried positions typically include:
• Health, dental, and vision insurance
• 401(k) with employer match (often 3-6% of salary)
• Paid vacation (average 10-15 days/year)
• Paid sick leave
• Paid holidays (typically 8-10 days)
• Life and disability insurance
• Professional development opportunities
These benefits can add 20-30% to your total compensation.
3. Career Advancement
Salaried positions often have clearer paths to promotion, raises, and leadership roles.
4. Paid Time Off
Take a vacation and still get paid. Call in sick without losing money. This is huge for quality of life.
5. Professional Development
Many salaried positions include training, conferences, certifications, and education reimbursement.
Disadvantages of Salary Pay
1. No Overtime Pay (Usually)
Most salaried employees are "exempt" from overtime laws. Work 60 hours? Same pay as 40 hours.
If you're salaried at $60,000 and regularly work 50 hours/week, your effective hourly rate drops from $28.85/hour to $23.08/hour.
2. Expectations of Always Being "On"
Answering emails at 9 PM. Taking calls on weekends. "Just checking one thing" while on vacation. The boundaries between work and life can blur.
3. Fixed Income Regardless of Effort
Work harder? Same pay. Work more efficiently? Same pay. There's no direct incentive for extra effort (beyond potential promotions).
4. Salary Can Feel Like a Ceiling
Your income is locked until your next raise or promotion. Hourly workers can pick up extra shifts for more money anytime.
The Hidden Factor: Total Compensation
When comparing hourly vs salary, don't just look at the base pay. Calculate total compensation:
Salary Position: $52,000
Base salary: $52,000
Health insurance (employer portion): $7,200
401(k) match (3%): $1,560
Paid vacation (2 weeks): $2,000 value
Paid holidays (8 days): $1,600 value
Total Compensation: ~$64,360
Hourly Position: $28/hour ($58,240 annual)
Base pay (40 hrs): $58,240
No health insurance: -$7,200 (you pay)
No 401(k) match: $0
Unpaid vacation: -$2,240
Net Compensation: ~$48,800
In this example, the $52,000 salary is actually worth more than the $28/hour job — even though $28/hour technically equals $58,240/year.
When Hourly Pay Wins
Hourly is often better when:
• Overtime is common. If you'll regularly work 45-50+ hours, overtime pay can significantly boost your income.
• The hourly rate is high. Skilled trades (electricians, plumbers) can earn $50-$100/hour with overtime.
• You value work-life boundaries. Clocking out means you're done.
• You want flexibility. Pick up shifts when you need money, reduce hours when you don't.
• Benefits don't matter. If you have health insurance through a spouse, the benefits gap shrinks.
When Salary Wins
Salary is often better when:
• Benefits are strong. Good health insurance and 401(k) matching are worth thousands.
• You value stability. Predictable income and paid time off provide security.
• Career growth matters. Salaried positions often have clearer advancement paths.
• You won't actually work overtime. If it's truly 40 hours/week, salary with benefits usually wins.
• You want PTO. Paid vacation and sick leave are game-changers.
Questions to Ask Before Accepting
For Hourly Positions:
• What's the typical number of hours per week?
• How often is overtime available?
• Are there benefits? (Some hourly jobs do offer them)
• What's the schedule stability like?
• Is there a path to salary/management?
For Salary Positions:
• What are the typical working hours? (Be wary of "whatever it takes")
• What's the vacation policy? Sick leave?
• What's the health insurance coverage and cost?
• Is there a 401(k) match?
• What does career advancement look like?
How to Negotiate Between Hourly and Salary
If you're offered an hourly position but want salary (or vice versa), you can sometimes negotiate.
Asking for salary instead of hourly:
"I'm excited about this role. Would you consider making this a salaried position? I'm looking for the stability and benefits that come with salary employment."
Asking for hourly instead of salary:
"Given that this role often requires 45+ hours per week, would you consider hourly compensation so I'm fairly compensated for overtime?"
🎯 Calculate and Compare
Use our tools to compare offers:
• Hourly to Salary Calculator - Convert between hourly and annual
• Paycheck Calculator - See take-home pay after taxes
The Bottom Line
There's no universal "better" — it depends on:
• The specific role and company
• The total compensation package
• Your personal priorities (stability vs. flexibility)
• Your career goals
• Your financial situation
The real question isn't hourly vs salary — it's total compensation and quality of life.
A $60,000 salary with great benefits and 40-hour weeks beats a $30/hour job with no benefits and mandatory 50-hour weeks. But a $35/hour job with overtime in a skilled trade might beat a $55,000 salary with 60-hour workweeks.
Run the numbers. Ask the right questions. And choose what's actually best for your life — not just what sounds better on paper.