How is gross pay calculated?

Gross Pay Formulas 

• Hourly = Employee's Hourly Rate x Hour Worked 
• Salary = Annual Salary / Number of Pay Periods 
• Net Pay = Gross Pay - Deductions

Salaried Employees’ gross salary

Gross pay equals their annual salary divided by the number of pay periods in a year.

Note: This is a simplified summary of pay periods.

Pay periods and the options available will be country-specific and vary further.

i.e. Some countries such as Italy 🇮🇹, Austria 🇦🇹 Portugal 🇵🇹, Brazil 🇧🇷, and Spain 🇪🇸 etc have 13th and 14th-month salary payments.

Example:

Employees make $60,000/ year and are paid monthly (12 installments).

Their gross pay will be:

60000 / 12 = $5,000.

Employees make $48,000/year and are paid semi-monthly (24 installments).

Their gross pay will be:

48000 / 24 = $2,000.

Hourly Employees

Multiply the hourly rate of the employee by the hours worked during a pay period.

An employee works 40 hours a week with an hourly rate of $14.

Their gross pay will be 40 hours x 14 = $560.