HOW TO CALCULATE HOURLY WAGE?

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Wage can be determined as monthly, daily, hourly, as a piece or job rate or on a percentage basis.

Payment of wage must be on monthly basis at the latest. Payment period can be reduced down to one week.

Hourly wage is the amount paid to employee for per hours worked. As the wage usually is remunerated in monthly or weekly basis, calculation of hourly rate may be complex sometimes.   Also it is important to calculate hourly wage for overtime work.

CALCULATION OF HOURLY WAGE

1 – Employee contracted in monthly basis

As a rule hourly wage is calculated as gross amount. In case the wage remunerated in monthly basis, monthly wage should be divided to monthly working hours.

For example: Monthly salary is 3.000 TRY

Month is considered as 30 days in Labor Law.

Daily work hours: 7,5 hours.

Monthly work hours: 225

Hourly wage: 3000/30/7,5 = 13,33 TRY

Or 3000/225 = 13,33 TRY

2 – Employee contracted hourly basis

In the moths with 31 days monthly work hours will be taken as 31*7,5 =232,5

In the months with 28 days monthly work hours will be taken as 31*7,5 =232,5 = 210

CALCUALTION OF OVERTIME WORK

The wage for each hour of overtime work is paid by raising the hourly rate of the regular working wage by fifty percent. In other words, wages for each hour of overtime shall be remunerated at one and a half times the normal hourly rate.

Example: Worked 50 hours within the week. First we find the hourly wage of employee as below.

Monthly working hours: 225

Monthly Salary: 2.029,50 TRY

Hourly wage 2.029,50 /225 = 9,02 TRY

50% increased hourly wage: 9,02*1,5 = 13,53 TRY

Overtime: 50-45=5 hours.

Overtime remuneration: 5*13,53 = 67,65 TRY.

CALCULATION OF WORK AT EXTRA HOURS

In work at extra hours, the wage for each extra hour is paid by raising the hourly rate of the regular working wage by twenty-five percent; in other words each extra hour shall be remunerated at one and a quarter times the normal hourly rate.

Example: Monthly working hours is 40 hours. Employee worked 43 hours within the week. Monthly salary is 3.000,00 TRY. First we find daily working hours.

Daily working hours = Weekly work 40 hours / 6 days = 6,667 hours.

Monthly work hours = 6,667 * 30 days = 200 hours.

Hourly wage = 3.000 / 200 = 15 TRY

Then we find 25% increased wage:

25% increased wage = 15 *1,25 = 18,75 TRY

Work at hours: 43 – 40 = 3 hours

3 hours * 18,75 TL=56,25 TRY.

If the employee who has worked overtime or at extra hours so wishes, rather than receiving overtime pay he may use, as free time, one-hour and thirty minutes for each hour worked overtime and one hour and fifteen minutes for each extra hour worked.

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