Salary vs Hourly Pay: Which Is Better?
A job paying $30 an hour and one paying $62,400 a year can look very different even though they are close on paper. Here is how to compare them fairly.
The conversion
Full-time work is usually 40 hours a week for 52 weeks, or 2,080 hours a year. So $30 an hour equals $62,400 a year, and $62,400 a year equals $30 an hour. Use the hourly to salary calculator for any rate.
Overtime
Under US federal law, most hourly workers are "non-exempt" and must be paid at least 1.5 times their regular rate for hours over 40 in a week. Salaried workers can be "exempt" from overtime, but only if they meet a minimum salary level and a job-duties test. Being paid a salary alone does not make someone exempt. Check the US Department of Labor guidance for your situation.
Pros of hourly pay
- You are paid for every hour, including overtime.
- It is easy to see what your time is worth.
- It often suits part-time and flexible schedules.
Cons of hourly pay
- Pay can change week to week when hours change.
- Unpaid holidays or slow weeks reduce income.
- Benefits may be limited for part-time staff.
Pros of salary
- Steady pay each period, which makes budgeting easier.
- Paid time off and benefits are common.
Cons of salary
- Exempt employees may work long weeks with no extra pay.
- Your effective hourly rate falls as hours rise. At $62,400 a year and 50 hours a week, you earn about $24.00 an hour.
How to compare two offers
- Convert both to a yearly amount using the real hours you expect to work.
- Add the value of benefits: health insurance, 401(k) match and paid time off.
- Compare take-home pay in your state with the salary after tax calculator, since both are taxed the same way.
Last reviewed: October 2026. Figures are for tax year 2026. This guide is general information, not tax, legal or financial advice.
About the author
Hari Nepal, founder and editor of Kbtrim Salary. Hi, I'm Hari Nepal, based in Nepal. I built Kbtrim Salary to make money numbers easier to understand, with free calculators that explain how they work instead of hiding the math. I use published IRS and state tax figures and update them every year. I'm not a tax professional, so the tools give estimates, not advice. If you find a mistake, please email me at harinepal2062@gmail.com. More about this site.