Unit 2 - Finance Salaries and Piecewise Earnings

Salary When you get paid by a salary, you get paid the same amount on each pay check (doesn’t depend on how much work you do). Can have weekly, bi-weekly (every 2 weeks), monthly and annual (yearly) salaries Tends to be for jobs that require you to have special training after high school

Salary Very predictable how much you will earn (nice for budgeting!) Doesn’t reward you for working extra hard

Key Facts There are 12 months in a year There are 52 weeks in a year You can’t assume that there are 4 weeks in a month (4 weeks x 12 months = 48 weeks in a year… this loses 4 whole weeks!)

Calculating Salary Annual Monthly Weekly Can’t convert directly!

Example Dennis earns $2 800 a month. How much does he earn per week? $2 800 x 12 = $ / year $ / 52 = $ Make sure you round properly (don’t cut off cents!)

Biweekly Biweekly salaries mean getting paid every two weeks. 52 weeks per year means 26 biweekly pays –Multiply weekly salary by 2 –Divide annual salary by 26

Example Dennis earns $2 800 a month. How much does he earn biweekly? $2 800 x 12 = $ / year $ / 26 = $ biweekly

Piecewise Earnings Getting paid piecewise means that you get paid per piece or unit of work you do Ex – get paid for every chair you make or every basket of berries you pick

Piecewise Rewards hard work (the more you work, the more you earn) Less predictable income (something could go wrong that you can’t control and you’ll earn less)

Example Clara works part-time as a seamstress. She gets paid $5 for every pair of pants she hems. Last weekend, she hemmed 17 pairs of pants. How much did she earn? 17 x $5 = $85 earned