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).
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:
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.
rOT = $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 ✓
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
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:
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.