How many working hours in a year?
Whether you’re a salaried employee or you earn an hourly rate, it’s important to know exactly how much of your time is spent working, particularly if you’re striving to achieve work-life balance. The first step is calculating how many working hours there are in a year.
When it comes to the maximum working hours in New Zealand, there are regulations in place that detail workers’ rights, though there are differences in expectations between industries.
In this article, we explain how many work hours in a year, the benefits of calculating your work hours, and how to keep track of the hours you’ve worked.
How many work hours are in a year?
Working hours, also referred to as ‘ordinary hours’, are a full-time employee’s normal and regular hours of work. Employeesin New Zealand can work a maximum of 40 hours a week, before any "reasonable" overtime. This is the equivalent of 8 hours per day, in a five-day working week.
To calculate how many hours in one year, you can use the following formula:
Total working hours in a year = (Number of working hours per week x 52) – [(PTO days + number of paid holidays) x number of working hours per day]
This formula takes into account your leave entitlements, including paid annual leave and personal leave. Most employees are entitled to four weeks of annual leave, 10 days of sick leave and three days of compassionate leave, which works out to be 33 days of paid leave per year. (NB: Compassionate or bereavement leave can be taken more than once per calendar year.)
If you worked 40 hours a week and took a full 33 days of paid leave, you could use the following formula to calculate the number of work hours in a year:
(40 x 52) - (33 x 8)
= 1,816 hours per year
Benefits of calculating your working hours per year
There are several benefits that come with calculating how many hours you work each year. Here’s a quick overview of the advantages.
1. It helps calculate your annual income
By working out the number of working hours in a year, you can roughly calculate your annual income. To start, multiply your hourly rate by the total number of working hours in a year.
If you’re a casual worker, doing these calculations helps you figure out your maximum annual earnings. You can calculate how much you need to work to cover your expenses and achieve your desired lifestyle.
When you have a thorough understanding of your annual income, you can budget accordingly, and know if you need to adjust your career goals to achieve the right balance.
2. It helps calculate your hourly rate
If you’re a salaried employee, knowing your annual income and your total annual working hours means you can calculate your hourly rate. To determine your hourly rate, divide your annual income by the total number of working hours in a year – roughly 1,816, as worked out above.
Compare this figure against the casual hourly rate for similar positions within your industry to see if you’d make more money as a freelancer or contractor. You can also use this information as a benchmark for negotiating your salary or your freelance rates if you decide to branch out on your own.
3. It ensures you’re compensated appropriately
When you know your current hourly rate, you’re able to ensure you’re being fairly compensated for your time and skills. By calculating your annual working hours, you can also check that your rate is aligned with industry standards.
If you’re salaried, you can use your calculated work hours to see if any overtime you’re working is bringing down your hourly rate too much. While your employer can ask you to work reasonable extra hours, there are instances where you can refuse.
How do you calculate work hours per year?
There are tools you can use when calculating the number of hours you work per year.
Plug your figures into this working hours ‘calculator’ to figure out your yearly work hours:
Total working hours in a year = (Number of working hours per week x 52) – [(PTO days + number of paid holidays) x number of working hours per day]
Regardless of your work schedule, you’ll need to subtract any time off you took or plan to take off for the year, including:
Vacation days
Sick days
Holidays
Here are a few extra tips to help you calculate the total number of hours you work in a year.
1. Track your weekly work hours
To make it easier to calculate your annual work hours, record your weekly work hours using timesheets or a work-tracking tool. Use these to figure out your average weekly work hours, then multiply them by 52 to calculate your total working hours per year. Be sure to also include any variations in your weekly work schedule, including overtime.
2. Calculate PTO and holidays
Different roles across different industries have their own holidays and conditions, so be sure to check the total number of paid time off (PTO) days and paid holidays offered by your employer for the year. Keep track of the days you take off for vacation, sick leave or personal reasons. Also make a note of any unpaid leave you take. Use this information to calculate the total number of days you’ve taken off throughout the year.
3. Calculate days off with hours worked per day
Next, determine the number of hours you typically work in a day based on your regular schedule. The maximum hours of work per day is around eight. Multiply the total number of days you took off by the number of hours you work each day to calculate the total hours of time off you’ve taken.
4. Subtract total hours off from annual work hours
Lastly, subtract the total hours of time off from the total working hours per year to find your net working hours. Use this figure to assess your workload, calculate your hourly rate, and ensure your company's compliance with company policies and labour laws. You can adjust these calculations as needed for part-time or flexible work arrangements.
Understanding how many working hours in a year in New Zealand is essential for achieving a good work-life balance. By applying the tips provided in this article, you can figure out your hourly rate and benchmark your salary against similar roles in your industry, and ensure you're getting the paid leave and other benefits you're entitled to.
FAQs
How many hours a year is 40 hours a week?
Without taking PTO into account, the easiest way to work out the number of annual work hours based on a 40-hour work week is by using the following formula:
40 x 52 = 2,080 annual working hours
You’ll need to account for any days you’ve taken off, and subtract this from your total.
How many work hours in a year in New Zealand?
Most full-time employees in New Zealand work between 38 to 40 hours a week. Based on these figures, there are around 1,976 to 2,080 working hours in a year. Permanent employees also need to factor in PTO, so it’s likely that their total annual working hours will be slightly less.
How many hours in a year if you work 37.5 hours a week?
A 37.5-hour work week equates to a total of 1,950 working hours in a year. However, this is based on a simplified formula that doesn’t account for leave days or PTO.
Is a 40-hour work week legal in New Zealand?
Yes, a full-time work week in New Zealand is considered a maximum of 40 hours, before any overtime.
Is full time 38 or 40 hours?
Full time depends on the hours outlined in your employment agreement. Usually, between 35 and 40 hours is considered full time.
How much is $29 dollars an hour annually for 40-hour work weeks?
If a 40-hour work week is the equivalent of 2,080 working hours a year, $29 dollars an hour works out as a total of $60,320 a year. But remember, this doesn’t factor in any hours of paid leave.
How much is $42 an hour annually?
Based on a 40-hour work week, $42 an hour is the equivalent of $87,360 a year. This formula doesn’t take into account any time off, so be sure to factor this into your calculations.
How much is 70k a year per hour for 37.5-hour work weeks?
To figure out your hourly rate, work backwards based on your salary and the number of hours you work each week. A 37.5-hour work week over a year is a total of 1,950 hours. To work out your hourly rate, divide $70,000 by 1,950, which comes to $35.90 an hour.
What are the working hours in New Zealand?
In New Zealand, full-time employees work a maximum of 40 hours a week. However, this can vary depending on the individual contract or collective agreement.
How many working hours are in a month?
When it comes to working out the number of working hours in a month, you need to first know how many working days are in a month. If there are 20 business days in a month and you work a total of eight hours a day (the equivalent of a 40-hour work week) you would work 160 hours a month.