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In this article, we’ll cover exactly how much $25 an hour is per year whether you work full-time or part-time. Plus, we’ve delved into just how much this hourly rate makes per day, month and week to give you an idea of your yearly salary on this figure.
Being paid hourly can have a number of advantages and disadvantages. On the one hand, being paid hourly often works out more financially beneficial if you are able to increase the number of hours you work each week – however, it can also leave you unsure of your monthly salary if you work irregular hours.
Here, we’ve covered a few different scenarios for likely hours of work to help you assess just how much $25 makes a year.
$25 An Hour Yearly Salary
If you’re earning a $25 an hour salary and working a standard 40-hour week, you’re likely to be bringing home an annual gross income of $52,000. However, it’s important to note that this figure is before federal income taxes and state taxes are deducted.
To break it down further, your monthly gross income would be around $4,325 and you would receive a bi-weekly gross pay of $2,000. On a weekly basis, this hourly salary would earn you $1,000 gross pay.
If you’re looking to budget your daily expenses, you could expect to earn around $200 per day based on a five-day workweek. However, it’s important to bear in mind that taxes and other deductions, such as social security contributions and healthcare premiums, will impact your take-home pay.
You might also be interested in this guide to how much $50,000 a year is per hour.
Hourly Wage Calculator
$25 An Hour Is How Much A Year?
Assuming a 40-hour workweek, $25 an hour would translate to a gross income of $52,000 annually. This doesn’t take taxes into account, so your annual net pay would be less.
For your estimated net income once state and federal taxes have been deducted, scroll down to the section below.
Is $25 An Hour Considered A Good Wage?
Whether or not $25 an hour is considered a good wage depends on a number of different factors, including the cost of living in a particular area, the type of work being done, and your own individual financial goals.
For some people, $25 an hour generates an extremely liveable yearly income – but for others, be it location or your own financial situation, it may not be much money at all in the grand scheme of things. For some, this could still be considered a low income that needs a budget.
According to the U.S. Bureau of Labor Statistics (BLS), the median hourly wage for all workers in the United States as of May 2020 (when last updated) was $20.17. This means earning $25 an hour would put you above the median wage.
A recent report from CNBC however, citing data from the BLS, states that the average hourly wage for all private-sector workers in the US was $30.33 as of February 2021. This suggests that $25 an hour may be slightly below average.
Again, it’s important to note that wages can vary widely by industry, location, and level of education and experience. For example, the BLS reports that as of May 2020, the median hourly wage for healthcare practitioners and technical occupations was $28.87, while the median hourly wage for food preparation and serving-related occupations was $11.42.
Ultimately, what constitutes a “good wage” is a subjective matter that depends on your own individual circumstances. It’s always a good idea to research wage data for your particular industry and location and to take into account factors such as benefits, job security, and opportunities for advancement when evaluating the overall value of your compensation package.
Plus, take your personal financial circumstances into account. Do you have a family to support? Lots of student loans or debt you want to prioritise? Do you live in an area (for example, New York) with a high cost of living? These are all factors that will affect whether $25 an hour is considered a good salary or not.
How Much Is $25 An Hour In A Year If I Work Part-Time?
If you work part-time and earn $25 an hour for 20 hours per week, your gross weekly income would be $500. To calculate your annual income, you would multiply your gross weekly income by the number of weeks you work per year.
Assuming you work 52 weeks per year, your gross annual income would be around $26,000 (i.e., $500 per week x 52 weeks).
However, it’s important to remember that your net income after taxes will depend on a range of factors, including your specific tax situation and any deductions that apply.
$25 An Hour Is How Much A Month?
Assuming a 40-hour workweek in a full-time job, $25 an hour would equate to a gross monthly income of around $4,325. Again, your monthly budget would be calculated after taxes are automatically deducted.
$25 An Hour Is How Much Bi-Weekly?
If you’re paid on a bi-weekly basis, earning $25 an hour for a 40-hour workweek would result in a gross pay of $2,000 every two weeks.
$25 An Hour Is How Much A Week?
Assuming a 40-hour workweek, $25 an hour would result in a gross weekly pay of $1,000.
$25 An Hour Is How Much A Day?
Based on a five-day workweek, earning $25 an hour for 40 work hours would translate to a gross daily pay of $200.
|Time Period||Hours Worked||Gross Pay||Net Pay (Assuming 22% Federal Tax and 5% State Tax)|
|Daily (8 hours)||8||$200.00||$154.00|
|Weekly (40 hours)||40||$1,000.00||$770.00|
|Bi-Weekly (80 hours)||80||$2,000.00||$1,540.00|
|Monthly (160 hours)||160||$4,000.00||$3,080.00|
|Annually (52 weeks at 40 hours per week)||2080||$52,000.00||$39,960.00|
Please note that the figures for net pay are based on a 22% federal tax rate and a 5% state tax rate, and are intended as a rough estimate only and may not provide the exact number. Your actual take-home pay may vary depending on your specific tax situation and any deductions that apply. Plus, additional expenses such as health insurance, retirement funds, and debt repayments can all affect how much you are left with in the end.
How does vacation time affect this?
Most full-time US employees are entitled to two weeks of paid vacation time, which would not affect their annual pay. However, if you are required to take unpaid leave for additional vacation or other circumstances, keep in mind that this would impact your pay overall.
On the flip side, don’t forget that you may not be limited to 40-hour weeks when paid an hourly wage. You could work extra hours for overtime pay (which is sometimes even more) and dramatically boost your income.
$25 An Hour Is How Much A Year After Taxes?
To determine your net income after taxes, you’ll need to take into account the applicable tax rate and any deductions that may apply to your circumstances. The exact figure will therefore vary depending on your personal circumstances and tax laws.
In the United States, the federal tax rate varies depending on your income level, ranging from 10% to 37%. Additionally, you’ll likely be subject to state and local taxes, which can also vary.
Assuming a federal tax rate of 22% and a state tax rate of 5%, you could expect to pay around 27% of your gross income in taxes. This means that your net income after taxes could be around $37,960 annually.
$37,960 divided by 12 = $3,163.33 per month (rounded to the nearest cent)
Therefore, if you earn the equivalent annual salary of $37,960 per year, your net monthly income would be approximately $3,163.33.
However, it’s worth noting that this is a very rough estimate, and your actual take-home pay will depend on a range of factors, including your specific tax situation and any deductions that apply.
Can I Live Off $25 An Hour?
According to the MIT Living Wage Calculator, a living wage for a single adult in the United States is $16.54 per hour, while a living wage for a family of four with two working adults is $25.52 per hour. This suggests that an individual earning $25 in hourly pay may be able to live comfortably, depending on their personal circumstances.
As we mentioned above, though, it’s worth noting that the cost of living can vary widely across the United States. In some cities, the cost of housing, food, and other essential expenses may be significantly higher than in other areas. This can make it difficult to live comfortably on $25 an hour.
In addition, it’s important to consider factors like healthcare costs, retirement savings, and emergency savings when evaluating whether an hourly wage is sufficient to meet your financial needs. These expenses can add up quickly and may require you to earn more than $25 an hour to maintain a comfortable standard of living.
Ultimately, whether or not an average person in the US can live off $25 an hour depends on a range of individual factors. It’s always a good idea to evaluate your personal financial goals and expenses to determine whether your current income is sufficient to meet your needs.
Ways To Increase Your Hourly Wage
Build your skills: One of the most effective ways to increase your hourly wage is to build your skills and expertise. Consider taking courses or training programs to develop new skills that are in demand in your industry. This can make you a more valuable employee and increase your earning potential.
Negotiate your salary
Don’t be afraid to negotiate your salary when you’re offered a job or when you’re up for a performance review. Do your research and be prepared to make a case for why you deserve a higher wage based on your skills and experience.
Look for opportunities for promotion
Keep an eye out for opportunities to advance in your company or industry. Taking on additional responsibilities or moving into a higher-level role can often come with a higher hourly wage.
Consider freelancing or consulting
If you have specialized skills or expertise, you may be able to earn more by starting a side hustle freelancing or consulting. This can give you more control over your work and allow you to set your own rates, and maybe even branch out into self-employment full-time.
Look for high-paying industries
Some industries pay higher hourly wages than others. Do your research and consider pursuing opportunities in industries that are known for paying well.
Build your network
Networking can be a powerful tool for advancing your career and finding higher-paying opportunities for extra income. Attend industry events, join professional associations, and connect with others in your field to build relationships and increase your visibility.
Be willing to change jobs
While it can be hard to leave a job you enjoy, sometimes changing jobs is the best way to increase your hourly wage. Be open to new opportunities and don’t be afraid to take a chance on something that offers a higher rate of pay.
Budgeting Tips When You Earn $25 An Hour
Whether or not you consider a $ 25-an-hour wage to be a liveable salary, it’s still a good idea to build healthy financial habits that give you greater control over the money you’re earning.
These achievable personal finance tips are a great way to manage your monthly expenses and ensure your wage works for you.
Track Your Spending
It’s crucial to keep track of your expenses and create a budget to help you stay on top of your finances. Use free budgeting apps and tools to make tracking your spending easier and less time-consuming.
Prioritize Your Spending
Identify your essential expenses by categorising your budget, such as housing, food, and utilities, and prioritize those over non-essential expenses like entertainment and dining out. This will help you stay within your means and avoid overspending.
Look for Ways to Save on Everyday Expenses
Find ways to save on everyday expenses like buying cheaper groceries, transportation, and utilities. Consider using coupons, buying in bulk, or carpooling to save money. Small savings can add up over time.
Set Financial Goals
Identify your financial goals, such as saving for a down payment on a house or paying off debt, and create a plan to achieve them. This will help you stay motivated and on track. A good way is to start thinking about how you could live a more intentional life.
Build an Emergency Fund
Set aside some money each month to build an emergency fund. Aim to save enough to cover at least three to six months’ worth of living expenses. This will help you prepare for unexpected expenses or emergencies.
Avoid High-Interest Debt
Be cautious when taking on high-interest debt like credit card debt, and work to pay it off as quickly as possible. This will help you avoid paying unnecessary interest charges and reduce your overall debt.
Consider Additional Income Streams
Look for ways to supplement your income, such as freelancing, selling items online, or taking on a part-time job. This can help you reach your financial goals more quickly and reduce financial stress.
Here are a few unique and fun ideas to consider:
- Make Money Selling Plants from Home
- How to Sell Feet Pics Online and Make Money (not for the faint hearted!)
- Best Sites To Sell Second-Hand Baby Items Online (a great side hustle for moms)
- 30 Best Side Hustles for Introverts in 2023
Jobs That Pay $25 An Hour
Like the sounds of a $25 per hour paycheck? Here’s soyme jobs that have an average salary o $25 or higher according to the Bureau of Labour Statistics.
- Registered Nurse: Registered nurses earn a median hourly wage of $35.48 as of May 2020.
- Software Developer: Software developers earn a median hourly wage of $53.08 as of May 2020.
- Electrician: Electricians earn a median hourly wage of $28.10 as of May 2020.
- Dental Hygienist: Dental hygienists earn a median hourly wage of $38.92 as of May 2020.
- Paralegal: Paralegals earn a median hourly wage of $25.05 as of May 2020.
- Physical Therapist Assistant: According to the BLS, physical therapist assistants earn a median hourly wage of $28.76 as of May 2020.
- HVAC Technician: According to Payscale.com, HVAC technicians earn an average hourly wage of $22.99 as of April 2021.
It’s worth noting that wages can vary depending on factors such as location, industry, and experience.
Overall, this guide should have provided a useful insight into the weekly and monthly pay an individual earning $25 an hour is likely to receive. Remember, there are always options available to you to help increase your income inside or outside of your career.