Hourly rate to salary calculator: what your rate is a year
Multiply the hourly rate by your hours a week and by 52: $32.50 an hour for 40 hours a week is $67,600 a year, or $1,983 a fortnight after PAYE, ACC and KiwiSaver at 3.5%. Put in a salary instead and the calculator gives the hourly rate. Change the weeks if some weeks are unpaid.
Worked out for the example. Change the boxes to make it yours.
| An hour | $32.50 |
|---|---|
| A week | $1,300.00 |
| A fortnight | $2,600.00 |
| A month, on average (a year over 12) | $5,633.33 |
| A year | $67,600.00 |
| Hours a year | 2,080 hours (40 hours x 52 weeks) |
| Take-home a year, 2026/27 rates, KiwiSaver 3.5% | $51,551 |
| Take-home a fortnight | $1,982.71 |
| PAYE income tax a year | $12,501 |
| ACC earners' levy a year | $1,183 |
| Your KiwiSaver a year | $2,366 |
- 52 weeks means you are paid for every week of the year, including your annual holidays and public holidays, as a permanent employee is.
- Take-home is after PAYE at the 2026/27 rates and the ACC earners' levy of 1.75% (on pay up to $156,641), and after KiwiSaver and student loan if you chose them, worked out for an even year's pay.
- A year is 52 weeks and a day (two in a leap year), so some years have 27 fortnightly paydays. The figures here are for 52 weeks.
Free on every plan. Your account adds this job to Your Timesheets with its hourly rate, after asking, so your hours are on a record of your own.
How an hourly rate becomes a salary
A year's pay is the hourly rate times the hours a week times the weeks you are paid. At 40 hours a week for 52 weeks that is 2,080 hours, the figure most employers divide a salary by, so $32.50 an hour is $67,600 a year. At 37.5 hours a week it is 1,950 hours, and the same $67,600 salary is $34.67 an hour. Going the other way, divide the salary by the hours a year. The weekly figure is a year over 52, a fortnight is two weeks, and a month is the year over 12, because months are not all the same length. Our article on hourly rates and salaries has a table of common rates.
Why 52 weeks includes your leave
A permanent employee is paid for every week of the year, including annual holidays and public holidays: after each 12 months of continuous employment the Holidays Act 2003 gives at least 4 weeks' paid annual holidays (section 16). So an hourly job with regular hours and paid leave compares directly with a salary over 52 weeks. If some weeks are unpaid, such as the gap between seasonal jobs, put the weeks you are really paid. Leave law changes from 6 August 2028, when the Employment Leave Act 2026 replaces the Holidays Act; until then the Holidays Act applies.
Holiday pay paid as you go
Section 28 of the Holidays Act 2003 lets an employer add annual holiday pay to each pay instead of paying you while you are on holiday, but only on a fixed-term agreement of less than 12 months or for work so intermittent or irregular that 4 weeks' holidays cannot be given, if you agree in your employment agreement, and at no less than 8% of your gross earnings, shown separately. Tick the box and the calculator adds the 8%, and asks for the weeks you will really work, because your holidays are then unpaid. Our 8% holiday pay calculator checks a payslip that pays it.
Take-home pay and the minimum wage
The take-home figures come from the same pay engine as the rest of jobtracker.co.nz: PAYE at the 2026/27 rates, the ACC earners' levy of 1.75% on pay up to $156,641, your KiwiSaver and 12% of pay over $24,128 if you have a student loan, for an even year's pay. A year is 52 weeks and a day, so some years have 27 fortnightly paydays; your employment agreement or your employer says how a salary is paid in those years. The calculator also checks the hourly rate against the adult minimum wage of $23.95 an hour from 1 April 2026, which applies to salaried employees too, on the hours they really work. Our salary after tax table shows take-home pay for common salaries.
Questions
How do I convert an hourly rate to a salary in NZ?
Multiply the hourly rate by your hours a week, then by 52. For a 40-hour week that is the rate times 2,080: $30 an hour is $62,400 a year and $40 an hour is $83,200.
What is $30 an hour as a salary in NZ?
$62,400 a year for 40 hours a week over 52 weeks, or $58,500 for 37.5 hours a week. After PAYE, ACC and KiwiSaver at 3.5%, $62,400 is about $1,853 a fortnight at the 2026/27 rates.
How many working hours are in a year in NZ?
2,080 for a 40-hour week over 52 weeks, and 1,950 for a 37.5-hour week. A permanent employee is paid for all of them, including annual holidays and public holidays.
Should I use 52 weeks if I get 4 weeks' holiday?
Yes, if your holidays are paid: a permanent employee is paid for all 52 weeks. Use fewer weeks only for weeks that are unpaid, or when holiday pay is added to each pay at 8% instead.
What happens when I save this?
Your account adds the job to Your Timesheets with its hourly rate, after asking, so you can log your hours against it. Logging hours is free on every plan.
Sources
- Employment Leave Act 2026, ss 2 and 150.
- Holidays Act 2003, ss 16 and 28.
- Inland Revenue: ACC earners' levy rates.
- Inland Revenue: changing my KiwiSaver contribution rate.
- Inland Revenue: tax rates for individuals.
- Minimum Wage Order 2026 (SL 2026/16).
More free tools: see all the calculators.