Ways People Are Paid

Gross Pay The amount of money a person earns before deductions. The number of hours worked x the amount of money earning per hour.

Net Pay The amount of money a person receives in their paycheck – also known as “take–home” pay Required deductions – federal income tax and social security

Minimum Wage The least amount of money that an employer may pay a person per hour. This is set by the Federal Government. The minimum wage today is $5.15 per hour, except for waiters and waitresses, which is $2.13 per hour

Wages The amount of money a person receives per hour worked Example: The people who are paid by the hour- store clerks, construction workers, plumbers…

Salary A set amount of money a person receives per month or year, no matter how many hours it takes them to do the job. Example: Teachers

Commission Receiving a certain percentage of the amount of money that a person brings into the company. Examples: Real Estate Brokers, Car Salesman, some clothing salespersons

Piece Work The amount of money that a person receives for each item they put together. This person usually has a quota to reach each week or month, and receives additional money for each item completed beyond that number. Example: Factory Line workers

Overtime Pay When a person works more than 40 hours in a week. That person receives 1 ½ times their regular pay for each hour over 40. Example – Regular pay $6.00 per hour. For every hour over 40 – receives $9.00 per hour.

Holiday Pay Some employers will pay employees double their regular wage if they will work on days like Thanksgiving, Christmas, Easter and the Fourth of July.

Raises Merit Raise – a raise given based on one’s performance on the job. Cost of Living Raise – given to everyone, when the cost of living is increasing. Bonus – Additional income given at a one time occurrence. - Christmas Bonus, for the military – a re-enlistment bonus

Paid Time Off When an employee receives their pay and not be at work. Holidays – each employer gives different holidays Sick Leave – either when you or your family members are sick

Paid Time Off Vacation – can be paid or not paid, depending on the employer. Most employers given at least one week vacation Personal Leave – absent from work to take care of personal business.

Other Leave Maternity Leave – up to six weeks – paid or not paid, depends on employer Military Leave – when an employee is called to active duty

Other Leave Jury Duty – when a person receives a summons for jury duty Family Medical Leave – up to 12 weeks, unpaid leave due to a serious illness in the family.