Overtime and Extra Income III

We've already started to learn about overtime and extra income . However, we mainly focused on overtime. So let's extend our knowledge.

 

Common overtime rates

Time-and-a-half: payment to an employee at $1.5$1.5 times their usual hourly rate. 

Double time: payment to an employee at $2$2 times their usual hourly rate. 

 

Holiday loading

A holiday loading is a payment employees receive when they take paid annual leave. In Australia, the award rate is $17.5%$17.5% in addition to your regular rate of pay. So basically you're getting paid to take holidays- sounds awesome right?! 

There are a couple of reasons why holiday loadings were introduced

1. Since you generally spend more money when you are on holidays than when you are at work, holiday loadings help people with lower incomes afford to take holidays (especially since they are unable to earn overtime when they aren't working).
2. It encourages employees to take holidays. Theoretically, a person could "save up" all their annual leave and then take a year off which wouldn't be very helpful to a business who would have to pay the person who is away + someone to fill their role.

 

Allowances & Bonuses

Just like you may receive a weekly allowance from your parents, allowances in terms of employment are additional amounts of money employers pay their employees for various work-related expenses. This may include a car or travel allowance, a tool allowance or a uniform allowance depending on your job.

A bonus is an additional amount of money that is not guaranteed but may be paid to employees for various reasons, such as reaching a sales target or for a great job performance!

 

Examples

Question 1

If the normal rate is $\$13.40$$13.40 per hour:

A) What is the time-and-a-half rate? Give your answer correct to two decimal places.

Think: We need to work out what $1.5$1.5 times the normal rate is.

Do:

$13.40\times1.5$13.40×1.5	$=$=	$20.1$20.1
	$=$=	$\$20.10$$20.10 (to $2$2 d.p.)

 

B) What is the double rate? Give your answer correct to two decimal places.

Think: We need to work out what two times the normal rate is.

Do:

$13.40\times2$13.40×2	$=$=	$26.8$26.8
	$=$=	$\$26.80$$26.80 (to $2$2 d.p.)

 

Question 2

Dave, a delivery driver, is paid $\$10$$10 per hour, plus a uniform allowance of $\$15$$15 per week, $\$92$$92 per week for depreciation on his car and a travel allowance of $37$37 cents per kilometre. Calculate his weekly income, to the nearest cent, if he worked $28$28 hours and travelled $1284$1284km.

Think: His weekly income will include his wage, uniform allowance and his car depreciation.

Do:

Wage: $28\times10=\$280$28×10=$280

Uniform: $\$15$$15

Car depreciation: $\$92$$92

Travel allowance: $0.37\times1284=\$475.08$0.37×1284=$475.08

Total: $280+15+92+475.08=\$862.08$280+15+92+475.08=$862.08

Dave's weekly income is $\$862.08$$862.08.

 

Question 3