Bonuses

● A bonus is an extra payment made to employees, often as a reward, for example, for meeting
deadlines, exceeding profit targets, or producing a high quality of work.
Example3. Paul works for a builder and earns a salary of $66 000 per year. At the end of the year, the
builder decides to pay Paul a bonus equal to one month’s salary. Calculate Paul’s bonus.
Bonus =$66 000 ÷ 12 = $5500
Q1. Jenni works as a secretary and earns a salary of $58 600 per year. At the end of the year her
employer pays her a bonus of one month’s salary. Calculate Jenni’s bonus.
Ans. $4883.33
Q2. Abdul is paid $23.50 per hour and works a normal 35-hour week. At the end of the year his
employer pays him a bonus of 5% of his yearly wages. Calculate Abdul’s bonus.
Ans. $2138.50
Q3. A company made a profit of $194 000 for the year. The owner decided to share 60% of the profit
between her 80 employees as a bonus. Calculate the bonus paid to each employee.
Ans. $1455
Q4. For completing a project ahead of schedule, each member of the project team was given a bonus
of 3% of the after-tax profit made. Calculate the bonus paid to each team member if the after-tax profit
was $120000.
Ans. $3600

Holiday loading
Holiday loading (leave loading) is an extra payment given to permanent employees when they take
their annual recreation leave. It is usually calculated as 17.5% of 4 weeks normal salary or wages.
Example3. Tanya earns $1215 per week as a librarian. She is entitled to 4 weeks’ annual recreation
leave and receives an additional holiday loading of 17.5%. Calculate Tanya’s:
a) Holiday loading
4 weeks pay = $1215 × 4 = $4860
Holiday loading = 17.5% of $4860 = 0.175 × $4860 = $850.50
b) Total pay for this holiday period.
Total pay = normal pay + holiday loading
= $4860 + $850.50 = $5710.50
Q1. Kylie earns $760 per week. She is entitled to 4 weeks annual leave and receives an additional
holiday loading of 17.5%. Calculate Kylie’s:
a) holiday loading b) total pay for this holiday period.
Ans. a) $532 b) $3572
Q2. Vinh works a normal 35-hour week and is paid $17.90 per hour. He is entitled to 4 weeks’ annual
leave and receives an additional holiday loading of 17.5%. Calculate Vinh’s:
a) holiday loading b) total pay for this holiday period.
Ans. a) $438.55 b) $2944.55
Q3. Sunny earns $2460 per fortnight as a receptionist. She is entitled to 4 weeks annual leave and
receives an additional holiday loading of 17.5%. Calculate Sunny’s:
a) holiday loading b) total pay for this holiday period.
Ans. a) $861 b) $5781
Q4. Wesley earns $43 940 per year. He is entitled to 4 weeks annual leave and receives an additional
holiday loading of 17.5%. Calculate Wesley’s:
a) holiday loading b) total pay for this holiday period.
Ans. a) $591.50 b) $3971.50

Piecework

● ‘Piecework’ means being paid a certain amount for each ‘piece’ produced.

Example1. Angelica is a machinist in a factory. For the first 180 garments she is paid $1.96 and then
$2.50 per garment thereafter. What are her gross wages for a week in which she produces 223
garments?

First 180 garments = 180 ×$1.96 = $352.80

Number of garment more than 180 = 223 -180 = 43
Money earned for last 43 garments = 43 ×$2.50 = $107.50
Total wages = $352.80 + $107.50 = $460.30
Example2. Holly is delivering brochures to letterboxes in her local area. She is paid $23.00 per 1000
brochures delivered. Calculate what Holly will earn for a delivery of 3500 brochures.
How many thousands in 3500 = 3500 ÷ 1000 = 3.5
Total earning = 3.5 × $23.00 = $80.50

Exercise 4
Q1. Hitani is paid 65 cents for each teacup she decorates. How much is she paid for decorating 150
teacups?
Q2. Jack makes leather belts. The piece rate is $1.25 each for the first 50 belts and $1.50 thereafter.
What is his income for a day in which he produces 68 belts?
Q.3. A production-line worker is paid $1.50 for each of the first 75 toasters assembled, then $1.80 per
toaster thereafter. How much does she earn on a day in which she assembles 110 toasters?
Q.4. Rudolf earns $42.50 per 1000 leaflets delivered to letterboxes. Calculate what Rudolf will earn
for a week in which he delivers 7500 leaflets.
Q.5. Dimitri earns $7.20 for each box of fruit picked.
a) How much does he make for picking 20 boxes?
b) How many boxes must he pick to earn at least $200?
c) If he takes 4 hours to pick 12 boxes, what is his hourly rate of pay?
Q.6. Pauline uses her home computer for word processing under contract to an agency. She is paid $3
per page for the first 50 pages, $4 per page from 51 to 100 pages, and $5 per page thereafter. Calculate
her total pay for a period in which she prepares:
a) 48 pages b) 67 pages c) 123 pages.
 Q.7. Rani delivers bills to letterboxes and is paid $43 per thousand.
a) How much does she earn for delivering 2500 items?
b) How many thousands must she deliver to earn at least $1000?
c) If she takes 6 hours to deliver each thousand on average, what is her hourly rate of pay?
Q.8. A shoemaker is paid $5.95 for each pair of running shoes he can make.
a) If the shoemaker made 235 pairs of shoes last week, what was the amount paid?
b) The shoemaker is offered a bonus of 5% if he can make more than 250 pairs of shoes in a
week. If he makes 251 pairs, what is the total amount earned, including the bonus?

Q.9. Wayne works part-time for Sparkler Lighting Co. assembling lamps. He is paid the following
daily piecework rates:
• for the first 50 lamps $1.45/lamp
• for each lamp over 50 and up to 70 $1.60/lamp
• for each lamp over 70 $1.90/lamp
The table shows the number of lamps he assembled in a particular week. Calculate Wayne’s earnings
for the week.

. a) $1398.25 b) $1568.12 9. $433.40