How many work hours in a year? Calculate hours for every role

Published Friday 2 January 2026

Table of contents

• The standard number of work hours in a year
• How to calculate work hours for your employees' schedules
• How holidays and vacations affect total work hours
• Work hours by employment type
• Example work hours in a year for specific roles and industries
• Manage your workforce hours with confidence
• FAQs on work hours per year

Key takeaways

• Calculate annual work hours using the formula: (Weekly hours × 52 weeks) - Time off hours, starting with the standard 2,080 hours for full-time employees working 40 hours per week.
• Deduct paid time off hours from your annual total to determine actual working hours, such as subtracting 192 hours for a typical full-time employee with 14 vacation days and 10 holidays.
• Apply different calculations based on employment type, with full-time employees averaging 2,080 hours annually, part-time workers typically working 1,300-1,560 hours, and contractors setting variable schedules based on project demands.
• Utilize time-tracking software to eliminate manual calculation errors and ensure accurate payroll processing, especially when managing teams with varying schedules and overtime requirements.

The standard number of work hours in a year

Standard work hours in a year equal 2,080 hours for full-time employees (40 hours per week × 52 weeks). This baseline calculation applies to most US businesses but varies based on employment type and time-off policies.

How to calculate work hours for your employees' schedules

Calculate annual work hours to plan payroll, budget labor costs, and set employee expectations. Use this formula:

Annual work hours = (Weekly hours × 52 weeks) - Time off hours

Now follow these steps to apply it.

Step 1: Total the weekly work hours

Determine weekly work hours for accurate annual calculations:

• Full-time employees: Use standard 40 hours per week
• Part-time employees: Calculate average hours from recent pay periods
• Contractors: Review invoices or timesheets for typical weekly hours
• Tracking tools: Use time-tracking software to eliminate manual calculation errors

Step 2: Multiply by weeks worked per year

Calculate annual hours by employment type:

• Full-time staff: 40 hours × 52 weeks = 2,080 hours
• Part-time employees: 30 hours × 52 weeks = 1,560 hours
• Freelancers: 20 hours × 52 weeks = 1,040 hours

Use your specific weekly averages from Step 1 for accurate calculations.

Step 3: Deduct hours for paid time off

Deduct paid time off hours from your annual total:

• Full-time example: (14 vacation days + 10 holidays) × 8 hours = 192 hours deducted
• Part-time example: 2 vacation days × 8 hours = 16 hours deducted
• Final calculation: Subtract time off from annual hours for net working time

Step 4: Account for overtime and irregular hours

Once you've done steps 1–3, add overtime or flexible hours separately for a more accurate total.

How holidays and vacations affect total work hours

Paid time off reduces annual work hours from the standard 2,080-hour baseline.

Example calculation:

• Standard hours: 2,080 hours
• Time off: (10 sick days + 14 vacation days) × 8 hours = 192 hours
• Actual work hours: 2,080 – 192 = 1,888 hours

The difference between paid and unpaid time off

Paid vs. unpaid time off affects work hours and income differently:

• Paid time off: Reduces work hours but maintains full salary
• Unpaid time off: Reduces both work hours and total compensation
• Payroll impact: Factor both types into annual hour calculations for accurate budgeting

Paid time-off policies vary by company and industry. First, decide which public holidays to observe. Then consider the number of vacation days when calculating how many working hours in a year your employees will have.

Track your employees' time off to better estimate total hours and income, especially for hourly workers or those who work flexible hours.

Work hours by employment type

The number of hours worked in a year varies significantly based on whether an employee is full-time, part-time, or a contractor. Here's how to think about each.

Full-time employee work hours

Full-time employees work 2,080 hours annually based on:

• Weekly hours: 40 hours (8 hours per day, 5 days per week)
• Annual calculation: 40 hours × 52 weeks = 2,080 hours

Part-time employee work hours

Part-time employees work less than 35 hours per week with flexible schedules:

• Average hours: 25–30 hours per week
• Annual calculation: 25 hours × 52 weeks = 1,300 hours

Contractor and freelancer work hours

Freelancers and independent contractors set their own schedules based on project demands. Since they don't receive paid time off or benefits, they simply track their billable hours over the year to calculate their total work hours. Their hours can fluctuate greatly from week to week.

Example work hours in a year for specific roles and industries

Industry-specific work hour examples:

• Software/tech workers: Standard 40 hours per week = 2,080 annual hours, but hours in other professions can be much higher. For example, some accounting practitioners work 50–80 hours a week during their busy season.
• Retail staff: Variable schedule (20–35 hours per week) = 1,040–1,820 annual hours
• Freelancers: Project-based (20–35 hours per week) = 1,040–1,820 annual hours

Use these benchmarks to estimate hours for similar roles in your business.

Regulations for minors

People under 18 years old are considered minors in most US states. If you hire minors for seasonal work, three main categories of restrictions will apply at the federal level:

• Restricted working hours for minors: Minors under 16 can work a maximum of 8 hours per day and 40 hours per week when school is not in session, and no more than 3 hours on a school day. Federal law does not limit hours for 16- and 17-year-olds, but some states do.
• Job scope restrictions: Minors cannot work in jobs defined as hazardous or in certain construction industries.
• Night work restrictions: Employees under 16 cannot work between 7 pm and 7 am, except from June 1 through Labor Day when evening work can continue until 9 pm. State rules for 16- and 17-year-olds vary.

Visit the U.S. Department of Labor to check the rules for working hours and other conditions that apply in your area.

Manage your workforce hours with confidence

Calculating work hours is just the first step. Accurately tracking time, managing payroll, and staying compliant can take time. Xero simplifies these tasks with intuitive tools for time tracking and payroll, giving you a clear view of your labor costs and freeing you up to focus on running your business.

See how Xero can help you manage your team's hours more efficiently. Get one month free.

FAQs on work hours per year

Still have questions about calculating work hours? Here are answers to some common questions.

How many work hours are in a standard full-time year?

2,080 hours represents a standard work year before time off deductions (40 hours × 52 weeks for full-time employees).

Does the 2080-hour calculation include holidays?

No, the 2,080-hour calculation does not include deductions for federal holidays or paid time off. To find the actual number of hours worked, you must subtract any leave from the 2,080-hour total.

How many hours per year if you work 37.5 hours a week?

If you work 37.5 hours a week for 52 weeks, you will work 1,950 hours in a year (37.5 hours × 52 weeks). This is a common calculation for roles with a 7.5-hour workday.

How do I track work hours accurately for my team?

Using dedicated time tracking software is the most accurate way to track employee hours. It automates the process, reduces manual errors common with spreadsheets, and integrates with payroll to ensure everyone is paid correctly.

What's the difference between work hours and billable hours?

Work hours refer to the total time an employee is paid to be on duty. Billable hours are the specific hours a freelancer, contractor, or professional services firm can charge directly to a client for project work.