Section 2.3 Analyzing Pay
81
Getting a Raise
A raise is an increase in pay. For
hourly employees, a raise is usually an
increase in the amount earned per hour.
For salaried employees, a raise is an
increase in annual salary.
Raises are provided to reward
employees for:
• serving with the same company for a
certain length of time;
• taking on additional responsibilities; or
• doing a particularly good job.
Example 2-3B
See It
Rubie works as a clerk earning $16.60 per hour. She just learned that she will
receive a 3.5% raise. If Rubie works 40 hours per week, how much more will she
earn per week after her raise?
Strategy
Use the formula:
amount of raise = weekly gross pay × rate of raise
Solution
Step 1: Determine Rubie’s current weekly gross pay. Multiply her hourly wage by
the number of hours she works per week.
weekly gross pay = hourly wage × number of hours
weekly gross pay = $16.60 per hour × 40 hours
weekly gross pay = $664
Step 2: Convert the percentage of the raise to a decimal by moving the decimal
two places to the left.
3.5% → 0.035
Step 3: Determine the amount of the raise. Multiply Rubie’s weekly gross pay by
the decimal equivalent of the rate of the raise.
amount of raise = weekly gross pay × rate of raise
amount of raise = $664 × 0.035
amount of raise = $23.24
Your salary or rate of pay is a private matter. Privacy
is an important topic these days. With the ease of
electronic transmission of information, it is important
that an individual’s privacy be protected. Personal
information that was previously only on paper is now
in computer databases. If those records are accidentally
made public or purposely transmitted by an employee
entrusted with that data, there could be many negative
consequences.
Reputable companies strive to protect your personal information. Always ask
for privacy statements from companies with which you do business. These
privacy statements put in writing the company’s policy for sharing your
personal information with others.
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