Part-Time Salary and Hourly Rate Conversion
Convert part-time salaries and hourly rates to full-time equivalents. Understand pro-rata calculations for 10, 20, or 30 hour per week positions.
Detailed Explanation
Part-Time Salary Conversion
Part-time roles require careful conversion to compare fairly against full-time positions. The key is normalizing to a per-hour or full-time-equivalent (FTE) basis.
The FTE Formula
FTE Salary = Part-Time Salary x (Full-Time Hours / Part-Time Hours)
Common Part-Time Conversions
For a $50/hr rate:
| Hours/Week | Annual Gross | Monthly | FTE Equivalent |
|---|---|---|---|
| 10 | $26,000 | $2,167 | $104,000 |
| 15 | $39,000 | $3,250 | $104,000 |
| 20 | $52,000 | $4,333 | $104,000 |
| 25 | $65,000 | $5,417 | $104,000 |
| 30 | $78,000 | $6,500 | $104,000 |
| 32 | $83,200 | $6,933 | $104,000 |
Note that the FTE equivalent remains constant because the hourly rate is the same. What changes is the total annual income.
Benefits Considerations
Part-time employees (typically under 30 hours/week in the US) often do not receive:
- Employer health insurance
- 401(k) matching
- Paid time off (or receive prorated PTO)
- Stock options or RSUs
This means the effective hourly value gap between part-time and full-time can be 20-40% even at the same hourly rate.
Pro-Rata Annual Salary
Some companies quote a part-time "annual salary" that is already pro-rated:
If a full-time salary is $100,000 for 40 hrs/week,
a 24 hrs/week position is: $100,000 x (24/40) = $60,000
The hourly rate is the same: $48.08/hr
When Part-Time Pays More Per Hour
Some companies pay a premium for part-time specialized work because:
- Lower benefit costs to the employer
- Access to senior talent who prefer reduced hours
- Project-based work that does not justify full-time headcount
Use Case
Use this conversion when evaluating part-time job offers, transitioning from full-time to part-time work, or comparing the financial impact of reducing your working hours.