How to Calculate Hourly Rate From a Semi Monthly Pay Period

Multiply an employee’s semi-monthly salary by two to find the employee’s monthly salary. Then multiply the employee’s monthly salary by 12 to find the annual salary. For example, if an employee’s semi-monthly salary is $4,000, multiply $4,000 x 2 = $8,000 (monthly salary) and multiply $8,000 * 12 = $96,000 (annual salary).

Multiply the number of hours the employee works in a regular week by 52 (the number of weeks in a year) to find the number of hours an employee works in a year. For example, if an employee’s regular work-week is 40 hours, multiply 40 x 52 = 2,080 hours.

Divide the annual salary by the annual hours to find the hourly wages. Using the same example, divide 96,000 / 2,080 = 46.15   this is the employee’s hourly rate.

October 31, 2014