Factors Affecting Choice of Occupation (Cambridge (CIE) IGCSE Economics)

An agreed amount of money/hour and is calculated directly from the number of hours worked

E.g. If a student works in a restaurant for 6 hours, 5 days a week and she gets paid $10/hour, her weekly wage is $300 (6x5x$10)

Employment contracts often state the agreed annual salary the employee will receive

This is then divided by 12 and paid monthly (in the USA it is divided by 24 and paid every 2 weeks)

The hours worked monthly may vary but the pay received is always the same

Often used as payment to sales people

It is typically a percentage of the value of the transaction involved, e.g. estate agents receive 3-7% of the selling price of any property they sell

This can motivate employees to maximise sales

Money paid in addition to a salary and is usually single annual payment

Often paid when the company earns high levels of profits, or as a reward for exceptional worker performance

A fixed amount paid to the employee for each completed item produced, e.g. 25 Rupees paid to workers in India for each pair of socks they produce

Payment based on how well the worker performs

Workers doing exactly the same job may receive different compensation based on different outcomes they achieve

Payment through the issuing of shares in the company the employee works for

This is usually in addition to a monthly salary

The monetary value of the shares provided to the employee can be calculated on any given day as: number of shares x share price

Benefits provided in addition to the normal salary

They can be significant in influencing occupational choices

Includes benefits such as such as childcare, free lunches, gym membership, company car