O Board of DirectBitches,
In a few months I’ll be up for a promotion in which I will likely move from hourly to salaried. Do you have any info on the pros and cons of either?
Pros of salaried:
You don't have to track your hours!
You can predict your earnings for the entire year.
If you complete your work, you don't have to just keep at it to fill an hourly quota.
Salaried employees usually get other benefits that can include PTO, health insurance, a retirement fund, etc.
With the exception of some specialized fields, salaried workers generally make more money than hourly workers.
Cons of salaried:
Overtime pay is... not a thing. So if you need to work longer to get your work done, you don't necessarily get compensated more.
Pros of hourly:
Overtime pay! The more you work, the more you get paid.
Cons of hourly:
It's hard to predict what your income will be.
There's no law that says hourly workers are entitled to a consistent schedule. So good luck trying to squeeze together multiple part-time hourly jobs if you have no idea when you'll be needed at work.
Hourly workers typically do not receive additional benefits besides pay.
You might be required to file taxes quarterly instead of annually.
With the exception of some specialized fields, hourly workers generally make less money than salaried workers.
I've done both and personally, I have preferred being a salaried worker. Here's more on the benefits that typically come with a salary:
Workplace Benefits and Other Cool Side Effects of Employment
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