Managing money 1
• Earning money
In thisIn this chachapterpter
1A Calculating salary
1B Calculating wages
1C Commission and royalties
1D Payment by piece
1E Working overtime
1F Additions to and deductions
from gross pay
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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
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
1 Calculate 25% of 300.
2 What is 4.5% of 280?
3 Reduce 4500 by 15%.
4 Write 25 out of 220 as a percentage.
5 A car travels at 80 km/h. How far does it travel in 5 hours at this speed?
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.
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.
Many people employed in professional occupations are paid a
salary. Such employees include teachers, lawyers, accountants
and some doctors.
A lecturer is paid a salary.
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C h a p t e r 1 E a r n i n g m o n e y 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
1 year = 52 weeks = 26 fortnights = 12 months
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.
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.
Dimitri works as an accountant and receives an annual salary of $46 800. Calculate the
pay that Dimitri is paid each fortnight.
There are 26 fortnights in a year, so we
divide $46 800 by 26.
Fortnightly pay = $46 800 ÷ 26
Evaluate. Fortnightly Pay = $1800
Grace is a solicitor who is paid $3500 per month. Calculate Grace’s annual salary.
There are 12 months in a year, so
multiply $3500 (monthly pay) by 12.
Annual salary = $3500 × 12
Evaluate. Annual salary = $42 000
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.
Calculate the weekly pay by
dividing the salary by 52.
Weekly pay = $41 560 ÷ 52
Calculate the hourly rate by
dividing the weekly pay by
Hourly rate = $799.23 ÷ 42
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4 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
Calculating salary payments
1 Toni is paid a salary of $44 200 per annum. Calculate Toni’s fortnightly pay.
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.
4 Wendy works as an ofﬁce secretary and is paid a salary of $38 740 per annum.
Calculate Wendy’s pay if she is paid:
a weekly b fortnightly c monthly.
5 Darren earns a salary of $43 000 per annum. Calculate Darren’s fortnightly pay
correct to the nearest cent.
6 Copy and complete the table below for food production employees.
7 Maxine is paid a salary. She receives $460 per week. Calculate Maxine’s annual
8 Thao receives $1250 per fortnight. Calculate Thao’s annual salary.
9 Deidre is paid monthly and receives $5800. Calculate Deidre’s annual salary.
Annual salary Weekly pay Fortnightly pay Monthly pay
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.
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C h a p t e r 1 E a r n i n g m o n e y 5
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.
11 Fiona receives a salary of $29 700 per annum. If Fiona works an average of 40 hours
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
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.
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.
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.
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Sadiq works as a mechanic and is paid $13.65 per hour.
Calculate Sadiq’s wage in a week where he works 38 hours.
Multiply $13.65 (the hourly rate) by 38
(the number of hours worked).
Wage = $13.65 × 38
Wage = $518.70
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6 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
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.
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
Georgina works 42 hours as a data entry operator for a computer company. Her wage for
the week totalled $483.84. Calculate Georgina’s hourly rate of pay.
Divide $483.84 (the wage) by 42
(number of hours worked).
Hourly rate = $483.84 ÷ 42
Hourly rate = $11.52
Ryan is a road worker and is paid
$9.45 per hour for a 35-hour week.
For working on wet days he is paid a
wet weather allowance of 86c per
hour. Calculate Ryan’s pay if for 12
hours of the week he works in the
Calculate Ryan’s normal pay by multiplying $9.45
(hourly rate) by 35 (number of hours worked).
Normal pay = $9.45 × 35
Calculate the wet weather allowance by multiplying
0.86 (the wet weather allowance) by 12 (number of
hours worked in the wet).
Allowance = $0.86 × 12
Add the normal pay to the wet weather allowance to
calculate the total pay.
Total pay = $330.75 + $10.32
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C h a p t e r 1 E a r n i n g m o n e y 7
1 Allan works in a newspaper printing mill and is paid $12.95 per hour. Calculate
Allan’s wage in a week where he works 40 hours.
2 Copy and complete the table below by calculating the wage of each of the workers.
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
where she works:
a 36 hours
b 48 hours
c 42.5 hours.
4 Domonic is a fully qualiﬁed chef. He earns
$13.50 per hour. Calculate Domonic’s
wage in a week where he works:
a 32 hours
b 37 hours
c 44.5 hours.
Name Hourly rate Hours worked Wage
A. Smith $14.52 40
B. Brown $16.45 38
N. Tran $15.95 37.5
A. Milo $20.10 41
L. McTavish $18.04 36
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.
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8 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
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
b Calculate Katherine’s wage in a week where she works 6 hours on Saturday and
7 hours on Sunday.
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
7 Calculate the hourly rate of a person who works 40 hours for a wage of $387.20.
8 Julie earns $11.42 per hour. Calculate the number of hours worked by Julie in a week
where she is paid $445.38.
9 Copy and complete the table below.
10 Calculate the hourly rate of a casual worker who earns $250.80 for 20 hours work.
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
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.
13 Richard works as an electrical linesman and is paid $10.94 per hour for a 38-hour
week. When he has to work at heights he is paid a 46c per hour ‘height allowance’.
Calculate Richard’s pay in a week where 15 hours are spent working at heights.
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
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C h a p t e r 1 E a r n i n g m o n e y 9
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 $9.45 per hour.
a Calculate Rema’s wage in a week where she works 37 hours.
b Zhong is Rema’s assistant and earns $8.20 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.
Spreadsheets — Wages 1
Throughout this chapter we are going to develop a number of spreadsheets that will
calculate wages. Work through the following steps.
1. Open a spreadsheet and enter the following information, or download the
spreadsheet (Wages_1) from the Maths Quest CD-ROM.
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
5. Format cell E7 as currency (cell E7 should now show $448.00).
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10 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
1 Calculate the wage of a person who works 36 hours at a pay rate of $9.56 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
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
6 Damien earns an annual salary of $47 000 and is paid weekly. Calculate Damien’s
7 Simone earns an annual salary of $70 000 and is paid fortnightly. Calculate Simone’s
8 Ivan earns an annual salary of $56 480 and is paid monthly. Calculate Ivan’s monthly
9 Penny earns an annual salary of $44 000 and is paid weekly. Calculate Penny’s
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.
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
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.
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C h a p t e r 1 E a r n i n g m o n e y 11
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 calculated
separately. The ﬁnal commission is the sum of each portion.
Sales people 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.
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.
Calculate 12% of $15 000. Commission = 12% of $15 000
Commission = 12 ÷100 × $15 000
Commission = $1800
A real estate agent is paid com-
mission on his sales at the following
• 5% on the ﬁrst $75 000
• 2.5% on the balance of the sale
Calculate the commission earned on
the sale of a property for $235 000.
Calculate 5% of $75 000. 5% of $75 000 = $3750
Calculate the balance of the sale. Balance = $235 000 − $75 000
Balance = $160 000
Calculate 2.5% of $160 000. 2.5% of $160 000 = $4000
Add up each portion to calculate the
Commission = $3750 + $4000
Commission = $7750
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12 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
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.
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 where her sales total $12 250.
Calculate the commission of 2% of
Commission = 2% of $12 250
Commission = 2 ÷ 100 × 12 250
Commission = $245
Add the $250 to the commission to
calculate her pay.
Pay = $250 + $245
Pay = $495
Tony is a car salesperson. Tony 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.
Calculate the amount on which
commission is to be paid.
$84 000 − $50 000 = $34 000
Find 2% of this amount. Commission = 2% of $34 000
Commission = 2 ÷ 100 × $34 000
Commission = $680
Add the $300 to the commission to
calculate Tony’s pay.
Pay = $300 + $680
Pay = $980
1. A commission is earned when a person is paid a percentage of the value of
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
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.
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C h a p t e r 1 E a r n i n g m o n e y 13
Commission and royalties
1 Kylie is an insurance salesperson and she is paid 8% of the value of any insurance that
she sells. Calculate the amount that Kylie is paid for selling insurance to the value of
2 Beryl sells exercise equipment and is paid a commission of 10% on all sales.
Calculate Beryl’s earnings in a week where her sales total is:
a $2600 b $3270 c $5687.90
3 Darren’s job is to sell CDs to music stores. If Darren sells CDs to the value of $40 000
calculate his commission if it is paid at a rate of:
a 1% b 3% c 3.4%
4 Linda is a car salesperson who is paid 1.5% commission. Calculate the amount of
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.
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 $8400 D $84 000
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 20%
8 A real estate agent charges commission at the
• 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.
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14 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
11 Stanisa is a car salesman who is paid $250 per week plus a commission of 2% of any
sales he makes. Calculate Stanisa’s pay in a week where his sales total $35 000.
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.
A group of sales representatives each has $10 000 in sales for a week. Who earns the
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
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?
15 Mario is a pay television salesman. Mario earns $500 per week plus 5% commission
on all sales above $5000. Calculate Mario’s pay in a week where his sales total $7500.
16 Neville is a door to door encyclopedia 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.
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
18 Andrew and Bonito are sales representatives. Andrew is paid $300 plus a commission
of 2.5% on all sales. Bonito is paid $250 plus a 3.5% commission on all sales over
$3000. 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 salary 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 salary plus commission on his sales.
In one week he earned $900 when he sold security systems to the value of $5000. In
a week where he sold $3000 worth of security systems he earned $600. How much
can he expect to earn in a week where he sells security systems to the value of $4400?
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C h a p t e r 1 E a r n i n g m o n e y 15
Payment by piece
Payment by piece, or piecework refers to payment for the
amount of work completed. It is commonly paid for jobs
such as car detailing and letterbox delivery.
The amount earned is calculated by multiplying the
rate of payment by the number of pieces of work completed.
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?
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.
Write a letter to Karla advising which job to take and
providing evidence to support your advice.
Pure Diamond Jeweller
offers $250 plus 3.5%
commission on all sales
over $3 000.
Michael Crest Jeweller
offers $300 plus 2.5%
commission on all sales
Income earned at
Income earned at
1 $4000 $400 $285 MC
A person delivering to a letterbox is paid for piecework.
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16 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
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?
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.
There may also be occasions where 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.
Len has a job washing cars in a caryard. He is paid $2.25 per car washed. Calculate what
Len earns in an afternoon where he washes 24 cars.
Multiply the pay rate by the number of cars
Pay = $2.25 × 24
Pay = $54.00
Holly is delivering brochures to letterboxes in her local area. She is paid $23.00 per thou-
sand brochures delivered. Calculate what Holly will earn for a delivery of 3500 brochures.
Divide 3500 by 1000 to calculate the
number of thousand brochures
3500 ÷ 1000 = 3.5
Multiply 3.5 by $23.00 to calculate
what Holly is paid.
Holly’s pay = 3.5 × $23.00
Holly’s pay = $80.50
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.
a Multiply 21 (the number of baskets) by
$4.40 (the pay per basket).
a Pay = 21 × $4.40
Pay = $92.40
b Divide $92.40 (total pay) by 8 (number
of hours worked).
b Hourly rate = $92.40 ÷ 8
Hourly rate = $11.55
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C h a p t e r 1 E a r n i n g m o n e y 17
Payment by piece
1 Julia works after school at a caryard detailing cars. If Julia is paid $10.85 per car,
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.
6 Barbara delivers pamphlets to local letterboxes. She is paid $21.80 per thousand
pamphlets delivered. Calculate what Barbara will be paid for delivering 15 000
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 $19.25 per 100 toys assembled.
Calculate what Raul is paid in a day where 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.
1. Payment by piece is payment to an employee for the amount of work
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.
MQ Maths A Yr 11 - 01 Page 17 Wednesday, July 4, 2001 2:17 PM
18 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
11 Denise works as a fruit picker. She is paid $4.20 for every basket of fruit picked.
a Calculate the amount Denise will earn in a day during which she picks 32 baskets
b If it takes Denise 8 hours to pick the fruit, calculate the equivalent hourly rate of
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
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 $9.89 per hour. Calculate Viet’s
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
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.
MQ Maths A Yr 11 - 01 Page 18 Wednesday, July 4, 2001 2:17 PM
C h a p t e r 1 E a r n i n g m o n e y 19
What should I quote?
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
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
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.
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
Concrete — $600
Timber — $4500
Tiles — $2300
Windows/doors — $1200
Mouldings etc. — $800
Electricals — $1100
MQ Maths A Yr 11 - 01 Page 19 Friday, July 6, 2001 8:30 AM
20 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
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
calculated 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 times the
1. usual rate of pay, or
2. double time, which means that the person is paid twice the
1. 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 for time and a half and 2 for double time.
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 or 2) and then by the
number of hours worked at that overtime rate.
Gustavo is paid $9.78 per hour in his
job as a childcare worker. Calculate
Gustavo’s hourly rate when he is
being paid for overtime at time and
Multiply $9.78 (the normal hourly rate) by
1 (the overtime factor for time and a half).
Time and a half rate = $9.78 × 1
Time and a half rate = $14.671
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.
Multiply $12.84 (the normal pay rate) by
1 (the overtime factor) and by 6 (hours
worked at time and a half).
Pay = $12.84 × 1 × 6
Pay = $115.561
MQ Maths A Yr 11 - 01 Page 20 Friday, July 6, 2001 1:40 PM
C h a p t e r 1 E a r n i n g m o n e y 21
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.
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.
Natasha works as a waitress and is paid $11.80 per hour for a 38-hour week. Calculate
Natasha’s pay in a week where she works 5 hours at time and a half in addition to her
Calculate Natasha’s normal pay. Normal pay = $11.80 × 38
Calculate Natasha’s pay for 5 hours at
time and a half.
Time and a half = $11.80 × 1 × 5
Add the normal pay and the time and a
half pay together.
Total pay = $448.40 + $88.50
Graeme is employed as a car assembly worker and is paid
$10.40 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 where he works 45 hours.
Calculate the number of hours
overtime Graeme worked.
Overtime = 45 − 36
Overtime = 9 hours
Of these nine hours, calculate
how much was at time and a
half and how much was at
Time and a half = 6 hours
Double time = 3 hours
Calculate Graeme’s normal pay. Normal pay = $10.40 × 36
Normal pay = $374.40
Calculate what Graeme is paid
for 6 hours at time and a half.
Time and a half = $10.40 × 1 × 6
Time and a half = $93.60
Calculate what Graeme is paid
for 3 hours at double time.
Double time = $10.40 × 2 × 3
Double time = $62.40
Calculate Graeme’s total pay by
adding the time and a half and
double time payments to his
Total pay = $374.40 + $93.60 + $62.40
Total pay = $530.40
MQ Maths A Yr 11 - 01 Page 21 Wednesday, July 4, 2001 2:17 PM
22 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
1 Reece works in a restaurant and is paid a normal hourly rate of $11.30. Calculate the
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
hour on a Sunday when she is paid double time.
3 Gareth works as a train driver and is normally paid $11.48 per hour. For working on
public holidays he is paid double time and a half (overtime factor = 2 ). Calculate
Gareth’s hourly rate of pay on a public holiday.
4 Ben works in a hotel and is paid $11.88 per hour. Calculate the total amount Ben will
earn for an 8-hour shift on Saturday when he is paid at time and a half.
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.
6 Copy and complete the table below.
Ernie works as a chef and is paid $9.95 per hour. What will Ernie’s hourly rate be
when he is paid time and a half for overtime?
A $11.45 B $14.92 C $14.93 D $19.90
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
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 times the normal hourly rate
(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.
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MQ Maths A Yr 11 - 01 Page 22 Wednesday, July 4, 2001 2:17 PM
C h a p t e r 1 E a r n i n g m o n e y 23
Stephanie works in a shop and is paid $9.40 per hour. Calculate how much more Steph-
anie will earn in 8 hours work at time and a half than she would at ordinary rates.
A $37.60 B $75.20 C $112.80 D $188.00
Eric works on the wharves unloading containers. Eric is paid $14.20 per hour. Calcu-
late 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 10.5 hours D 13.5 hours
10 Rick works 37 hours at ordinary time each week and receives $12.64 per hour.
Calculate Rick’s pay in a week where, 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 where, 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 where he works 4 hours at time and a half and 2 hours
at double time in addition to his regular hours.
13 Copy and complete the table below.
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
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
16 Steven works on a car assembly line and is paid $12.40 per hour for a 36-hour
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.
Time and a
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
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MQ Maths A Yr 11 - 01 Page 23 Wednesday, July 4, 2001 2:17 PM
24 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
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 where 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?
Spreadsheets — Wages 2
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 from the Maths Quest CD-ROM.
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
MQ Maths A Yr 11 - 01 Page 24 Wednesday, July 4, 2001 2:17 PM
C h a p t e r 1 E a r n i n g m o n e y 25
Additions to and
Although Karla knows how to calculate her pay,
she may still be confused when she receives her
ﬁrst payment advice. The pay Karla gets, 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.
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 web site 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
John is 23 and has a wife who cares for their one child full-time. He has recently
lost his job. They pay $120 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?
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?
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?
MQ Maths A Yr 11 - 01 Page 25 Wednesday, July 4, 2001 2:17 PM
26 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
In some cases you will be required to calculate the size of a deduction based on either
an annual amount or a percentage.
When employees take annual leave, they may receive an annual leave loading. When
on holidays, such employees are paid an extra 17 % of their gross pay for up to 4 weeks.
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.
From $643.60 (gross pay) subtract
$144.46 (tax), $19.20 (superannuation)
and $11.40 (union fees).
Net pay = $643.60 − $144.46 − $19.20 − $11.40
Net pay = $468.54
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.
Divide $324.60 (the annual union fee)
Weekly deduction = $324.60 ÷ 52
Round the answer off to the nearest cent. Weekly deduction = $6.24
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.
Calculate 4% of $1320 (gross pay). Superannuation = 4% of $1320
Superannuation = 4 ÷ 100 × $1320
Superannuation = $52.80
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 % annual leave
loading on the 4 weeks pay.
MQ Maths A Yr 11 - 01 Page 26 Wednesday, July 4, 2001 2:17 PM
C h a p t e r 1 E a r n i n g m o n e y 27
Additions to and deductions
from gross pay
1 Trevor is a tiler and his gross pay is $532.75 per week. His weekly deductions are
$106.20 for tax, $23.65 for superannuation and $17.70 for health fund contributions.
Calculate Trevor’s net pay each week.
2 Copy and complete the table below.
Gross pay Deductions Net pay
a Multiply $14.75 (hourly rate)
by 36 (hours worked).
a Normal pay = $14.75 × 36
b Multiply $531.00 (weekly pay)
by 4 to ﬁnd his normal pay for
b Normal 4 weeks pay = $531.00 × 4
Calculate the annual leave
loading by ﬁnding 17 % of
Annual leave loading = 17 % of $2124.00
= 17 ÷ 100 × $2124.00
Add $371.10 (annual leave
loading) to $2124 (normal 4
Total holiday pay = $2124.00 + $371.70
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 % of their gross pay.1
MQ Maths A Yr 11 - 01 Page 27 Wednesday, July 4, 2001 2:17 PM
28 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
3 David works in a mine and is paid a wage of $15.75
per hour for a 36-hour working week. His deductions
are $118.02 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.
5 Lars works as a train driver and is a member of
the union. If Lars’ union fees are $394.00 per
year and Lars has his fees deducted from his
pay weekly, calculate the size of Lars’ weekly
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
9 Sabrina earns a weekly wage of $623.50. She puts 3% of this wage into a
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 $11.12 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 $68.18 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 superannuation.
MQ Maths A Yr 11 - 01 Page 28 Wednesday, July 4, 2001 2:17 PM
C h a p t e r 1 E a r n i n g m o n e y 29
c Raylene has union fees of $486.00 per annum and private health insurance 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 fortnightly tax as well as the above deductions calcu-
late her net fortnightly pay.
13 Liang-Yi earns $13.60 per hour for a 38-hour working week.
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 % holiday loading.
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 % holiday loading.
15 Leon is paid $12.95 per hour for a 36-hour working week.
a Calculate Leon’s weekly wage.
b Leon takes one weeks holiday for which he is given a 17 % loading. Calculate
the holiday loading.
c If Leon pays $83.24 in tax, calculate his net pay for his weeks 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 %.
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 for a 4-week period.
d If Scott pays $1779.92 in tax for this 4 weeks, calculate his net pay for the 4-week
Spreadsheets — Wages template
1. Load your spreadsheet Wages_2 and add the Deductions and Net Pay
columns. Alternatively, download Wages_3 from the Maths Quest CD-ROM.
MQ Maths A Yr 11 - 01 Page 29 Wednesday, July 4, 2001 2:17 PM
30 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
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
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.
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
Karla has been offered a new position in the
company. The manager calls Karla into her
ofﬁce and explains that Karla has to choose
between two 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.
MQ Maths A Yr 11 - 01 Page 30 Wednesday, July 4, 2001 2:17 PM
C h a p t e r 1 E a r n i n g m o n e y 31
Industrial awards and agreements
Karla wonders how her wages and conditions are set. Is it up to her employers to
decide her pay rate? Can her employers sack her if she is late one day? Can they
ask her to work 15 days in a row?
All these questions (and more) are addressed in workplace agreements and
awards. These contracts spell out clearly the expectations for both employers and
The following extract is taken from an agreement involving a fast-food retail
The full award (and others) can be found at http://indrel.agps.gov.au/html/awards/
Use the information in the award to ﬁnd the gross pay earned by an 18-year-old
casual employee who worked 15 hours in one week.
R0447 Retail and Wholesale Industry - Fast Food Retail - Shop
Distributive and Allied Employees' Association - Red Rooster
Foods Consent Award 1996.
PART 5.1. WAGES
1.1 Full Time Employees
1.1.1 Retail Food Employee - Grade I
The minimum rates of ordinary time weekly wage payable to adult full
time Retail Food Employee Grade I shall be $355.50 per week.
1.2 Junior Rates
The rate of pay of junior employees shall be determined by applying the
following percentages to the appropriate adult ordinary time weekly rate
Employees aged under 16 years 40%
Employees aged 16 years and under 17 years 50%
Employees aged 17 years and under 18 years 60%
Employees aged 18 years and under 19 years 70%
Employees aged 19 years and under 20 years 80%
Employees aged 20 years and under 21 years 90%
1.3 Part Time Employees
The ordinary time hourly rate of wage for part time employees shall be
determined by dividing the appropriate full time ordinary time weekly
rate of wage by 38.
1.4 Casual Employees
The ordinary time hourly rate of wage for a casual employee shall be
determined by adding to the appropriate part time rate of wage an
amount equal to 20% of the base part time hourly rate for all hours
worked, except overtime, the rate for which is calculated in the manner
prescribed by Clause 5.6 of Part 6 of this Award. The 20% loading
prescribed by this clause is in lieu of entitlements to sick leave, annual
leave, public holidays or other forms of leave, excluding long service
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32 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
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
• 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 times the normal hourly rate, or
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.
• Employees receive an extra 17 % when they take their annual leave. This is called
the annual leave loading.
MQ Maths A Yr 11 - 01 Page 32 Wednesday, July 4, 2001 2:17 PM
C h a p t e r 1 E a r n i n g m o n e y 33
1 Carole earns a salary of $39 600 per year and is paid weekly. Calculate her weekly pay.
2 Neil earns a salary of $67 400 per year and is paid fortnightly. Calculate his fortnightly pay.
3 Lainie earns a salary of $1326 per month. Calculate her annual salary.
4 Paul earns a salary of $51 000 per annum and works an average of 44 hours per week.
Calculate the hourly rate to which Paul’s annual salary is equivalent.
5 Calculate the weekly wage of each of the following people.
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 $12.30 per hour. Casual bartenders receive a casual rate
of $13.80 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 $410.40. Calculate her hourly rate of pay.
8 Brian earns $11.83 per hour. Calculate the number of hours that Brian would need to work
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
Renee’s pay in a week where her sales total $4940.
10 Daryl is a car salesman who is paid $275 per week plus 1.5% commission on all sales.
Calculate Daryl’s pay in a week where his sales total $34 900.
11 Felicity sells cosmetics and is paid $150 per week plus 15% commission on all sales in
excess of $1000. Calculate Felicity’s commission in a week where her sales total $3560.
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34 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
12 Hong has an after-school job detailing cars. Hong is paid $11.75 for every car that he
details. Calculate what Hong is paid for detailing 29 cars.
13 Svetlana delivers brochures to the local neighbourhood and is paid $17.50 for every
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 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 $10.90 per hour. Calculate 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 $9.70 per hour. Calculate what each
of the following employees earns in a week where:
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 Eddie works as a shop assistant and is paid an ordinary rate
of $10.54 per hour for a 36-hour working week. Eddie is
paid time and a half for the ﬁrst four hours overtime
worked and double time for any hours beyond that.
Calculate Eddy’s wage in a week where he works
18 Marella works as a seamstress and receives a gross wage
of $439.00 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
19 Anne works as a shop assistant. Her annual union fees are
$210.60. Anne has her union fees deducted from her pay
weekly. Calculate the size of Anne’s weekly deduction.
20 Harold earns a salary of $48 250 per annum and is paid
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 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 superannuation. Calculate the amount of Lance’s
d If Lance also pays $140.30 in tax, calculate Lance’s net wage.
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