Wages, Salaries and Pay Periods
Understand the difference between wages and salaries, convert pay across common time periods, and compare job offers fairly. All pay period conversions flow through annual salary — master that hub and the rest is arithmetic.
Practise this lesson
Three printable worksheets that build from foundations to mastery — or build your own from any module’s questions.
If two friends both earn "$80,000 a year," but one gets paid weekly and the other monthly, do they actually take home the same amount each pay? What if one of them is paid by the hour — how would you even compare them?
Before calculating — write your gut feeling. We will revisit this at the end of the lesson.
All pay period conversions in Maths Standard flow through annual salary as the hub. Lock these conversions in — every Financial Mathematics question builds from them.
Weekly wage = hourly rate × hours worked. Annual = weekly × 52. To go to any other period: divide annual by the number of that period in a year (26 fortnights, 12 months).
Key facts
- The difference between a wage and a salary
- The key conversion formulas: weekly, fortnightly, monthly, annual
- That there are 52 weeks, 26 fortnights and 12 months in a year
- That "monthly pay = weekly × 4" is incorrect
Concepts
- Why all pay period conversions flow through annual salary
- How to identify the pay unit given and the pay unit required
- Why some months have 5 weeks and the impact on conversions
Skills
- Calculate weekly, fortnightly, monthly and annual pay from any given rate
- Reverse-calculate an hourly rate from an annual salary
- Compare two job offers expressed in different pay units
A wage earner is paid per hour. If they work more hours, they earn more; if they work fewer, they earn less. A salary earner receives the same total pay each year no matter how many hours they work.
| Feature | Wage | Salary |
|---|---|---|
| Pay basis | Per hour worked | Fixed annual amount |
| More hours = more pay? | Yes | No |
| Common in | Retail, hospitality, trades | Professional, management roles |
| Quoted as | $/hr or $/week | $/year (per annum) |
What to write in your book
- Wage: paid per hour (variable). Salary: fixed annual amount (same each pay regardless of hours).
- Conversion hub: all periods flow through annual. $A = W \times 52$. $F = A \div 26$. $M = A \div 12$.
- Monthly pay: never use weekly × 4. Always divide annual by 12.
Quick check: To convert a weekly wage of $980 to an annual salary, which operation is correct?
The cleanest method is to always convert to annual first, then to the target period. This avoids rounding errors that build up when converting directly.
| From → To | Operation |
|---|---|
| Hourly → Weekly | × hours per week |
| Weekly → Annual | × 52 |
| Annual → Weekly | ÷ 52 |
| Annual → Fortnightly | ÷ 26 |
| Annual → Monthly | ÷ 12 |
What to write in your book
- Hub method: always convert to annual first. $A = W \times 52$. Then: $F = A \div 26$; $M = A \div 12$.
- To find hourly rate from annual: $r_h = A \div 52 \div h$ (where $h$ = hours per week).
- Always use 52 weeks unless the question explicitly states a different number.
True or false: Monthly pay is correctly calculated by multiplying weekly pay by 4.
Worked examples · 4 in a row, reveal as you go
Priya works 38 hours per week at $26.40 per hour. Calculate her annual income.
Marcus earns an annual salary of $84,500. What is his fortnightly pay? Give your answer to the nearest cent.
Job A pays $58,240 per year. Job B pays $23.20 per hour for 40 hours per week. Which job pays more annually?
An apprentice earns a salary of $61,152 per year and works 36 hours per week. Calculate the equivalent hourly rate, correct to the nearest cent.
What to write in your book
- Comparing jobs: convert both to annual before comparing. State a conclusion with numbers.
- Hourly from annual: $r_h = (A \div 52) \div h$. Always divide annual by 52 first, then by hours per week.
- Round only at the final step to maintain accuracy throughout.
Fill the gap: An annual salary of $65,000 gives a fortnightly pay of $ (because there are 26 fortnights in a year).
Common errors · the 3 traps that cost marks
What to write in your book
- Monthly pay: never weekly × 4. Use annual ÷ 12.
- Fortnights per year: 26 (not 24, not 25).
- Comparison questions need a conclusion sentence with the dollar difference.
Match each conversion: Select the correct operation for each.
Quick-fire practice · 4 calculations
Leah earns $29.40 per hour and works 32 hours each week. Calculate her weekly pay and annual income.
Job A offers a salary of $63,500 per year. Job B pays $31.25 per hour for 38 hours per week. Which job pays more annually, and by how much?
A graduate role pays $74,880 per year for a 39-hour work week. Calculate the equivalent hourly rate, correct to the nearest cent.
Convert an annual salary of $58,500 to: (a) weekly, (b) fortnightly, (c) monthly.
Top 3 list: Name THREE facts that could cause an error when converting between pay periods (e.g. a number that students get wrong).
Look back at what you wrote in the Think First section. The two friends both earn $80,000 per year so their annual income is identical. What differs is the amount each pay day — but over a year it sums to the same figure. The hourly worker needs both an hourly rate AND hours worked before you can compare: $26 × 38 × 52 = $51,376 per year.
What has changed? What did you get right? What surprised you?
Pick your answer, then rate your confidence — that tells the system what to drill next. Each retry pulls a fresh mix from the bank.
SA 1. Leah earns $29.40 per hour and works 32 hours each week. Calculate (a) her weekly pay and (b) her annual income. (2 marks)
SA 2. Job A offers a salary of $63,500 per year. Job B pays $31.25 per hour for 38 hours per week. (a) Calculate the annual pay for Job B. (b) Which job pays more annually, and by how much? (3 marks)
SA 3. A graduate role pays $74,880 per year for a 39-hour work week. Calculate the equivalent hourly rate, correct to the nearest cent. (2 marks)
Comprehensive answers (click to reveal)
Drill 1: Weekly = $29.40 × 32 = $940.80; Annual = $940.80 × 52 = $48,921.60
Drill 2: Job A = $63,500. Job B weekly = $31.25 × 38 = $1,187.50; annual = $1,187.50 × 52 = $61,750. Job A pays more by $1,750 per year.
Drill 3: Weekly = $74,880 ÷ 52 = $1,440. Hourly = $1,440 ÷ 39 = $36.92/hr
Drill 4: (a) $58,500 ÷ 52 = $1,125/week (b) ÷ 26 = $2,250/fortnight (c) ÷ 12 = $4,875/month
SA 1 (2 marks): (a) $29.40 × 32 = $940.80 [1] (b) $940.80 × 52 = $48,921.60 [1]
SA 2 (3 marks): (a) Weekly = $31.25 × 38 = $1,187.50; annual = $1,187.50 × 52 = $61,750 [2] (b) $63,500 − $61,750 = $1,750; Job A pays more by $1,750 per year [1]
SA 3 (2 marks): Weekly = $74,880 ÷ 52 = $1,440 [1]; Hourly = $1,440 ÷ 39 = $36.92/hr [1]
Five timed questions on wages, salaries and pay period conversions. Beat the boss to bank a tier — gold (90% + speed), silver (75%), or bronze (50%). Replays welcome.
⚔ Enter the arenaClimb platforms by answering questions on wages, salaries and pay periods. Pool: lesson 1.
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