Gross, net and the gap
Gross is the number in the offer letter. Net is what arrives. The gap is deductions, and it is worth knowing as a percentage rather than an amount, because that is the figure that stays comparable when the salary changes.
The hourly rate is the honest comparison
Two offers at the same salary are not the same job if one expects 40 hours and the other 55. The effective hourly rate converts both into one number:
- 150,000 a month at 40 hours a week ≈ 865 an hour
- 150,000 a month at 55 hours a week ≈ 629 an hour
The second is a 27% pay cut wearing the same salary figure.
Where the 52-week divisor matters
Dividing a monthly salary by four weeks is the common shortcut and it inflates the hourly rate by roughly 8%. Over a year that is four weeks of work that nobody counted. This uses 52 weeks, which is why the number here may look lower than one you calculated elsewhere — and why it is the one to trust.
Questions
Why divide by 52 weeks rather than 4 weeks a month?+
Because a year has 52 weeks, not 48. Using four weeks a month drops four weeks of work and overstates the hourly rate by about 8%. It is a small-looking shortcut with a consistent bias.
What should I put in the deductions field?+
Whatever comes off your gross: income tax, social contributions, pension. Rates and rules vary by country and by employment type, so the tool takes a single percentage rather than pretending to know your jurisdiction.
Why compare an hourly rate at all?+
Because it is the only figure that compares a salaried job with contract work, and because it makes unpaid overtime visible. A raise that comes with five extra hours a week is often a pay cut per hour.
Is the employer's cost the same as my gross?+
No — usually meaningfully higher. Employer contributions sit on top of your gross and never appear on your payslip, which is why the cost of employing you exceeds what you are told you earn.