Understanding Wages, Salaries, and Compensation

Front

What is a wage?

Back

A wage is a payment made to an employee at an hourly rate, based on the number of hours worked.

Front

How are wages typically paid?

Back

Wages are usually paid to persons employed part-time or casually.

Front

What are overtime hours?

Back

Overtime hours are any extra hours worked beyond the regular hours, usually paid at a higher rate.

Front

Calculate the wage for a cashier paid $1,020 per hour for a 20-hour work week.

Back

Wage = $1,020 x 20 hours = $20,400.

Front

How is Melissa's weekly wage calculated if she earns $9 per hour for a basic 35-hour week and worked 41 hours total?

Back

Basic week = 35 hours x $9 = $315; Overtime = 6 hours at $13.50 = $81; Total = $315 + $81 = $396.

Front

What is a salary?

Back

A salary is a fixed amount of money paid for a year’s work, divided into monthly payments.

Front

Can salaried employees earn overtime?

Back

No, people on salaries cannot earn overtime.

Front

What is Peter's monthly salary if his annual salary is $75,000?

Back

Peter's monthly salary is $75,000 / 12 = $6,250.

Front

What is a commission?

Back

A commission is usually an agreed percentage of the value of orders taken.

Front

What is a bonus?

Back

A bonus is usually payable on an amount of work completed over and above a fixed quantity.