We've already started to learn about overtime and extra income . However, we mainly focused on overtime. So let's extend our knowledge.
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.
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
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!
If the normal rate is $\$13.40$$13.40 per hour:
A) What is the time-and-a-half rate? Give your answer correct to two decimal places.
Think: We need to work out what $1.5$1.5 times the normal rate is.
|$=$=||$\$20.10$$20.10 (to $2$2 d.p.)|
B) What is the double rate? Give your answer correct to two decimal places.
Think: We need to work out what two times the normal rate is.
|$=$=||$\$26.80$$26.80 (to $2$2 d.p.)|
Dave, a delivery driver, is paid $\$10$$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.
Car depreciation: $\$92$$92
Travel allowance: $0.37\times1284=\$475.08$0.37×1284=$475.08
Dave's weekly income is $\$862.08$$862.08.
A job advertisement states that the hourly wage based on a $35$35-hour working week is $\$38$$38 and that there is a $17%$17% holiday loading on 4 weeks wages.
How much holiday loading would the employee receive? Give your answer correct to two decimal places.