Salary Converter
Convert salary between monthly, annual, daily and hourly. Calculate net amount after deductions.
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What is the Salary Converter?
The salary converter is a tool that allows you to transform your salary between different periods: monthly, annual, daily, and hourly. This is useful for comparing job offers, understanding how much you actually earn per hour worked, or calculating your net amount after deductions.
In many countries, annual salary includes bonuses like a 13th-month salary. Our calculator considers 13 months when calculating annual salary to reflect this common practice.
Gross vs Net Salary
Gross salary is the total amount agreed in your contract, before any deductions. Net salary is what actually hits your bank account, after mandatory deductions.
Bruto
Gross Salary: Total amount in your contract, used as the base for calculations and negotiations.
Líquido
Net Salary: The amount you receive after Social Security, Income Tax, and other deductions. This is your take-home pay.
Understanding Deductions
Social Security
Social Security is the contribution for retirement, disability benefits, and other social protections. The rate varies depending on your income level and country.
Social Security rates vary by country. In the US, the combined FICA rate is 7.65% (6.2% Social Security + 1.45% Medicare).
Income Tax
Income tax is calculated on your salary after Social Security deductions. There's usually an exemption threshold and progressive rates.
US Federal Tax Brackets 2024: 10%, 12%, 22%, 24%, 32%, 35%, and 37% depending on income level and filing status.
Other Common Deductions
- •Health insurance premiums
- •401(k) or retirement contributions
- •Life insurance
- •Disability insurance
- •Union dues
- •Wage garnishments
- •FSA/HSA contributions
13th Month Salary / Annual Bonus
In many countries, workers receive a 13th-month salary (also called Christmas bonus or annual bonus). This is equivalent to one extra month's pay, usually paid at year-end.
Calculation: If you worked the entire year, you receive one extra salary. If you worked part of the year, you receive a proportional amount.
Paid Time Off (PTO)
Most employers offer paid vacation days. Some countries mandate a minimum number of paid vacation days, while others leave it to employer discretion.
Vacation pay is typically your regular salary for the days taken off. Some places add a vacation bonus (e.g., 1/3 extra in some countries).
Employee vs Contractor: How to Compare
When comparing an employee position with a contractor role, consider all the benefits you'd lose as a contractor and would need to pay for yourself.
CLT / Empregado
- •Sick leave
- •Health insurance
- •Retirement matching
- •Unemployment insurance
- •Workers' comp
- •Job security
PJ / Autônomo
- •Buy your own health insurance
- •Save for retirement yourself
- •No paid time off
- •No unemployment benefits
Overtime Pay
Overtime is calculated on your hourly rate with a minimum premium of 50% (time and a half) for hours over 40/week in the US. Some states and situations require double time.
Calculation: Hourly rate = Salary ÷ (Hours/week × 52 ÷ 12). Overtime = Hourly rate × 1.5 (or 2x for double time).
Example: $4,000/month salary ÷ 173.33 hours = $23.08/hour. Overtime = $34.62/hour. Double time = $46.15/hour.
How to Use the Calculator
- 1
Enter your salary in the designated field.
- 2
Select the period of the entered amount: monthly (most common), annual, or daily.
- 3
Adjust hours per day and working days per month if needed (default: 8h/day, 22 days/month).
- 4
To see net salary, enable 'Calculate net salary' and enter Social Security, Income Tax rates, and other deductions.
- 5
Click Calculate to see all conversions!
Practical Examples
Example 1: $5,000 Monthly Salary
Monthly gross salary: $5,000 | Work schedule: 8h/day, 22 days/month
Annual (13 months): $65,000 | Daily: $227.27 | Hourly: $28.41 | 13th: $5,000
Example 2: Comparing Annual Offer
$120,000/year offer | Work schedule: 8h/day, 22 days/month
Monthly: $9,230.77 | Daily: $419.58 | Hourly: $52.45
Example 3: Calculating Net Pay
Gross salary: $8,000 | Social Security: 7.65% | Income Tax: 22%
Social Security: $612 | Income Tax: $1,760 | Net: ~$5,628
Important Tips
Always negotiate gross salary: It's the base for calculating all benefits like bonuses, retirement matching, and severance.
Consider the total package: Beyond salary, evaluate benefits like health insurance, PTO, 401(k) match, bonuses, remote work options.
Compare hourly rates: When evaluating offers, calculate what you'd earn per hour in each position, considering the workload.
Build an emergency fund: Even with a stable job, have savings. Don't rely only on unemployment benefits.
Understand your pay stub: Know how to identify each deduction and benefit on your monthly paycheck.
Simulate before asking for a raise: Use the calculator to know how much a raise represents in net pay and argue better.
Frequently Asked Questions
Why does annual salary consider 13 months?
In many countries, workers receive a 13th-month salary (Christmas bonus). Our calculator includes this to reflect total annual compensation.
How do I calculate my hourly rate?
Divide your monthly salary by total hours worked per month. For standard 40h/week: Salary ÷ 173.33 hours.
What's the difference between salary and total compensation?
Salary is the fixed monthly amount. Total compensation includes salary plus overtime, commissions, bonuses, and benefits value.
Is 401(k) deducted from my salary?
Yes, your 401(k) contribution is deducted from your paycheck, but it reduces your taxable income. Employer match is additional.
How do I know if my tax withholding is correct?
Compare your W-4 settings with your tax situation. Use the IRS withholding calculator to verify you're not over or under-withholding.
How much does health insurance typically cost?
Employer-sponsored plans average $100-500/month for employee contribution. Individual plans vary widely by state and coverage level.
How is overtime calculated?
Overtime = (Salary ÷ monthly hours) × 1.5 for hours over 40/week. Some states require double time for extended hours or weekends.
Do contractors earn more than employees?
Not always. Contractors must pay self-employment tax, have no benefits, PTO, or job security. Compare total value, not just gross pay.
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