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Decision guide

Hourly vs Salary: How to Compare Job Offers

An hourly job pays for hours worked; a salary pays a fixed annual amount. To compare offers, convert both to the same basis: annual gross pay, expected hours, overtime eligibility and benefits. A higher hourly rate can lose to a salary with paid leave and health insurance, and a higher salary can lose to overtime.

Side by side

FactorHourlySalary
Pay basisHours workedFixed annual amount
OvertimeUsually eligible if non-exemptOften exempt
Income stabilityVaries with schedulePredictable
BenefitsOften limitedOften included
Paid leaveDepends on employerOften included
Best ifYou want variable hours or extra shiftsYou want predictable pay and benefits

Choose Hourly if…

  • You want control over your schedule and the chance to earn extra hours.
  • The hourly rate is high enough that annual pay beats the salary offer.
  • You already have benefits through another source.

Choose Salary if…

  • You want predictable income for budgeting.
  • The salary includes health insurance, paid leave and retirement benefits.
  • You value fixed hours and do not expect overtime.

Run your own numbers

The comparison above is qualitative. Use the free calculators for your actual figures.

Common questions

Is $25 per hour the same as $52,000 per year?
At 40 hours a week and 52 weeks a year, $25 × 2,080 hours = $52,000 gross. That assumes no unpaid leave, no overtime and no unpaid breaks. Adjust the hours for your actual schedule.
Does a salary include overtime?
Generally no for exempt employees. Non-exempt salaried employees may still earn overtime. The exemption depends on salary level and job duties, not just the word “salaried.”
How do I compare the benefits?
Put a dollar value on health insurance, paid leave, retirement match and other benefits, then add them to the annual pay. A lower salary with strong benefits can beat a higher hourly rate with none.

More comparisons

General information only, not financial, tax or legal advice. Rules and rates change; confirm with the official source or a licensed professional. Last reviewed 2026-11-11.