Subtract holidays and leave from weeks to get cost per productive hour.
Annual hours differ by country
Hourly cost depends on the working year. The US convention is 40 hours × 52 weeks = 2,080 hours. In France the legal week is 35 hours and the annual reference is 1,607 hours, and paid leave in much of Europe is 20 to 30 days. Use the hours actually paid in that country for a fair comparison.
Worked example
A €60,000 salary over 1,720 hours (40 hours a week, 43 working weeks after leave and holidays) is €34.88 per working hour, versus €28.85 over 2,080 hours. That difference matters when you compare contractor day rates with employees.
Frequently asked questions
How many work hours in a year?
2,080 at 40 h × 52 weeks.
Should I divide by paid or worked hours?
Use worked hours to compare with contractor rates; use paid hours for payroll.
Does this include employer costs?
No. For the fully loaded hourly cost, use the employer cost calculator.