Calculating monthly pay for hourly employee

napalandtrust

Hello All,

 Is there a standard formula used to calculate monthly pay for an hourly employee?  I am trying to calculate three months severance pay for an employee.

 Thanks!

jim_strain

I would calculate the employee's annual pay and then divide by 12.  ($Hrly rate x 2080)/12 = average monthly pay 

TXHRGuy

Alternatively, if you know their weekly pay, or can average it over any time frame like 4, 5, or 6 months, then take weekly pay and multiply by (52/12) and you will get monthly.  It's 4.3333333333333333333333333333333 weeks per month.

4612155

Example:

 Employee makes $10/hour and works 40 hours per week. So their weekly pay is $400. Multiply $400 by 52 and divide by 12 (long way of doing it). Their monthly pay would be $1733.33. Or, you can take $400 multiplied by 4.33333 and get the same thing.