GM Lesson 005 Overtime and Allowances

Learning Intentions

• Calculate wages involving overtime rates.
• Calculate earnings involving fixed or variable allowances.
• Interpret total pay in situations with multiple types of earnings.

Prerequisites

Students should already be able to:

• calculate wages from an hourly rate
• multiply decimal money amounts by whole numbers
• interpret rates such as $/hour, $/shift or $/km
• calculate a percentage or multiplier of a quantity
• organise a multi-step wage calculation clearly

Key Idea Summary

Ordinary pay is the amount earned for standard working hours.

Overtime pay is extra pay for hours worked beyond ordinary hours. Overtime is often paid using a multiplier, such as:

• time-and-a-half:
• double time:

An allowance is an extra payment added to wages. Allowances may be:

• fixed, such as a $20 meal allowance
• variable, such as $0.85 per kilometre travelled
• repeated, such as $15 per shift

The key structure is:

A useful wage calculation sequence is:

1. Calculate ordinary pay.
2. Calculate each overtime rate.
3. Calculate overtime pay.
4. Calculate each allowance.
5. Add all earnings to find total pay.

Direct Instruction and Worked Examples

Time Allocation

Time Allocation

Time Allocation

• Introduction, warmup and vocabulary: 5 minutes
• Direct instruction: 15 minutes
• Understanding checks: 5 minutes
• Exercises: 20 minutes
• Homework: 20 to 30 minutes outside the lesson it was taught in.

Link to original

Direct Instruction

A worker may earn different amounts for different parts of their work.

Ordinary hours are paid at the standard hourly rate.

For example, if a worker earns $28 per hour and works ordinary hours, then:

So the ordinary pay is $1064.

Overtime hours may be paid at a higher rate.

If the ordinary hourly rate is $28 and overtime is paid at time-and-a-half, then:

So the overtime rate is $42 per hour.

Allowances are then added after ordinary pay and overtime pay have been calculated.

Worked Example 1: Overtime at Time-and-a-Half

Nina earns $28 per hour. She works ordinary hours and overtime hours at time-and-a-half.

Calculate her total pay.

Ordinary pay:

Overtime rate:

Overtime pay:

Total pay:

Nina’s total pay is $1274.

Worked Example 2: Fixed Allowance Per Shift

Ben earns $31 per hour and works hours. He also receives a first-aid allowance of $18.50 per shift for shifts.

Calculate his total pay.

Ordinary pay:

Allowance:

Total pay:

Ben’s total pay is $1190.

Worked Example 3: Multiple Overtime Rates and Allowances

Mia earns $26.40 per hour. In one week, she works:

• ordinary hours
• overtime hours at time-and-a-half
• overtime hours at double time
• meal allowances of $18.50
• travel allowance of $0.78 per kilometre for km

Calculate her total pay.

Ordinary pay:

Time-and-a-half rate:

Time-and-a-half overtime pay:

Double-time rate:

Double-time overtime pay:

Meal allowances:

Travel allowance:

Total pay:

Mia’s total pay is $1397.80.

Understanding Checks

Check 1

A worker earns $30 per hour. What is their overtime rate at time-and-a-half?

Expected reasoning:

The overtime rate is $45 per hour.

Check 2

A worker earns $24 per hour. What is their overtime rate at double time?

Expected reasoning:

The overtime rate is $48 per hour.

Check 3

A worker receives a tool allowance of $12 per shift for shifts. What is the total allowance?

Expected reasoning:

The total allowance is $60.

Check 4

Explain why the following calculation is incomplete for a worker who has ordinary hours, overtime and a travel allowance:

Expected explanation:

This calculation only finds ordinary pay. It does not include overtime pay or the travel allowance.

Exercises

Simple Familiar Exercises

Exercise 1

A worker earns $25 per hour and works ordinary hours.

Calculate the ordinary pay.

Exercise 2

A worker earns $32 per hour. Overtime is paid at time-and-a-half.

Calculate the overtime hourly rate.

Exercise 3

A worker earns $29 per hour. Overtime is paid at double time.

Calculate the overtime hourly rate.

Exercise 4

A worker earns $27 per hour and works ordinary hours plus overtime hours at time-and-a-half.

Calculate the total pay.

Exercise 5

A worker receives a meal allowance of $16 per overtime shift. They work overtime shifts.

Calculate the total meal allowance.

Exercise 6

A worker earns $30 per hour and works ordinary hours. They also receive a fixed allowance of $45.

Calculate the total pay.

Complex Familiar Exercises

Exercise 7

A worker earns $28.50 per hour. In one week, they work ordinary hours and overtime hours at time-and-a-half.

Calculate their total pay.

Exercise 8

A worker earns $34 per hour. They work ordinary hours and overtime hours at double time. They also receive a laundry allowance of $22.

Calculate their total pay.

Exercise 9

A worker earns $26.75 per hour. They work ordinary hours, overtime hours at time-and-a-half and receive a travel allowance of $0.82 per kilometre for km.

Calculate their total pay.

Exercise 10

A worker earns $31.20 per hour. They work ordinary hours, overtime hours at time-and-a-half and overtime hours at double time.

Calculate their total pay.

Homework Problems

Problem 1

A worker earns $23.50 per hour and works ordinary hours.

Calculate the ordinary pay.

Problem 2

A worker earns $27 per hour. They work ordinary hours and overtime hours at time-and-a-half.

Calculate the total pay.

Problem 3

A worker earns $35 per hour. They work ordinary hours and overtime hours at double time.

Calculate the total pay.

Problem 4

A worker receives a first-aid allowance of $21.50 per shift for shifts.

Calculate the total allowance.

Problem 5

A technician earns $32.60 per hour. In one week, they work:

• ordinary hours
• overtime hours at time-and-a-half
• overtime hours at double time
• a tool allowance of $48

Calculate the technician’s total pay.

Problem 6

A worker earns $29.80 per hour. They work hours in total. The first hours are ordinary hours, and the remaining hours are paid at time-and-a-half. They also receive a travel allowance of $0.88 per kilometre for km.

Calculate the worker’s total pay.

Next: GM Lesson 006 Commission and Piecework Earnings