Federal and state politicians frequently discuss elevating the federal minimal wage to $15 per hour. But how a lot is $15 per hour in a yr?
More importantly, is it a livable wage? Can small companies afford to pay workers that a lot?
While the solutions to these questions are up for debate, we are able to inform you how a lot $15 per hour is in a yr. Plus, we may give you recommendations on find out how to survive and thrive on $15 per hour.
How Much Does $15 per Hour Equate to Each Year?
When speaking a few $15 per hour wage, there are two numbers that you must think about. These embody gross revenue and internet revenue.
As with any wage, $15 per hour earlier than taxes (gross revenue) is far totally different than $15 per hour after taxes (internet revenue).
So how a lot cash are you able to anticipate to take house earlier than and after taxes in case you’re incomes $15 per hour?
How Much is $15 per Hour Annually Before Taxes?
It relies on what number of hours per week you’re employed and what number of weeks per yr you’re employed.
If you’re employed 40 hours per week each week all year long, you’ll earn $31,200 yearly. However, in case you solely work 20 hours per week for 52 weeks out of the yr, you’ll earn $15,600.
You can get a extra exact estimate of your pre-tax earnings utilizing this components:
$15 per hour x hours labored per week x weeks labored per yr = annual earnings
For instance, in case you work 30 hours per week for 50 weeks out of the yr, your calculation will appear like this:
$15 per hour x 30 hours per week x 50 weeks per yr = $22,500
Keep in thoughts that this calculation doesn’t embody the worth of any advantages you obtain out of your employer.
How Much is $15 per Hour After Taxes?
You may be questioning how a lot $15 per hour is after taxes. The reply to that query varies primarily based on the state you reside in. This is as a result of every state has totally different tax charges.
For occasion, California has a state revenue tax charge of 12.3% (13.3% in case you earn over $1 million per yr).
However, 9 U.S. states don’t have any revenue tax in any respect:
- New Hampshire
- South Dakota
Every different state falls someplace in between. North Carolina’s charge is 5.25%, whereas Minnesota’s can go as much as 9.85% relying in your revenue.
For the needs of this text, we’ll estimate federal, FICA and state tax withholding at a mean of 19%.
This implies that your $15 per hour wage comes out to $12.15 per hour after taxes. Annually, in case you work 40 hours per week, this comes out to $25,272.
This quantity could possibly be larger or decrease primarily based in your state’s tax charge.
Other $15 per Hour Calculations
Let’s break down what $15 per hour provides as much as day by day, weekly, bi-weekly, bi-monthly and month-to-month in case you’re working a full-time, 40-hour per week job.
Here are the pre-tax and post-tax potential earnings for various time durations:
|Wage and time interval||Pre-tax earnings||Post-tax earnings (estimated)|
|$15/hr. per day||$120||$97.20|
|$15/hr. per week||$600||$486|
|$15/hr. each two weeks||$1,200||$972|
Note that these numbers might be even decrease in case you’re having different bills deducted out of your paycheck, corresponding to 401k contributions, medical insurance, and so on.
Can You Live Off of $15 per Hour?
The numerical data listed right here begs the query: Can you reside off of $15 per hour?
It relies on a number of components. For occasion, the place you reside is a vital consideration.
If you reside in a state or metropolis the place bills are excessive, corresponding to California, dwelling off of $15 per hour could possibly be extraordinarily troublesome.
However, dwelling in a lower-cost state corresponding to Mississippi could possibly be rather more manageable on $15 per hour.
No matter the place you reside, it’s protected to say that dwelling on $15 per hour will take some diligent cash administration techniques.
How to Live Off of $15 per Hour
It is feasible to stretch your earnings additional and make it extra possible to dwell off of $15 per hour. Here are some concepts to assist make ends meet on this wage.
Make a Budget
Making a month-to-month finances is essential irrespective of how a lot you earn. However, it’s much more vital in case you’re incomes a decrease wage.
This pattern finances may help you create your personal finances for dwelling off of $15 per hour:
|Expense Category||Monthly Budget Amount|
Of course, these numbers may be totally different for you relying on the place you reside and different components. This is simply an instance you should utilize to assist decide your personal private finances.
Pay Off Debt
Living on a $15 per hour finances might be simpler in case you don’t have debt funds.
If you do have debt that that you must remove, take some cash out of your financial savings class and put it towards paying off debt.
Additionally, if that you must, get an excellent facet hustle that can assist you usher in additional revenue so as to pay your money owed down quicker.
Live Within Your Means
Living inside your means is extraordinarily essential in case you earn a decrease wage. This implies that you might have to do life otherwise than a few of your higher-earning family and friends members.
Here are some concepts for dwelling life properly whereas dwelling inside your means:
It takes some work, however you’ll be able to dwell inside your means and nonetheless have enjoyable within the course of.
Another tip for surviving on a decrease wage is to avoid wasting monetary windfalls that come your manner.
Some examples of windfalls might embody:
- A increase or a bonus at work
- Tax refunds
- Financial items you obtain
- Money you earn from promoting stuff on-line
- Income you get from working a facet hustle
Saving these surprising money windfalls may help you beef up your emergency fund so that cash isn’t fairly so tight.
Jobs That Earn $15 per Hour
Independent of the potential adjustments to the federal minimal wage, there are at the moment job alternatives that pay $15 per hour. The Bureau of Labor and Statistics lists many roles close to you with present pay charges.
Here are a few of the hottest choices:
|Job Title||Avg. hourly wage||Job Description|
|Retail cashier||$15.00||Customer checkout|
|Front desk clerk||$15.13||Assist prospects|
|Mail handler||$15.30||Sort and distribute mail|
|Cleaning employees||$15.46||Clean places of work and houses|
|Medical transcriber||$15.50||Transcribe medical data|
|Medical assistant||$15.59||Assist in affected person examination/remedy|
|Administrative assistant||$15.69||Office help for companies|
|Grill cook dinner||$15.75||Cook for eating places|
|Server (together with ideas)||$15.80||Serve meals to patrons|
|Home Health Aide||$15.96||Caregiver to house residents|
These are nationwide common wages for the job titles listed. They have been pulled from the favored job search web site Indeed. Your precise pay could fluctuate primarily based on the corporate you’re employed for, the place you reside and different components.
$15 per hour feels like an incredible wage to some individuals. To others, it might appear barely livable.
If you reside in a low-cost state, $15 per hour could possibly be a suitable dwelling wage. However, in case you’re dwelling in a high-cost state, $15 per hour won’t reduce it.
No matter what your hourly wage is, dwelling beneath your means and managing your cash properly may help you grow to be extra financially steady.