- Accounting , Tips and Tricks ,
- 11 Oct
How many hours are worked in a single year?
You found the right place if you are trying to determine how many hours an employee works in a year. If an employee get’s paid X amount a year, what is the hourly rate? Well typically you divide the total year salary by 2087. If they get paid x amount of salary, divide that number by 2087 to get an hourly rate
This number is used by many organizations and is pretty universal. The U.S. Office of Personnel and Management has more information at this link.
Here is an excerpt we shamelessly felt ok with a copy and paste just for you!
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Description
Hourly and biweekly rates of pay for most Federal civilian employees are computed as required by 5 U.S.C. 5504(b).
- Hourly rates of basic pay are computed by dividing an employee’s annual rate of basic pay by 2,087 hours. Rates must be rounded to the nearest cent, counting one-half cent and over as the next higher cent (e.g., round $18.845 to $18.85).
- Biweekly rates of basic pay are computed by multiplying an employee’s hourly rate of basic pay by 80 hours.
Covered Employees
The 2,087-hour divisor must be used for almost all civilian Federal employees in an executive agency, including employees under the General Schedule (GS), and most other employees, unless excluded by law. (See “Excluded Employees,” below)
Although excluded by the premium pay definition of employee in 5 U.S.C. 5541(2), the following employees are covered by the 2,087-hour divisor: the head of an executive agency, the head of a military department, a Foreign Service officer, a member of the Senior Foreign Service, a member of the Senior Executive Service, and a member of the Federal Bureau of Investigation and Drug Enforcement Administration Senior Executive Service.
Excluded Employees
The 2,087-hour divisor may not be used for an employee or individual excluded from the definition of “employee” for premium pay purposes in 5 U.S.C. 5541(2), except those listed as covered above.
In addition, firefighters covered by 5 U.S.C. 5545b are subject to special rules for computing hourly rates and overtime pay. See 5 CFR part 550, subpart M. Also, rates of pay for certain Department of Veterans Affairs employees paid under title 38, United States Code, are computed using a 2,080 hourly divisor.
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