Checked 15 October 2026. What was checked. How these pages are maintained.
The formula
Hourly rate = annual salary ÷ (hours per week × paid weeks). Weekly pay = salary ÷ weeks. Monthly pay = salary ÷ 12. A $65,000 salary at 40 hours and 52 weeks is about $31.25 an hour before tax.
Use 50 weeks if you have two unpaid weeks. Overtime, bonuses, and benefits are not included.
Worked example
A $65,000 salary at 40 hours and 52 weeks is $31.25/hour. At 37.5 hours (common in some Canadian offices) it is $33.33/hour.
Job ads that list $65,000 plus overtime are quoting salary, not an hourly rate. Bonuses and RRSP matches are extra. This ignores unpaid overtime on salaried roles.
A posted salary and a 37.5-hour office
$72,000 a year sounds like one wage until you divide by the week you actually work. At 40 hours and 52 weeks the hour is 72,000 ÷ 2,080 = $34.62. At 37.5 hours the year has 1,950 hours, and 72,000 ÷ 1,950 = $36.92. The salary did not change. The hour got shorter, so each hour is worth more on paper and you are at the desk less.
Fifty paid weeks instead of 52 drops the 40-hour version to 72,000 ÷ 2,000 = $36.00. Use 50 only when those two weeks are unpaid. If vacation is paid time off, leave the weeks at 52. Vacation paid as a percent on top is a different cheque. It is not an extra week inside this division.
Unpaid evenings
This hour is the salary spread across the hours you typed. It does not become time-and-a-half after 40, and it does not shrink when a salaried week runs long. If the job expects 45 hours and the contract does not pay overtime, the honest comparison hour is 72,000 ÷ (45 × 52) = $30.77. Run that yourself by changing the hours box. To go the other direction, from a wage to a year, use hourly to salary. Both pages are gross.
Benefits are not in the division
A $72,000 salary plus a pension match is not a larger hourly rate on this page. If the match is 5 percent of salary, that is $3,600 a year of compensation the hour above does not show. Health premiums the employer pays are the same kind of omission. Add them yourself if you are comparing a wage job with no benefits to a salaried job with a match, and keep them out of the hours box. Putting $75,600 into the salary field would pretend the match is cash wages. It is not, and it is not overtime. The hourly figure is only the salary you typed, spread over the weeks and hours you typed.
Where this sits on a paycheque
An hourly rate from a salary is still gross. A paycheque is not the hourly rate times the hours shows what CPP and EI remove before any income tax.
Common questions
Is this take-home pay?
No. This is gross pay. Tax, CPP/EI, or 401(k) come off later.
What if I am paid every two weeks?
There are 26 cheques a year. Each cheque is annual ÷ 26. The hourly rate is unchanged.