1. The reward for work

2. 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

4. 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)

5. 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)