Maths Year 11A CH 1 - Maths Quest Maths A Year 11 For Queensland

5_61_08071_MQA11Qld2E Ch01 Page 1 Monday, July 14, 2008 2:58 PM
1
Earning money
syllabus ref
efer
erence
ence
Strand:
Financial mathematics
Core topic:
Managing money 1
• Earning money
In this cha
chapter
pter
1A Calculating salary
payments
1B Calculating wages
1C Commission and royalties
1D Payment by piece
1E Working overtime
1F Additions to and deductions
from gross pay
2 M a t h s Q u e s t M a t h s A Ye a r 1 1 f o r Q u e e n s l a n d
Introduction
Karla will finish school in three months and has plans
of joining the workforce. She has never had paid employment
before. Many of her friends have part-time work and talk about
‘pay rates’, ‘overtime’ and ‘tax’ — it is all a mystery to her.
Karla should know about these things because, in the end,
she is the only person to look out for her own best interests.
Is she paid at the correct rate? Are the pay calculations
accurate? Is she paying the appropriate tax? Is she maximising
her income?
1 Calculate 25% of 300.

eBook plus
2 What is 4.5% of 280?
Digital docs:
SkillSHEET 1.1 3 Reduce 4500 by 15%.
Percentages
SkillSHEET 1.2 4 Write 25 out of 220 as a percentage.
Expressing one number as
a percentage of another 5 A car travels at 80 km/h. How far does it travel in 5 hours at this speed?
SkillSHEET 1.3
Ratio 6 A man assembles 24 machines in one day. How long will it take him to assemble
500 machines at this rate?
Let us begin to answer Karla’s questions. She will find that different occupations may
calculate pay in different ways.
Calculating salary payments

Methods of payment
A payment received by an employee for doing
a job is called income. There are many different
ways people are paid for performing a job. In
this section, we are going to look at some of
these methods of payment: salaries, wages,
commission, royalties, piecework and overtime.
Perhaps after some further study, Karla will
take up a professional occupation. In this case,
she will probably be paid a salary.
Salaries
Many people employed in professional occu-
pations are paid a salary. Such employees
include teachers, lawyers, accountants and
some doctors.
A teacher is paid a salary.

Chapter 1 Earning money 3

A salary is a fixed amount of money that is paid to employees to do their jobs. The
amount paid does not change, regardless of the number of hours worked.
Salaries are usually calculated on an annual basis. A salary is therefore usually stated
as an amount per annum, which means per year. Salaries are paid in weekly, fortnightly
or monthly amounts. To make calculations about salaries, you will need to remember
the following information.
1 year = 52 weeks = 26 fortnights = 12 months
WORKED Example 1
Dimitri works as an accountant and receives an annual salary of $63 700. Calculate the
pay that Dimitri is paid each fortnight.
THINK WRITE
There are 26 fortnights in a year, so we Fortnightly pay = $63 700 ÷ 26
divide $63 700 by 26.
Evaluate. Fortnightly Pay = $2450
We reverse this calculation when we are given the weekly, fortnightly or monthly pay
of a person and are then asked to calculate the annual salary.
WORKED Example 2
Grace is a solicitor who is paid $6500 per month. Calculate Grace’s annual salary.
THINK WRITE
1 There are 12 months in a year, so Annual salary = $6500 × 12
multiply $6500 (monthly pay) by 12.
2 Evaluate. Annual salary = $78 000
To compare a salary payment with other forms of income, it may be necessary to calcu-
late the equivalent daily or hourly payment. To do this, we need to know the number of
days or hours worked per week.
WORKED Example 3
Charlotte works as a laboratory technician and is
paid an annual salary of $41 560. If Charlotte works
an average of 42 hours per week, calculate her
equivalent hourly rate of pay.
THINK WRITE
1 Calculate the weekly pay by Weekly pay = $41 560 ÷ 52
dividing the salary by 52. = $799.23
2 Calculate the hourly rate by Hourly rate = $799.23 ÷ 42
dividing the weekly pay by = $19.03
42.
remember
remember
1. A salary is a fixed payment made for doing a job.
2. A salary is usually calculated on an annual basis and can be paid in weekly,
fortnightly or monthly instalments.
3. To calculate information about equivalent daily or hourly rates of pay we need
information about the number of days and hours worked by the employee.
1A Calculating salary payments
WORKED 1 Toni is paid a salary of $44 200 per annum. Calculate Toni’s fortnightly pay.
Example
1 2 Roger is paid a salary of $49 920 per annum. Calculate Roger’s weekly pay.
3 Frieda is paid a salary of $54 000 per annum. Calculate Frieda’s monthly pay.
eBook plus
4 Wendy works as an office secretary and is paid a salary of $38 740 per annum.
Digital docs: Calculate Wendy’s pay if she is paid:
SkillSHEET 1.4 a weekly b fortnightly c monthly.
Converting units of time
SkillSHEET 1.5
5 Darren earns a salary of $43 000 per annum. Calculate Darren’s fortnightly pay
Multiplying and dividing a correct to the nearest cent.
quantity (money) by a
whole number 6 Copy and complete the table below for food production employees.
EXCEL Spreadsheet
Payroll calculations
Annual salary Weekly pay Fortnightly pay Monthly pay
$30 000
$39 500
$42 250
$54 350
$86 475
WORKED 7 Maxine is paid a salary. She receives $860 per week. Calculate Maxine’s annual
Example
2
salary.
8 Thao receives $1250 per fortnight. Calculate Thao’s annual salary.
9 Deidre is paid monthly and receives $5800. Calculate Deidre’s annual salary.

10 multiple choice
Which of the following people receives the greatest salary?
A Goran, who receives $530 per week
B Bryan, who receives $1075 per fortnight
C Wayne, who receives $2330 per month
D Ron, who receives $27 900 per annum
E Chris, who receives $1100 per fortnight
WORKED 11 Fiona receives a salary of $29 700 per annum. If Fiona works an average of 40 hours
Example
3
per week, calculate the equivalent hourly rate of pay.
12 Jade receives a salary of $33 000 per annum.
a Calculate Jade’s weekly pay, correct to the nearest cent.
b Jade works an average of 36 hours each week. Calculate the hourly rate to which
Jade’s salary is equivalent. Give your answer correct to the nearest cent.
13 Karina is on an annual salary of $35 776. Letitia is on a wage and is paid $16.00 per
hour.
a Calculate Karina’s weekly pay.
b If Karina works an average of 42 hours per week, calculate whether Karina or
Letitia receives the better rate of pay.
14 Garry earns $42 500 per year while his friend Henry
earns $18.50 per hour. Calculate the number of hours
that Henry will need to work each week to earn more
money than Garry does.
Calculating wages
If Karla is like most people in the workforce, she will
probably earn a wage. A wage is paid at an hourly rate.
The hourly rate at which a person is usually paid is
called an ordinary rate. The wage for each week is
calculated by multiplying the ordinary rate by the
number of hours worked during that week.
WORKED Example 4
Sadiq works as a mechanic and is paid $23.65 per hour.
Calculate Sadiq’s wage in a week during which he works 38 hours.
THINK WRITE
Multiply $23.65 (the hourly rate) by 38 Wage = $23.65 × 38
(the number of hours worked). Wage = $898.70
To compare two people’s wages, we can’t just look at the amount of money each
receives in a pay packet. We must also consider the number of hours each has worked.
Wages are compared by looking at the hourly rate. To calculate the hourly rate of an
employee, we need to divide the wage by the number of hours worked.
WORKED Example 5
Georgina works 42 hours as a data entry operator for a computer company. Her wage for
the week totalled $583.80. Calculate Georgina’s hourly rate of pay.
THINK WRITE
Divide $583.80 (the wage) by 42 Hourly rate = $583.80 ÷ 42
(number of hours worked). Hourly rate = $13.90
Using a similar method, we are able to calculate the number of hours worked by an
employee, given their wage and hourly rate of pay. The number of hours worked is
found by dividing the wage by the hourly rate.
In some cases, wages are increased because an allowance is paid for working in
unfavourable conditions. An allowance is an additional payment made when the
working conditions are difficult or unpleasant.
For example, a road worker may be paid an allowance for working in the rain. In
these cases, the allowance must be multiplied by the number of hours worked in the
unfavourable conditions and this amount added to the normal pay.
WORKED Example 6
Ryan is a road worker and is paid
$22.50 per hour for a 35-hour
week. For working on wet days he
is paid a wet weather allowance of
$2.46 per hour. Calculate Ryan’s
pay if for 12 hours of the week he
works in the rain.
THINK WRITE
1 Calculate Ryan’s normal pay by multiplying $22.50 Normal pay = $22.50 × 35
(hourly rate) by 35 (number of hours worked). = $787.50
2 Calculate the wet weather allowance by multiplying Allowance = $2.46 × 12
$2.46 (the wet weather allowance) by 12 (number of = $29.52
hours worked in the wet).
3 Add the normal pay to the wet weather allowance to Total pay = $787.50 + $29.52
calculate the total pay. = $817.02
This type of allowance is also paid to casual workers. When you are employed on a
casual basis, you do not receive any holiday pay and you do not get paid for days you
have off because you are sick. The casual rate is a higher rate of pay to compensate for
this.

remember
remember
1. A wage is money earned at an hourly rate.
2. To calculate a wage, we multiply the hourly rate by the number of hours
worked during the week.
3. To calculate an hourly rate, we divide the wage by the number of hours worked.
4. To calculate the number of hours worked, we divide the wage by the hourly rate.
5. Allowances are paid for working under unfavourable conditions. The total
allowance should be calculated and then added to the normal pay.
6. A casual rate is a higher rate of pay for casual workers to compensate them for
having no holidays and receiving no sick leave.
1B Calculating wages
WORKED 1 Allan works in a newspaper printing mill and is paid $12.95 per hour. Calculate
Example
4
Allan’s wage in a week during which he works 40 hours.
2 Copy and complete the table below by calculating the wage of each of the workers.
eBook plus
Name Hourly rate Hours worked Wage
Digital doc:
EXCEL Spreadsheet A. Smith $14.52 40
Payroll calculations
B. Brown $16.45 38
N. Tran $15.95 37.5
A. Milo $20.10 41
L. McTavish $18.04 36
3 Alicia is an apprentice chef. In the first year

of her apprenticeship she earns $11.80 per
hour. Calculate Alicia’s wage in a week
during which she works:
a 36 hours
b 48 hours
c 42.5 hours.
4 Domonic is a fully qualified chef. He earns
$23.50 per hour. Calculate Domonic’s wage
in a week during which he works:
a 32 hours
b 37 hours
c 44.5 hours.
5 Katherine works as a casual waitress. Casual workers earn 20% more per hour than
full-time workers to compensate for their lack of holidays and sick leave.
a A full-time waitress earns $14.45 per hour. Calculate the casual rate earned by
casual waitresses.
b Calculate Katherine’s wage in a week during which she works 6 hours on Saturday
and 7 hours on Sunday.
6 multiple choice
Which of the following workers earns the highest wage for the week?
A Dylan, who works 35 hours at $13.50 per hour
B Lachlan, who works 37 hours at $12.93 per hour
C Connor, who works 38 hours at $12.67 per hour
D Cameron, who works 40 hours at $12.19 per hour
E Jack, who works 36 hours at $12.85 per hour
WORKED 7 Calculate the hourly rate of a person who works 40 hours for a wage of $387.20.
Example
5
8 Julie earns $11.42 per hour. Calculate the number of hours worked by Julie during a
week in which she is paid $445.38.
9 Copy and complete the table below.
Name Wage Hours worked Hourly rate

A. White $416.16 36
B. Black $538.80 40
C. Green $369.63 37
D. Brown $813.96 $19.38
E. Scarlet $231.30 $15.42
F. Grey $776.72 $20.44
10 Calculate the hourly rate of a casual worker who earns $250.80 for 20 hours work.
11 multiple choice
Which of the following workers is paid at the highest hourly rate?
A Melissa, who works 35 hours for $366.45
B Belinda, who works 36 hours for $376.20
C April, who works 38 hours for $399.76
D Nicole, who works 40 hours for $419.60
E Myra, who works 45 hours for $425
12 multiple choice
Which of the following people worked the greatest number of hours?
A Su-Li, who earned $439.66 at $11.57 per hour
B Denise, who earned $576.00 at $14.40 per hour
C Vera, who earned $333.20 at $9.52 per hour
D Camille, who earned $707.25 at $17.25 per hour
E Olivia, who earned $605.00 at $18.40 per hour

WORKED 13 Richard works as an electrical linesman and is paid $20.94 per hour for a 38-hour week.
Example
When he has to work at heights, he is paid a $3.50 per hour ‘height allowance’. Cal-
6
culate Richard’s pay during a week in which he spends 15 hours working at heights.
14 Ingrid works as an industrial cleaner and is paid $14.60 per hour for a 35-hour working
week. When Ingrid is working with toxic substances, she is paid an allowance of $1.08
per hour. Calculate Ingrid’s pay if she works with toxic substances all week.
15 Rema works as a tailor and earns $19.45 per hour.
a Calculate Rema’s wage for a week in which she works 37 hours.
b Zhong is Rema’s assistant and earns $18.20 per hour. Find the least time Zhong
must work if he is to earn more money than Rema does.
16 Tamarin works 38 hours per week at $12.40 per hour. Zoe earns the same amount each
week as Tamarin does, but Zoe works a 40-hour week. Calculate Zoe’s hourly rate of pay.
t i gat
es Spreadsheets — Wages 1
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t i gat
es Throughout this chapter we are going to develop a number of spreadsheets that will
calculate wages. Work through the following steps.
eBook plus 1. Open a spreadsheet and enter the following information, or download the
spreadsheet (Wages_1) by logging into www.jacplus.com.au, and locating the
Digital doc: weblinks for this chapter.
EXCEL Spreadsheet
Wages 1
2. Enter a pay rate of $11.20 per hour for each employee.

3. Enter the hours worked as follows: Frederick Astini, 40; James Carter, 38;
Kelly George, 36; Dean Jones, 15; Paul Limbrick, 45.
4. In cell E7 (in the column headed Gross Pay) enter the formula =C7*D7. This will
calculate the wage for Frederick Astini (the figure 448 should appear in the cell).
5. Format cell E7 as currency (cell E7 should now show $448.00).
6. Highlight cells E7 to E11 and select the Fill and Down options. The wages for
each employee should now be calculated and be formatted as currency. (The
entries in this column should read $448.00, $425.60, $403.20, $168.00 and
$504.00.)
7. If you now change the hours worked by each employee, his or her gross pay
should update automatically.
8. Choose the File and Save As functions to save the spreadsheet as Wages_1.
1
1 Calculate the wage of a person who works 36 hours at a pay rate of $18.74 per hour.
2 Calculate the weekly wage of a person who works 38 hours at $13.65 per hour.
3 Donna works 15 hours on weekends at $14.56 per hour. Calculate Donna’s wage for
the weekend.
4 Calculate what Stephen will earn for working 8 hours at $11.88 per hour.
5 Debbie earns $489.06 for a 38-hour working week. Calculate Debbie’s hourly rate of
pay.
6 Damien earns an annual salary of $47 000 and is paid weekly. Calculate Damien’s
weekly pay.
7 Simone earns an annual salary of $70 000 and is paid fortnightly. Calculate Simone’s
fortnightly pay.
8 Ivan earns an annual salary of $56 480 and is paid monthly. Calculate Ivan’s monthly
pay.
9 Penny earns an annual salary of $44 000 and is paid weekly. Calculate Penny’s
weekly pay.
10 Penny works an average of 35 hours each week. Calculate the hourly rate to which her
salary is equivalent. (Answer to the nearest cent.)
Commission and royalties

Karla likes working with people, and she thinks she would be a good sales-
person. In this case, Karla may be paid by commission. Commission is a
method of payment used mainly for salespeople. When paid commission, a
person receives a percentage of the value of goods sold.
A royalty is a payment made to a person who owns a copyright. For
example, a musician who writes a piece of music is paid royalties on sales
of CDs; an author who writes a book is paid according to the number of
books sold. Royalties are calculated in the same way as a commission,
being paid as a percentage of sales.

WORKED Example 7
Jack is a computer salesman who is paid a commission of 12% of all sales. Calculate the
commission that Jack earns in a week if he makes sales to the value of $15 000.
THINK WRITE
Calculate 12% of $15 000. Commission = 12% of $15 000
Commission = 12 ÷ 100 × $15 000
Commission = $1800
In some cases, commission may operate on a sliding scale. This means that the com-
mission rate changes with the value of sales. This type of commission is commonly
used in real estate sales. In these examples, each portion of the commission is calcu-
lated separately. The final commission is the sum of each portion.
WORKED Example 8
A real estate agent is paid com-
mission on his sales at the following
rate:
• 5% on the first $75 000
• 2.5% on the balance of the sale
• price.
Calculate the commission earned on
the sale of a property for $235 000.
THINK WRITE
1 Calculate 5% of $75 000. 5% of $75 000 = $3750
2 Calculate the balance of the sale. Balance = $235 000 − $75 000
Balance = $160 000
3 Calculate 2.5% of $160 000. 2.5% of $160 000 = $4000
4 Add up each portion to calculate the Commission = $3750 + $4000
commission. Commission = $7750
Salespeople often receive a fixed amount (called a retainer) as well as a commission.

This is to ensure that the person earns some money even if no sales are made. To
calculate this type of pay, you will need to add the retainer to the commission.
WORKED Example 9
Shelley is a furniture salesperson and is paid $250 per week plus a commission of 2% of
all sales. Calculate Shelley’s pay in a week if her sales total $12 250.
THINK WRITE
1 Calculate the commission of 2% of Commission = 2% of $12 250

$12 250. Commission = 2 ÷ 100 × 12 250
Commission = $245
2 Add the $250 to the commission to Pay = $250 + $245
calculate her pay. Pay = $495
In some cases, the commission does not begin to be paid until sales have reached a
certain point. For example, a car salesperson may receive a commission on sales over
$5000. (Can you suggest a reason for such a payment scheme?) Here the commission
is calculated only on sales above this fixed amount.
WORKED Example 10
Tony sells cars. He is paid $300 per week and 2% of all sales over $50 000. Calculate
Tony’s pay in a week where his sales total $84 000.
THINK WRITE
1 Calculate the amount on which $84 000 − $50 000 = $34 000
commission is to be paid.
2 Find 2% of this amount. Commission = 2% of $34 000
Commission = 2 ÷ 100 × $34 000
Commission = $680
3 Add the $300 to the commission to Pay = $300 + $680
calculate Tony’s pay. Pay = $980
remember
remember
1. A commission is earned when a person is paid a percentage of the value of
sales made.
2. Some commissions are paid on a sliding scale. In these cases, each portion of
the commission is calculated separately and then totalled at the end.
3. Some commissions are paid together with a fixed payment called a retainer. To
calculate an employee’s pay, the fixed payment needs to be added to the
commission.
4. In some cases where a fixed payment is made, commission may not be paid on
all sales but, rather, on a section of sales above a certain point.
1C Commission and royalties
WORKED 1 Kylie is an insurance salesperson and she is paid 8% of the value of any insurance that
Example
7
she sells. Calculate the amount that Kylie is paid for selling insurance to the value of
$25 000.
2 Beryl sells exercise equipment and is paid a commission of 10% on all sales.
eBook plus
Calculate Beryl’s earnings in a week where her sales total is:
Digital docs:
a $2600 b $3270 c $5687.90.
SkillSHEET 1.6 3 Darren’s job is to sell CDs to music stores. If Darren sells CDs to the value of
Finding the
percentage of a $40 000, calculate his commission if it is paid at a rate of:
quantity (money)
a 1% b 3% c 3.4%.
EXCEL Spreadsheet
Calculations with 4 Linda is a car salesperson who is paid 1.5% commission. Calculate the amount of
percentages
money Linda earns in a week where her sales total $95 000.
5 Ken is an author and is paid a royalty on his book sales. The royalty is 12% of the
value of all sales of his book. Calculate the value of Ken’s royalty if the value of sales
totals $34 500.
6 multiple choice
Ursula is a computer software salesperson. Ursula’s sales total $105 000 and she is
paid a commission of 0.8%. How much does Ursula receive in commission?
A $105 B $840 C $1050 D $8400 E $84 000
7 multiple choice
Asif is a sales representative for a hardware firm. Asif earns
$870 commission on sales of $17 400. What rate of com-
mission does Asif receive?
A 0.05% B 0.5%
C 5% D 10% E 20%
WORKED 8 A real estate agent charges commission at the
Example
8
following rate:
• 5% on the first $75 000
• 2.5% on the balance of the sale price.
Calculate the commission charged on the
sale of a property for $250 000.
9 Gabrielle is a fashion sales representative.
Gabrielle is paid a commission of 5% on
the first $3000 of sales each week and 10%
commission on the balance. Calculate
Gabrielle’s commission in a week where her
sales total $9500.
10 Using the sliding scale for commission shown
in question 8, calculate the commission on a
property that sells for:
a $90 000 b $140 000 c $600 000.
WORKED 11 Stanisa is a car salesman who is paid $250 per week plus a commission of 2% of any
Example
sales he makes. Calculate Stanisa’s pay in a week where his sales total $35 000.
9
12 Daniel works as a sales representative for a car accessories firm. Daniel is paid $150 per
week plus 4% of any sales. Calculate Daniel’s earnings in a week where his sales total is:
a $6000 b $8500 c $12 475.
13 multiple choice
A group of sales representatives each has $10 000 in sales for a week. Who earns the
most money?
A Averil, who is paid a commission of 8%
B Bernard, who is paid $250 plus 6% commission
C Cathy, who is paid $350 plus 4% commission
D Darrell, who is paid $540 plus 2.5% commission
E Erin, who is paid $560 plus 2% commission
14 Fred and Gina sell life insurance. Fred is paid a commission of 8% and Gina is paid
$250 plus 5% commission.
a How much does Fred earn for a week in which his sales are $5000?
b How much does Gina earn for a week in which her sales total $5000?
c In another week Gina earns $650. What is the value of Gina’s sales?
d Fred wishes to earn $650 in a week. How much should his sales be?
WORKED 15 Mario is a pay television salesman. Mario earns $500 per week plus 5% commission
Example
10
on all sales above $5000. Calculate Mario’s pay in a week where his sales total $7500.
16 Neville is a door-to-door salesman. He is paid $300 per week plus 3% commission on
all sales greater than $5000. Calculate Neville’s pay in a week where his sales total is:
a $4000 b $6500 c $8560.
17 multiple choice
A firm employs five sales representatives. Which representative will earn the most in
a week where each of their sales totals $12 480?
A Peter, who receives a commission of 4%
B Richard, who receives $100 plus a commission of 3%
C Susan, who is paid $280 plus a commission of 1.8%
D Trevor, who is paid $300 plus a commission of 3.5% on all sales over $6000
E Julie, who is paid $200 plus a commission of 2%
18 Andrew and Bonito are sales representatives. Andrew is paid $500 plus a commission
of 3.5% on all sales. Bonito is paid $400 plus a 4.5% commission on all sales. For
what value of weekly sales will Andrew and Bonito receive the same pay?
19 Jade sells cosmetics, and the company pays her a fixed weekly wage plus 2.5% com-
mission on all sales she makes. Last week she sold $600 worth of cosmetics and her
total pay was $490. How much would she expect to earn in a week where she sold
$1400 worth of cosmetics?
20 Rick sells security systems and is paid a weekly wage plus commission on his sales.
eBook plus
In one week he earned $900 when he sold security systems to the value of $5000. In
Digital doc: a week during which he sold $3000 worth of security systems he earned $600. How
WorkSHEET 1.1 much can he expect to earn in a week if he sells security systems to the value of
$4400?

t i gat
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Which job?
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t i gat
es Karla is offered a choice of two jobs at two similar jewellery stores. Karla comes to
you seeking advice. On the basis of money alone, which should she choose?
Michael Crest Jeweller

Pure Diamond Jeweller
offers $300 plus
offers $250 plus 3.5%
2.5% commission on
commission on all sales
all sales.
over $3000.
This problem can be investigated in a number of ways. One useful strategy in

solving questions such as these is to use guess, check and improve. This strategy is
quite powerful but one needs to be systematic with it.
Use the following table and complete as many guesses as you need to find,
correct to the nearest dollar, the minimum sales Karla would need to make before
Pure Diamond Jeweller becomes her better option.
Guess Sales Income earned at Income earned at Better

no. amount Michael Crest Pure Diamond option?
1 $4000 $400 $285 MC
2
3
4
…
Write a letter to Karla advising which job to take and providing

evidence to support your advice.
Payment by piece
A person delivering
Payment by piece, or piecework refers to payment for to a letterbox is paid
the amount of work completed. It is commonly paid for for piecework.
jobs such as car detailing and letterbox delivery.
The amount earned is calculated by multiplying the rate of pay-
ment by the number of pieces of work completed. In most cases,
it is very clear when payment is made using a piece rate. When the person
picking oranges is paid $18 for each container filled, payment is clearly at a
piece rate. Other situations are not so clear. Would you consider a doctor who
receives a fee for consultation to be receiving a piece rate payment?
WORKED Example 11
Len has a job washing cars in a caryard. He is paid $5.25 per car washed. Calculate what
Len earns in an afternoon when he washes 24 cars.
THINK WRITE
Multiply the pay rate by the number of cars Pay = $5.25 × 24
detailed. Pay = $126.00
In some cases, piecework is paid for multiples, rather than for single units. For
example, if you have a job making letterbox deliveries, you may be paid per 1000
brochures that you deliver.
WORKED Example 12
Holly is delivering brochures to letterboxes in her local area. She is paid $23.00 per
thousand brochures delivered. Calculate what Holly will earn for a delivery of
3500 brochures.
THINK WRITE
1 Divide 3500 by 1000 to calculate the 3500 ÷ 1000 = 3.5
number of thousand brochures
delivered.
2 Multiply 3.5 by $23.00 to calculate Holly’s pay = 3.5 × $23.00

what Holly is paid. Holly’s pay = $80.50
There may also be occasions when you will want to compare the rates of pay for dif-
ferent jobs. For example, you may wish to compare payment by piece with other
methods of earning income, such as wages.
WORKED Example 13
Tristan has a job picking apples. He is paid $4.40 per basket.
a Calculate Tristan’s pay for picking 21 baskets of apples in one day.
b If it takes Tristan 8 hours to pick these apples, calculate the equivalent hourly rate of
pay he has earned.
THINK WRITE
a Multiply 21 (the number of baskets) by a Pay = 21 × $4.40
$4.40 (the pay per basket). Pay = $92.40
b Divide $92.40 (total pay) by 8 (number b Hourly rate = $92.40 ÷ 8

of hours worked). Hourly rate = $11.55

remember
remember
1. Payment by piece is payment to an employee for the amount of work
completed.
2. To calculate the amount to be paid, multiply the number of units of work
completed by the amount to be paid per unit.
3. Be careful when pay is calculated for completing 100 or 1000 units of work.
You will need to first divide by this amount.
4. Remember your work on other methods of payment. You will need it to
compare payment by piece with them.
1D Payment by piece
WORKED 1 Julia works after school at a caryard detailing cars. If Julia is paid $10.85 per car,
Example
11
calculate what she will earn in an afternoon when she details 7 cars.
2 A group of four friends takes a job picking fruit over summer. They are paid $4.50 per
basket of fruit picked. Calculate the earnings of each person in the group if:
a Ross picked 23 baskets b Rachel picked 21 baskets
c Monica picked 19 baskets d Chandler picked 18 baskets.
3 Natalie advertises that she will do ironing for $12.50 per basket. Calculate Natalie’s
earnings for doing 14 baskets of ironing.
4 Matthew charges $15 to mow a lawn. Calculate Matthew’s earnings in a week if he
mows 9 lawns.
5 Dean works as a house cleaner. He charges $46.50 to clean a house. If Dean cleans
7 houses, calculate his earnings.
WORKED 6 Barbara delivers pamphlets to local letterboxes. She is paid $21.80 per thousand
Example
12
pamphlets delivered. Calculate what Barbara will be paid for delivering 15 000
pamphlets.
7 A local business employs four people to deliver advertising to letterboxes. They are
paid $18.40 per 1000 deliveries. Calculate the amount each person is paid.
a Jim makes 5000 deliveries. b Georgia makes 7500 deliveries.
c Nicholas makes 4750 deliveries. d Claire makes 6200 deliveries.
8 Raul works in a factory assembling toys. Raul is paid $24.25 per 100 toys assembled.
Calculate what Raul is paid in a day if he assembles:
a 300 toys b 650 toys c 540 toys.
9 Carolina works as a bicycle courier. She charges $5.70 per kilometre for her
deliveries. Calculate Carolina’s earnings for a 4-km delivery.
10 Keith is a taxi owner/driver. He is paid $3.00 plus $1.60 per kilometre. Calculate the
amount Keith will earn for a journey of:
a 5 km b 15.5 km c 10.2 km.
WORKED 11 Denise works as a fruit picker. She is paid $4.20 for every basket of fruit picked.
Example
a Calculate the amount Denise will earn in a day during which she picks 32 baskets
13
of fruit.
b If it takes Denise 8 hours to pick the fruit, calculate the equivalent hourly rate of
pay.
12 Charlie works in a caryard as a detailer. Charlie is paid $11.60 per car.

a What will Charlie earn in an afternoon during which he details 15 cars?
b If it takes Charlie 8 hours to detail the cars, calculate his hourly rate of pay.
c If Charlie could finish in 6 hours, calculate the hourly rate of pay he would earn.
13 Katie has a stall at the flea market and sells CDs. She sells new CDs for $24 and
second-hand CDs for $18. On Sunday, she sold $516 worth of CDs and noticed that
she had sold 4 more new CDs than second-hand ones. How many did she sell in
total?
2
1 Kim works a 37-hour week at a rate of $12.32 per hour. Calculate her weekly wage.
2 Viet works 35 hours a week at an hourly rate of $17.80 per hour. Calculate Viet’s
weekly wage.
3 Samantha is paid an annual salary of $38 500 and is paid weekly. Calculate
Samantha’s weekly pay.
4 Tom is paid an annual salary of $86 000 and is paid fortnightly. Calculate Tom’s
fortnightly pay.
5 Celine is paid $1246.40 per fortnight. Calculate her annual salary.
6 Mick is paid 7% commission on all sales he makes. Calculate his commission for a
week in which his sales total $6960.
7 Christine is paid $250 per week plus 2.5% commission on all sales. Calculate
Christine’s pay for a week in which her sales total $12 800.
8 Jason has a job picking fruit and is paid $4.85 per basket. Calculate Jason’s pay for a
day in which he picks 43 baskets of fruit.
9 Julia has a job delivering pamphlets to letterboxes and is paid $13.40 per 1000
pamphlets delivered. Calculate Julia’s pay for delivering 4500 pamphlets.
10 Cameron is an author who receives a royalty of 8% of the value of sales of his book.
Calculate Cameron’s royalty for book sales totalling $23 000.

t i gat
es
io
What should I quote?
ion v
in
n inv
t i gat
es Chris is a builder who works for Creative Constructions. A customer has asked
Chris to provide a quote for an extension to a house. The company gives Chris the
following guidelines for quoting on jobs such as this.
1. Calculate labour at $95 per hour (this figure includes use of all tools and
equipment).
2. Estimate the cost of materials delivered.
3. Find the total cost.
4. Add 15% as the company’s margin.
5. Add 10% GST.
Chris makes the following notes when he goes to the site to give the customer a
quote for this work.
Labour
Remove existing wall — 2 builders @ 2 hours
Foundations — 2 builders @ 14 hours
Framework — 2 builders @ 24 hours
Roof — 2 builders @ 8 hours
Interior fitting and finishing
— 4 builders @ 16 hours
Materials
Concrete — $600
Timber — $4500
Tiles — $2300
Windows/doors — $1200
Mouldings etc. — $800
Electricals — $1100
1 What should Creative Constructions quote for this work?
2 What amount should Creative Constructions give the government as the GST
on this work?
3 Different trades and companies will have different procedures for quoting on
work such as this. If there are students in the class whose families are involved
in the building industry, find out how they prepare quotations for work.
Working overtime
Karla has a rough idea of what overtime means: you are paid more if you
work long or irregular hours. However, she is not sure how it is calcu-
lated and how much extra she should be paid.
Overtime is paid when a wage earner works more than the regular
hours each week. When an employee works overtime, a higher rate is
paid. This higher rate of pay is called a penalty rate. The rate is
normally calculated at either:
1. time and a half, which means that the person is paid 1 1--- times the
2
usual rate of pay, or
2. double time, which means that the person is paid twice the normal
rate of pay.
A person may also be paid these overtime rates for working at unfavourable times
such as at night or during weekends.
To calculate the hourly rate earned when working overtime, we multiply the normal
hourly rate by the overtime factor, which is 1 1--- for time and a half and 2 for double time.
2
WORKED Example 14
Gustavo is paid $15.78 per hour in
his job as a childcare worker. Calcu-
late Gustavo’s hourly rate when he
is being paid for overtime at time
and a half.
THINK WRITE
Multiply $15.78 (the normal hourly rate) by Time and a half rate = $15.78 × 1 1---
2
1 1--- (the overtime factor for time and a half). Time and a half rate = $23.67
2
To calculate the pay for a period of time worked at time and a half or double time, we
multiply the normal pay rate by the overtime factor (either 1 1--- or 2) and then by the
2
number of hours worked at that overtime rate.
WORKED Example 15
Adrian works as a shop assistant and his normal rate of pay is $12.84 per hour. Calculate
the amount that Adrian earns for 6 hours work on Saturday, when he is paid time and a half.
THINK WRITE
Multiply $12.84 (the normal pay rate) by Pay = $12.84 × 1 1--- × 6
2
1 1--- (the overtime factor) and by 6 (hours Pay = $115.56
2
worked at time and a half).

When we need to calculate the total pay for a week that involves overtime, we need to
calculate the normal pay and then add the amount earned for any overtime.
WORKED Example 16
Natasha works as a waitress and is paid $11.80 per hour for a 38-hour week. Calculate
Natasha’s pay in a week during which she works 5 hours at time and a half in addition to
her regular hours.
THINK WRITE
1 Calculate Natasha’s normal pay. Normal pay = $11.80 × 38
= $448.40
2 Calculate Natasha’s pay for 5 hours at Time and a half = $11.80 × 1 1--- × 5
2
time and a half. = $88.50
3 Add the normal pay and the time and a Total pay = $448.40 + $88.50
half pay together. = $536.90
Some examples will have more than one overtime rate to consider and some will
require you to work out how many hours have been worked at each rate.
WORKED Example 17
Graeme is employed as a car assembly worker and is
paid $20.40 per hour for a 36-hour week. If Graeme
works overtime, the first 6 hours are paid at time and
a half and the remainder at double time. Calculate
Graeme’s pay in a week during which he works
45 hours.
THINK WRITE
1 Calculate the number of hours Overtime = 45 − 36
overtime Graeme worked. Overtime = 9 hours
2 Of these nine hours, calculate how Time and a half = 6 hours
much was at time and a half and Double time = 3 hours
how much was at double time.
3 Calculate Graeme’s normal pay. Normal pay = $20.40 × 36
Normal pay = $734.40
4 Calculate what Graeme is paid for Time and a half = $20.40 × 1 1--- × 6
2
6 hours at time and a half. Time and a half = $183.60
5 Calculate what Graeme is paid for Double time = $20.40 × 2 × 3
3 hours at double time. Double time = $122.40
6 Calculate Graeme’s total pay by Total pay = $734.40 + $183.60 + $122.40
adding the time and a half and double Total pay = $1040.40
time payments to his normal pay.
remember
remember
1. Overtime is paid when you work more than your normal working hours in a
week, and you receive a higher rate of pay for the extra hours.
2. Overtime can be paid at:
(a) time and a half — 1 1--- times the normal hourly rate
2
(b) double time — twice the normal hourly rate.
3. To calculate the hourly rate when working overtime, multiply the normal
hourly rate by the overtime factor.
4. To calculate the pay that is received for overtime, multiply the normal hourly
rate by the overtime factor by the number of hours worked at that overtime rate.
5. To calculate the total pay for a week when overtime has been worked, calculate
the normal pay and the pay for each overtime rate separately, and add them.
1E Working overtime
WORKED
Example
1 Reece works in a restaurant and is paid a normal hourly rate of $11.30. Calculate the
14 amount Reece earns each hour when he is being paid time and a half.
2 Carmen works as a waitress and is paid $11.42 per hour. Calculate Carmen’s rate per
eBook plus hour on a Sunday when she is paid double time.
3 Gareth works in a warehouse and is normally paid $11.48 per hour. For working on a
Digital doc: Sunday, he is paid time and a half and on a public holiday at double time. Calculate
SkillSHEET 1.7
Multiplying and dividing a Gareth’s hourly rate of pay on:
quantity by a fraction a a Sunday b a public holiday.
WORKED 4 Ben works in a hotel and is paid $11.88 per hour. Calculate the total amount Ben will
Example
earn for an 8-hour shift on Saturday when he is paid at time and a half.
15
5 Taylor works as an usher at a concert venue. She is normally paid $13.10 per hour.
Calculate Taylor’s pay for 6 hours on Sunday when she is paid double time.
Ordinary Overtime Overtime

Name rate rate hours Pay
A. Nguyen $8.90 Time and a half 4
M. Donnell $9.35 Double time 6
F. Milo $11.56 Time and a half 7
J. Carides $13.86 Time and a half 6.5
Y. Robinson $22.60 Double time 5.5
7 multiple choice
Ernie works as a chef and is paid $19.90 per hour. What will Ernie’s hourly rate be
when he is paid time and a half for overtime?
A $18.40 B $22.90 C $29.85 D $35.82 E $39.80

8 multiple choice
Stephanie works in a shop and is paid $9.40 per hour. Calculate how much more Steph-
anie will earn for 8 hours work at time and a half than she would at ordinary rates.
A $37.60 B $75.20 C $112.80 D $150.40 E $188.00
9 multiple choice
Eric works on the wharves unloading containers. Eric is paid $14.20 per hour.
Calculate the number of hours at time and a half that Eric will have to work to earn
the same amount of money that he will earn in 9 hours at ordinary rates.
A 4.5 hours B 6 hours C 8 hours D 10.5 hours E 13.5 hours
WORKED 10 Rick works 37 hours at ordinary time each week and receives $12.64 per hour.
Example
16
Calculate Rick’s pay in a week when, in addition to his normal hours, he works 4 hours
overtime at time and a half.
11 Kirsty works 36 hours each week at a rate of pay of $16.40 per hour. Calculate Kirsty’s
pay in a week during which, in addition to her ordinary hours, she works 4 hours on
Sunday, when she is paid double time.
12 Grant works as a courier and is paid $13.25 per hour for a 35-hour working week.
Calculate Grant’s pay for a week during which he works 4 hours at time and a half and
2 hours at double time in addition to his regular hours.
Ordinary Normal Time and a Double time

Name rate hours half hours hours Total pay
W. Clark $8.60 38.5 4 —
A. Hurst $9.85 37.5 — 6.5
S. Gannon $14.50 38.5 5 2.5
G. Dymock $16.23 37.5 4 1.5
D. Colley $24.90 36.5 6 8.5
14 multiple choice
Jenny is a casual worker at a motel. The normal rate of pay is $10.40 per hour. Jenny
works 8 hours on Saturday for which she is paid time and a half. On Sunday, she
works 6 hours for which she is paid double time. Jenny’s pay is equivalent to how
many hours work at the normal rate of pay?
A 14 B 21 C 24 D 28 E 34
15 multiple choice
Patricia works a 35-hour week and is paid $14.15 per hour. Any overtime that Patricia
does is paid at time and a half. Patricia wants to work enough overtime so that she
earns more than $600 each week. What is the minimum number of hours that Patricia
will need to work to earn this amount of money?
A 40 B 41 C 42 D 43 E 44
WORKED 16 Steven works on a car assembly line and is paid $12.40 per hour for a 36-hour
Example
17
working week. The first 4 hours overtime he works each week is paid at time and a
half with the rest paid at double time. Calculate Steven’s earnings for a week in
which he works 43 hours.
17 Kate works as a computer technician and is paid $18.56 per hour for a 38-hour
working week. For the first 4 hours overtime each week Kate is paid time and a half
and the rest is paid at double time. Calculate Kate’s pay in a week if she works:
a 38 hours b 41 hours c 45 hours.
18 Zac works in a supermarket. He is paid at an ordinary rate of $8.85 per hour. If Zac
works more than 8 hours on any one day, the first two hours are paid at time and a
half and the rest at double time. Calculate Zac’s pay if the hours worked each day are:
Monday — 8 hours Tuesday — 9 hours Wednesday — 12 hours
Thursday — 7 hours Friday — 10.5 hours.
19 Megan works a 38-hour week and for any extra time she is paid at time and a half.
When she worked a 45-hour week, she received $582. What would she earn for a
week in which she worked 40 hours?
t i gat
es Spreadsheets — Wages 2
io
ion v
in
n inv
t i gat
es 1. Load the spreadsheet Wages_1 that you started earlier in this chapter and edit it
with the following information. Alternatively, download the spreadsheet
Wages_2 by logging into www.jacplus.com.au, and locating the weblinks for
eBook plus this chapter.
Digital doc:
EXCEL Spreadsheet
Wages 2
2. In cell G7 write the formula =C7*D7 + C7*1.5*E7 + C7*2*F7. This formula

will calculate the gross wage for Frederick Astini. (You should get $526.40.)
3. Highlight cells G7 to G11 and choose the Fill and Down options to copy this
formula to the rest of this column. (Your answers should show $526.40,
$442.40, $537.60, $481.60 and $644.00.)
4. Check the functioning of your spreadsheet by changing the hours worked by
Frederick Astini to 38 normal hours, 3 hours at time and a half and 4 hours at
double time. You should now have $554.40 in cell G7. Now change the hours
for the other employees and notice the gross pay changing. Now change the
hourly rate of pay for each employee.
5. Use the File and Save As options to save this spreadsheet under the name
Wages_2. (This will mean that you have copies of both version 1 and 2 of the
spreadsheet.)

t i gat
es Investigating government
io
ion v
in
n inv
t i gat
es payments
Many people rely on government allowances for an income. These allowances
include the youth allowance, pensions and other welfare benefits.
Youth allowance
1 What is the youth allowance?
2 How much is paid per week for the youth allowance?
3 What conditions are placed on receipt of the youth allowance?
4 What will be the total received by a person after one year of receiving the
youth allowance?
5 Find out the average weekly income for an 18-year-old person. Compare this
with a person who receives the youth allowance.
Unemployment benefits
6 What is the difference between unemployment benefits and the youth
allowance?
7 How much is paid per week for the unemployment benefit for a:
a single person
b single person with children
c married person?
8 Do you have to work to receive the unemployment benefit?
9 What conditions are placed on a person receiving unemployment benefits?
(For example, must they show that they are looking for work?)
10 Compare the amount received by a person on unemployment benefits with the
average weekly income for an adult in Australia.
Pensions
11 Name three different types of
pension that are paid by the
government.
12 What are the conditions for
receiving each of these
pensions?
13 How much is received per
week for each of these
pensions?
14 Does the amount received
vary according to marital
status and the number of
dependants?
t i gat
es Welfare
io
ion v
in
t i gat
es n inv The government supports those in the community who need assistance: students,
the aged, the disabled and the unemployed. The arm of government that manages
this function is called Centrelink. Centrelink provides information about its
services at its website www.centrelink.gov.au.
Use the information available at this site to respond to the following cases. For
each scenario, find the relevant information and prepare a written response as if it
were your task to explain, personally, to each of these people what the entitlements
are.
Scenario 1
John is 23 and has a wife who cares for their one child full-time. He has recently
lost his job. They pay $290 per week rent. What payments can John expect until he
finds another job, and what assistance will be given to him to find another job?
Scenario 2
Madelaine is the mother of a disabled child who needs full-time care at home. She
owns her home and so pays no rent. Can she afford to look after her child and not
have a paid job?
Scenario 3
Charlie is 19 and grew up in Charleville. She wants to study full-time in Brisbane.
Her parents’ combined income is $53 000 per year. What support can Charlie
expect from the government?
Additions to and
deductions from
gross pay
Although Karla knows how to calculate her pay,
she may still be confused when she receives her
first payment advice. The pay Karla receives, in
the hand, will be less than the figure she has
calculated. Her pay slip will show the changes.
Although we may calculate a person’s pay,
this is not the amount that is actually
received. The amount that we calculate,
based on a wage or salary, is called gross
pay or gross wage. From your gross pay,
several deductions may be made for
items such as tax, union fees, private
health insurance, superannuation and so
on. The amount left after these deductions
have been taken out is called the net pay, and
it is this amount that you actually receive.
To calculate an employee’s net pay we
subtract any deductions from the gross pay.

WORKED Example 18
Robert’s gross pay is $643.60 per week. Robert has deductions for tax of $144.46,
superannuation of $19.20 and union fees of $11.40. Calculate Robert’s net pay.
THINK WRITE
From $643.60 (gross pay) subtract Net pay = $643.60 − $144.46 − $19.20 − $11.40
$144.46 (tax), $19.20 (superannuation) Net pay = $468.54
and $11.40 (union fees).
In some cases, you will be required to calculate the size of a deduction based on either
an annual amount or a percentage.
WORKED Example 19
Bruce is a shop assistant and he has his union fees deducted from his pay each week.
If the annual union fee is $324.60, calculate the size of Bruce’s weekly union deduction.
THINK WRITE
1 Divide $324.60 (the annual union fee) Weekly deduction = $324.60 ÷ 52
by 52.
2 Round the answer off to the nearest cent. Weekly deduction = $6.24
WORKED Example 20
Charissa is a salary earner and her gross fortnightly salary is $1320. Charissa pays 4% of
her gross pay each fortnight in superannuation. Calculate how much is deducted from
Charissa’s pay each fortnight for superannuation.
THINK WRITE
Calculate 4% of $1320 (gross pay). Superannuation = 4% of $1320
Superannuation = 4 ÷ 100 × $1320
Superannuation = $52.80
When employees take annual leave, they may receive an annual leave loading. When
on holidays, such employees are paid an extra 17 1--- % of their gross pay for up to 4 weeks.
2
WORKED Example 21
Russell is a newspaper printer and is paid $14.75 per hour
for a 36-hour working week.
a Calculate Russell’s pay for a normal working week.
b Calculate Russell’s total pay for his 4 weeks
annual leave if he receives a 17 1--2- % annual leave
loading on the 4 weeks pay.
THINK WRITE
a Multiply $14.75 (hourly rate) a Normal pay = $14.75 × 36
by 36 (hours worked). = $531.00
b 1 Multiply $531.00 (weekly pay) b Normal 4 weeks pay = $531.00 × 4

by 4 to find his normal pay for = $2124.00
4 weeks.
2 Calculate the annual leave Annual leave loading = 17 1--- % of $2124.00
2
loading by finding 17 1--- % of = 17 1--- ÷ 100 × $2124.00
2 2
$2124.
= $371.70
3 Add $371.10 (annual leave Total holiday pay = $2124.00 + $371.70
loading) to $2124 (normal = $2495.70
4 weeks pay).
remember
remember
1. Gross pay refers to pay before any deductions are made.
2. Net pay refers to the pay received after deductions have been taken out.
Net pay = gross pay − deductions
3. Some deductions are calculated on an annual basis and then taken out in equal
weekly or fortnightly amounts.
4. Some deductions are calculated as a percentage of gross earnings.
5. When employees take their annual leave, a loading is often paid. This means
that they are paid an extra 17 1--- % of their gross pay.
2
1F Additions to and deductions

from gross pay
WORKED 1 Trevor is a tiler and his gross pay is $532.75 per week. His weekly deductions are
Example
18
$106.20 for tax, $23.65 for superannuation and $17.70 for health fund contributions.
Calculate Trevor’s net pay each week.
Gross pay Deductions Net pay

$345.00 $89.45
$563.68 $165.40
$765.90 $231.85
$1175.60 $429.56
$2500.00 $765.40

3 David works in a mine and is paid a wage of $38.75 per hour for a 36-hour working
week. His deductions are $158.00 for tax, $32.50 for health insurance, $21.68 for
superannuation and $5.00 for the miner’s social club. Calculate David’s net pay.
4 Belinda is on an annual salary of $65 500. Belinda is paid fortnightly.
a Calculate Belinda’s fortnightly pay.
b If Belinda has fortnightly deductions of $834.92 for tax,
$75.58 for superannuation and $23.50 as a contribution to a
professional organisation, calculate Belinda’s net pay.
WORKED 5 Lars works as a train driver and is a member of the union. If
Example
19
Lars’ union fees are $394.00 per year and Lars has his fees
deducted from his pay weekly, calculate the size of Lars’
weekly deduction.
6 Yasmin is a salary earner who is paid fortnightly. Yasmin
has her fees for private health insurance deducted from her
pay fortnightly. If the annual premium for Yasmin’s health
cover is $1456.50, calculate the amount that needs to be
deducted from Yasmin’s pay each fortnight.
7 Dorothy is paid a wage of $13.45 per hour for a 38-hour
working week.
a Calculate Dorothy’s gross weekly pay.
b Dorothy pays union fees of $265.60
per annum. Calculate the amount that
should be deducted from her pay each
week for union fees.
c In addition, Dorothy has $98.73
deducted from her pay each week for
tax. Calculate Dorothy’s net pay.
8 Patrick is on an annual salary of $56 000
and is paid fortnightly.
a Calculate Patrick’s gross fortnightly pay.
b Patrick pays fortnightly into a private health fund for
which the annual premium is $1165.75. Calculate the
fortnightly payment.
c Patrick also pays, fortnightly, tax of $660.60. Calculate Patrick’s net fortnightly
pay.
WORKED 9 Sabrina earns a weekly wage of $623.50. She puts 3% of this wage into a
Example
20
superannuation fund. Calculate the amount that Sabrina pays in superannuation.
10 Arthur earns a gross fortnightly salary of $1520.50. He pays 7% of his gross salary in
superannuation. Calculate the amount that Arthur has deducted from his salary each
fortnight for superannuation.
11 Rex is paid $21.00 per hour for a 38-hour working week.
a Calculate Rex’s gross weekly wage.
b Rex pays 5.5% of his gross weekly wage in superannuation. Calculate Rex’s
weekly superannuation contribution.
c Rex pays tax of $108.00 as well has his superannuation contribution. Calculate
Rex’s weekly net wage.
12 Raylene is on an annual salary for

$75 000 and is paid fortnightly.
a Calculate Raylene’s gross fortnightly
salary.
b Raylene pays 4.75% of her gross
salary in superannuation. Calculate
the amount that is to be deducted
from Raylene’s salary for super-
annuation.
c Raylene has union fees of $486.00
per annum and private health insur-
ance of $1323.70 per annum deducted
from her pay fortnightly. Calculate
the amount of the deduction made for
both union fees and health insurance.
d If Raylene pays $1009.22 in fort-
nightly tax as well as the above
deductions, calculate her net fort-
nightly pay.
WORKED 13 Liang-Yi earns $22.60 per hour for a 38-hour working week.
Example
21 a Calculate the amount Liang-Yi will earn in a normal working week.
b Calculate the total amount Liang-Yi will receive for his 4 weeks annual leave if he
receives a 17 1--- % holiday loading.
2
14 Paula is paid an annual salary of $45 800.
a Calculate Paula’s gross weekly salary.
b Calculate the total amount Paula will receive for her 4 weeks annual leave if she is
paid a 17 1--- % holiday loading.
2
15 Leon is paid $23.95 per hour for a 36-hour
working week.
a Calculate Leon’s weekly wage.
b Leon takes one week’s holiday for which he is
given a 17 1--- % loading. Calculate the holiday
2
loading.
c If Leon pays $83.24 in tax, calculate his net
pay for his week’s holiday.
16 Scott is paid an annual salary of $68 500.
a Calculate Scott’s salary for a 4-week period.
b Calculate how much holiday loading Scott
will receive for this 4-week period if it is paid
at 17 --1- %.
2
c Scott pays $1250 per annum in private
health insurance, which is deducted
from his gross salary. Calculate how
much health insurance Scott must pay
eBook plus for a 4-week period.
d If Scott pays $1779.92 in tax for this
Digital doc:
4 weeks, calculate his net pay for the
WorkSHEET 1.2
4-week holiday.

t i gat
es
io
Spreadsheets — Wages template
ion v
in
n inv
t i gat
es 1. Load your spreadsheet Wages_2 and add the Deductions and Net Pay
columns. Alternatively, download Wages_3 by logging into
www.jacplus.com.au, and locating the weblinks for this chapter.
eBook plus
Digital doc:
EXCEL Spreadsheet
Wages 3
2. In cell I7 write the formula =G7 – H7. This formula will calculate Net Pay by
subtracting Deductions from Gross Pay.
3. Your spreadsheet will now calculate both a person’s gross pay and net pay. Save
this as Wages_3. (You should now have three versions of the spreadsheet saved.)
4. Now clear all the data from the columns Pay Rate, Normal Hours, Time and a
half Hours, Double Time Hours and Deductions. You should then have a
spreadsheet set up with no data, but with the symbols $ - appearing (as can be
seen below) where there are formulas.
eBook plus
Digital doc:
EXCEL Spreadsheet
Wages template
When a spreadsheet is in this form it is called a template. The spreadsheet is now

ready to accept new data and make new calculations. Save this version as Wages
Template. Alternatively, download the Wages template by logging into
www.jacplus.com.au, and locating the weblinks for this chapter.
t i gat
es Which package?
io
ion v
in
n inv
$3
Karla has been offered a new position in the
30
es
t i gat
00
company. The manager calls Karla into his office
0
and explains that Karla has to choose between two 00
$45
options for a salary package. These are as follows.
Option A: Annual salary of $45 000 plus a 7.5%
bonus after completing her first year in the
position.
Option B: Annual salary of $33 000 plus complete
use of a company vehicle as well as a weekly
allowance of $100 to cover incidental costs. No
receipts are required for this allowance.
Write a letter to Karla advising her which package to take,
clearly identifying any assumptions you have made.
t i gat
es Industrial awards and agreements
io
ion v
in
n inv
t i gat
es Whatever jobs or careers we undertake — whether we work as waiters or
mechanics or teachers or lawyers — most of us will be employed in organisations.
When we become part of an organisation, we hope that our work will be
interesting, but we also expect that our terms of employment (for example, salary/
wages, holiday arrangements and hours of work) will be satisfactory. Because
businesses must be profitable and other organisations efficient, there are pressures
to minimise costs, and this includes controlling wages and conditions of
employment. However, individual employees, as members of the organisation,
clearly seek the best income and conditions they can. To ensure fairness and reduce
conflicts, governments control these competing pressures through industrial awards
— systems of rules that govern employment conditions — and provide a referee to
adjudicate on disputes.
At present, the rules and awards that prescribe working wages and conditions are
complicated, and may be the responsibility of the State or Commonwealth
depending on the context of the job.
Your task
1. Choose a job.
2. Arrange to interview a person who has that job.
3. Find a copy of the agreement covering this person’s job. Where did you find it?
4. From the agreement, produce a sample pay calculation for a typical week for
this person.
5. Construct a list of six questions related to the wages and conditions of this
person’s job.
6. Interview the person using your list of questions.
7. Write a summary of the advantages and disadvantages that you identify for this
person working under this agreement.
8. Present your findings as a report.
summary
Methods of payment
• A salary is a fixed amount paid to an employee to do a job. This is usually based on
an annual amount divided into weekly or fortnightly instalments.
• A wage is an amount paid to an employee according to an hourly rate. The weekly
wage is the hourly rate multiplied by the hours worked.
• Commission or royalties are payments based on a percentage of sales.
• Payment by piece is payment to an employee according to the amount of work
completed.
Overtime
• Overtime is paid when the employee works more than the regular hours each week.
Usually the employee will be paid at either:
1. time and a half — 1 1--- times the normal hourly rate, or
2
2. double time — twice the normal hourly rate.
Additions and deductions

• Gross pay is the pay the employee receives before any deductions are taken out.
• Deductions are made from gross pay for tax, superannuation, union fees and so on.
• The amount left from gross pay after deductions are taken out is called net pay.
• Some employees receive an extra 17 --1- % when they take their annual leave. This is
2
called the annual leave loading.
CHAPTER
review
1 Carole earns a salary of $39 600 per year and is paid weekly. Calculate her weekly pay.
1A
2 Neil earns a salary of $67 400 per year and is paid fortnightly. Calculate his fortnightly pay.
1A
3 Lainie earns a salary of $1326 per month. Calculate her annual salary.
1A
4 Paul earns a salary of $51 000 per annum and works an average of 44 hours per week.
1A Calculate the hourly rate to which Paul’s annual salary is equivalent.
5 Calculate the weekly wage of each of the following people.
1B a Sandra, who works 36 hours at $14.50 per hour.
b Darren, who works 38 hours at $15.65 per hour.
c Melissa, who works 43 hours at $13.68 per hour.
6 Bartenders earn a standard rate of $18.30 per hour. Casual bartenders receive a casual rate
1B of $20.80 per hour.
a Kevin is a full-time bartender who works a 36-hour week. Calculate his weekly wage.
b Len is a casual bartender who works 16 hours a week. Calculate Len’s weekly wage.
7 Charlotte works 36 hours for a wage of $580.00. Calculate her hourly rate of pay.
1B
8 Brian earns $11.83 per hour. Calculate the number of hours that Brian would need to work
1B in a week if he wanted to earn $500.
9 Renee is a furniture salesperson who is paid 8% commission on all her sales. Calculate
1C Renee’s pay in a week during which her sales total $4940.
10 Daryl is a car salesman who is paid $275 per week plus 1.5% commission on all sales.
1C Calculate Daryl’s pay in a week when his sales total $34 900.

11 Felicity sells cosmetics and is paid $150 per
week plus 15% commission on all sales in excess 1C
of $1000. Calculate Felicity’s commission in a
week if her sales total $3560.
12 Hong has an after-school job detailing cars. Hong

is paid $11.75 for every car that he details. 1D
Calculate what Hong is paid for detailing 29 cars.
13 Svetlana delivers brochures to the local
neighbourhood and is paid $17.50 for every 1D
1000 brochures delivered. Calculate what
Svetlana will earn for delivering 5600 brochures.
14 Beatrice earns $14.20 per hour.
Calculate what she will earn per 1E
hour:
a on Saturdays, when she is paid
time and a half
b on Sundays, when she is paid
double time.
15 Nicholas is a storeman who is paid a

normal rate of $16.90 per hour. Calculate 1E
what Nicholas will earn for:
a 6 hours work at time and a half
b 5 hours work at double time.
16 A photographic chemicals firm pays its factory

workers $19.70 per hour. Calculate what each 1E
of the following employees earns in a week if:
a Chao-ping works 38 normal hours.
b Elizabeth works 38 normal hours and
4 hours at time and a half.
c Phillip works 38 normal hours and 3 hours
at double time.
d Charlie works 38 normal hours, 4 hours at
time and a half and 3 hours at double time.
17 Kate works in a flower shop and is paid an
ordinary rate of $16.50 per hour for a 36-hour 1E
working week. Kate is paid time and a half for
the first four hours overtime worked and double
time for any hours beyond that. Calculate
Kate’s wage in a week during which she works
47 hours.
18 Marella works as a seamstress and

1F receives a gross wage of $639.00 per
week. From her pay, $73.85 is deducted
for tax, $4.80 for union fees, $17.90
for superannuation and $9.20 for
health insurance. Calculate Marella’s
net wage.
19 Anne works as a shop assistant. Her
1F annual union fees are $210.60. Anne has
her union fees deducted weekly from her
pay. Calculate the size of Anne’s weekly
deduction.
20 Harold earns a salary of $48 250 per
1F annum and is paid fortnightly.
a Calculate Harold’s fortnightly pay.
b Harold pays 4.5% of his gross
fortnightly pay into a superannuation
fund. Calculate the size of Harold’s
fortnightly superannuation
contribution.
21 Lance is paid $14.86 per hour and

1F works 38 hours at normal time and
3 hours overtime for which he is paid
time and a half.
a Calculate Lance’s gross weekly pay.
b Lance has his private health cover
deducted from his gross pay. The
annual contribution is $689.40.
Calculate the amount deducted
weekly from Lance’s pay.
c Lance pays 3.5% of his gross pay into
eBook plus superannuation. Calculate the amount
of Lance’s superannuation
Digital doc: contribution.
Test Yourself
Chapter 1 d If Lance also pays $140.30 in tax,
calculate Lance’s net wage.

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5_61_08071_MQA11Qld2E Ch01 Page 1 Monday, July 14, 2008 2:58 PM

1 Calculate 25% of 300.

Calculating salary payments

A teacher is paid a salary.

Chapter 1 Earning money 3

1A Calculating salary payments

Annual salary Weekly pay Fortnightly pay Monthly pay

Chapter 1 Earning money 5

Chapter 1 Earning money 7

N. Tran $15.95 37.5

3 Alicia is an apprentice chef. In the first year

Name Wage Hours worked Hourly rate

Chapter 1 Earning money 9

2. Enter a pay rate of $11.20 per hour for each employee.

Commission and royalties

Chapter 1 Earning money 11

Salespeople often receive a fixed amount (called a retainer) as well as a commission.

1 Calculate the commission of 2% of Commission = 2% of $12 250

Chapter 1 Earning money 13

1C Commission and royalties

Chapter 1 Earning money 15

Michael Crest Jeweller

This problem can be investigated in a number of ways. One useful strategy in

Guess Sales Income earned at Income earned at Better

Write a letter to Karla advising which job to take and providing

2 Multiply 3.5 by $23.00 to calculate Holly’s pay = 3.5 × $23.00

b Divide $92.40 (total pay) by 8 (number b Hourly rate = $92.40 ÷ 8

Chapter 1 Earning money 17

12 Charlie works in a caryard as a detailer. Charlie is paid $11.60 per car.

5 Celine is paid $1246.40 per fortnight. Calculate her annual salary.

Chapter 1 Earning money 19

2. Estimate the cost of materials delivered.

3. Find the total cost.

4. Add 15% as the company’s margin.

5. Add 10% GST.

1 What should Creative Constructions quote for this work?

Chapter 1 Earning money 21

Ordinary Overtime Overtime

Chapter 1 Earning money 23

Ordinary Normal Time and a Double time

2. In cell G7 write the formula =C7*D7 + C7*1.5*E7 + C7*2*F7. This formula

Chapter 1 Earning money 25

Chapter 1 Earning money 27

b 1 Multiply $531.00 (weekly pay) b Normal 4 weeks pay = $531.00 × 4

1F Additions to and deductions

Gross pay Deductions Net pay

Chapter 1 Earning money 29

12 Raylene is on an annual salary for

Chapter 1 Earning money 31

When a spreadsheet is in this form it is called a template. The spreadsheet is now

Chapter 1 Earning money 33

Additions and deductions

Chapter 1 Earning money 35

12 Hong has an after-school job detailing cars. Hong

15 Nicholas is a storeman who is paid a

16 A photographic chemicals firm pays its factory

18 Marella works as a seamstress and

21 Lance is paid $14.86 per hour and

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2. In cell G7 write the formula =C7D7 + C71.5E7 + C72*F7. This formula