MEL3E
Mathematics for Work and Everyday Life
Unit 1: Work
Activity 2: Pay Schedules and Job Benefits
If you have the opportunity to take two or more different jobs, there are a lot of factors to consider. One important consideration is the financial perspective: how much money will you be paid in each job? However, a straight salary calculation doesn’t always tell the whole picture. Some jobs offer financial bonuses that can tip the financial balance in their favour.
Benefits
The slideshow below presents examples of some of the benefits an employer might offer. Depending on your situation, these benefits could offer a significant financial bonus.
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Vacation PayThe Employment Standards Act (ESA) requires that employers pay their employees a minimum of 4% vacation pay. That means that you receive a bonus of 4% of your regular salary. In a year that amounts to about 2 weeks of salary. Vacation pay can be paid when you take vacation time (ESA sets minimum vacation time to 2 weeks per year) or instead can be added to each paycheque. If an employer is offering you more than the minimum 4% vacation pay, that effectively increases your salary. |
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Benefit PlansSome employers offer benefit programs that can cover the costs of prescription drugs and medical costs not covered under Ontario’s Health Insurance Program (OHIP). These plans can cover up to 100% of drug costs which can be considerable. Prescription medications can be very expensive. For example, a high end asthma inhaler can cost in the area of $180.00/month. A drug plan covering a high percentage of these costs can be an important financial factor to consider. |
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Profit Sharing PlansSome companies set aside a portion of their profits that they then distribute to their employees. How much an employee receives from these profit-sharing plans is usually tied to their annual salary. |
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Pension PlanWhen you’re just starting out, retirement can seem like a long way off, but a company offering a pension plan can be a significant financial bonus. With these plans, the employer contributes to a fund that will provide income for its employees when they retire. Company pension plans usually involve an employee also paying into the plan. This means that money will be deducted from each of your paycheques to cover your portion of the pension contribution. |
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Training and CertificationsSome employers will pay for you to get certain training and certifications. Often, these certifications can increase your hourly rate. If this is training you were thinking about getting, these employer programs can be a significant advantage and these certifications can help you move into higher paying positions within the company or can be an asset to help you find another job in your industry. |
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Other PerksEmployee discounts, housing allowances, clothing allowance, travel expenses, on-site child care, isolation allowance and per diems are just some of the other financial perks that a company can offer. You should carefully consider how these perks could impact your finances. |
A per diem is the amount of money an employer would give you for meals and mileage if your job requires you to travel.
Remuneration or Pay Schedules
Once you have a full picture of how much you will be paid, it's also important to consider when you will be paid. A remuneration schedule (or pay schedule) describes when and how often you will receive your paychecks. The most common remuneration schedules are:
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Weekly |
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Bi-weekly |
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Semi-monthly |
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Monthly |
Exploring Pay Schedules
For the following exploration, download this yearly calendar or find one online for the current year.You will need to either print the calendar to write on it by hand or use a photo-editing program (Photoshop, GIMP, Microsoft Paint).
On the Calendar
- draw a circle in the box for every other Friday to identify the bi-weekly pay dates.
- draw a square in the box for the 15th and the last day of every month to show a semi-monthly pay schedule.
- draw a triangle in the box for the last day of every month to show monthly pay dates.
Consider
Answer the following questions:
- In a year, how many pays are there for a semi-monthly pay schedule?
- In a year, how many pays are there for a bi-weekly pay schedule?
- In a year, how many pays are there for a monthly pay schedule?
- Look closely at the number of pays per month with a bi-weekly schedule. What do you notice?
- Why do some people say that with a bi-weekly schedule you get 'extra pays'? Do you agree with that? Why or why not?
Exploring Expenses
It's also important to consider how the pay schedule matches up with your expenses so that you have the money to pay your bills when they are due. Some expenses are billed monthly, while others have to be paid every week.
Monthly Expenses
Some expenses are on a monthly schedule, such as car payments, utilities (heat, hydro, water, etc.), rent or a mortgage.
On the Calendar
Imagine that you have two monthly payments, one that is due on the 5th and another that is due on the 13th.
- draw a star on the 5th of every month
- draw a star on the 13th of every month
Consider
Look at the pay dates for bi-weekly, semi-monthly and monthly pay schedules on the calendar and answer the following questions:
- Which pay schedule do you think works best for planning to pay these monthly expenses? Why?
- Which pay schedule would be the worst for dealing with monthly expenses? Why?
Weekly Expenses
Some expenses, like groceries, gas and childcare must be paid every week.
On the calendar:
- underline the date for every Friday on the calendar.
Consider
Look at the pay dates for bi-weekly, semi-monthly and monthly pay schedules on the calendar and answer the following questions:
- Which pay schedule do you think works best for planning to pay weekly expenses? Why?
- Which pay schedule would be the worst for dealing with weekly expenses? Why?
Emergency Expenses
Sometimes expenses that you hadn’t considered come up unexpectedly. You need new brakes for your car, or you must take an unplanned trip. If you don’t have the cash on hand to pay for these expenses, how will you pay for them?
On Your Calendar:
Imagine you had an emergency expense like this on August 8th.
- draw an x through August 8th.
Consider
Look at the pay dates for bi-weekly, semi-monthly and monthly pay schedules on the calendar and answer the following questions:
- Which pay schedule do you think works best for planning to pay emergency expenses? Why?
- Which pay schedule would be the worst for dealing with emergency expenses? Why?
Factors Important to Me
Which remuneration types and remuneration schedules are most important to you when looking for a job?
Create a mind map of the different components of earnings and pay schedules (you can use this template). You can create the mind map by hand (scan, photograph), use software (powerpoint, fireworks, photoshop, Microsoft Paint) or online tools (ex. Mindomo, Mindmup).
When considering a job, which of these factors is most important to you? Which factor is least important to you?
Put 5-8 of these factors on a mind map.
| Remuneration Type (draw with an oval) | Remuneration Schedule (draw with a rectangle) |
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- Place the factors that are more important to you closer to the center of the mind map.
- Place the factors that are less important to you further away from the center of the mind map.
- Draw a line from each of the factors to the center.
- On the line between the factor and the center, explain why this factor is important, somewhat important or not important to you.
Introduction
Learning Goals and Success Criteria