PAYING THE STAFF 4 2 13 PAYING THE

PAYING THE STAFF 4 -2 -13

PAYING THE STAFF Duty Each week, month or agreed term Bonus

PAYMENTS BASED ON… Salary Fixed amount of payment Basic salary – before deductions

PAYMENTS BASED ON… Wage Based on hours Quantity of goods produced Basic wage – before deductions

OVERTIME Employee works more hours than their normal working week Why? Job not possible to complete Voluntary Higher rate

GROSS WAGE/PAY Employees basic wage + additional/bonus What they earn before deductions

CALCULATING THE GROSS WAGE Time rate Payment based on hours worked Clock in/out system Does not reward staff for worker harder than others

EXAMPLE FOR TIME RATE Tom works 39 hours € 8 per hour 9 hours extra Double time for O/T Basic – 39 x 8 = € 312. 00 O/T – 9 x 16 = € 144. 00 Gross wage = € 456. 00

PIECE RATE Payment based on the amount of goods produced Manager usually keeps track Each employee is rewarded for their hard work

EXAMPLE PIECE RATE Hannah makes shirts € 3 per shirt More than 80 a week € 1 for each shirt This week she produced 85 Basic wage – 80 x 3 = € 240. 00 Bonus – 5 x 4 = € 20. 00 Gross wage - € 260. 00

COMMISSION Percentage of sales made Must be able to calculate every sale made Insurance industry Small basic fee plus + commission

EXAMPLE OF COMMISSION Liam works for city air selling flights Basic wage € 100 per week Commission of 2% of sales This week Liam made € 15, 600 in sales Basic - € 100 Commission – 2% of € 15, 600 - € 312. 00 Gross wage = € 412. 00