1 / 8

Overtime and Penalty rates

Overtime and Penalty rates. Overtime is the time worked in excess of the standard working day or week. Penalty rates may be paid when for dangerous situations, overtime, weekend or public holidays (depending on the award) . The two most common rates of overtime pay are:

shiri
Télécharger la présentation

Overtime and Penalty rates

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Overtime and Penalty rates Overtime is the time worked in excess of the standard working day or week. Penalty rates may be paid when for dangerous situations, overtime, weekend or public holidays (depending on the award). The two most common rates of overtime pay are: • Time-and-a-half = • Double-time = 1.5 × normal hourly rate 2 × normal hourly rate

  2. Example 1 Amy earns $1304 per hour and an additional $127 per hour if she is working in confined spaces. How much does Amy earn if she works for 7 hours, three of which were in a confined space? 1304 × 7 = 127× 3 = 9128 + 381 = Or 1304 × 7 + 127× 3 = = 9128 = 381 = $9509 = $9509

  3. Example 2 Lauren gets paid $1126 per hour for the first 8 hours worked, then “time and a half” for the next 2 hours and “double” time for any other hours worked. How much does she get paid if she works: a) 9 hours in a day b) 11 hours in a day a) 8 × 1126 = 1 × (1126 × 1½) = 9008 + 1689 = = 9008 = 1689 = $10697 Or (8 × 1126) + (1 × 1126 × 1½) = = $10697 b) 8 × 1126 = 2 × (1126 × 1½) = 1 × (1126 × 2) = 9008 + 33.78 + 2252 = = 9008 = 3378 = 2252 = $14638 Or (8 × 1126) + (2 × 1126 × 1½) + (1 × 1126 × 2) = = $ 14638

  4. Bonus and leave loading A bonus is paid in addition to normal income, eg for reaching a target. Annual leave loading is normally paid at the rate of 17½%on 4 weeks normal pay. Awards with more than 4 weeks holidays still only get 4 weeks loading. The leave can often be taken at any time during the year. Holiday pay (or annual leave loading) first started with miners who lost money by going on holidays as they did not get their underground allowances paid during holiday periods. Today most full time awards have holiday pay.

  5. Example 3 • Rhiannon earns a salary of $65 000. • What is her weekly pay rate? • How much loading does she get for a 4 week holiday? • How much pay does she get for a 4 week holiday? a) $65 000 ÷ 52 = $1250 b) 0175 × 1250 × 4 = $875 c) (1250 × 4) + 875 = $5 875

  6. Example 4 Karen earns $42 000 p.a. If she takes 3 weeks holiday leave, how much does she get paid? 42 000 ÷ 52 = 80769 × 0175 = 80769 + 14135 = 3 × 94904 = Or 42 000 ÷ 52 = 3 × 80769 × 1175 = 80769 14135 94904 $284712 80769 $284711 Note that the 2 amounts are different. WHY? This is because in step 2 of the first method, the answer was rounded off to 2DP, whereas in the second method the unrounded number was used.

  7. Example 5 • Megan received $620 in annual leave loading last year. • What was her weekly pay rate? • If she worked a 35 hour week, what was her hourly pay rate? a) 620 ÷ 4 = $155 Leave loading each week 17½% = 155 ÷ 17½ 1% = 8·85714 ×100 100% = 885·71  Megan’s weekly pay rate was $885·71 b) 885·71 ÷ 35 = $25·31

  8. Today’s work Exercise 9:02 P298→299 Q1a,b,c + f Q2a,b,e,f,h Q3 Yesterday’s work

More Related