WAGES AND SALARIES
Who has had a job before?
How did you get paid?
Did you get paid overtime?
How did they determine how many hours they
Did they have any deductions? Etc.
IN ALBERTA, THE CURRENT MINIMUM
WAGE IS $9.40 PER HOUR.
Minimum wage is the minimum amount a
worker MUST be paid an hour, as set out by the
The minimum wage in BC is $8.75/hour. The
minimum wage in Sask. is $9.50. The min. wage
in Ontario is $10.25/hour.
why there might be differences in minimum wage
WHAT IS THE DIFFERENCE BETWEEN A
SALARY AND A WAGE?
Salary – paid a fixed amount every pay period.
This amount is determined usually in a contract
which is signed before employment starts.
Advantages – paid the same amount every pay
period, regardless of hours worked/holidays etc.
Disadvantage – not paid for any extra work you
Wage – paid a fixed amount PER HOUR worked
during a certain pay period.
Advantages – paid for any extra hours you might
work. Usually paid more per hour during certain
times (for example, working on holidays,
Sundays, evenings etc.)
Disadvantages – if you don’t work, you don’t get
paid (for example, if you miss a day of work, or
you work fewer hours in a week than normal).
Gross Pay – the total amount of money earned
in a pay period. AKA gross earnings. This is the
amount you make BEFORE deductions.
A PAY STATEMENT IS A FORM AN
EMPLOYER WILL GIVE YOU THAT
SHOWS EARNINGS FOR A DEFINED
A pay period could be weekly, bi-weekly,
*weekly – once a week (paid 52 times per year)
*bi-weekly – every two weeks (paid 26
*monthly – once a month (paid 12 times/year)
*semi-monthly – twice a month (paid 24
*annually – one year (paid once a year)
*HOW DO WE DETERMINE THE MONTHLY,
SEMI-MONTHLY, BI-WEEKLY AND WEEKLY
PAY FOR A SALARY?*
Ex. Brendan works at the Edmonton Journal. His
annual salary is $35 650.
Determine the following scenarios:
If Brendan is paid monthly, how much will he make
12 pay periods per year: $35 650 / 12 = $2 970.83 /
24 pay periods per year : $35 650 / 24 = $1 485.42
twice a month
26 pay periods per year: $35 650/26 = $1 371.15
every two weeks
52 pay period per year: $35 650/52 = $685.58
WHAT ARE THE ADVANTAGES AND
DISADVANTAGES OF EACH PAY PERIOD?
*HOW DO WE DETERMINE THE GROSS
PAY FOR WAGES?
EX: Morgan makes minimum wage. He works 35
hours one week. How much will his gross pay be for
*Multiply the number of hours worked by the wage
to get gross pay!*
35 hours x $9.40/hour = $329.00
*Always round MONEY to two decimal places!!!*
Employee Name: Christine
Thomas How often does Christine
get paid? Weekly (24-18
Company: Pay Period
= 6 days = 1 week)
Pay Period If Christine gets paid the
same amount every week,
how much will she make
Employee ID: Job Title: gross in a month?
555777 Cashier $231.25 x 4
Address: 2020 Pay Rate: 9.25/h weeks/month = $925.00
HOURS AND EARNINGS
How much will she make
Descri Rate Hours Gross in a year? $925.00 x 12
gs months/year = $11 100
Regular 9.25/h 25 $231.25
Employee Name: Robert Cooper
How often does Rob get
Employer: PP Begin:
ATCO Gas 09/4/2010
paid? Bi-Weekly (17 -4
= 13 days = 2 weeks)
Employee ID: Job If Rob gets paid the
1234 Description: same amount every pay
Technician period, how much will
Pay Rate: 15.45/h *determine he make in a month?
using gross earnings and hours 2 x 672.05 = $1 344.10
Descri Rate Hours Gross
If Rob gets paid the
gs same amount every
month, how much will
Regular 15.45/h 32 540.75
he make gross per year?
Sunday 16.45/h 8 131.60 12 x 1 344.10 = $16
Total Gross Earnings 672.05
ASSIGNMENT: SALARIES AND
DAY 2: HOURS WORKED –
COMPLETING TIME CARDS
FULL TIME VS PART TIME
Full Time – usually considered to be between 35
- 44 hours per week. Typically, full time results
in 8 hour shifts per day, 5 days a week.
Part Time - usually considered to be less than
35 hours a week. Typically, part time results in
shifts less than 8 hours OR fewer days are
worked per week.
Shift – the amount of time you work.
GETTING PAID WITH A WAGE –
HOW ARE THE HOURS YOU WORK
Punch cards – at the start and end of every shift, you
insert a card into a machine that will record the date
and time. This card is then later used to calculate the
number of hours worked during a pay period.
Time Card (Personal) - you may have to manually
record the time you start and end each shift. Sometimes
this is called “logged hours”.
Time Card (Pay Roll) – you may work for a company
where a person logs your hours for you. It will be your
responsibility to inform them of any extra hours you
work, or any shifts you miss.
24 HOUR TIME – MOST JOBS WILL USE
24 HOUR (INSTEAD OF 12 HOUR) TIME.
TO DETERMINE THE TIME, SUBTRACT
Remember, in 12 hour time, the morning is am,
and the afternoon/evening is pm
Ex. What time is 13:05? 13-12 = 1:05 pm
What time is 22:45? 22-12 = 10:45 pm
What time is 02:50? = 2:50 am
HOW DO WE DETERMINE THE
NUMBER OF HOURS WORKED?
For example, you work from 9:30 – 14:50. How many
hours have you worked?
1st add minutes to the start time to match the
minutes of the end time
9:30 + 20 minutes = 9:50
2nd subtract the hours: 14 – 9 = 5 hours
3rd combine hours and minutes = 5 hours + 20
Employers don’t usually pay for every minute of
work. Typically you will get paid for every
quarter hour you work. Round to the nearest
quarter (0, 15, 30, 45)
20 minutes – closest to 15 minutes.
What part of an hour is 15 minutes?
x/1 = 15/60 = 0.25
4th Add hours and parts of an hour together:
5 + 0.25 = 5.25 hours.
EX: COMPLETE THE FOLLOWING TIME
TIME CARD – Telus Communications
Employee Number: 5872 Approval:
Employee Name: Bill Ngo
For Week Ending: 19/11/10
Date Start (IN) End (OUT) Total Hours
3 hours, 2minutes = 3 hours
15/11/10 09:03 12:05
5hrs, 4 mins, = 5 hours
16/11/10 16:02 21:06
3 hrs, 2 mins = 3hours
17/11/10 08:58 12:00
5 hrs, 31 mins = 5 hours and 30 minutes = 5.5 hours
18/11/10 16:30 22:01
3 hours, 28 mins = 3 hrs 30 mins = 3.5 hours
19/11/10 08:32 12:00
Total Hours Worked during P.P. 20 hours
IF BILL MAKES $10.25 PER HOUR, HOW
MUCH WILL HE MAKE GROSS FOR THIS
20 x 10.25 = $205
DAY 3: OTHER WAYS TO
EARN – PIECEWORK AND
SALARY AND WAGE AREN’T THE ONLY
WAYS TO EARN AN INCOME. OTHER
Self employment – a person who works for
themselves rather than for an employer.
Piecework – when someone is paid a set rate for an
Commission – an amount (usually a percentage)
paid to someone for a business transaction
Contract – a legal agreement that outlines terms,
conditions and payments for work to be done
Brainstorm as a class examples of occupations for
each vocabulary words above. Also, brainstorm
advantages and disadvantages of being self
Ex. Michelle is an *Multiply price by
Artisan – a craftsperson quantity, then add
who specializes in totals together*
decorative arts. She
makes pottery bowls.
$45 x 8 = $360
She sells large bowls for
$45.00 and medium $35 x 11 = $365
bowls for $35.00. One
weekend at a farmers Total: $745
market she sells 11
medium and 8 large
bowls. How much does
REVIEW: PERCENT MEANS OUT OF 100! TO
FIND THE PERCENT OF NUMBERS, CHANGE
THE PERCENT TO A DECIMAL, AND THEN
MULTIPLY THIS DECIMAL BY THE NUMBER
Ex. Lindsay works at 1st change % to a
a car dealership. She decimal
gets 3% commission 3% = 3/100 = 0.03
on all sales. Last
month she sold a total 2nd multiply decimal
of $44 375. How much by total sales
will her gross
0.03 x 44 375 = $1
Ex. Dan works as a 1st Add up his sales:
real estate agent. He 299 450 + 380 200 = $
gets 0.2 % commission 679 650
on the sale price of nd
2 change % to a
any house he sells. decimal
Last month he sold 2
0.2% = 0.2/100 = 0.002
houses: $299 450, and
$380 200. How much 3 multiply decimal
will his gross earnings by his sales.
be? 0.002 x 679 650 = $1
Ex. Carl works at The 1st find out his hourly
Keg restaurant. He wage amount
makes $8.80/h plus he $8.80/h x 36 hours =
gets to keep 75% of his $316.80
tips. If one week he
2nd change % to a
works 36 hours and
decimal, and multiply
makes $155 in tips,
by his tips
what will his gross
earnings be? 75% = 75/100 = 0.75
0.75 x 155 = $116.25
3rd add his wage and
tips together to get total
$316.80 + $116.25 =
EX. ANDREW STARTS A NEW JOB
SELLING APPLE COMPUTERS. THE
COMPANY OFFERS HIM THE
FOLLOWING PAY OPTIONS:
Base salary of $500 Amount Option 1 Option 2
plus 2% of all sales Gross Gross
Straight commission Earnings Earnings
of 6% $0 $500 $0
$5000 $600 $300
gross earnings for
both options based on
the following sales: $10 000 $700 $600
$15 000 $800 $900
$20 000 $900 $1 200
When is option 1 a Which would you
better choice? choose?
When is option 2 a
DAY 4:EXTRA PAY:
OVERTIME INCOME CAN BE
1st Determine the number of over time hours
2nd multiply this by the overtime rate (time-and-a
-half = x 1.5, double time = x 2) and current wage.
3rd add overtime to regular work hours.
Ex. Rebecca in one Regular Pay: 40 x
week works 40 hours, 9.25/hr = $370
plus 8 hours over
time. She makes Overtime Pay: 8 x 1.5
$9.25/hr plus time and x 9.25 = $111
a half for overtime.
How much will she
make gross? Total Gross: 370 + 111
If you have a service industry job (retail,
restaurant, fast food, etc.) you will likely have to
work on holidays. See handout for more info. You
will likely get paid at least time-and-a-half for all
hours worked on a holiday.
Ex. Trent works at Regular: 8 + 6 + 4 =
Safeway. On 18 hours x 8.95/hr =
Thanksgiving Monday $161.10
he works 5 hours,
Tuesday 8 hours, Holiday Monday = 5
Thursday 6 hours and hours x 1.5 x 8.95/hr =
Friday 4 hours. If $67.13
Trent makes $8.95/h
regular, how much
will his gross pay be Gross Pay: 161.10 +
for the week? 67.13 = $228.23
Some service industry jobs will give you “vacation
pay” instead of paid vacation time; this will likely
be a percentage of your yearly gross pay that will
work out to be the same as two weeks of pay.
This will be either paid out to you in a lump sum
annually or on every pay check. If you take time
off, you will not be paid while you are away.
Ex. Sarah gets vacation pay as 1st determine her weekly gross
4% of her gross income paid pay:
annually in January. If she 10.50/hr x 35 = $367.50
makes $10.50/hr for a 35 hour
work week, how much will she 2nd determine her annual gross
make vacation pay? pay
$367.50 x 52 weeks/year = $19
3rd find her vacation pay
*remember to change the % to a
4% = 4/100 = 0.04
0.04 x 19 110 = $764.40
If Sarah gets her vacation pay
every pay period, how much
will this be?
764.40 / 52 weeks/year = $14.70
per weekly pay period
ASSIGNMENT: OVERTIME AND
DAY 5: DEDUCTIONS- UNION
DUES, HEALTH PLANS,
Gross Income/Pay – income earned before
Net Income/Pay – Income received after
deductions (your “take home” pay)
Before taxes are calculated on gross pay, there
are certain “before-tax” or “tax exempt”
Union dues, RRSP (registered retirement savings
plan), charitable donations and pension
Ex. Lilly works as a 1st determine here gross
receptionist. She makes annual income: $650 /
$650 a week. Her union week x 52 weeks = $33 800
dues are $14.10 per pay 2nd determine her annual
check. What percent of union dues $14.10 / week x
Lilly’s gross pay does she 52 weeks = $733.20
pay in union dues?
3rd determine the % of her
annual gross income that
she pays for union dues:
*remember, percent is part
of a whole*
$733.20/$33 800 =
0.0216… x 100 = 2.2% of
her gross income is spent
on union dues.
In addition to these deductions, many people pay
amounts from their gross pay for a wide range of
benefits and programs such as dental plans
and savings plans.
Many employers also offer lifestyle benefits.
Such as discounts on merchandise, services, or
bonus items like movie tickets etc.
Marmot Basin example
Ex. You have a 16-week contract at Marmot
Basin in Jasper, where you will be working
between 15 hours a week. Your employer offers
you a choice of
$8.80/hr plus a weekday season pass that has a
value of $680.
How many hours total How much will you
will you work during make for the first
the 16-week contract? choice?
16 week x 15 hours $10.75/hr x 240 hrs =
/week = 240 hours $2 580
How much will you Which would you
make for the second choose? Why?
$8.80/hr x 240 hrs =
$2 112 PLUS a $680
Employee Name: Lilo Stitch THE FOLLOWING PAY
Company: Pay Period Begin: 09/24/2010
Pay Period End: 10/01/2010
Employee ID: 6262 Job Title: Sales Associate
Address: Pay Rate: 10.50/h
Description Rate Hours
Regular 10.50/h 30
Before Tax Deductions Amount
Union Dues 9.75
TOTAL BEFORE TAX DEUDCTIONS:
Extended Health Care 15.10
TOTAL BENEFIT DEDUCTIONS:
DAY 7: CPP, EI AND INCOME
* Remember: Taxable Income – Your income,
AFTER DEDUCTIONS is taxed by both the
federal and provincial governments.
*NOTE: Taxable income is GROSS INCOME
minus any tax exempt deductions such as
pension, RRSP, union dues etc.
Canada Pension Plan (CPP) – Provides
income for workers after they retire. Every
employee between 18-65 must pay into it.
To estimate CPP deductions, use 4.95% of
your earnings up to a max. deduction of
Employment Insurance (EI) – A fund that
employees pay into to insure themselves against
being unemployed. To estimate, use 1.73% of
your earnings (up to earnings of $43 200). Your
employer usually pays 1.4 times your
contribution into the fund.
THE MAXIMUM contribution amount for the
employee is $747.36
THE FEDERAL GOVERNMENT
TAXES YOUR INCOME AT
Taxable Income ($) Federal Tax Rate
0 to 31 677.00 16%
31 677.01 to 63 354.00 22%
63 354.01 to 103 000.00 26%
Provincial tax rates vary from province to
province…. Alberta is currently 10%
Go through the following example with the students
on an over-head:
Ex. Simon earns a biweekly salary of $1152.
a. What is Simon’s gross yearly salary?
Biweekly = 26 times paid per year
$1152 x 26 = $29 952
b. How much will Simon pay in CPP and EI each year?
CPP = 4.95% of gross earnings *change to a
decimal!* 4.95% = 0.0495
$29 952 x 0.0495 = $1 482.62
EI = 1.73% of gross earnings *change to a
decimal!* 1.73% = 0.0173
$29 952 x 0.0173 = $518.17
d. How much Federal tax does Simon pay?
$29 952à Simon is in the first range (16%)
*change to a decimal!* = 0.16
$29 952 x 0.16 = $4 792.32
e. How much provincial tax does Simon pay?
Alberta Income Tax rate is 10% *change to a
decimal!* = 0.10
$29 952 x 0.10 = $2 995.20
f. Determine Simon’s total year deductions
$1 482.62+ $518.17 + $4 792.32+ $2 995.20=
g. How much does Simon earn a year net?
$29 952 - $9 788.31 = $20 163.69
h. What is Simon’s biweekly take home pay?
*biweekly = 26 times paid per year!*
$20 163.69 / 26 = $775.53
DAY 8: SELF EMPLOYMENT
Graphs are a visual way to represent data.
A circle graph is divided into pieces to represent
part of 100%. An entire circle graph should add
up to 100%.
50% of people prefer coke
25% prefer Pepsi
15% prefer sprite
And 10% prefer Root
Draw a graph to represent
*Notice that ½ of the
circle is represented by
IF YOU POLLED 325 PEOPLE, HOW
MANY WOULD YOU EXPECT TO PREFER
50% = 0.50 325 x 0.50 = 162.5 people
SO about 162 people (we cannot have half a
A BAR GRAPH REPRESENTS DATA WITH
About how many students take the bus in 5th
grade? Go to the top of the 5th grade bar, and look
to the left à about 80 students.
To construct a bar graph, create an appropriate
scale on the left-hand side (the up and down or Y-
axis) and a scale on the bottom (the left to right