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Rates of Pay

Rates of Pay

Pay is the amount of money paid to a person for performing a task or job. The Rate of Pay is the amount that the person receives for a unit amount of time, normally an hour.

The amount per hour is multiplied by the number of hours worked to obtain the final amount due to the worker.

This can be expressed as a formula:

Amount Paid = Rate of Pay x Hours Worked.

In some instances, the amount per hour is increased for extra hours or for working at more unusual times. This is normally a multiplier to the rate and can be expressed as time-and-a-half (when the multiplier is 1.5) or double-time (when the multiplier is 2).

Example 1

Poppy is paid £11.40 per hour. Last week she received £421.80 in pay.

How many hours did she work?

Paid = Rate of Pay x Time worked
Substitute: 421.80 = 11.40 x hours`
Divide both sides by 11.40: = 37

Answer: 37 hours

Example 2

Sophia is paid at the rate of £12.20 per hour. Last week, she worked 40 hours. Three of these were overtime hours, where she was paid at time-and-a-half.

What was her take-home pay?

Her normal hours were 37 (as 3 hours were overtime).

Pay for normal hours was 37 x 12.20 = 451.40

Pay for overtime hours = 3 x 12.20 x 1.5 = 54.90

451.40 + 54.90 = 506.30

Answer: £506.30