Salary is a predetermined amount of pay. It is paid to the employee by the employer.
An annual salary is the monetary compensation that an employee receives in exchange of work done for a year or a period of time roughly equivalent to a year.
Formula to calculate yearly salary.
- We begin by calculating the number of hours worked per week and multiply the result by the hourly pay to get the weekly pay.
- Then multiply the result by 52, the number of weeks in a year.
Example:
An individual works for 40 hours per week, her hourly pay is $ 5. Determine the individual’s yearly salary.
We begin by calculating the weekly pay.
Therefore, her weekly pay is $ 200.
We then calculate her yearly salary.
Hence, her yearly salary is $ 10,400.
