How To Calculate How Much Money You Make A Week

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Did You Know?

10.9% of workers in Ontario earn minimum wage.

From the video, you can see that there are many ways that a worker's salary can be calculated. The different ways that an employer can calculate a worker's pay are known as remuneration methods. The two most common types of remuneration are: hourly wage and commission.

Hourly Wage

Nicki's job at the town office is paid by hourly wage.

When a worker is paid by hourly wage, it means they receive a set amount of money for every hour they work. The amount that a worker will get paid is decided by the employer, but it must at least meet the minimum wage set by the province. In Ontario, the general minimum wage was $11.40 per hour, however, the minimum wage can be different for students and some occupations.

A chart showing the different levels for the minimum wage is available here.

There are several ways to calculate hourly wage. Look at the two ways shown below and decide which one you would prefer to use.

Hourly Wage Problem

Dean stocks shelves at the grocery store and earns $11.40/hour. He worked 32 hours this week. Calculate his weekly pay.

Answer

Method #1

We know that Dean makes $11.40 per hour. This is known as a unit rate. To get his weekly income, we multiply his hourly wage by the number of hours he worked.

Pay = hourly rate x number of hours worked

Pay = $11.40/hr x 32 hrs

Pay = $364.80

Method #2: Ratio Table

A ratio table is a table where equivalent ratios or rates fill the columns. We can write the hourly wage as the first ratio in the table. Next, we write the

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To get from one column to another, we multiply or divide both terms by the same amount.

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Material based on Gap Closing Resources (EduGAINS)

Click here to see a different method of solving this problem.

Consider

Write a note identifying which of the methods for calculating hourly rate you would prefer to use and why.

Overtime

In Ontario, any worker who works more than 44 hours in a week must be paid overtime. The overtime rate must be at least 1.5 times the regular hourly rate. This is usually referred to as "time and a half."

Overtime Problem

This is an image of a worker operating a forklift.

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Yves works as a forklift operator and he is paid $14.75/hr. He worked 48 hours this week. Assuming 1.5 overtime rate, calculate his weekly earnings.

Answer

When calculating overtime, you can start by finding out how many overtime hours were worked. Since any hours worked over 44 is considered overtime, you subtract this number from the total hours worked to get overtime.

The first 44 hours of work can be calculated normally.

Pay = hourly rate x number of hours worked

Pay = $14.75/hr x 44 hrs

Pay = $649.00

Overtime = total hours worked - 44

Overtime = 48 - 44

Overtime = 4 hrs

Overtime rate is calculated by multiplying the hourly wage by 1.5.

Pay = hourly rate x number of hours worked

Pay = $14.75/hr x 1.5 x 4 hrs

Pay = $88.50

Finally, you add the regular pay and the overtime pay to get total earnings.

Total Pay = Regular Pay + Overtime Pay

Total Pay = $649.00 + $88.50

Total Pay = $737.50

Practice

Determine the weekly earnings for each worker. Assume that overtime is paid at "time and a half."

Question

Christine is a cashier and earns $11.40/hour. She worked 36 hours this week.

Answer

Christine would earn $410.40.

Question

Tracy is a server in a restaurant and earns $9.90/hour. She work 40 hours this week. (Be sure to check the website above to understand why Tracy is only paid $9.90/hour)

Answer

Tracy would earn $396.00.

Question

Gurpreet works for a snow removal company and earns $15.80/hour. He worked 50 hours this week.

Answer

Gurpreet would earn $837.40.

Tip

Having difficulties solving these problems? Check your work by viewing the following .

Commission

Joe's job at the car dealership is an example of commission.

Instead of being paid an hourly rate, some sales positions pay their workers a portion of the value of all of the products they sell. This is referred to as a commission.

Some workers earn all their pay from commission. This is called straight commission. Others earn their pay through a combination of salary and commission. This is referred to as salary plus commission.

Commission is expressed as a percent.

Did You Know?

This is an image showing that five percent can be written as: 5%, 5/100 and 0.05.

You will see percentages written with the % sign (eg. a five percent commission would be written as 5%). Since a percent is a ratio where the second term is 100, you could also represent a five percent commission as a ratio 5:100, a decimal 0.05 or a fraction 5/100.

You can calculate the pay of someone earning a straight commission by using a fraction, decimal or ratio table. Look at all three ways shown below and decide which one you would prefer to use.

Commission Problem

Sam works as a salesperson in a clothing store and earns $200 per week plus 8% commission. Sam's sales total for this week were $6500.

Answer

Using a Fraction or a Percent

To start, we need to calculate 8% of the total sales ($6500).
8% can also be written as a fraction 8/100

So,
$6500 x 8/100=$520.00

To get total income, add the commission to the weekly salary

$200.00 + $520.00=$720.00

Sam's total salary is $720.00.

Using a Decimal

To start, we need to calculate 8% of the total sales ($6500).
8% can also be written as a decimal 0.08.

So,
$6500 x 0.08=$520.00

To get total income, add the commission to the weekly salary

$200.00 + $520.00=$720.00

Sam's total salary is $720.00.

Using a Proportion

To start, we need to calculate 8% of the total sales ($6500).
8% can also be written as a ratio 8:100

We can solve by writing an equivalent ratio.

8:100 = x: 6500, we divide 6500 by 100 to see what we multiplied 100 by to get 65. Then we multiply 8 by that same amount.
6500÷ 100=65
8 x 65=520

To get total income, add the commission to the weekly salary

$200.00 + $520.00=$720.00

Sam's total salary is $720.00.

Consider

In a short paragraph, explain which of the methods for calculating commission you would prefer to use and why.

Practice

Determine the weekly earnings for each worker.

Question

Carl works as a salesperson in an appliance store and earns $300 per week plus 8% commission. His sales total for this week were $7800.

Answer

Question

Gurvir earns 6% straight commission as a real estate agent. She was involved in the sale of a home this week that sold for $330 000.

Answer

Gurvir would earn $19 800.00.

Tip

Having difficulties solving these problems? Check your work by viewing the following .

Other Remuneration Methods

Although hourly rate and commission are the most common remuneration methods, there are other ways that people can be paid.

Gratuities - commonly known as 'tips', gratuities are an optional amount of money paid by customers. Servers in the food and beverage industry rely on gratuities as part of their income. Emily's job as as a server in the bakery relies on gratuities as an important part of her pay.

Job or Project Rate - Self-employed workers will often negotiate a price for a whole job, instead of charging an hourly rate.

Piece Work - Piece work is any type of employment in which a worker is paid a fixed piece rate for each unit produced or action performed regardless of time. For example, in a telemarketing job the employee is paid by the number of made or completed calls. If the employee makes 40 calls, the employee will make twice as much money as the employee who makes 20 calls in a day.

Gratuities, or 'tips', are an important part of a server's salary.