In our exploration of average salaries across the U.S. by state and gender, we analyzed data from the American Community Survey,4 which uses median salary data rather than averages. This approach avoids skewed numbers from outlying high and low figures, providing a more accurate picture of the gender pay gap. Assuming you work 40 hours every week, however clock out for a half an hour lunch a day, this means you only receive a commission for 37.5 hours in line with the time you work in the week. Assuming you earn $25 an hour and work 37.5 hours consistently within the week, your annual salary is $25 × 37.5 × 52, or $48,750. In the U.S., salaried employees are also often known as exempt employees, according to the Fair Labor Standards Act (FLSA). This means that they are exempt from minimum wage, overtime regulations, and certain rights and protections that are normally only granted to non-exempt employees.
The National Center for Education Statistics3 has provided interesting data that highlights how education level impacts earning potential. Individuals aged 25 and above who have a bachelor’s degree earn a median salary that is 76.24% higher than those who only have a high school diploma. This substantial difference emphasizes the value of pursuing higher education and the long-term benefits it can yield in terms of career growth and financial stability. The U.S. Bureau of Labor Statistics uses median salary data rather than averages to avoid skewed numbers from outlying high and low numbers.
- Bureau of Labor Statistics’1 research on American earnings across various age groups, the median salary in the United States reaches its zenith within the 45 to 54 age range.
- This way, you’ll prevent the yearly income calculator from changing the locked values and make it compute the one you want.
- Most importantly, the reasons for taking time off do not have to be distinguished.
- Compensation is the monetary payment employees earn for doing their jobs.
- Workers in certain industries earned more in 2021 than they had in a long time, either through raises in their hourly wage or salary increases.
The most important key figures provide you with a compact summary of the topic of “Wages and salaries in the United States” and take you straight to the corresponding statistics. The causes underlying this gap are complex and multifaceted, encompassing factors such as discrimination, age, the types of jobs held by women and men, and societal expectations around parenthood. Addressing this gap is not only a matter of fairness but also an important step towards ensuring women’s financial stability. The data serves as a stark reminder that the journey towards gender pay equality is far from over. If you’re having trouble reading your pay stub or calculating your pay, don’t be afraid to ask your human resources team for help.
To be considered exempt in the U.S., employees must make at least $684 per week (or $35,568 annually), receive a salary, and perform job responsibilities as defined by the FLSA. Certain jobs are specifically excluded from FLSA regulations, including many agricultural workers and truck drivers, but the majority of workers will be classified as either exempt or non-exempt. This salary calculator assumes the hourly and daily salary inputs to be unadjusted values. All other pay frequency inputs are assumed to be holidays and vacation days adjusted values.
Statistics and Analysis Calculators
If that rate persists for the entire year, that would equal $54,132 a year. We’ve crunched numbers from Bureau of Labor Statistics1 data to bring you a detailed overview of average salaries across the nation. From the highest earners to the lowest, here are the insights you need to put the U.S. earnings landscape into perspective. In case you make an hourly salary and you would like to be more specific on your annual earning is, you first need to discern out how many hours a week you work.
Here are the top 10 and bottom 10 states for 2020 median household income, according to Statista. The average American income changes significantly based on industry type. There is a significant range depending on one’s specific profession, according to BLS data from 2022. In addition, average incomes are impacted by differences in a worker’s location.
While these three states offer the lowest average salaries, it’s worth noting that cost of living often aligns with local income levels, which may counter the drawbacks of a lower salary. Whether you’re considering taking on extra work, negotiating a new job offer, or planning a big purchase, our hourly-to-annual salary calculator will give you the power to make informed financial decisions. New Hampshire stands out as the state where young people command the highest average income, boasting a remarkable salary of $52,926. This data accentuates the favorable economic conditions for young professionals in New Hampshire, making it an ideal destination for ambitious individuals aiming to optimize their early career earnings.
Connecting you to a trusted network of resources created for your financial and personal success. Delivering a personal approach to banking, we strive to identify financial solutions to fit your individual needs. This higher compensation amount likely reflects the demanding nature of police work in Alaska, where officers face a high rate of on-duty assaults and serve in some of the most remote communities in the nation. Answering this question takes us into the heart of the American workforce, for a look into the interplay between where you work and what you do. Whether you live in a bustling city or the rural heartland, your occupation and location can play a key role in your earnings.
Other statistics on the topicWages and salaries in the United States
Get faster access to market data with tools to improve fair pay practices. All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.
However, it can calculate the rest of the variables – it depends on which values you input first. Our examination of salaries across the U.S. paints a complex picture, influenced by factors such as state, occupation and gender. While strides have been made to improve earnings, the persistent gender pay gap shows there’s still work to be done.
Data from the Bureau of Labor Statistics1 shows that California, with a median salary of $124,000 for nurses, stands out as a state that understands the value of this critical healthcare profession. But the benefits of practicing nursing in California don’t stop at salary. The most common pay period frequencies tend to be monthly, semi-monthly (twice a month), bi-weekly (every two weeks), weekly, and daily. Still, the index averaged 2.2 percent yearly gains in the decade leading up to the pandemic, underscoring that today’s pace remains unusually quick. And it is notable that wage gains continue to come in strong at a time when economists had expected them to be returning to a more normal pace. The trend could present a challenge for officials at the Federal Reserve.
How much do I have to charge per hour if I want to earn 100,000 USD a year?
A good income can allow people to cover recurring expenses, build a robust emergency fund and set aside savings for the long term. While earning a college degree or postgraduate degree can boost income, it’s important for high income earners to live within their means. The average American salary as of 2020 was $71,456, according to Statista data.
However, states may have their own minimum wage rates that override the federal rate, as long as it is higher. For instance, the District of Columbia (DC) has the highest rate of all states at $16.50 and will use that figure for wage-earners in that jurisdiction instead of the federal rate. On the other hand, Georgia has their minimum wage rate set at $5.15, but the $7.25 federal minimum rate overrides it. In the U.S., there is no federal law that mandates pay frequency, except one stating that employees must be paid in routine and predictable manners.
This calculator also assumes 52 working weeks or 260 weekdays per year in its calculations. Annual income is an employee’s total yearly income and is typically used for salaried employees with more predictable annual earnings. Salaried employees receive their pay regardless of how many hours they’ve worked, meaning they usually don’t receive revenue and cash budgets overtime and don’t have to clock in. The purpose behind the rule is to ensure that salaried workers who work more than 40 hours per week are being adequately paid for their time. Hourly employees, by comparison, would receive an overtime wage that’s higher than their normal hourly rate for any hours they work beyond the initial 40-hour week.
If an employee’s salary is annualized, it means that an employee takes home a fixed and equal amount of a predetermined annual salary each paycheck. This method ensures a regularly distributed paycheck and helps to facilitate the paying of taxes, insurance premiums, and employment benefits. In the age group of 16 to 19, the gender pay gap is the smallest, with the median annual wage for males at $32,188 and for females at $31,096. This amounts to a difference of $1,092 or a 3.5% wage disparity in favor of males. There’s also a stark wage disparity between younger earners in the 16 to 19 age group and their older counterparts. On average, these young workers earn 49.92% less, which can be attributed to factors such as limited work experience, a narrower skill set and occupying entry-level positions.