Calculating Gross Pay Gross pay is calculated as follows:
Gross pay = basic pay + overtime/commission/bonus Example 1
Karl Jackson works in a shop. He receives time and a half if he works overtime. His basic pay is €624 for a 39-hour week.
If Karl worked five hours overtime in a week, his gross pay for that week would be calculated using the following steps:
1. To work out Karl’s time-and-a-half rate, first figure out how much his basic pay is per hour. This is done by dividing his basic pay by the number of hours he worked:
Basic pay per hour: 624 ÷ 39 = €16
2. Karl’s hourly rate is then multiplied by 1.5 to get his time-and-a-half rate: 16 × 1.5 = €24 per hour
3. The time-and-a-half rate is then multiplied by the five extra hours Karl worked: 24 × 5 = €120
4. Finally, Karl’s basic and overtime pay are added together to get his total gross pay: 624 + 120 = €744
Example 2
Jane Smyth works as a retail salesperson. Her basic wage is €350 a week. She earns 3% commission on the total of items she sells.
If Jane sold €1,000 of items in a week, her gross pay for that week would be worked out by calculating her commission and then adding it to her basic pay.
Basic pay
Commission 3% sales Commission: €1,000 ÷ 100 × 3
Gross pay €350 €30 €380 A
Go to page 10 of your Activities and Accounts Book to practise calculating gross pay. Calculating gross pay
