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)