Mathematics Standard • Year 11 • Module 3 • Lesson 3

Commission, Piecework and Leave Loading

Build fluency in commission (flat, retainer-based, tiered), piecework and leave loading calculations.

Build · Skill Drill

1. Quick recall

Answer each question in the space provided. 1 mark each

Q1.1 Convert each percentage rate to a decimal:

2.5% = ____________     4% = ____________     17.5% = ____________

Q1.2 Write the piecework formula: Piecework pay = ______________ × ______________.

Q1.3 Complete the leave loading formula on a weekly wage W:

Leave loading = ____ × (W × ____)

Stuck? Revisit lesson § Key Formulas — Leave loading = 0.175 × (W × 4).

2. Worked example — retainer + commission

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

Problem. Daniela earns a weekly retainer of $620 and 2.8% commission on all sales. This week she sold $84,000 of cars. Calculate her total weekly earnings.

Step 1 — Convert the percentage to a decimal.

2.8% = 2.8 ÷ 100 = 0.028

Reason: percent → decimal by dividing by 100.

Step 2 — Calculate the commission.

Commission = $84,000 × 0.028 = $2,352.00

Step 3 — Add the retainer.

Total = $620.00 + $2,352.00 = $2,972.00

Conclusion. Weekly earnings = $2,972.00.

3. Faded example — tiered commission

James earns commission on a tiered structure: 3% on the first $15,000 of monthly sales, 4.5% on sales from $15,001 to $40,000, and 6% on sales above $40,000. In March he achieves $55,000 in sales. Fill the blanks. 4 marks

Step 1 — Tier 1 (first $15,000):

Tier 1 = $15,000 × 0.03 = $ ____________

Step 2 — Tier 2 (the $25,000 from $15,001 to $40,000):

Tier 2 = $ __________ × 0.045 = $ ____________

Step 3 — Tier 3 (sales above $40,000):

Tier 3 amount = $55,000 − $40,000 = $ __________

Tier 3 = $ __________ × 0.06 = $ ____________

Step 4 — Sum the three tiers:

Total commission = $ __________ + $ __________ + $ __________ = $ ____________

Stuck? Revisit lesson § Worked Example 2 — Tiered Commission.

4. Graduated practice — commission, piecework, leave loading

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

Foundation — single-formula application (4 questions)

QProblemAnswer
4.1 1Total sales $45,000 at a flat 3.5% commission. Find the commission.
4.2 1A worker is paid $1.80 per item. They make 245 items. Find their pay.
4.3 1An employee earns $980 per week. Find the leave loading on 4 weeks of leave (17.5%).
4.4 1What decimal should be used for a commission rate of 4.5%?

Standard — typical HSC difficulty (6 questions)

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

4.5 A salesperson receives a retainer of $540 plus 3.2% commission on sales. This week she made $48,000 in sales. Calculate her total earnings.    2 marks

4.6 A worker is paid $2.45 per box packed. They pack 172 boxes in a day. Calculate the day's pay.    2 marks

4.7 An employee earns $1,120 per week. Calculate the annual leave loading paid on 4 weeks of leave.    2 marks

4.8 A farm worker is paid $2.35 per crate of strawberries. In one shift they pick 186 crates. Calculate the shift pay.    2 marks

4.9 A real-estate agent earns a $1,200 monthly retainer plus 1.8% commission on the value of houses sold. In March they sell two houses worth $720,000 and $885,000. Calculate the monthly earnings.    2 marks

4.10 A worker earns $1,240 per week. Calculate the total amount paid (leave pay + leave loading) for 4 weeks of annual leave.    2 marks

Extension — tiered commission + threshold (2 questions)

4.11 A worker's tiered commission is 4% on the first $20,000 and 7% on sales above $20,000. They achieve $35,000 in sales. Calculate the total commission.    3 marks

4.12 A car salesperson earns a fortnightly retainer of $800 plus 3.5% commission on sales above a threshold of $6,000 per fortnight. This fortnight sales are $34,000. Calculate the total fortnightly earnings.    3 marks

Stuck on 4.12? "Above a threshold of $6,000" means subtract $6,000 first, then apply 3.5% to the remainder.

5. Self-check the easy 3

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

How did this worksheet feel?

What I'll revisit before next class:

Answers — Do not peek before attempting

Q1.1 — Percentage to decimal

2.5% = 0.025.   4% = 0.04.   17.5% = 0.175.

Q1.2 — Piecework formula

Piecework pay = number of items (n) × rate per item (rp).

Q1.3 — Leave loading formula

Leave loading = 0.175 × (W × 4).

Q3 — Faded example (tiered commission)

Step 1: Tier 1 = $15,000 × 0.03 = $450.00.
Step 2: Tier 2 = $25,000 × 0.045 = $1,125.00.
Step 3: Tier 3 amount = $55,000 − $40,000 = $15,000. Tier 3 = $15,000 × 0.06 = $900.00.
Step 4: Total = $450 + $1,125 + $900 = $2,475.00.

Q4.1 — Flat commission

Commission = $45,000 × 0.035 = $1,575.00.

Q4.2 — Piecework

Pay = 245 × $1.80 = $441.00.

Q4.3 — Leave loading on $980/week

4 weeks' pay = $980 × 4 = $3,920.   Loading = $3,920 × 0.175 = $686.00.

Q4.4 — 4.5% as a decimal

4.5% = 0.045.

Q4.5 — Retainer + commission

Commission = $48,000 × 0.032 = $1,536.00.
Total = $540 + $1,536 = $2,076.00.

Q4.6 — 172 boxes at $2.45

Pay = 172 × $2.45 = $421.40.

Q4.7 — Leave loading on $1,120/week

4 weeks' pay = $1,120 × 4 = $4,480.   Loading = $4,480 × 0.175 = $784.00.

Q4.8 — Farm worker, 186 crates

Pay = 186 × $2.35 = $437.10.

Q4.9 — Real-estate March earnings

Total sales = $720,000 + $885,000 = $1,605,000.
Commission = $1,605,000 × 0.018 = $28,890.00.
Total monthly earnings = $1,200 + $28,890 = $30,090.00.

Q4.10 — Total leave payment

Leave pay = $1,240 × 4 = $4,960.00.
Leave loading = $4,960 × 0.175 = $868.00.
Total = $4,960 + $868 = $5,828.00.

Q4.11 — Tiered: 4% then 7%

Tier 1: $20,000 × 0.04 = $800.00.
Tier 2: ($35,000 − $20,000) × 0.07 = $15,000 × 0.07 = $1,050.00.
Total commission = $800 + $1,050 = $1,850.00. (Applying 7% to the full $35,000 = $2,450 is a common error.)

Q4.12 — Retainer + commission above threshold

Commission-eligible sales = $34,000 − $6,000 = $28,000.
Commission = $28,000 × 0.035 = $980.00.
Fortnightly earnings = $800 + $980 = $1,780.00. (Applying 3.5% to the full $34,000 gives $1,190 — wrong.)