Is $31 an Hour a Good Salary? What to Consider

Is $31 an hour a good salary? The answer depends on personal circumstances, financial priorities, and economic realities. What one individual considers sufficient can differ significantly for another. Evaluating an hourly wage requires assessing how it translates into purchasing power and overall financial well-being, considering annual income, economic benchmarks, living costs, and non-wage benefits.

Translating Hourly to Annual Income

Understanding the annual equivalent of an hourly wage is the first step in assessing its value. For a standard 40-hour work week, an hourly rate can be extrapolated to gross income figures. A $31 per hour wage translates to a specific gross annual income.

Working 40 hours a week at $31 per hour yields $1,240 in gross weekly earnings. It doubles to $2,480 bi-weekly. Monthly, assuming approximately 4.33 weeks, gross income is about $5,373. Annually, this calculates to a gross income of $64,480 before any deductions or taxes are considered.

Benchmarking Your Pay

Comparing a $31 per hour wage to national economic data provides context regarding its standing. The average hourly earnings for all private nonfarm payrolls in the United States stood at $36.44, indicating $31 per hour is below the national average.

Median figures offer another perspective. The median weekly wage for American workers was $1,194, which annualizes to $62,088. While $31 per hour ($64,480 annually) is slightly above this, the median hourly wage for workers aged 25 to 64 was $29 per hour. Researching average wages specific to your industry, profession, and geographic region can provide a more precise comparison, as these figures often vary considerably.

Navigating Living Costs

The value of a $31 per hour salary is heavily influenced by the cost of living in a particular location. The national average annual cost of living for a U.S. household was $77,280 in 2023, equating to $6,440 per month. Housing represents the largest share of these expenses, and costs fluctuate significantly across different areas.

For instance, high-cost urban centers like New York City or San Francisco can have living expenses more than double the national average, making a $31 per hour wage (approximately $5,373 gross monthly) challenging to manage. Housing costs are a primary driver of this variance; renting is generally more affordable than purchasing a home in most major U.S. metropolitan areas, with average mortgage payments sometimes exceeding average rent by 30% to 38%. In contrast, a $31 per hour wage could provide a more comfortable standard of living in areas with lower costs, such as Harlingen, Texas, where overall expenses might be 23.5% below the national average.

Beyond housing, other significant expense categories include transportation, food, utilities, and healthcare, all of which vary by region. Utility costs, for example, can be notably lower in some southern states. The number of dependents in a household also impacts financial sufficiency, as larger families naturally incur more expenses. Therefore, a $31 per hour wage that might be adequate in a suburban or rural area with lower costs could be insufficient in a major metropolitan area, underscoring location’s importance.

Considering Your Total Compensation

Beyond the hourly wage, an employment package includes non-wage benefits, known as total compensation. These benefits contribute to financial health and security, adding value not reflected in the hourly rate. Understanding these components is crucial for a complete assessment of a job’s worth.

Health insurance is a prominent example, with employer-provided plans offering financial advantages. Employers typically share premium costs, and contributions are exempt from federal income and payroll taxes. This effectively increases the net value of the benefit for the employee, making employer-sponsored health coverage a desirable component of total compensation.

Retirement plans, such as 401(k)s with employer matching contributions, enhance financial well-being. The average employer match for a 401(k) ranged from 4% to 6% of compensation, often structured as a 50% match on employee contributions up to a certain percentage of salary. This “free money” helps employees build retirement savings more quickly.

Paid time off (PTO), encompassing vacation days, sick leave, and paid holidays, is another valuable benefit. The average American worker receives 11 paid vacation days and 8 sick days annually, often increasing with tenure. The cost of these paid leave benefits to employers averaged $2.94 per hour in September 2022, demonstrating their tangible value as part of the overall compensation package. Benefits like performance bonuses, professional development opportunities, and other perks contribute to a job’s value, potentially making a $31 per hour role with robust benefits more financially advantageous than a slightly higher-paying position lacking such support.