Functional Skills Maths: Wages

Calculate pay and understand take-home pay

What are Wages?

  • Wages are money paid for doing work.
  • Hourly pay: multiply hours worked × hourly rate.
  • Example: 5 hours × £8 per hour = £40.
  • You may also be paid a daily or weekly rate.

Deductions

  • Deductions are amounts taken away from your wages.
  • Common deductions: income tax, national insurance.
  • Take-home pay = gross wages − deductions.
  • A payslip shows your wages and deductions.

Working Out Pay

  • Always check your payslip to make sure it is correct.
  • If you work overtime, you may earn extra.
  • Minimum wage laws mean there is a lowest legal hourly rate.

Worked Examples

Example 1: 8 hours at £9.50/hour

  1. Multiply hours by rate: 8 × £9.50.
  2. 8 × £9 = £72. 8 × £0.50 = £4.
  3. £72 + £4 = £76.
  4. Gross pay: £76

Example 2: Take-home pay

  1. Gross wage: £300.
  2. Deductions: tax £40, national insurance £20 = £60 total.
  3. Take-home pay: £300 − £60 = £240.

Practice Questions

  • 6 hours at £10 per hour = ?
    Hint: 6 × £10.
    Answer: £60
  • Wage £250. Tax £40. Take-home pay?
    Hint: £250 − £40.
    Answer: £210
  • 5 days at £60 per day = ?
    Hint: 5 × £60.
    Answer: £300
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