Getting Paid: Calculating Wages, Overtime, Penalty rates and more

Summary

The script explains various methods of employee compensation, focusing on wages, overtime, penalty rates, and allowances. It illustrates how wages are calculated by the hour, with overtime pay at 'time and a half' or double time. Penalty rates vary by day and shift, with higher rates for casual employees and public holidays. Allowances, such as vehicle usage, are additional payments for extra job responsibilities. The script uses examples to demonstrate calculations for each type of pay, emphasizing the importance of systematic approach and understanding pay structures.

Takeaways

• 💼 Wages are typically paid by the hour, and can be calculated by multiplying the hours worked by the hourly rate.
• 🕒 Overtime pay is given for work exceeding regular hours, often at a rate of 'time and a half' or double the regular rate.
• 🕰 The example of Bob shows that overtime pay can significantly increase total earnings, especially when it includes both time and a half and double time rates.
• 📊 Understanding the calculation of regular pay, time and a half, and double time is crucial for determining total pay for overtime work.
• 🏢 Penalty rates vary by location and employment status, with different rates for full-time and casual employees, as well as for specific times and days like public holidays.
• 📈 The script uses Alice's example to illustrate how penalty rates can affect earnings, especially when working late nights, on Sundays, or public holidays.
• 🔢 Systematic calculation is necessary for accurately determining pay with penalty rates, considering different rates for different time periods within a shift.
• 🚗 Allowances are additional payments for specific job requirements, such as using one's own vehicle for work, and are shown in Richard's example.
• 📝 Richard's scenario demonstrates how allowances can be incorporated into total pay, by calculating base pay plus the additional amount for hours worked using his own vehicle.
• 📋 The importance of reading and understanding pay tables is highlighted, as they help in systematically calculating earnings with various rates and allowances.
• 💰 The script covers a comprehensive overview of how wages, overtime, penalty rates, and allowances contribute to an employee's total pay.

Q & A

What is the basic concept of wages as described in the script?

Wages are a form of payment where an employee is paid by the hour. For example, if Bob works seven hours at $15 per hour, his total pay is calculated by multiplying the hours worked (7) by his hourly rate ($15), resulting in a total pay of $105.

What is overtime and how is it typically compensated?

Overtime refers to the hours worked beyond the regular amount of time an employee is expected to work in a day. It is typically compensated at a higher rate, such as 'time and a half' or 'double time'. For instance, if Bob's base pay is $12 per hour, for overtime, he would earn $18 per hour (time and a half) and $24 per hour (double time).

How does the script calculate the total pay for someone working with regular, time and a half, and double time rates?

The total pay is calculated by summing the pay for regular hours, time and a half hours, and double time hours. For example, if an employee works 8 hours at $12 per hour, 3 hours at time and a half ($18 per hour), and 2 hours at double time ($24 per hour), the total pay is obtained by adding the pay for each category.

What are penalty rates and how do they differ between full-time and casual employees?

Penalty rates are additional rates of pay for working outside of regular hours or on certain days, such as Sundays or public holidays. They differ between full-time and casual employees, with casual employees typically receiving higher rates due to the lack of job security and the unpredictability of their work hours.

How does the script describe the calculation of pay for Alice who worked different shifts with varying penalty rates?

Alice's pay is calculated by considering the different penalty rates for each shift. For example, if she worked late night shifts, she would receive an additional 10% for hours worked from 10 p.m. to midnight, and an additional 15% for hours worked past midnight. On Sundays, if she was a casual employee, she would receive a 150% penalty rate for the hours worked.

What is an allowance and how is it incorporated into an employee's pay?

An allowance is an additional payment made to an employee for performing tasks that go above and beyond their regular job duties. For example, Richard receives an extra $7 per hour when using his own vehicle for work, due to the wear and tear on his car. This allowance is added to his base hourly rate for the hours he worked using his own vehicle.

How does the script illustrate the calculation of Richard's total pay for a week where he used his own vehicle for part of the time?

Richard's total pay is calculated by adding the pay for the hours he worked at his base rate ($28 per hour) to the pay for the hours he worked using his own vehicle ($35 per hour, which includes the base rate plus the allowance). The total pay is found by multiplying the number of hours in each category by their respective rates and summing the results.

Outlines

00:00

💼 Understanding Wages, Overtime, and Penalty Rates

This paragraph explains the basics of wage payments, including hourly rates and overtime pay. It uses Bob's example to illustrate regular wages and overtime calculations at 'time and a half' and double time rates. The concept of penalty rates is introduced, varying based on factors like working on Sundays or public holidays, and different rates for full-time versus casual employees. Alice's scenario is used to demonstrate how to calculate pay with penalty rates for different shifts, including late-night shifts and public holiday work.

05:03

🚗 Calculating Pay with Allowances and Special Conditions

The second paragraph delves into allowances, which are additional payments for extra job responsibilities, such as using one's own vehicle for work. Richard's example is provided to show how allowances are calculated when working both in a company car and personal vehicle. The summary includes a step-by-step breakdown of his total earnings for the week, distinguishing between base pay, pay for hours worked in his own vehicle, and the calculation of overtime and penalty rates for specific conditions like late-night work.

Keywords

💡Wages

Wages refer to the compensation paid to an employee based on the number of hours worked. In the video, wages are the primary focus, with the example of Bob earning $15 per hour for seven hours worked, totaling $105. This concept is foundational to understanding how employees are paid for their labor.

💡Overtime

Overtime is additional pay given for hours worked beyond the standard full-time hours. The script explains that overtime can be compensated at 'time and a half' or 'double time'. For instance, Bob's overtime pay is calculated at 1.5 times his regular rate for the first three extra hours and double his regular rate for any hours beyond that.

💡Time and a Half

'Time and a half' is a common term for overtime pay, where an employee is paid 1.5 times their regular hourly wage for hours worked beyond the standard workday. The script uses this term to illustrate how Bob's pay is calculated for the hours he works beyond eight in a day.

💡Double Time

Double Time indicates a pay rate of twice the regular hourly wage, often for working certain hours such as late at night or during specific days. The script mentions that Bob would be paid double time for any hours worked beyond the overtime threshold, emphasizing the higher compensation for extended work hours.

💡Penalty Rates

Penalty rates are additional payments made to employees for working during certain hours or on specific days, such as weekends or public holidays. The script explains that penalty rates vary depending on the employee's status (full-time or casual) and the time of day or specific day worked, as illustrated with Alice's pay for working late nights and on a Sunday.

💡Allowance

An allowance is an additional payment made to an employee for specific conditions or requirements of their job. In the script, Richard receives an allowance of $7 per hour when he uses his own vehicle for work, reflecting the extra costs and wear associated with personal vehicle use.

💡Base Pay

Base pay is the standard hourly wage an employee receives for their work. The script mentions Bob's base pay as $12 per hour, which serves as the foundation for calculating his total earnings, including any overtime or allowances.

💡Regular Time

Regular time refers to the standard hours an employee is expected to work within a day or week, typically without additional compensation. The script uses the term to describe the first eight hours Bob works each day, for which he is paid his base rate.

💡Public Holidays

Public holidays are officially recognized days off work, and in the context of the script, working on these days often incurs higher pay rates. The script explains that Alice receives a higher penalty rate for working on a Sunday, which is considered a public holiday.

💡Late Nights

Late nights are hours worked beyond the typical end of a workday, often resulting in additional pay. The script describes Alice's work from 10 p.m. to midnight as qualifying for a 10% late-night penalty rate, and from midnight to 2 a.m. as qualifying for a 15% rate.

💡Systematic Calculation

Systematic calculation is the methodical process of determining an employee's total pay by considering all relevant factors such as base pay, overtime, penalty rates, and allowances. The script emphasizes the importance of being systematic when calculating Alice's and Richard's total pay for their various shifts and conditions.

Highlights

Wages are paid by the hour, and the total pay is calculated by multiplying the hours worked by the hourly rate.

Overtime pay is given for working more than the regular work hours, often at a rate of time and a half or double time.

Time and a half pay is calculated by adding half of the regular hourly rate to the base rate before multiplying by the overtime hours.

Double time pay is twice the regular hourly rate, applied to hours worked during specific conditions.

Total pay includes regular pay, time and a half pay, and double time pay, which are summed up to find the total earnings.

Penalty rates are additional pay rates for working during certain hours or days, such as Sundays or public holidays.

Different penalty rates apply to full-time and casual employees, with casual employees often receiving higher rates due to job insecurity.

Public holidays and late-night shifts have specific penalty rates, with higher rates for working late at night.

Alice's example illustrates how to calculate pay with penalty rates for different types of shifts including late nights and Sundays.

Systematic calculation is necessary for accurately determining pay with penalty rates, considering each shift's specific conditions.

Allowances are extra payments for additional job responsibilities, such as using one's own vehicle for work.

Richard's example demonstrates how allowances are calculated and added to the base hourly rate for specific work conditions.

Total pay calculation includes base pay, overtime pay, penalty rates, and allowances, providing a comprehensive view of earnings.

Understanding different pay components like wages, overtime, penalty rates, and allowances is crucial for accurate pay calculation.

The importance of being systematic and careful in reading and applying pay tables for various work conditions is emphasized.

Practical examples provided throughout the transcript help illustrate the application of wage calculations in real-world scenarios.

The transcript serves as a comprehensive guide to understanding the various components of employee pay structures.

Transcripts

now when it comes to getting paid having

a job wages

is what school students are most

familiar with it's where you get

paid by the hour so really simple

example

bob works seven hours at 15

an hour so if we want to figure out his

total pay

for that time we do the time he worked

times his pay which is seven

times fifteen a hundred and five dollars

total

now that's a really simple example but

that's just how wages work

not too difficult there what about our

overtime

now overtime is paid where you work more

than the regular amount of time you

should work in a day

and overtime can be paid at what's

called time and a half

or it could also be paid at double time

so

uh let's look at this bob's base pay is

12 an hour

that means during regular time he works

eight hours at regular time he gets paid

12

an hour but for the next three hours he

gets paid at

time and a half which just means that

he's getting paid this

plus half again so instead of getting

paid 12

he gets paid 12 plus half of 12

which is 12 plus 6 which is 18. he gets

paid 18 dollars an hour

and then when he's working double time

he gets paid

double that so he doesn't get paid 12 an

hour he gets paid 24

an hour so let's do our actual

calculation here

so this person's total pay is going to

be equal to their regular pay

plus their time and a half pay past

their double time pay

so let's look at their regular pay eight

hours

at twelve dollars an hour okay

now let's look at their time and a half

pay three hours

at and this is where we're a bit clever

here we do

times the 12 but then we increase the 12

up to what it's supposed to be which is

12 plus 6 which is 18

just by multiplying it by 1.5 1.5

time and a half 1.5 is time and a half

and then double time 2 hours

at 12 an hour but it's double time

so we multiply it by two that's the

double time bit

that's the time and a half bit i don't

need like at times by one here but i

guess i could put it there if i was

being a bit silly

all right i just typed that into my

calculator that and that i'll have three

numbers

and then i can just take those three

numbers add them all together and this

person got paid 198

dollars for working eight plus three

plus two

thirteen hours in total some at regular

time summer time and a half and some at

double time

all right there's also this other thing

called penalty rates now that's going to

change depending on where you live

whether it's australia or some other

country

but we'll run a question where i show

you some penalty rates and how to

calculate with them

so we're going to look at alice and she

gets paid 14

an hour standard right but then you have

a bunch of these

penalty rates so sunday penalty rates

125 percent for full-time employees that

means you

increase this by some amount 125 150

for casuals it's more for casuals

because casuals can get hired and fired

and they don't know how many hours

they're going to work each week

full-time employees have job security

and that means that they get paid less

that's kind of like a trade-off

public holidays you can see that's

larger again so on a public holiday

get paid more and if you're working late

nights

you get paid just a little bit more ten

percent uh extra

for 10 p.m to midnight or 15 extra

for uh midnight to 6 a.m so

uh let's look at some work that alice

did here it is here

uh on thursday she worked from 6 p.m to

midnight on friday 8 p.m to 2 a.m

and on sunday 11 a.m to 3 p.m now

we're going to have to be really

systematic here and really really

careful about how we look at this

so 6 p.m to midnight now is that special

well it's a thursday so it's not a

sunday or a public holiday

but it is a late night because she

worked until midnight

you get 10 extra for working from 10 p.m

to midnight

so let's just look at this thursday one

first on thursday she worked

from six till ten from six till ten

just regular but then she also worked

from um

ten to twelve with this extra ten

percent

okay what about on friday

well she worked from 8 p.m to 2 p.m

now that's another late night but it's a

weird kind of late night right because

she worked from eight till ten

and eight till ten is just regular but

then she worked from

ten till twelve and that's the extra ten

percent

and then she worked from 12 to 2

and that's the extra 15

the extra 15 for working past midnight

okay and then sunday well sunday's

pretty straightforward right

because on sundays it's just um

let's say she was casual

it's 115 150 so she worked four hours so

11 till

three at 150 percent

extra okay now we need to put this into

like a full

calculation so let's do this again

systematically

how many hours did she work just getting

paid regular amounts of money

four hours on the thursday was just

regular amounts of money

two hours on the friday was just regular

amounts of money

so that's six hours at fourteen dollars

an

hour okay how much did she work

getting the extra ten percent two hours

here

and two hours here so that's four hours

total getting the extra 10 percent

so we do uh four hours

times the pay which is 14.

times 1.1 why 1.1

if you want to increase something by 10

percent you multiply it by

1.1 the point one is the ten percent one

is the standard amount

okay what about the past midnight bit

okay she worked two hours past midnight

so that's two hours her regular pay is

fourteen dollars but we're increasing it

by

15 so that's 1.15

okay and finally on sunday she worked 4

hours

so we can add 4 hours to that regular

pay is 14

multiply it by 1.5

150 1.5 and then we can just

put all of that into our calculator and

we'll find out this person's total pay

and that gives us a total of dollars and

261.80

cents that this person gets paid for

their three shifts on thursday friday

and

saturday now again you've got to be

really systematic about it you've got to

think about it you've got to be able to

read a little table like this

and understand where those hours are all

fitting into it so we've looked at wages

overtime penalty rates just last thing

we need to look at is allowances

now if you're doing something sort of

above and beyond i guess

in your job you might get paid an

allowance

so for example richard gets paid twenty

eight

dollars an hour plus an extra seven

dollars an hour

when using his own vehicle so maybe he

has a job where he has to drive

but sometimes he uses the company's car

and sometimes he uses his own car

it's only fair that he gets paid an

extra amount of money when he uses his

own car

because his car gets some wear and tear

he'll eventually have to buy some new

tires things like that

that thing that seven dollars is called

an allowance

okay so let's look at what richard did

he worked 28 hours total this week

and eight of them were in his own

vehicle

how much pay does he get all right so

let's look at his total pay

now if he worked um 28 hours total

and eight of them were in his own

vehicle that means that 20 of them

weren't in his own vehicle so 20 of them

he was just getting paid his base rate

which is 28 dollars

and eight of them he was getting paid

28 plus the extra seven dollars

so what i've done here is do eight times

this new

amount which is 28 plus 7 which is 35

and now i can just type that into my

calculator type that into my calculator

add them up

get an answer and he has earned a total

of 840

some of which were in the company's car

and some of which were in his own car

all right lots covered there wages

overtime penalty rates allowances but

that is how to get paid