Time Rates Example

(a) Basic wage for a standard 38-hour week is £76. Overtime is paid at time and a half. Ten hours' overtime a week is guaranteed to be available. Five hours' overtime is compulsory.

(b) Basic wage for a standard week of 42 hours is £84. Overtime is paid

at time and a half. Eight hours' overtime a week is guaranteed, of which three hours are compulsory.

A person is willing to work 45 hours per week. Which employer will pay him the larger weekly wage?

Answer (a) £76 + (7 x £30) = £97

(b) £84 + (3 x £30) = £93

So (a) will pay more.

In certain large organisations overtime rates are calculated on a rising scale, e.g. first hour per week at standard hourly rate, second hour at time and a quarter, remainder at time and a half. Overtime in clerical and administrative occupations is uncommon.

Time Rates

The most commonly understood basis for remuneration is the time rate. The employer agrees to pay and the worker to accept a stated amount of money for a specified period of work. The period selected can be an hour, day, week, month or year, according to the nature and regularity of the work and the status of the employee. An office worker, for instance, will usually work for an agreed sum per year, called a salary. He or she will draw one-twelfth of this sum each calendar month, irrespective of the number of days in the month. Although there may be a requirement regarding minimum hours to be worked... see: Time Rates

Personal And Business Finance 2018

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