Wages
Wages or salary may be shown as:
- hourly rate (p.hr.)
- weekly rate (p.wk.)
- yearly rate (p.a. - short for 'per annum')
This does not tell you when you get paid, just how much you would get. If a salary is shown for a whole year, you will probably be paid one twelfth each month.
What is deducted from your pay?
Gross pay is how much you get before any deductions.
Net pay is how much you get after deductions.
Depending on how much you earn, the employer has to take away national insurance and tax. This money goes to the government. If you are in a company pension scheme, the employer will take off money for this as well.
Tax
- You can earn up to £6,475 each year before you pay tax.
- When you start work you will get a tax code. You might be put on an emergency tax code until your proper one is worked out. If you end up paying too much tax, you will get this back.
- Students working during the holidays may not have to pay tax if they do not expect to earn more than £6,475 in a year. You have to fill in a form which you can get from your employer if you are not going to pay tax.
- If you are self-employed you will have to sort out your own tax.
National insurance
- You should get a national insurance number around your 16th birthday. If you don't phone 0191 225 5670.
- You do not pay national insurance until you earn at least £110 per week (£5720 per year). Your employer also has to pay national insurance for you.
Note, things are different if you are self-employed.
What is the minimum wage?
There is a national minimum wage. It does not cover 16 and 17 year old apprentices. There are some other exceptions. Generally the following rates apply from October 2009:
- £3.57 hourly for 16 and 17 year olds
- £4.83 hourly for 18-21 year olds
- £5.80 hourly for 22 year olds and older
These figures change, usually every year.
How much do Apprentices get paid?
An Apprenticeship is a training programme that combines on the job training with the chance to get qualifications relating to your job.
- Minimum Apprenticeship rate is £95 per week.
- Apprentices take home on average £170 per week (net pay)
Sept 2009
Posted on 02 October 2009
