Annualize two user-entered rates on one schedule
| Measure | Formula | Safety boundary |
|---|---|---|
| Annual hours | Weekly hours × weeks/year | User-entered schedule |
| Current annual pay | Current rate × annual hours | Gross arithmetic only |
| Reference annual pay | User reference × annual hours | Not an official Wage101 rate |
| Hourly gap | Reference − current rate | Not a compliance result |
| Annual gap | Hourly gap × annual hours | Same entered schedule |
Illustrative example: generic rates of 14 and 15
| Measure | Calculation | Result |
|---|---|---|
| Annual hours | 40 × 52 | 2,080 hours |
| Current annual pay | 14 × 2,080 | 29,120 |
| User-reference annual pay | 15 × 2,080 | 31,200 |
| Entered gaps | 15 − 14; then × 2,080 | 1/hour and 2,080/year |
Verify the reference before entering it
- Confirm the jurisdiction and effective date.
- Check worker, occupation and age coverage where relevant.
- Use a current official source rather than a search snippet.
- Confirm whether premiums or other components sit outside the hourly rate.
A positive, zero or negative gap is not a legal conclusion
The sign shows only how the two entered rates compare. The model excludes official-rate selection, coverage, overtime, premiums, tax, payroll and legal interpretation.
How the Minimum Wage Comparison Using Your Rule calculation works
annualGap = (userReferenceHourlyRate − currentHourlyRate) × weeklyHours × weeksPerYear
- annualGap
- Annual pay gap
- currentHourlyRate
- Current hourly rate
- userReferenceHourlyRate
- Reference hourly rate
- weeklyHours
- Weekly hours
- weeksPerYear
- Weeks per year
The calculator and article use this relationship consistently; the article does not reimplement the calculation.
currentAnnualPay = currentHourlyRate × weeklyHours × weeksPerYear
- currentAnnualPay
- Current annual pay
- currentHourlyRate
- Current hourly rate
- userReferenceHourlyRate
- Reference hourly rate
- weeklyHours
- Weekly hours
- weeksPerYear
- Weeks per year
The calculator and article use this relationship consistently; the article does not reimplement the calculation.
referenceAnnualPay = userReferenceHourlyRate × weeklyHours × weeksPerYear
- referenceAnnualPay
- Reference annual pay
- currentHourlyRate
- Current hourly rate
- userReferenceHourlyRate
- Reference hourly rate
- weeklyHours
- Weekly hours
- weeksPerYear
- Weeks per year
The calculator and article use this relationship consistently; the article does not reimplement the calculation.
14 versus 15 per hour at 40 hours for 52 weeks.
Inputs used in the Minimum Wage Comparison Using Your Rule worked example
| Input | Entered value | What it represents | Source class |
|---|---|---|---|
| Current hourly rate | 14 currency units/hour | Your current entered hourly rate. | user assumption |
| Reference hourly rate | 15 currency units/hour | A reference rate supplied by you, not an official minimum wage. | user assumption |
| Weekly hours | 40 hours/week | Hours worked per week. | user assumption |
| Weeks per year | 52 weeks/year | Weeks worked in the annual comparison. | user assumption |
Worked example: Minimum Wage Comparison Using Your Rule
The calculator normalizes the inputs above, applies Annual pay gap, and returns the outputs below. The displayed result is therefore reproducible in the linked calculator.
| Measure | Result | Interpretation |
|---|---|---|
| Annual pay gap | 2,080 currency units/year | Reference annual pay minus current annual pay. |
| Current annual pay | 29,120 currency units/year | Current hourly rate multiplied by annual hours. |
| Reference annual pay | 31,200 currency units/year | User reference rate multiplied by annual hours. |
Interpret the result and test Reference hourly rate
- Annual pay gap: 2,080 currency units/year. Reference annual pay minus current annual pay.
- Current annual pay: 29,120 currency units/year. Current hourly rate multiplied by annual hours.
- Reference annual pay: 31,200 currency units/year. User reference rate multiplied by annual hours.
| Result | Baseline | Changed-input scenario | How to read it |
|---|---|---|---|
| Annual pay gap | 2,080 currency units/year | 5,200 currency units/year | Reference annual pay minus current annual pay. |
| Current annual pay | 29,120 currency units/year | 29,120 currency units/year | Current hourly rate multiplied by annual hours. |
| Reference annual pay | 31,200 currency units/year | 34,320 currency units/year | User reference rate multiplied by annual hours. |
Checks that are specific to Minimum Wage Comparison Using Your Rule
- The worked example is calculated through the same shared-work-logic engine as the planner.
- Non-finite and out-of-range assumptions return an input error.
- Result cards, trace, CSV, PDF and methodology bind to named engine result fields.
What this Minimum Wage Comparison Using Your Rule guide includes and excludes
- Both rates use the same weekly hours and weeks per year.
- The reference rate comes only from the user.
Sources and method boundary
- ilostat.ilo.org context for the market-neutral method boundary — ilostat.ilo.org (accessed 2026-07-28): Context for the market-neutral time and earnings boundary; the calculator and methodology define the canonical calculation method.
- www.ilo.org context for the market-neutral method boundary — www.ilo.org (accessed 2026-07-28): Context for the market-neutral time and earnings boundary; the calculator and methodology define the canonical calculation method.
- Minimum Wage Comparison Using Your Rule methodology — Wage101 (accessed 2026-07-28): Canonical formulas, units, validation, calculator behavior and limitations.