A salary is a form of payment from an employer to an employee, which may be specified in an employment contract.
Monthly payment has its advantages. It simplifies budgeting, because household bills are often due monthly. It eliminates the long paycheck wait.
Formula to calculate monthly payment.
- We begin by multiplying the hourly rate by the number of hours worked per week.
- Then multiply the result by 4 to get the monthly payment.
Another method to calculate monthly payment is;
- Take the annual salary and divide it by 12.
Example 1.
An employee works for 40 hours per week. Her hourly pay rate is $ 2. Calculate her monthly payment.
In this case, we will multiply the hourly pay by the number worked in one week and then multiply by 4 to get the monthly income.
Therefore, the employees monthly income is $ 320.
Example 2:
The annual salary of an employee is $3,840. Calculate her monthly salary.
In this case, we will divide the annual income by 12 to get the monthly payment.
Therefore, the employees monthly pay is $ 320.
