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How to Calculate Annual Salary from an Hourly Rate in Canada

Updated

Turning an hourly wage into a yearly salary takes one multiplication, but the answer depends on two numbers people often assume: how many hours you work in a week, and how many weeks in the year you are paid for. This page shows the formula, works through examples by hand, and covers the adjustments for unpaid vacation, statutory holidays and part-time hours. To skip the arithmetic, the hourly to salary calculator does the same conversion in both directions.

The formula

Annual salary = hourly rate × hours per week × paid weeks per year

A full-time week of 40 hours over all 52 weeks is 2,080 hours a year, so for a 40-hour job with every week paid the shortcut is the hourly rate × 2,080. At 37.5 hours a week, a common schedule in offices and the public sector, it is the rate × 1,950.

At $25 an hour and 40 hours a week: $25 × 40 = $1,000 a week, × 52 weeks = $52,000 a year. The same rate at 37.5 hours a week is $48,750 a year.

The reverse: salary to hourly

Hourly rate = annual salary ÷ (hours per week × 52)

A salary of $75,000 at 40 hours a week: $75,000 ÷ 2,080 hours = $36.06 an hour.

Unpaid vacation

The formula above assumes you are paid for all 52 weeks. Salaried employees usually are, since vacation is paid. An hourly worker who takes unpaid time off, or a seasonal worker, is paid only for the weeks worked, so the weeks in the formula drop.

At $28 an hour, 40 hours a week, with 2 weeks unpaid: 50 paid weeks × 40 hours = 2,000 hours, × $28 = $56,000 a year, against $58,240 with every week paid.

Provincial employment standards also require vacation pay for hourly workers, which adds back some of that income; how it is calculated and when it is paid differ by province, as the vacation pay entitlement guide explains.

Statutory holidays

Most employees who qualify get statutory holidays as paid days off, so they don’t reduce yearly pay and the formula needs no change. An hourly worker who doesn’t qualify for holiday pay, or who is paid only for hours worked, would subtract those days’ hours. The number of holidays and who qualifies for holiday pay differ by province; the statutory holidays guide lists them.

At $22 an hour, 8-hour days and 9 unpaid holidays, the year’s pay is lower by 9 × 8 × $22 = $1,584.

Part-time and irregular hours

For part-time work, use your actual hours per week. If they vary, an average over several months gives a steadier figure than a single week.

Hours a weekAt $20 an hourAt $30 an hour
20$20,800$31,200
30$31,200$46,800
40$41,600$62,400

Overtime adds to the year’s pay for hours past your province’s threshold, at a higher rate; the overtime rules guide has the thresholds and the overtime calculator works out a week’s pay.

Minimum wage as a yearly salary

Ontario’s general minimum wage is $17.95 an hour from October 1, 2026. At 40 hours a week over 52 weeks, that is $37,336 a year before tax.

The minimum wage page lists every province’s and territory’s rate and the next scheduled increases.

From gross salary to take-home pay

The formula gives gross pay. Income tax, CPP and EI come off each paycheque, which the payroll deductions guide explains; the salary after tax calculator works out take-home pay by province. The province calculators show take-home at common hourly wages for Ontario, British Columbia, Alberta and Quebec.

Sources

The figures and rules on this page come from these sources. How we check facts.