Hourly Rate Calculator
How much is an hour of your work worth? This calculator converts a monthly gross salary into the value of an hour using the statutory formula in the Portuguese Labour Code (article 271), and also works the other way round: from an hourly value it shows the matching monthly salary. It also gives the value per day, per week and the annual salary, based on the hours you work each week.
The hourly value uses the statutory formula (Portuguese Labour Code, art. 271): monthly salary × 12 ÷ (52 × hours per week). The holiday and Christmas bonuses are paid separately and are not part of this calculation. Gross amounts, before income tax and social security.
How the result is worked out
| Value per hour | €7.50 |
| Value per day (8 h) | €60.00 |
| Value per week (40 h) | €300.00 |
| Monthly gross salary | €1,300.00 |
| Annual salary (12 months) | €15,600.00 |
Educational estimate, not financial advice. It calculates the gross value of an hour of work; it does not include income tax, social security, the meal allowance or overtime uplifts.
The statutory hourly-value formula
The Portuguese Labour Code (article 271) sets out how the hourly value of pay is worked out: hourly value = monthly salary × 12 ÷ (52 × hours worked per week). It is the same formula used for payslips and for overtime pay, so it gives the official value of your hour of work.
Why you multiply by 12 and not by 14
The formula annualises the contractual monthly pay over the 52 weeks of the year, so it uses the factor 12. The holiday and Christmas bonuses are two extra months of pay, not extra hours worked, so they do not change the hourly value. In Portugal salary is paid 14 times a year, but the hour is worked out over the 12 working months.
Value per day and per week
From the hourly value, the calculator shows the value of a working day and of a working week. The day assumes the weekly hours spread over the 5 working days (40 hours a week is 8 hours a day). That lets you see at a glance what your time is worth in each unit.
The effect of the hours per week
The hours you work each week change the hourly value for the same salary. Someone earning €1,300 for 40 hours a week has an hour worth €7.50; on 20 hours a week (part time) the same pay is worth €15 an hour. That is why it matters to enter your real normal working time, not the default.
These are gross amounts
The value worked out is gross, before withholding income tax (IRS) and the employee’s 11% social security. To find out how much you take home each month, use the net-salary calculator. For overtime pay (with the statutory uplifts on this base hour), use the overtime calculator.
Worked example
Take a monthly gross salary of €1,300 and a 40-hour week. By the article 271 formula, the hourly value is 1,300 × 12 ÷ (52 × 40) = 15,600 ÷ 2,080 = €7.50 an hour. At 8 hours a day, that is €60 a day and €300 a week. The other way round: someone charging €7.50 an hour over a 40-hour week has a monthly salary of 7.50 × 52 × 40 ÷ 12 = €1,300.
Frequently asked questions
How do you calculate the value of an hour of work?
Why multiply by 12 and not by 14?
Is the hourly value gross or net?
How do I convert an hourly rate into a monthly salary?
What about overtime, is it worth more?
Does it work for self-employed people and freelancers?
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Sources
- Código do Trabalho (Lei n.º 7/2009), art. 271.º (valor da retribuição horária) — Diário da República
- Todos Contam: Portal de educação financeira — Banco de Portugal
Author: Thorben Rasmus Idel · Reviewed by: Nahar Geva · Last reviewed: 2026-06-24