Hourly Rate
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The amount an employee earns for each hour of work, commonly used for non-exempt workers, freelancers, and part-time employees.
## Hourly Rate
The hourly rate is the fundamental unit of pay for hourly (non-exempt) workers. It determines overtime pay, which is typically 1.5× the regular hourly rate for hours exceeding 40 per week in the US.
### How It's Calculated
```
Hourly Rate = Annual Salary ÷ 2,080
```
The 2,080 figure comes from 40 hours × 52 weeks. In practice, actual working hours vary by country: France uses 1,607 hours/year (35-hour week), while South Korea's legal maximum is 2,080 hours.
### Why It Matters
Hourly rate is critical for FLSA compliance in the US, minimum wage calculations, overtime liability, and freelancer/contractor billing.
### Regional Variations
- **US**: Federal minimum wage is $7.25/hour; many states set higher minimums (e.g., California $16.50).
- **UK**: National Living Wage (age 21+) is £12.21/hour (April 2025).
- **Australia**: National Minimum Wage is A$24.10/hour (July 2024).
- **Germany**: Mindestlohn is €12.82/hour (January 2025).