When applying for a job, you’ll usually be offered compensation in one of two ways. Firstly, your employer may present you with a proposed yearly salary. Alternatively, they may give you an hourly rate.
Given that the federal minimum wage is just $7.25 per hour, an hourly rate of $17 sounds awesome! But what does that mean per year?
Well, let’s find out as I take an in-depth look at…
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$17 an Hour is How Much a Year?
Before you can answer that question, there are a few things to consider. And the first thing is whether you’re a full-time or part-time worker. If you’re paid by the hour, then the annual income is not the same for both types of employees.
Full-time staff
Let’s assume a full-time employee works for eight hours a day, five days a week. That works out to 40 hours of work each week. Multiply that by the 52 weeks of the year, and you get 2080 total working hours every year.
From there, simply multiply those 2080 hours by $17. This number tells you how much $17 an hour is per year. So, 2080 x $17 = $35360 a year.
However…
This does not take into account vacation time. Full-time employees take, on average, two weeks of vacation a year. 50 weeks of work is the equivalent of 2000 hours a year, so that works out to $34,000 per year.
And, of course, there are public holidays to consider as well. On certain days of the year, many businesses are closed and therefore do not require staff to work. You can check out a list of US public holidays here.
What about part-time employees?
The annual income of a part-time worker depends entirely on how many hours they work. Generally speaking, a part-timer works for anything from 20-29 hours every week. That’s 1,040-1,508 hours if they work 52 weeks a year, or 1,000-1,450 hours, including vacation time.
So, to figure out the hourly salary, just make the same calculations as earlier. Multiply $17 by the number of hours worked per year. That’s $17,000-$24,650 with vacation time or $17,680-$25,636 without.
And don’t forget!
There are some limitations on the number of hours certain groups of people can work. Minors, for example, are prohibited from working full-time or in some industries. You can find out more from the U.S. department of labor right here.
$17 an Hour is How Much a Year after Taxes?
While you may be looking forward to your paycheck after working out your yearly salary, there’s something else you might have forgotten. This figure, unfortunately, does not reflect your take-home pay.
Why not?
Insurance payments, social security, taxes; these things all need to come out of that check. So you’ll actually be getting a little less than you may have calculated. If you want to check how much tax your employer will withhold, try using this handy tax-withholding estimator.
But of course, if you’re lucky enough to live in Tennessee, Texas, Alaska, Washington, New Hampshire, Florida, South Dakota, Nevada, or Wyoming, you won’t need to worry so much. In these states, there’s no tax on your salary at all!
Is $17 an Hour a Good Wage?
Well, compared to the national federal wage, yes, it is! The minimum wage in America is still just $7.25 an hour, though there is talk of this being increased soon. $17 an hour is more than double the federal minimum, so that’s got to be pretty great, right?
But wait!
The cost-of-living crisis is real. Bills are increasing for everyone. That $17 doesn’t stretch as far as it used to.
Plus, some states are more expensive to live in than others. Hawaii, New York, and California are all extremely pricey places to live. If you’re looking to cut costs, you might need to look at Mississippi, Kansas, and Oklahoma.
The Best Way to Live on $17 an Hour
Do not despair! Even with the rising costs facing people across the US, it’s still perfectly possible to live on $17 an hour or less. It just requires a little careful planning.
Make (and stick to) a budget
This is probably the best way to make the most out of your finances. Sit down, open a spreadsheet, and work out your money coming in versus money going out. Once you can see exactly where your cash is going, it’s much easier to live within your means.
Make necessary cuts
Take a good look at the things you need and the things that could be considered luxuries. Some of those luxuries can probably be reduced. Something as simple as changing to generic instead of name brands can make a huge difference.
Meal plan
Planning ahead can help save a buck here or there. Buying in bulk and then cooking for the week saves not only money but time as well. It also reduces food waste, which can affect your finances if you have to keep replacing spoiled groceries.
Living arrangements
Let’s face it: housing is expensive. The best way to reduce this bill is to live with roommates. Not only does this cut down your rent, but it can also lower bills too, and be a lot of fun.
Check your phone plan
Phone service providers often have special packages for new customers. You might be able to save money by switching to a different company. Your current provider may also offer you a better deal if they know you are planning to leave.
Looking for More Quality Salary Information?
Let’s start by tackling take-home pay, not the gross salary that is usually written in the job ad. So, take a look at our guide to Annual Net Income: Definition and How to Calculate. For more common salary calculations, check out How to Calculate Holiday Pay or How Do I Convert Salary to Hourly to Calculate a Part-Time Rate.
Or perhaps you’ve got an interview coming up soon…
And want to know all about How to Answer Desired Salary questions, such as the always dreaded, What Is Your Current Salary or What Are Your Salary Expectations?
Or, if you realize that you really need to earn more than $35,360 a year to cover your expenses, and have some fun money, but the job is right for you, how about getting yourself a side gig? So, you’ll probably be interested in knowing more about What Is A Gig Economy as well as What Are Freelance Jobs in 2023?
Ok, back to…
Conclusion
In the most basic terms, it’s $35360 a year. And, it’s a straightforward process to work out how much $17 an hour is a year. It’s all about the number of hours worked a year. Just multiply these two numbers together, and you’ll have your answer in seconds.
But it’s important to remember that you won’t be taking home that figure. Once you’ve covered your taxes and other garnishments, the amount can be considerably less. Make sure you consider this before spending all your paycheck.
And don’t forget – there are always ways to save money. It’s just a matter of making cuts.