What's with telling YEARLY salaries?

Personally, I don't get paid every month, I get paid every two weeks, which means that some months I get paid twice and some I get paid thrice. Stating an annual value corrects for weird shit like this, and it's going to be consistent since it's probably how it is being tracked in the employer's accounting.

AnD wHaTs ThE dEaL wItH aIrLiNe FoOd? Am I rIgHt?

maybe tax related since taxes are based on annual income. if you are not hourly/salaried and you are self employed/freelance/contract your income will vary from month to month. annually seems like it can be more accurate across all those groups

I don't get paid once a month. I get paid every 2 weeks.

At a prior job, I got paid every week.

Yearly is a good baseline, and also helpful for taxes (which Americans have to do by hand because of tax preparers lobbying against the government doing it for us).

Yearly, because over here some people get 12 salaries a year,some 13, some 14 and some even 15.

The yearly income covers that and also includes yearly or semi-yearli boni.

I can't even compare wages with my partner if we have to go by monthly rate.

I get paid per month, but in May I get an 8% bonus, so my monthly payment is not the same throughout the year. Then my partner gets paid every 4 weeks, and receives bonuses based on company performance in those 4 weeks. So every payment is different.

Per annum is the only way we can compare our salaries. And that's in the same country. Now try international, and it'll really difficult otherwise soon.

I live in the Netherlands.

In France we often have additional months paid, 13 or 14 months, as an additional pay check in June and December. The monthly pay doesn't account for that while the yearly one does. There are jobs also that have a variable salary depending on performance.

It's not just a US thing. I've never actually thought of this until this post, but I'd think it's because taxes are done annually.

Your employer says they'll give you X amount a year, but you receive X-Y into your account. It's easier to talk about X, then to worry about how Y fluctuates.

It also makes it feel as if you're making more money. Raises for a year sounds better than when you divide by 12 and get the monthly.

As a freelance steadicam operator, my daily rate can vary between $2000 and $4000 per day (including my personal equipment rental). But I don’t work every day, far from it (especially during the current strikes) so a monthly rate is irrelevant. A yearly net revenue is a mettre measure.

Because you only get a bonus once a year. You say your compensation is "$xxx with a $xx bonus".

I used to think in terms of hourly salaries until I got older and got big money jobs that are in yearly salaries.

I think it comes down to the fundamental difference of salaried jobs vs hourly jobs. Hourly depends on when you're scheduled, how long. It's typically flexible schedules, typically student jobs or generally non-career jobs. So comparing compensation with the hourly rate makes sense. The tax rate varies, the pay varies, everything sort of varies. The only reliable metric there is your actual instant compensation.

When it comes to salaried jobs, it's usually a flat pay. Sometimes I'll do some overtime, sometimes I do less to compensate for the overtime. The actual hourly rate becomes less relevant, because the hourly rate varies a bit as a result. But also it's no longer a calculation of "I got X hours this week, I can pay for Y expense when I get my paycheck". I get paid the same every time, and I care more about whether I'll overdraft than really how much money I earn per hour. It stops being a useful metric to me. What's $2/h do for me? Can I afford a new TV with that? Then there's bonuses typically given as one time payments, lots of one time big expenses on the house. Maybe it cost me 2 months worth of salary and I'll pay it over 6 to make it work, but I can look back at the expenses in the year and have a good picture of my expenses overall.

In the end, taxes are yearly income, and a year is a decent period for spiky expenses to wash out. I earn X a year, I get taxed Y on it, my expenses were Z, and I have W savings that went into retirement. I don't really have a use for looking at my expenses weekly/bi-weekly/monthly.

Yearly salaries are assumed in local currency (so USD in the US, CAD in Canada), and the gross amount. Because my friend in Ontario might make the same salary as I do in Québec, but we're taxed differently, but we can still compare absolute compensation. Same in the US, it varies by state. You may have more or less deducted for various things, maybe you owe back taxes, maybe you owe child support, maybe you have a more expensive insurance plan, maybe you're throwing more in your retirement plan. But total gross yearly compensation is the same, and includes pretty much everything: tax returns, tax dues, bonuses.

Another example: I'm throwing a lot of money on my retirement account. In Canada, this is non taxable income. But taxes are taken out of your paycheck. So everything I put in an RRSP turns into an implied tax return which is once a year. I get less net income during the month, but higher net income with the tax return. The only accurate numbers are the overall net and gross yearly income.

Makes it easier to figure out potential tax burden

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Because taxes are paid yearly. You tally your yearly income to file your taxes.

large part of Europe also.

also yearly before tax, because employers do not need to know about other incomes and thereof how much money you pay in taxes. you can tell, but they don't need to know.

when they hire you, they don't know about your taxes, anyway. they put the ad, and if you're hired and have other incomes, you'll pay more taxes out of it.

yearly because taxes are paid yearly.

some people are paid weekly, some monthly.

so yearly becomes the comparison to help taxes and compare across the market which might pay at different frequency.

it helps account for your budget and their budget.

if you don't care about budgeting or calculate taxes, you make the math.

My income varies enough that the yearly total is a better picture than the last two or four weeks are.

In Spain it is also yearly. In general the annual salary is divided in 14 payments, unless you ask to have it divided by 12, depends on the employer, so it makes sense.

The income tax is also annual based. So depending how much you earned during the fiscal year you have a different tax rate. (And part of the income tax rate is dependent on the "state" but they are all more or less similar).

Because it's easier to compare yearly salaries. If you say “I’m making 50k” then I can assume it's yearly (if it's monthly then good for you, but that's overwhelmingly not the case). Otherwise you need to specify the pay frequency and do math.

Same with net/gross. I can assume your yearly salary is given in gross because net introduces a bunch of variables with tax rates based on location/deductions that makes it a fairly meaningless value to compare against. Not to mention your net monthly income may change in a year as you hit certain tax limits like the max social security tax limit.

Some people may also not have consistent monthly earnings so averaging income over a year gives a more accurate picture of average income.

What's up with yearly salaries not keeping up with inflation?

This must be very regional. Additionally, I’d bet a lot of this might depend on industry.

Someone who’s hourly might have fluctuations in their hours over a set period of time, like a month, or even week to week.

Seems like a number should always be coupled with a unit.

It's not as useful for day-to-day budgeting as a more granular one, but people generally only look at their finances closely once a year at tax time and so it's a good point of comparison for that; get a sense of how your financial life is evolving.

It's also the number you're asked for on tax forms, other financial forms (loans, financial aid, bank accounts), questionnaires (though you can lie or 'prefer not to say' on those)... comes up a lot, basically.

Wwll, I get 14 monthly payments a year, so two times a year the double amount, plus a yearly bonus, plus a fixed one time payment, so monthly would simply not represent how much i get yearly.

If you know the yearly, then that is the allotted amount in the company budget for you. So, in the big picture, you are being paid yearly. Especially if you are salary or contract. I have switched to making a yearly budget with monthly categories, and the yearly costs are much easier to factor into. My budget became more simplified and less stressful. Also, another benefit is that I save for an average cost that is usually higher than most months, and the high cost months are less troublesome to plan for.

I try to calculate net income: deductions and taxes removed from gross income. Overall, I feel better as I can plan ahead of time and don't need to do it every month. Still need to keep an eye on following the plan and for anything that changes it. I don't just plan it either, I execute it.

In my last three jobs, I was paid weekly, then bimonthly, and currently every two weeks. Weekly and every two weeks is easy to convert, but bimonthly my pay would fluctuate slightly.

There are also yearly bonuses and similar that would not be included.

I think most answered your question with one exception. Dollars? What else you expect it in? Cats?

(Ignoring you will want it in the country of your residence)