Mathematics Standard • Year 11 • Module 3 • Lesson 4

Pay Slips, Reading and Calculating

Build fluency in reading pay slips: gross pay, net pay, working forwards (gross to net) and backwards (net to gross).

Build · Skill Drill

1. Quick recall

Answer each question in the space provided. 1 mark each

Q1.1 State in one sentence the difference between gross pay and net pay.

Q1.2 Complete the pay slip formulas:

Net pay = Gross pay ____________ Total deductions

Gross pay = Net pay ____________ Total deductions

Q1.3 Should YTD (year-to-date) figures be used when calculating current pay-period gross or net pay? Circle one and give a one-sentence reason.

Yes / No, Reason:

Stuck? Revisit lesson § Anatomy of a Pay Slip.

2. Worked example, gross pay from a fortnightly pay slip

Follow each line. Every step has a reason on the right.

Problem. Hana works as a hospitality supervisor. This fortnight she worked 76 ordinary hours at $27.50/hr, 6 hours of overtime at time-and-a-half, plus a meal allowance of $18.00 per day for 10 days. Calculate her gross pay for the fortnight.

Step 1, Ordinary pay.

Ordinary = $27.50 × 76 = $2,090.00

Step 2, Overtime rate.

r_OT = $27.50 × 1.5 = $41.25/hr

Step 3, Overtime pay.

Overtime = $41.25 × 6 = $247.50

Step 4, Meal allowance.

Allowance = $18.00 × 10 = $180.00

Reason: $18 per day × 10 working days.

Step 5, Sum every line.

Gross = $2,090.00 + $247.50 + $180.00 = $2,517.50

Conclusion. Fortnightly gross pay = $2,517.50.

3. Faded example, working backwards from net pay

Luca's pay slip shows a net pay of $1,643.20. His fortnightly deductions are: PAYG tax $482.00 and superannuation (salary sacrifice) $148.80. Calculate his gross pay. Fill the blanks. 3 marks

Step 1, Sum the deductions:

Total deductions = $482.00 + $148.80 = $ ____________

Step 2, Apply the reverse formula (Gross = Net + Deductions):

Gross = $1,643.20 + $ __________ = $ ____________

Step 3, Check by working forwards:

Check: $ __________ − $ __________ = $1,643.20 ✓

Stuck? Revisit lesson § Worked Example 2, Working Backwards From Net Pay.

4. Graduated practice, pay slip calculations

Show your working in the space below each part. Keep dollar amounts to 2 decimal places.

Foundation, direct gross/net (4 questions)

Q	Problem	Answer
4.1 1	A pay slip shows gross pay $1,740 and total deductions $385.60. Calculate the net pay.
4.2 1	A pay slip shows gross pay $1,620 and total deductions $280. Calculate the net pay.
4.3 1	An employee's net pay is $1,055 and total deductions are $245. Calculate the gross pay.
4.4 1	A pay slip lists ordinary pay $1,248.00, overtime $186.50, allowance $64.00. Calculate the gross pay.

Standard, typical HSC difficulty (6 questions)

Show at least one line of substitution and clearly label your final answer with units.

4.5 An employee's net pay is $1,782.40. Deductions are tax $436.00 and union fees $16.40. Calculate the gross pay. 2 marks

4.6 A pay slip shows: 38 hours at $26.00/hr, 4 hours overtime at time-and-a-half, and $32 allowance. The overtime is recorded as $104.00. Identify the error and calculate the correct gross pay. 3 marks

4.7 A pay slip lists 40 hours at $21.50/hr ordinary and 3 hours at time-and-a-half, with overtime recorded as $64.50. Is the overtime correct? If not, state the correct value. 2 marks

4.8 An employee's net pay is $2,108.40. PAYG tax is $614.00 and salary sacrifice super is $227.60. Calculate the gross pay. 2 marks

4.9 A pay slip shows gross pay $1,986.40. Deductions are tax $412.00, union fees $18.40, and salary sacrifice super $96.00. Calculate the net pay. 2 marks

4.10 A worker's pay slip shows ordinary pay (38 hrs × $28.00) = $1,064.00, overtime (4 hrs × $42.00) = $168.00, meal allowance (5 days × $18.00) = $90.00, PAYG tax −$286.00. Calculate the gross pay and net pay. 3 marks

Extension, multi-error pay slip + back-calc (2 questions)

4.11 A pay slip records: ordinary pay (38 hrs × $24.00) = $912.00, overtime (4 hrs at time-and-a-half) = $96.00, tool allowance (5 days × $14.50) = $72.50, gross pay = $1,080.50. (a) Identify the error. (b) Calculate the correct gross pay. 3 marks

4.12 A worker's net fortnightly pay is $2,140.50. Deductions are PAYG tax $586.50 and union fees $22.50. The pay slip also shows ordinary pay (76 hrs × $r) plus a meal allowance of $90.00, and no overtime. Find the hourly rate r. 3 marks

Stuck on 4.12? First get gross from net+deductions, then subtract the meal allowance, then divide by 76.

5. Self-check the easy 3

Tick the first three once you've checked your method works.

For 4.1 I subtracted deductions from gross (not added) to find net.

For 4.3 I added deductions to net (not subtracted) to find gross.

For 4.4 (gross from components) I added ordinary + overtime + allowance, no deductions involved.

How did this worksheet feel?

Got it Partly Lost

What I'll revisit before next class:

Answers, Do not peek before attempting

Q1.1, Gross vs net

Gross pay is total earnings before any deductions. Net pay is the amount the worker actually receives in their bank account after all deductions are subtracted.

Q1.2, Pay slip formulas

Net pay = Gross pay − Total deductions. Gross pay = Net pay + Total deductions.

Q1.3, YTD figures

No. YTD figures are cumulative totals since the start of the financial year, so they don't represent the current pay period. Use only the current-period column unless explicitly asked.

Q3, Faded example (back-calc to gross)

Step 1: Total deductions = $482.00 + $148.80 = $630.80.
Step 2: Gross = $1,643.20 + $630.80 = $2,274.00.
Step 3: Check: $2,274.00 − $630.80 = $1,643.20 ✓.

Q4.1, Net pay

Net = $1,740 − $385.60 = $1,354.40.

Q4.2, Net pay

Net = $1,620 − $280 = $1,340.00.

Q4.3, Gross from net

Gross = $1,055 + $245 = $1,300.00.

Q4.4, Gross from components

Gross = $1,248.00 + $186.50 + $64.00 = $1,498.50.

Q4.5, Gross from net (2 deductions)

Total deductions = $436.00 + $16.40 = $452.40.
Gross = $1,782.40 + $452.40 = $2,234.80.

Q4.6, Overtime error

Error: $104 = $26 × 4, the 1.5 multiplier was not applied.
Correct OT rate = $26.00 × 1.5 = $39.00/hr.
Correct OT pay = $39.00 × 4 = $156.00.
Ordinary = $26.00 × 38 = $988.00.
Correct gross = $988.00 + $156.00 + $32.00 = $1,176.00.

Q4.7, Overtime check

No, $64.50 is incorrect. The pay slip used the base rate: $21.50 × 3 = $64.50.
Correct: OT rate = $21.50 × 1.5 = $32.25/hr. Correct OT pay = $32.25 × 3 = $96.75.

Q4.8, Gross from net

Total deductions = $614.00 + $227.60 = $841.60.
Gross = $2,108.40 + $841.60 = $2,950.00.

Q4.9, Net pay

Total deductions = $412.00 + $18.40 + $96.00 = $526.40.
Net = $1,986.40 − $526.40 = $1,460.00.

Q4.10, Gross and net

Gross = $1,064.00 + $168.00 + $90.00 = $1,322.00.
Net = $1,322.00 − $286.00 = $1,036.00.

Q4.11, Multi-line error

(a) The recorded gross $1,080.50 = $912 + $96.00 + $72.50, but the OT line $96.00 = $24 × 4 (no 1.5 multiplier).
Correct OT rate = $24 × 1.5 = $36/hr → OT pay = $36 × 4 = $144.00.
(b) Correct gross = $912.00 + $144.00 + $72.50 = $1,128.50 (the worker was underpaid by $48 on overtime).

Q4.12, Find the hourly rate

Total deductions = $586.50 + $22.50 = $609.00.
Gross = $2,140.50 + $609.00 = $2,749.50.
Ordinary pay = Gross − Allowance = $2,749.50 − $90.00 = $2,659.50.
Hourly rate r = $2,659.50 ÷ 76 = $35.00/hr.