IncomeOvertime

Income is the amount of money which comes to a person or organisation.

Part ofApplications of MathsManaging finance

Overtime

You can earn extra pay by working overtime. An employer will pay a higher hourly rate to encourage staff to work overtime.

Time and a half

This means you get your usual hourly pay (time) plus half more (and a half).

If you earn \(\pounds6\) per hour, you would get \(\pounds6 + \pounds3 = \pounds9\) per hour overtime.

Example

Haji works a basic \(38\) hour week at a rate of \(\pounds3.80\) per hour.

He is paid time and a half for every hour worked over \(38\) hours.

Find Haji's gross pay in a week when he does \(46\) hours.

Answer

Basic Pay \(= \pounds3.80 \times 38 = \pounds144.40\)

Overtime hours \(= 8\)

Overtime rate \(= \pounds3.80 + \pounds1.90 = \pounds5.70\)(This is his normal rate plus half of his normal rate)

Overtime Pay \(= \pounds5.70 \times 8 = \pounds45.60\)

Gross Pay \(= \pounds144.40 + \pounds45.60 = \pounds190\)

Double time

This means you get double, or two times, your usual hourly pay.

If you earn \(\pounds6\) per hour, you would get \(\pounds6 + \pounds6 = \pounds12\) per hour overtime.

Question

Gillian works a basic \(36\) hour week, at a rate of \(\pounds4.20\) per hour.

She is paid double time for every hour worked over \(36\) hours.

Find Gillian's gross pay, in a week when she works \(42\) hours.