What is it? Money coming in that you can spend. Income What is it? Money coming in that you can spend. Income comes in © Annie Patton Next slide

Aim of the Lesson To understand, what is meant by an income, the different types of incomes and how wages are calculated. © Annie Patton Next slide Previous Slide

Do you as a student have Income? What about presents from relatives? What about Pocket money? What about part time jobs? © Annie Patton Next slide Previous Slide

Employer and Employee An employer is an individual or business that has other people working for them for a reward, which is normally money but could also be goods. An employee is an individual, who works for an employer. A person, who works for themselves is said to be Self Employed. © Annie Patton Next slide Previous Slide

What income does an unemployed person have? Social welfare payments e.g. Job Seekers payments for unemployed people, pensions Also free electricity, telephone, medical card, free travel etc. Social welfare payments are money given to people by the government, because of the personal circumstances of those people. For example pensioners, unemployed people, handicapped people etc © Annie Patton Next slide Previous Slide

What income does an employee have? Wages Benefit in Kind. For example an employee is given a car that can be used for personal use or they are given a free holiday. Bonus. For example an employee is given extra pay because they worked hard or the firm is doing well. © Annie Patton Next slide Previous Slide

How is an employees wages calculated? Flat Rate. The employee is paid an agreed amount each week or month for working a certain number of hours. Piece Rate. The employee is paid by the number of items they produce. Time Rate. The employee is paid by the number of hours they work. Commission. The employee is given an extra payment based on the number of items sold, normally in addition to a flat rate. Benefit in kind. The employee is given non cash payments. For example a company car, a free holiday, a rent free house, a reduced rate loan. © Annie Patton Next slide Previous Slide

What income does a millionaire that is not employed have? Interest on savings Selling property for more than they bought it for. Getting Dividends from shares and selling them for more than they purchased them for. © Annie Patton Next slide Previous Slide

What is the difference in regular and irregular income? January February March © Annie Patton Next slide Previous Slide

Every employee is entitled to one of these. PAY SLIP Every employee is entitled to one of these. Date Week Number Employee’s Name Employee’s Number Employee's PPS Gross Pay Deductions Total Basic Overtime PAYE PRSI Union Subscription Pension Other Net Pay © Annie Patton Next slide Previous Slide

PPS (Personal Public Service) Number This is a unique number given to each employee by the government to identify them for tax and social welfare purposes. © Annie Patton Next slide Previous Slide

Statutory and Voluntary reductions Statutory Reductions These are reductions an employer must take out of their employees pay packet by law. Examples are Income tax known as Pay As You Earn (PAYE) and Pay Related Social Insurance (PRSI) Voluntary Reductions These are reductions that the employer takes from the employees pay packet with the permission of the employee. Examples are contributions to Pensions, Christmas Saving Schemes, Union Subscriptions © Annie Patton Next slide Previous Slide

inflation. Is she better off now? For her first pay packet Joan got €300 per week. In 5 years time Joan got €400 per week. Only if she can buy more now!!!! Don’t forget the cost of living will have gone up and what she could buy with €300 5 years ago, she may not be able to buy with €400 now. This rise in the cost of living is known as inflation. © Annie Patton Next slide Previous Slide

So what are the main points OF THE LESSON??? Income The End So what are the main points OF THE LESSON??? © Annie Patton Previous Slide