Guide

How many work hours are in a year?

Discover how many hours in a work year there are, and calculate work hours for all your employees.

A small business owner working out pay for employees

Published Wednesday 26th February 2025

Once you know your employees’ average annual work hours, you can:

  • Forecast labor costs
  • Set revenue targets
  • Make accurate work schedule calculations
  • Plan employee benefits and time off

Here’s how to calculate annual work hours for full-time and part-time employees.

The main points:

  • Calculate your team’s annual work hours to help your business planning and to create a better work-life balance for your employees.
  • To calculate annual work hours, follow this formula: Hours worked per week × weeks worked per year – time off.
  • Include paid holidays and vacations when calculating total work hours.
  • Use the standard of 2080 annual hours as a baseline for full-time employees.
  • Track work hours accurately with timesheets or a dedicated time-tracking app.

Table of contents:

What’s the standard number of work hours in a year?

The US follows a standard 40-hour work week. The examples below show how yearly work hours might look for full-time, part-time, and freelance employees.

Full-time vs part-time employees' working hours in the US

Full-time work hours are typically 40 hours per week (8 hours a day, 5 days a week), totaling 2080 hours annually.

Part-time employees work less than 35 hours a week, according to the U.S. Bureau of Labor Statistics. They also follow a more flexible schedule than full-time employees.

For example, a part-time retail worker or freelancer might work an average of 25 hours a week, totaling 1300 hours annually (25 hours x 52 weeks).

Adjustments for time off

Time off includes paid vacation days, federal holidays, and sick days – which all reduce an employee’s average annual work hours.

As an example, a full-time private sector worker with 10 days of paid leave works 80 hours less each year.

If part-time employees work 30 hours a week, 2 days of paid time off reduces the hours they work each year to 1544 (30 x 52 – 16).

Unlike full-time employees, freelancers are considered independent contractors – they therefore don’t receive paid time off or employee benefits.

Overtime exclusions

The standard work week doesn't include overtime hours, which are hours worked beyond the 40 hours each week.

How to calculate work hours for your employees’ schedules

To calculate how many work hours in a year your employees should work, use this formula:

Hours worked per week × Weeks worked per year – Time off

Now follow these steps to apply it.

Step 1: Total the weekly work hours

A full-time worker typically works a 40-hours a week. If you have part-time employees or freelancers, estimate the average number of hours they’ve worked over the past week.

You can track work hours with a spreadsheet or traditional time sheet, or use a dedicated time-tracking app to simplify the process and avoid errors.

Step 2: Multiply by weeks worked per year

For example:

  • Full-time staff: 40 hours x 52 weeks = 2080 hours
  • Part-timers: 30 hours/week (on average) x 52 weeks = 1,560 hours We've assumed 30 hours/week here, but use your own estimate from the previous step.
  • Freelancers: 20 hours/week x 52 weeks = 1040 hours

Step 3: Deduct hours for paid time off

Subtract vacation days, sick days, and paid holidays from your work-hours total. For instance:

  • A full-time worker with 14 vacation days and 10 paid holidays would deduct 192 hours.
  • A part-time staff member with 2 days off subtracts 16 hours from their annual working hours.

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

Holidays, vacation days, and sick leave all reduce your employee’s work hours. For example, a full-time worker works 8 hours each day; if they take 10 sick days and 14 vacation days, they work 1888 hours instead of the standard 2080.

The difference between paid and unpaid time off

  • Employees who take paid time off still receive their regular wages while they’re out of the office. Although this reduces their total work time, it doesn’t affect their income.
  • Employees may take unpaid time off without getting paid, reducing their work hours and salary.

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.

Example work hours in a year for specific roles and industries

Use these examples to help you in your work-hour calculations.

  • Full-time office workers in the software industryEmployees in tech work a standard 40-hour work week, averaging 2080 hours a year.
  • Part-time retail staff Retail staff might work five shifts of 4 hours each in non-peak seasons, and in five shifts of 7 hours each during the holidays.
  • Freelancers and contractors Freelancers follow flexible schedules depending on their workload. A freelancer might usually work 4 hours a day during normal periods and 7 hours a day during high-demand periods.

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, 40 hours per week when school is not in session, and not more than 3 hours on a school day. Minors ages 16 or 17 do not have a limit on hours at the federal level. However, more stringent laws may apply depending on the state.
  • Job scope restrictions: Minors of any age cannot work in jobs defined as hazardous or in certain construction industries. .
  • Nightwork prohibited: Employees under 16 cannot work between the hours of 7pm to 7am. However, from June 1 through Labor Day, nighttime hours begin at 9pm. The laws for employees ages 16 and 17 vary by state.

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

FAQs on working hours

How many work hours are in a standard year?

A standard work year for a full-time employee working 40 hours a week for 52 weeks is 2080 work hours, excluding sick leave, paid holidays, and vacation days.

How do holidays and vacations affect total work hours?

Vacation days and paid holidays reduce the total number of work hours. Factor these into your calculations as you create your employee work schedules or draft contacts.

How many work hours are there in a leap year?

If February 29 falls on a working day, leap years have 2088 working hours.

How do part-time work hours differ from full-time hours?

Part-time working hours are usually less than the 8 hours full-time employees work each day.

How do I calculate my work hours to estimate my income?

Multiply your average hours worked in a week by 52 to get your total annual work hours. Then multiply this total by your hourly wage to estimate your yearly income.

How many hours does a retail sales associate work in a year?

Full-time retail sales associates usually work between 30 and 40 hours a week, depending on the store's schedule and seasonal needs.

Do I include overtime hours in my calculation of annual hours?

No – you should calculate overtime hours separately from standard work hours. Use this figure to budget for overtime pay and to ensure fair compensation for your employees' overtime hours.

How do state laws affect work hours for minors?

State laws may restrict the number of hours minors can work and prevent them from working certain jobs or industries that are classed as hazardous, like operating heavy machinery.

How can I track my work hours accurately?

You can certainly use a spreadsheet and traditional timesheets to track working hours, but it takes time and manual entry errors might creep in. A dedicated time-tracking app is a great way to help accurately track your work hours – so you can estimate your income for billing, for example.

How many hours does the average American work in a year?

The average American works eight hours a day for 5 days a week, which adds up to 2080 working hours in a year.

Disclaimer

Xero does not provide accounting, tax, business or legal advice. This guide has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the content provided.

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