The reward for work. How people are paid Salary (stated as yearly earnings but are usually paid...
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Transcript of The reward for work. How people are paid Salary (stated as yearly earnings but are usually paid...
The reward for work
How people are paid• Salary (stated as yearly earnings but are usually paid
monthly) – more likely to be skilled, non-manual occupations
• Wage (calculated as an hourly rate multiplied by the number of hours worked usually paid weekly) – more likely to be lower-skilled jobs, or part-time or temporary work
• Commission (receive payments for achieving certain targets)
• Overtime Payment• Shift Work Payment• Fringe Benefits – when workers are paid in ways
other than money
Wage slips
• BACS – Bankers’ Automated Clearing Services (a system used within the UK for allowing the electronic transfer of money between banks.)
• Gross Pay – total amount of pay that a job will pay (BEFORE deductions)
• Net Pay – the pay the employee gets AFTER all deductions (for tax, national insurance and pension contributions are made)
Deductions• Income tax – to be paid as a percentage of earnings.
The percentage rate paid depends on the level of income which is indicated by a tax code. In the UK, it is paid in two main ways:– Pay as you earn (PAYE) – deducted by the employer before
it is paid to the worker– Self-assessment (SA) for workers who are self-employed,
tax is paid by the worker• National Insurance Contributions (NIC) – paid on
incomes to build up an entitlement to certain benefits and the state pension. Also paid as a percentage of income earned.
• Pension Contributions• Other Deductions (trade union subscriptions, staff
association membership fees, student loan repayments)