How do I compute an employee’s hourly rate based on annual salary? Simply input your hourly rate and the amount of hours you want to work each week. You may also calculate an employee’s hourly compensation by dividing their yearly salary by the amount of hours worked in a year. A full-time employee works 2,080 hours a year based on a standard work week of 40 hours (40 hours a week x 52 weeks a year). So, if a person makes $40,000 per year working 40 hours per week, their hourly wage is around $19.23. (40,000 divided by 2,080).
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