How to Calculate Annual Salary Using a Per Diem Contract Rate

If you are a contract worker receiving a per diem salary, you are paid a specific amount of money for each day that you work. There are times that you may need or want to know your annual salary, and this can present a challenge because you may not know how many days you are actually going to work in a year. Calculating a yearly salary from a per diem page requires a little guesswork and some basic math.

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Step 1

Multiply the number of days you work per week by 52. For example, if you work 5 days a week, then 5 X 52 = 260.

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Step 2

Subtract the number of days vacation per year you are entitled to or expect to take from the amount you calculated in Step 1. For example, if you anticipate taking 10 days off, then 260 - 10 = 250.

Step 3

Subtract the number of holidays you are entitled to or expect to take from the amount you calculated in Step 2. For example, if you know you won't be working for Memorial Day, the Fourth of July, Labor Day, Thanksgiving and Christmas Day, then 250 - 5 = 245.

Step 4

Multiply the number you calculated in Step 3 by your per diem wage. For example, if you earn $70 per day, then 245 * $70 = $17,150.

Tip

If you aren't sure which days you'll be taking off as holidays, contact your human resources department.

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