In most cases, the amount of the salary is given in a monthly sum. However, in some situations it can be useful if you know the amount of the salary or wages per hour worked. Here we explain how you can easily calculate your hourly wage.

Knowing the hourly wage can be useful, for example, when you want to compare different job offers or your current salary with that of your colleagues in the same company. In this article we will tell you how to calculate your hourly wage and which formulas you can use to calculate your hourly wage. You will also find out more information worth knowing about hourly wages compared to monthly wages.

In principle, it’s very simple: your hourly wage is calculated by dividing your monthly salary by the hours worked in the same period. However, the number of working days varies from month to month. In order to get a more precise picture, it is therefore advisable to look at the period of a quarter:

3 × monthly salary in euros ÷ (13* x weekly working hours) = hourly salary in euros

(*one quarter = 13 working weeks)

Example: monthly wage = 2,400 euros = hourly wage for a 40-hour week: 13.85 euros

You can use this rule of thumb to get a quick overview of your hourly wage if, for example, you want to compare the conditions of different job offers.

Would you like to know how high your hourly wage is in your current job? For example, because you regularly work unpaid/voluntary overtime? In this case, it makes sense to consider a period of a whole year. You also have the option of including annual special payments such as Christmas or holiday bonuses in your calculation:

Example: Monthly salary (2,400 euros) 1 x vacation pay (2,400 euros) ÷ hours (1,680 working hours for a full-time position) = 18.57 euros

We intentionally wrote hours “worked” per year in the formula above. The background is the fact that many employees regularly work overtime that is not recognized and therefore not remunerated. If you honestly consider how much you actually work, it will significantly reduce your actual hourly wage.

Tip: If you don’t want to rely on your calculator to do the math, there are plenty of free online services you can use to calculate your hourly rate.

Salary and wage information is generally given in gross in Germany, this also applies to hourly wages. Gross means: Before tax and social security contributions are deducted. In Germany, there are different rates for calculating income tax. Among other things, marital status is included in the collection. If you calculate your hourly rate with one of the formulas mentioned, always use the gross values ​​as a basis – and you will receive a gross result before taxes.

Tip! Do you keep confusing the terms “gross” and “net”? Then this simple rule of thumb might help:

Gross (= before taxes) starts with “b” and is before net (= after taxes) in the alphabet.

In 2021, the average hourly wage in Germany was 19.88 euros. However, the hourly wage varies greatly depending on the federal state under consideration. Other differences in hourly wages depend on the industry, age and qualifications or training.

In manual trades, part-time jobs for pupils and students and also for mini-jobbers who can earn up to 450 euros a month tax-free, payment is often based on hourly wages.

Here, too, the monthly salary can be calculated using a simple formula. Since the number of working days varies per month, we again consider a quarter (assumption: 1 quarter = 13 weeks).

Hours worked per week × hourly wage in euros × 13 ÷ 3 = average monthly wage

Example: Hourly wage = 12 euros (minimum wage) = average monthly wage for a 20-hour week: 1,040 euros

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The original of this post “This is how you easily calculate your hourly wage” comes from kununu.