### Finance

# How to Calculate Hourly Rate of Salary in South Africa

**What is the hourly rate?**

The amount you earn by working per hour is called the hourly rate. The hourly rate is calculated by the following steps given below:

** 1-** First of all, determine how many hours the employee worked.

** 2-** Next, multiply these hours by the number of days in a week.

** 3- **Divide the calculated value by the number of weeks (52) per year.

** 4-** Then divide this value by the total annual salary of the employee.

For example, if the worker’s salary is around $50,000 and he works for 40 hours. Then its hourly rate is derived by

$50,000/(40×28) =$24

**How to calculate the hourly rate for a monthly salary in South Africa?**

According to the law of Kenya, (Employment Act 229) the minimum hourly rate is calculated by dividing the monthly salary by 225.

**Formulas for calculating hourly rate:**

The following are the formulas used for calculating the hourly rate for a monthly salary:

**Hours per month=hours in a year / 12 months in a year.**

To calculate hours per month, divide the hours in a year by the number of months in a year.

**Hours per week=hours per day x working hours per week.**

To calculate hours per week multiply the hours per day by the working hours per week.

**Hours in a year =hours per week x week (52) in a year.**

To calculate hours in a year, multiply the hours per week by the total number of weeks in a year.

**Hourly earn=monthly salary/ hours per month.**

Top calculate how much you have earned per hour, and divide the monthly salary by the number of hours per month.

**Daily earn=hourly pay x hours per day.**

To calculate your daily earnings, multiply your hourly pay by the hours per day.

**For calculating your salary-based hourly rate then use these formulas:**

**Salary/ working days (260) = daily rate.**

Divide your salary by the working days (260) to get a daily rate.

**Daily rate/number of working hours (per day) = hourly rate.**

To get an hourly rate, divide the daily rate derived by the formula with the working hours.

Working days (260) – holidays (28) = 232.

There are 232 total working days.

**What are the top highest-paid jobs in South Africa?**

The top-paid jobs in South Africa are;

- CA (chartered accountant)
- Executive Management.
- Technical or Business architecture.
- IT (Information technology) project administration and management.
- Strategy consulting.
- Software Development.
- Electrical Engineering.
- Business Analyzing.
- Mechanical Engineering.
- Specialized Doctors.

**What are the working hours in South Africa?**

A worker can work for a maximum of 45 hours per week. It means he works for almost nine hours for five days and eight hours for more than five days a week.

**What is the basic salary in South Africa?**

If a worker has Rs.18,000 as a basic salary, he or she will receive this salary as a whole and also get house rent payment, transportation, communication sources, city allowance, and other allowance that are included in his or her job.

**Why is hourly rate calculation important in working?**

You need to calculate the hourly rate in order to determine overtime salary, and the employee’s leave and absence. So, the calculation of the hourly rate is essential.