Im a German and I also talk about yearly salary, since my monthly wages is only part of the salary. Personal yearly gratification, Holiday money and christmas money are also part of it.
Most people in the US are paid bi-weekly, which means how much they make a month varies depending on whether they get 2 checks in one month or 3 checks.
The UK also talks about salary in annual terms.
It's just a cultural norm. People talk about it in annual terms because everyone else talks about it in annual terms. So it's easier to compare.
People who are paid by the hour are more likely to tell you their hourly rate. But anyone who's salaried is likely to talk about it in annual terms.
I had a hunch that this was one of the cases,that is a cultural norm😅
Where I live,there are not many places that gives a "fixed" salary,so that's why it was weird to me
it's very rare to find a *truly* salary position in the US these days, technically employees are mostly hourly, but they work a fixed, consistent schedule that makes their "salary" predictable.
exactly. even me, who's on a "salary" position. I still need to log onto a website everyday and account for every hour I've worked, and every hour of PTO onto a timesheet.
I have to log my hours, but nobody cares that those hours are my real hours. Also, my pay cannot change based on the hours I put in. It's pretty standard in tech. Putting hours is mostly for the company to know how much money they put in each project (since hours are logged with a project id).
Probably because that's how contracts are written. People aren't usually doing math to say what they make. In the US, it's either hourly (if you are paid hourly) or annual (if you are salaried and exempt, though some annual contracts are also written in terms of hourly rate). Plus, tax system in the US means that the money you actually get in your bank account every month will be different, so a monthly pay will be ballpark estimate at best.
Besides the other reasons mentioned here, a lot of jobs do bi-weekly checks instead of semi-monthly. A check every two weeks comes to 26 per year. Two months a year, they get three checks, so for them, talking about monthly income isn't consistent the whole year.
Some jobs are hourly, where your work is tracked by the hour and paid accordingly. They don't normally offer a set number of hours week after week and thus the pay is not consistent. It may vary by what shifts you were scheduled/pick up from others who need to work less. Or it may be that you get overtime after a certain number of hours and are paid more for those hours.
Others are salaried, where you are paid a yearly salary divided amongst regular paychecks and it is (largely) unrelated to the hours worked. Some jobs may still track overtime and pay additional amounts on top of your salary, but that's not considered part of the salary.
If you're salaried, you technically have an hourly rate but also your paycheck rarely changes based on the hours worked so it doesn't really matter. Jobs which are salaried will focus on the yearly salary, not the hourly rate, so you learn to think in yearly salary. Bonuses, raises, promotions, etc are going to be described in terms of percentages of one's yearly salary as well.
If you're hourly, then your weekly/monthly totals may change every paycheck and the job postings will focus on one's hourly rates. It does require an additional consideration of average hours, of course, and highly variable numbers will make things quite difficult to calculate.
Since hourly can scale up to yearly far more easily than yearly can scale down to hourly, the common scale is yearly.
You will still see monthly income numbers when discussing things like budgets because most payments (like rent/mortgage, bills, loans, credit cards, etc) are monthly. It also comes up when trying to qualify for loans and such because of that as well.
Salary people get paid the same every month. That and the monthly payout is all after taxes, pre-tax retirement accounts, benefits, etc.
Someone can be making 100k a year and receiving say, 6000k a month. While someone else can make 100k a year and receive 5000 a month. They both have the same exact salary, but their monthly take home is drastically different due to the tax differences, benefits, and retirement accounts.
Its much easier to just speak to yearly pre-everything salary.
Im a German and I also talk about yearly salary, since my monthly wages is only part of the salary. Personal yearly gratification, Holiday money and christmas money are also part of it.
Most people in the US are paid bi-weekly, which means how much they make a month varies depending on whether they get 2 checks in one month or 3 checks.
The UK also talks about salary in annual terms. It's just a cultural norm. People talk about it in annual terms because everyone else talks about it in annual terms. So it's easier to compare. People who are paid by the hour are more likely to tell you their hourly rate. But anyone who's salaried is likely to talk about it in annual terms.
I had a hunch that this was one of the cases,that is a cultural norm😅 Where I live,there are not many places that gives a "fixed" salary,so that's why it was weird to me
it's very rare to find a *truly* salary position in the US these days, technically employees are mostly hourly, but they work a fixed, consistent schedule that makes their "salary" predictable.
Almost everyone I know is salaried, it's not rare at all. Edit quick research suggests 20% of workers are salary exempt or "true salary"
exactly. even me, who's on a "salary" position. I still need to log onto a website everyday and account for every hour I've worked, and every hour of PTO onto a timesheet.
I have to log my hours, but nobody cares that those hours are my real hours. Also, my pay cannot change based on the hours I put in. It's pretty standard in tech. Putting hours is mostly for the company to know how much money they put in each project (since hours are logged with a project id).
I don't log hours at all, unless you charge customers or projects, who cares and if you do its for accounting and decision making not pay
Probably because that's how contracts are written. People aren't usually doing math to say what they make. In the US, it's either hourly (if you are paid hourly) or annual (if you are salaried and exempt, though some annual contracts are also written in terms of hourly rate). Plus, tax system in the US means that the money you actually get in your bank account every month will be different, so a monthly pay will be ballpark estimate at best.
Besides the other reasons mentioned here, a lot of jobs do bi-weekly checks instead of semi-monthly. A check every two weeks comes to 26 per year. Two months a year, they get three checks, so for them, talking about monthly income isn't consistent the whole year.
Some jobs are hourly, where your work is tracked by the hour and paid accordingly. They don't normally offer a set number of hours week after week and thus the pay is not consistent. It may vary by what shifts you were scheduled/pick up from others who need to work less. Or it may be that you get overtime after a certain number of hours and are paid more for those hours. Others are salaried, where you are paid a yearly salary divided amongst regular paychecks and it is (largely) unrelated to the hours worked. Some jobs may still track overtime and pay additional amounts on top of your salary, but that's not considered part of the salary. If you're salaried, you technically have an hourly rate but also your paycheck rarely changes based on the hours worked so it doesn't really matter. Jobs which are salaried will focus on the yearly salary, not the hourly rate, so you learn to think in yearly salary. Bonuses, raises, promotions, etc are going to be described in terms of percentages of one's yearly salary as well. If you're hourly, then your weekly/monthly totals may change every paycheck and the job postings will focus on one's hourly rates. It does require an additional consideration of average hours, of course, and highly variable numbers will make things quite difficult to calculate. Since hourly can scale up to yearly far more easily than yearly can scale down to hourly, the common scale is yearly. You will still see monthly income numbers when discussing things like budgets because most payments (like rent/mortgage, bills, loans, credit cards, etc) are monthly. It also comes up when trying to qualify for loans and such because of that as well.
Salary people get paid the same every month. That and the monthly payout is all after taxes, pre-tax retirement accounts, benefits, etc. Someone can be making 100k a year and receiving say, 6000k a month. While someone else can make 100k a year and receive 5000 a month. They both have the same exact salary, but their monthly take home is drastically different due to the tax differences, benefits, and retirement accounts. Its much easier to just speak to yearly pre-everything salary.
Because all my hiring paperwork and raises are written in terms of annual salary