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Read and interpret a pay slip, calculate gross and net pay, and check whether the recorded figures are correct.
Have you ever looked at a pay slip and wondered why the amount deposited into your bank account is so much less than what you thought you'd earn? A pay slip isn't just a receipt — it's a legal document that records exactly how your pay was calculated. If something is wrong, you need to be able to spot it. Before we go through the maths, think: what information would you expect a pay slip to show, and what might your employer legally be required to include?
Type your initial response below — you will revisit this at the end of the lesson.
Write your initial response in your book. You will revisit it at the end of the lesson.
Come back to this at the end of the lesson.
Wrong: Gross pay on a pay slip is the amount that goes into your bank account.
Right: Gross pay is total earnings before deductions. Net pay is what you actually receive after tax, superannuation, and other deductions are subtracted.
Core Content
A pay slip is a structured document — every line has a specific meaning, and knowing the vocabulary lets you check that you've been paid correctly.
Under Australian law, employers must provide a pay slip within one working day of each pay day. A standard pay slip contains:
Many workers receive pay from several sources in a single pay period — the pay slip lists each one separately, and gross pay is their sum.
A realistic pay slip for a full-time worker might include: ordinary hours, overtime hours at one or more penalty rates, a daily or weekly allowance, and possibly leave loading. The process is always the same:
In a 4-mark extended response question, each step is worth a mark — the final answer is usually worth only 1 of the 4. Showing complete working is therefore worth more than getting the number right.
Part of financial literacy is being able to check whether you've been paid correctly — a skill that's also directly tested in HSC questions.
A common HSC question format presents a completed pay slip with one or more errors and asks you to identify and correct them. Strategy:
Another format gives you the net pay and some deductions, and asks you to find the gross pay — in this case, work backwards:
$$\text{Gross pay} = \text{Net pay} + \text{Total deductions}$$Write one sentence summarising the main mathematical idea of this section.
Pay slip questions look busy, but they become much easier once you treat the document like a table of components instead of a paragraph of numbers.
The best approach is to separate the pay slip into three categories:
Then ask yourself one question: am I moving forward from earnings to gross to net, or am I moving backward from net to gross? That one decision usually tells you which operation to use.
Write one sentence summarising the main mathematical idea of this section.
Worked Examples
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, and received a meal allowance of $18.00 per day for 10 days. Calculate her gross pay for the fortnight.
Write one sentence summarising the main mathematical idea of this section.
Luca's pay slip shows a net pay of $1,643.20. His deductions for the fortnight are: PAYG tax withheld $482.00, superannuation $148.80. Calculate his gross pay.
Write one sentence summarising the main mathematical idea of this section.
A pay slip shows: 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. Identify the error and calculate the correct gross pay.
Write one sentence summarising the main mathematical idea of this section.
A pay slip shows gross pay of $1,986.40. Deductions are PAYG tax $412.00, union fees $18.40, and employee superannuation $96.00. Calculate the net pay.
Write one sentence summarising the main mathematical idea of this section.
Look back at what you wrote in the Think First section. What has changed? What did you get right? What surprised you?
A pay slips — reading and calculating problem requires you to analyse data, perform calculations, and interpret the result in context. Show all working and justify each step.
Check Your Understanding
Select the best answer for each question. Feedback appears after you choose.
5 random questions from a replayable lesson bank — feedback shown immediately
An employee's net pay is $2,108.40. PAYG tax is $614.00 and superannuation is $227.60. What is the gross pay?
A pay slip lists 40 hours at $21.50/hr ordinary time and 3 hours at "time-and-a-half." The overtime is recorded as $64.50. Is this correct?
A pay slip shows gross pay of $1,740.00 and total deductions of $385.60. What is the net pay?
These are the kinds of pay slip questions where organised working makes a big difference to marks.
A worker's pay slip shows ordinary pay of $1,248.00, overtime pay of $186.50, and allowances of $64.00. Calculate the gross pay.
An employee's net pay is $1,782.40. Their deductions are tax $436.00 and union fees $16.40. Calculate the gross pay.
A pay slip records 38 hours at $26.00/hr ordinary time and 4 overtime hours at time-and-a-half, but shows overtime pay as $104.00. Identify the mistake and calculate the correct gross pay if there is also a $32 allowance.
Treat each question like a fast pay slip audit: identify whether you need to add or subtract, then check if the result is sensible.
Which figure on a pay slip represents total earnings before deductions?
If net pay and deductions are known, how do you find gross pay?
A pay slip shows gross pay $1,620 and total deductions $280. What is the net pay?
Which figure should usually be ignored unless the question specifically asks about it?