The Salary Calculator converts salary amounts to their corresponding values based on payment frequency. Examples of payment frequencies include biweekly, semi-monthly, or monthly payments. Results include unadjusted figures and adjusted figures that account for vacation days and holidays per year.

How are Unadjusted and Adjusted Salaries calculated?

Using a $30 hourly rate, an average of eight hours worked each day, and 260 working days a year (52 weeks multiplied by 5 working days a week), the annual unadjusted salary can be calculated as:

$30 × 8 × (260) = $62,400

As can be seen, the hourly rate is multiplied by the number of working days a year (unadjusted) and subsequently multiplied by the number of hours in a working day. The adjusted annual salary can be calculated as:

$30 × 8 × (260 – 25) = $56,400

Using 10 holidays and 15 paid vacation days a year, subtract these non-working days from the total number of working days a year.

All bi-weekly, semi-monthly, monthly, and quarterly figures are derived from these annual calculations. It is important to make the distinction between bi-weekly, which happens every two weeks, and semi-monthly, which occurs twice per month, usually on the fifteenth and final day of the month.

Different Pay Frequencies

The calculator contains options to select from several periods normally used to express salary amounts, but actual pay frequencies as mandated by varying countries, states, industries, and companies can differ. In the U.S., there is no federal law that mandates pay frequency, except one stating that employees must be paid in routine and predictable manners.

Mandatory consistent payments give employees a lot of stability and flexibility. However, at the state level, most states have minimum pay frequency requirements except for Alabama, Florida, and South Carolina. For further details, consult state regulations regarding pay frequency.

The most common pay period frequencies tend to be monthly, semi-monthly (twice a month), bi-weekly (every two weeks), weekly, and daily.

They are explained in the following chart.

Daily	Pays every day, usually at the end of the day. Some short-term contractors are paid this way.
Weekly	Pays once each week, usually on Fridays. Relatively costly for employers with 52 weeks a year, resulting in higher payroll processing costs, which is the main reason why it is less common than Bi-Weekly or Semi-Monthly.
Bi-Weekly	Pays every two weeks, which comes out to 26 times a year for most years.
Semi-Monthly	Pays twice each month, usually on the 15th and the last day of the month. Although common, it will result in inconsistent pay dates due to differences in dates from month to month.
Monthly	Pays once per month. Usually the most cost-friendly option for employers. Not very common in the U.S.

U.S. Salary Information

In the U.S., salaried employees are also often known as exempt employees, according to the Fair Labor Standards Act (FLSA). This means that they are exempt from minimum wage, overtime regulations, and certain rights and protections that are normally only granted to non-exempt employees.

To be considered exempt in the U.S., employees must make at least $684 per week (or $35,568 annually), receive a salary, and perform job responsibilities as defined by the FLSA. Certain jobs are specifically excluded from FLSA regulations, including many agricultural workers and truck drivers, but the majority of workers will be classified as either exempt or non-exempt.

Factors that Influence Salary (and Wage) in the U.S. (Most Statistics are from the U.S. Bureau of Labor in 2022)

In the third quarter of 2022, the average salary of a full-time employee in the U.S. is $1,070 per week, which comes out to $55,640 per year. While this is an average, keep in mind that it will vary according to many different factors.

The following are only generalizations and are not true for everyone, especially about race, ethnicity, and gender.

• Age—A person closer to their peak income years, which is 40-55, will generally have higher salaries. Men aged 45 to 54 had the highest annual earnings at $72,696, and women earned the most between the ages of 35 and 44 at $56,472.
• Education—The higher a person’s attained level of education, the higher their salary tends to be. Workers 25 or over without a high school degree had median earnings of $35,984 compared to $45,032 for high school graduates. Workers with at least bachelor’s degrees earned $81,432 annually on average.
• Experience—In general, the further entrenched a person is in their career, the more experience or perceived ability they have, or the more valuable their skillset, the higher their salary tends to be.
• Race and Ethnicity—Black men earned a median salary of $47,944, compared to white men at $61,984. The discrepancy is less for black women compared to white women: $43,160 and $51,480. Hispanic and Asian people of both genders earned $44,772 and $74,984, respectively.
• Gender—Men earned an average salary of $60,528, and women earned $50,492. Women are generally paid less than men, and this difference is called the gender pay gap. There are many reasons that this pay gap exists, including discrimination, the specific industry, motherhood, and gender roles.
• Industry—Industry affects wages paid, even in similar roles. For instance, all else being equal, an office clerk at a public school system will most likely make a lower salary than one at a private hedge fund. This also includes the relative stability of industries and companies and their forecasted trends.
• Location—Different locations will have different supplies and demands for positions, and average salaries in each area will reflect this. Keep in mind that the cost of living should be noted when comparing salaries. In some cases, a job that offers a higher salary may equate to less overall once the cost of living in a different location is accounted for.
• Misc.—To a lesser extent, salary is also influenced by the overall performance of companies; during years of high profits, a company may choose to pay a higher-than-average salary for a job applicant with excellent credentials. Also, in certain jobs, workers are expected to perform job responsibilities in dangerous working conditions, such as handling dangerous chemicals in a research facility, working in an underground mine with potential toxins, or patrolling a notoriously dangerous part of town as a police officer. Such jobs can be compensated with a higher salary through hazard pay. Similarly, people who work less favorable shift hours, such as the “graveyard shift,” which runs through the early hours of the morning, can sometimes earn a premium for doing so, due to the higher social and physical costs of working outside normal hours.

The 11 Annual Federal Holidays in the U.S.

January	New Year’s Day, Birthday of Martin Luther King Jr.
February	Washington’s Birthday
May	Memorial Day
June	Juneteenth National Independence Day
July	Independence Day
September	Labor Day
October	Columbus Day
November	Veterans Day, Thanksgiving Day
December	Christmas Day

Although there are 11 federal holidays in the U.S., companies typically allow time off for 6 to 11 holidays. Generally, only employees who work in a branch of the federal government benefit from all federal holidays. Employees who work for private employers are subject to the policy of their employer.

Also, unless stated in a contract or collective bargaining agreement, an employer is not obligated to pay an employee anything extra such as overtime for working on a federal holiday.

Other countries have a varying number of public holidays. Cambodia has the most days in a year in the world set aside to be non-working days, as established by law, at 28, followed by Sri Lanka at 25. Remember to adjust the “Holidays per Year” input to calculate a correct adjusted result.

Vacation Days, or Paid Time Off (PTO)

Traditionally in the U.S., vacation days were distinctly separate from holidays, sick leaves, and personal days. Today, it is more common to have them all integrated into a system called paid time off (PTO). PTO provides a pool of days that an employee can use for personal leave, sick leave, or vacation days. Most importantly, the reasons for taking time off do not have to be distinguished.

There’s no need to fumble over whether to designate an absence as sick or personal leave or to have to ask the manager to use a vacation day as a sick day. There are, however, some downsides to having them combined.

For instance, if an employee gets very sick for a week and has to take five days off, their total pool of PTO will be reduced by the five days absent, which may force them to reconsider the week-long vacation they had originally planned.

In the U.S., the Fair Labor Standards Act (FLSA) does not require employers to give their employees any vacation time off, paid or unpaid. Therefore, when interviewing and deciding between jobs, it may be wise to ask about the PTO policy of each potential employer.

With that said, the average American gets around 10 days of PTO a year; the bottom 25% of wage earners only get an average of four paid vacation days a year. Most companies tend to institute a policy that increases the amount of PTO an employee gets every several years or so as an incentive to retain workers.

Most employers (over 75%) tend to provide vacation days or PTO for many beneficial reasons. They can help prevent employee burnout, maintain employee morale, or be used for any reasonable situations where leave is necessary, such as medical emergencies, family needs, and of course, actual vacations.

European countries mandate that employers offer at least 20 days a year of vacation, while some European Union countries go as far as 25 or 30 days. Some other developed countries around the world have vacation time of up to four to six weeks a year or even more.