FINANCIAL MATHEMATICS

MATH 10 – UNIT 4

WAGES AND SALARY

FM. 3

Students are expected to:• Describe, using examples, various methods of earning income.• Identify and list jobs that commonly use different methods of

earning income (e.g., hourly wage, wage and tips, salary, commission, contract, bonus, shift premiums).

• Determine in decimal form, from a time schedule, the total time worked in hours and minutes, including time and a half and/or double time.

• Determine gross pay from given or calculated hours worked when given

the base hourly wage, with and without tips

the base hourly wage, plus overtime (time and a half, double time)• Determine gross pay for earnings acquired by

base wage, plus commission

single commission rate

Vocabulary

• administrative assistant• secretary• notice (n)• annually• tip• labourer• support• commission

Key Terms

Salary – a fixed amount of money paid to a worker on a monthly or annual basis. It does not depend on the number of hours worked.

Hourly Wage – the amount of money paid to a worker per hour worked.

Factors Affecting Wages & Salaries

1) Government Regulations Government regulations – minimum wage and fringe benefits. Government cannot pay below minimum wage.

Nunavut $10.00 Alberta $9.40

Ontario $10.25 NWT $10.00

Saskatchewan $9.50 Nova Scotia $10.00

Yukon $9.00 PEI $9.60

Quebec $9.65 BC $8.75

Newfoundland $10.00 New Brunswick $9.50

Manitoba $10.00

Collective organizations whose power is used to maintain /increase salaries and improve working conditions

Ie. Higher salary Vacation time Maternity leave Job security Medical plans Health & Safety provisions

2) Labour Unions

3) Large Employers

• One or few large employers = ability to set salary

• Usually less than if there was more than one employer

4) Mobility of workers

• High wages in one part of the country = migration = ‘leveling’ of wages

• Extent of leveling depends on ability and willingness of workers to relocate

• Ie. Alberta

Specialized training = higher wages Ie. doctor, lawyer, engineer

Discrimination against women/minorities in past has equaled less pay

5) Specialized Training & Discrimination

Other factors:

• Geographic Location• Company size• Employment Stability• Employee Tenure & Performance

Example # 1

Refer to page 34

Classwork

- Pages 32-33

Homework

- Pages 36-37

Key Terms

Gross Pay – total earnings from a salary, hourly wage, or other payment method such as tips.

Overtime – payment for work done in addition to regular hours. It is usually equal to 1.5 times regular pay, but it can be more.

Shift Premium – an additional payment made for working undesirable shifts, such as overnight shifts.

Example # 2

Refer to page 38.

Classwork

p. 40 – 41

Homework

p. 42-43