Module 10: World of work
Module objectives
• Provide an opportunity to look at the learner outcomes in
the ‘Manage money’ element of the numeracy component
of the National Literacy and Numeracy Framework (LNF)
and the Personal and social education framework for 7 to
19-year-olds in Wales to identify areas of the curriculum that
provide an opportunity for learners to develop their
knowledge about ways of earning money, paying tax,
keeping track of their money through an enterprise activity,
and dealing with profit and loss.
• Raise discussion ideas about earning money.
• Share classroom ideas that can be used in Key Stages 2,
3 and 4 to develop learners’ numeracy skills in the context
of earning money, income tax, and enterprise ideas and
activities.
• Provide a list of useful websites for Key Stages 2 to 5.
Note: Differentiation, extension ideas and effective questioning will often be
suggested in the notes within the PowerPoint for teachers/trainers to use as
required.
Learner aims
This module introduces earning money and enterprise.
Learners will be able to:
• appreciate that money is earned through work
• understand the difference between salary and wages
• describe some factors that affect the amount of money a
person earns
• identify the minimum wage for different age groups
• understand the terminology and deductions on a payslip
• calculate weekly, monthly and annual wages
• calculate the income tax paid based on two salaries
• identify suitable enterprise activities to carry out in the
classroom.
The module is designed for use across key stages – not all
outcomes will apply to all learners.
The National Literacy and
Numeracy Framework (LNF)
The National Literacy and Numeracy Framework
(LNF) focuses on four strands of numeracy:
•
•
•
•
Strand 1: Developing numerical reasoning
Strand 2: Using number skills
Strand 3: Using measuring skills
Strand 4: Using data skills.
Numeracy component
of the LNF
Strand: Using number skills
Elements:
• Use number facts and relationships
• Fractions, decimals, percentages and ratio
• Calculate using mental and written methods
• Estimate and check
• Manage money
The focus in this PowerPoint is on earning money
and this involves carrying out calculations.
LNF learner outcomes
The following table shows the Key Stage 3 learner
outcomes as specified in the numeracy component
of the LNF.
This PowerPoint also includes an opportunity to
share with learners how to calculate income tax.
Highlighted in bold in the following table is where
this objective features in the LNF.
Manage money
Learners are able to:
Year 7
• use profit and loss in buying and selling calculations
• understand the advantages and disadvantages of using
bank accounts, including bank cards
• make informed decisions relating to discounts and special
offers.
Year 8
• carry out calculations relating to VAT, saving and
borrowing
• appreciate the basic principles of budgeting, saving
(including understanding compound interest) and
borrowing.
Year 9
• calculate using foreign money and exchange rates
• understand the risks involved in different ways of saving
and investing
• describe why insurance is important and understand the
impact of not being insured.
Extension
• use and understand efficient methods of calculating
compound interest
• understand and demonstrate the real-life process of
foreign exchange
• understand and calculate income tax.
The Personal and social education framework
for 7 to 19-year-olds in Wales also highlights
opportunities for learners to develop their knowledge in
the context of earning money and understanding
their finances.
These are
highlighted in bold
on the next slide
Personal and social education framework for 7 to 19-year-olds in Wales
Key Stage 2 learning outcomes
Range: Preparing for lifelong learning
Learners should be given opportunities to understand:
 that money is earned through work and can buy goods and services
 the importance of looking after their money and the benefits of regular saving.
Personal and social education framework for 7 to 19-year-olds in Wales
Key Stage 3 learning outcomes
Range: Preparing for lifelong learning
Learners should be given opportunities to understand:
 the economic and ethical consequences of personal financial decision-making
as a consumer, e.g. Fairtrade
 how to become competent at managing personal finances and recognise that
saving provides financial independence.
Personal and social education framework for 7 to 19-year-olds in Wales
Key Stage 4 learning outcomes
Range: Preparing for lifelong learning
Learners should be given opportunities to understand:
 their rights as consumers and their responsibilities in terms of managing a budget
 the importance of planning for their financial futures and how to access financial
advice.
Earning money
Starter activity:
How do we earn money?
At what age in your life do you
start/stop earning money?
With young learners, share the Manage money activity
sheet: How do we get our money? and the Manage money
activity sheet: Wendy’s taxi.
Do you know the difference?
Wages
Salary
Wages are generally paid per
hour. You may have to ‘clock in’
and ‘clock out’ of a job that pays
you wages to show your employer
the number of hours you have
worked. You are unlikely to be
paid for time off (sickness or
holidays) but may be able to work
overtime for an increased hourly
rate.
People earning a salary are
usually paid the same amount at
the end of every month,
calculated from an annual salary.
They usually receive holiday or
sickness pay, yet are unlikely to
receive overtime pay as the salary
covers the amount of work
expected from the employee.
Discussion scenario
Paul Roberts is the managing director of FinRob Ltd., a firm manufacturing
electronic components for the telecommunications industry. Paul receives a
salary of £65,000 and two of his other directors each receive a salary of
£42,000 per year. His sales staff have a salary of £16,000 plus benefits. These
benefits include a company car, travel expenses, and commission (percentage
of the sales). The average sales person earns around £25,000. The production
workers receive £6.60 an hour and work a standard working week (40 hours).
They may sometimes be requested to work on Saturdays for which they get
paid overtime at £9.90 per hour.
Questions
• How much would a production worker get paid in a standard week plus
5 hours overtime?
• If the production workers were given a 1% pay rise what would their new
hourly rate be?
• John (a production worker) says he gets ‘time and a half’ for working
overtime. What does this mean? Is he correct?
• Which part of the workforce receives a salary rather than a wage?
• Why do you think the sales staff get paid commission?
Jobs and their salaries
Discussion ideas:
How much money would you
like to earn?
What factors affect the amount
of money a person earns?
Factors that affect the amount of money a person earns
Hours
worked
Full-time workers in the same job as part-time
workers will earn more. Some people may wish to
work overtime with an increased hourly rate.
Skills and/or
experience
A higher skilled job is likely to pay more money
than an unskilled job. A person with more years
experience at doing a job may be paid more than
someone new to the job.
Location
A person doing a job in London may be paid more
than a person doing the same job somewhere else in
the UK, who in turn may be paid more than a person
doing a job in areas of a less developed economy in
another country.
Demand
A job that is in high demand or where there is a
shortage of people doing the job may lead to
someone having plenty of work or earning good
wages.
The job market
Cross-curricular classroom ideas:
• Invite an adult into school who is willing to be interviewed
by the learners about the type of job that they do.
• Ask learners to write a job advert for a fictitious character,
e.g. bodyguard for Red Riding Hood.
• Encourage learners to find out about the type of jobs that
have been done in the past (in their locality, UK or
worldwide). Do they still exist? If not, why not? Were they
fair paid jobs? How old was the average worker in these
jobs? What were the working conditions like? Learners
could compare their investigations with the cost of living
then and now.
• Ask learners to investigate jobs that young people may
have to do in a country with a less developed economy.
My future job
What job do you want to do when you grow up?
Resource:
Manage money activity sheet: My future job
Learners think about possible jobs they’d like to do
when they grow up. They state why they’d like to do
the job and what they would do with the money they
earn.
Minimum wage
What is meant by
‘minimum wage’?
How much is the national
minimum wage?
Minimum wage
• The national minimum wage is the minimum pay per hour
almost all workers are entitled to by law.
(Find out who these workers are at
www.gov.uk/national-minimum-wage/who-gets-theminimum-wage.)
• The minimum wage depends on the age of the workers
and whether they are doing an apprenticeship.
• You must be school leaving age (usually 16) or over to
receive the minimum wage.
Minimum wage
Year
Apprentice*
Under 18
18 to 20
21 and
over
2013 (from
1 October)
£2.68
£3.72
£5.03
£6.31
2012
£2.65
£3.68
£4.98
£6.19
2011
£2.60
£3.68
£4.98
£6.08
2010
£2.50
£3.64
£4.92
£5.93
* This rate is for apprentices under 19 or those in the first year of their apprenticeship.
If you’re 19 or over and past your first year you get the rate that applies to your age.
www.gov.uk/national-minimum-wage-rates
Salary match
Can you match the salary with the correct person?
Resource:
Manage money activity sheet: Salary match
Learners read the information given (such as hourly
rate and number of days worked) and have to use
their numeracy skills to match the information with
the correct salary.
Payday
Resource:
Spending Sense, Activity 8 ‘Payday’
(pages 59–66)
Download the resource at
www.hwb.wales.gov.uk/cms/hwbcontent/_layouts
/NGFLSolution/MaterialDescription.aspx?Learnin
gMaterialId=44957&lang=en
The resource describes fully how to deliver the
activity in the lesson.
Payday
The activity is presented in four stages.
Stage 1: Learners are presented with the details of four characters
(hourly rate and number of hours worked per week). They have to
calculate the weekly, monthly and yearly pay. Example given on the next
slide (see notes).
Stage 2: A card-sorting activity. Learners are presented with payslip
terminology (e.g. PAYE, gross pay, net pay) and their relevant definitions
to match. This may be done with learners before (as a starter activity) or
after (as a consolidation activity) sharing the information on slides 27–43
of this module.
Stage 3: Learners are presented with the gross pay of the four
characters and have to work out their net pay after the deductions (PAYE
and National Insurance). Online interactive salary calculators can be
used to carry out the calculations.
Stage 4: Learners use a mock payslip to complete the relevant details of
one of the characters or, as an extension task, they can research the
salary of a job they see themselves doing in a few years time.
Payslips
Discussion activity:
Can I keep all the money
I earn?
Think about what
information is
usually provided
on a payslip.
Gross
pay
PAYE
Net pay
Tax code
Basic
pay
Overtime
Pay date
National
Insurance
Payment
method
Employee
number
Pensions
Deductions
Payslip puzzler
Resource:
Manage money activity sheet: Payslip puzzler
Learners are presented with a fictitious payslip. They
are given the terminology used on the payslip along
with eight definitions to match. They are also given five
questions relating to interpreting the information given
Payslip
Date:
31/08/13
Company:
Payroll ref:
Employee name:
5552013
Ernie Lot
Payment method:
Any Business Ltd.
Tax code:
944L
BACS
National Insurance number:
AB 12 34 56 C
What’s this?
Payments
Basic salary
Manager responsibility
National
Insurance code: D
Deductions
2867.00
Tax paid
472.50 National Insurance
Pension
Total payments
3339.50
Total deductions
Net pay
467.53
271.21
166.98
905.72
2433.78
Tax code
• Your tax code will show how much income you are
allowed to earn before you start to pay tax (your personal
allowance).
• A tax code is the first three numbers of your personal
allowance followed a letter. Most people have the letter
‘L’ which indicates that they have the basic tax allowance.
• So a tax code ‘944L’ means that a person can earn
£9,440* before they start to pay tax.
* Remember tax codes and personal allowance may change each year.
For updated tax codes visit www.hmrc.gov.uk/rates/it.htm.
Income tax
• All workers who earn over a certain amount each year pay
income tax. This is the amount of money paid to the
government which helps everyone in the community, such
as schools and hospitals.
• Nearly all working people in the UK are allowed to earn up
to a certain amount and not pay tax on that income. This
amount is called a Personal Allowance, e.g. £9,440 in tax
year 2013/14.
• The amount of tax you pay on earnings over £9,440 is a
percentage of what you earn (shown in the table below).
Earnings
Rate
Percentage
£0 – £32,010
Basic
20%
£32,011 – £150,000
Higher
40%
Over £150,000
Additional
45%
Payslip
Date:
31/08/13
Company:
Payroll ref:
Employee name:
5552013
Ernie Lot
Payment method:
Any Business Ltd.
BACS
Tax code:
National
Insurance code: D
944L
National Insurance number:
AB 12 34 56 C
Payments
Basic salary
Manager responsibility
Deductions
2867.00
Tax paid
472.50 National Insurance
Pension
Total gross payment
3339.50
Total deductions
Net pay
467.53
271.21
166.98
905.72
2433.78
National Insurance
• Everyone receives their National Insurance number
just before their 16th birthday. This number will stay with
you for life. It is a mixture of letters and numbers,
e.g. AB 12 34 56 C.
• The amount of National Insurance contributions that you
have to pay depends on your earnings and your type of
employment.
• National Insurance is a percentage of your wages. Here is
an example of a typical person who is employed.
Class 1
NI percentage rate
If you earn between £149 and £797
a week
You pay 12% of the amount you earn
in this bracket.
If you earn more than £797 a week
You also pay 2% of your earnings over
£797.
For more information about National Insurance go to www.hmrc.gov.uk/ni
Payslip
Date:
31/08/13
Company:
Payroll ref:
Employee name:
5552013
Ernie Lot
Payment method:
What’s this?
Any Business Ltd
BACS
Tax code:
National
Insurance code: D
944L
National Insurance number:
AB 12 34 56 C
Payments
Basic salary
Manager responsibility
Deductions
2867.00
Tax paid
472.50 National Insurance
Pension
Total gross payment
3339.50
Total deductions
Net pay
467.53
271.21
166.98
905.72
2433.78
BACS
BACS is the Bankers Automated Clearing System.
If employers use BACS to pay you it means that your
wages will go straight into your bank account on a set
date of every month.
Payslip
Date:
31/08/13
Company:
Payroll ref:
Employee name:
5552013
Ernie Lot
Payment method:
Any Business Ltd.
BACS
Tax code:
National
Insurance code: D
National Insurance number:
AB 12 34 56 C
944L
Payments
What’s this?
Basic salary
Manager responsibility
Deductions
2867.00
Tax paid
472.50 National Insurance
Pension
Total gross payment
3339.50
Total deductions
Net pay
467.53
271.21
166.98
905.72
2433.78
Deductions
Fill in the blanks with the information you have learnt so far.
Both ………………….and ………….are deducted from your pay. These
are called compulsory deductions because you must pay them. Everyone
is allowed to earn a certain amount of money before tax is taken off. This
is called your ……………………….. For most people this amount is
£………. and your employer uses a ...……… on your payslip to show
this. Once your income goes above this amount you will have to pay tax at
the basic rate of …..%. This means …..p in every pound is paid in income
tax. If you earn over £……………… then you have to pay the higher rate
of …..% on the extra earnings. The additional rate of income tax is …..%
and this is paid by people earning over £…………………
National Insurance
9,440
150,000
personal allowance
40
tax code
45
32,010
tax
20
20
Deductions
Fill in the blanks with the information you have learnt so far.
National
Insurance
………………
tax
Both
and ………
are deducted from your pay. These
are called compulsory deductions because you must pay them.
Everyone is allowed to earn a certain amount of money before tax is
personal allowance For most people this
taken off. This is called your …………………
9,440
tax code
amount is £ ……
and your employer uses a ...………
on your payslip
to show this. Once your income goes above this amount you will have to
pay tax at the basic rate of 20 %. This means 20 p in every pound is
32,010 then you have to pay a
paid in income tax. If you earn over £ ……
higher rate of 40 % on the extra earnings. The additional rate of income
45 % and this is paid by people earning over £
150,000
tax is …..
.
Payslip
Date:
31/08/13
Company:
Payroll ref:
Employee name:
5552013
Ernie Lot
Payment method:
Any Business Ltd.
BACS
Tax code:
National
Insurance code: D
National Insurance number:
AB 12 34 56 C
944L
Payments
Deductions
Basic salary
2867.00
Manager responsibility
472.50 National Insurance
What’s this?
Total gross payment
Tax paid
3339.50
Pension
Total deductions
Net pay
467.53
271.21
166.98
905.72
2433.78
Workplace pension
A workplace pension is a way of saving for your retirement
that is arranged by your employer.
Other terms for workplace pensions include: ‘works’,
‘company’, ‘work-based’ and ‘occupational’ pensions.
How do they work?
A percentage of your pay is put into a pension scheme
automatically every payday. You will see the amount on your
payslip.
In most cases your employer and the government also add
money into the pension scheme.
The pension money builds up and pays you an income when
you are at a stage in your life to start receiving it.
For more information go to
www.gov.uk/workplace-pensions/about-workplace-pensions
Workplace pensions
Auto-enrolment
A new law means that every employer must automatically
enrol workers into a workplace pension scheme if they:
• are aged between 22 and state pension age
• earn more than £9,440 a year
• work in the UK.
This is called ‘automatic enrolment’.
For more information go to
www.gov.uk/workplace-pensions/about-workplace-pensions
Payslip
Date:
31/08/13
Company:
Payroll ref:
Employee name:
5552013
Ernie Lot
Payment method:
Any Business Ltd.
BACS
Tax code:
National
Insurance code: D
944L
National Insurance number:
AB 12 34 56 C
Payments
Basic salary
Manager responsibility
Deductions
2867.00
Tax paid
467.53
472.50 National Insurance
271.21
Pension
Total gross payment
3339.50
Total deductions
What’s
Net pay
166.98
this?
905.72
2433.78
Gross pay
Gross pay is the amount of money you have earned in a
given period.
In this example, Ernie Lot receives a monthly payslip, so
his gross pay is the amount of money he earned that
month based on his salary for the job that he does.
There are two payments made, as he has a job with extra
responsibility for which he is paid accordingly.
Payslip
Date:
31/08/13
Company:
Payroll ref:
Employee name:
5552013
Ernie Lot
Payment method:
Any Business Ltd
BACS
Tax code:
National Insurance number:
944L
AB 12 34 56 C
National
Insurance code: D
Payments
Deductions
Basic salary
Manager responsibility
2867.00
Tax paid
472.50 National Insurance
Pension
Total gross payment
What’s this?
3339.50
Total deductions
Net pay
467.53
271.21
166.98
905.72
2433.78
Net pay
Net pay is the amount of money you get paid in a given
period.
In this example, Ernie Lot receives a monthly payslip, so
his net pay is the amount of money he took home for a
month’s work.
It is the amount of money he received after his deductions
were subtracted.
Net pay is sometimes called ‘your take home pay’.
Calculating income tax
Income tax is a tax on income.
Some examples of what counts as taxable income include:
• employment income: income from full time, part-time,
temporary employment or self-employment/partnership
• rental income: money you earn from renting out a second
property.
You are only taxed on ‘taxable income’ above a certain
level. This amount is called a Personal Allowance, e.g.
£9,440 in tax year 2013/14.
Income tax is only due on taxable income that’s above your
tax-free allowances.
For more information go to
www.hmrc.gov.uk/incometax/taxable-income.htm
Calculating income tax
You pay income tax on earnings over £9,440 and this is
calculated as percentage of what you earn. These
percentages are presented in a basic table below (as seen
earlier on slide 29).
Earnings
Rate
Percentage
0 – £32,010
Basic
20%
£32,011 – £150,000
Higher
40%
Over £150,000
Additional
45%
Use the table and the information given to calculate the
income tax paid by the people on the following slides.
Calculating income tax
Sara earns £24,000 a year. Work out how much income
tax she pays.
Taxable
Gross income
Personal allowance
£24,000
income: 24000
- 9440
=14560
£9,440
Taxable income
£14,560
Basic tax rate
20% of taxable
income
Total income tax
£2912
20% is 0.2
20% of 14,560
is given by
0.2 x 14560 =
2912
Sara pays £2,912 income tax per year. How much is this
per month?
Evan earns £45,000 a year. Work out how much
income tax he pays in a year.
Gross income
£45,000 – £9,440
= £35,560
Personal allowance
Taxable income
Basic tax rate
Higher tax rate
Total income tax
£45,000
£9,440
20% is 0.20
20% of £32,010
is given by
0.20 x 32010 =
£6,402
£35,560
20% of the first £32,010 of the
taxable income = £6,402
40% of the remainder taxable income
(35,560 – 32,010 = £3,550)
40% of 3550
40% of £3,550 = £1,420
is given by
£6,402 + £1,420 = £7,822
0.40 x 3550
= £1,420
Evan pays £7,822 income tax per year, £652 per month and £150 a week.
Is it OK?
This activity is about the ethics of accepting money for certain
activities related to the world of work which are illegal or on the
borderline of illegality.
Resource:
Spending Sense, Activity 10 ‘Is it OK?’
(pages 79–83)
Download the resource at
http://learning.wales.gov.uk/docs/learningwales/p
ublications/131017-spending-sense-en.pdf
The resource describes fully how to deliver the
activity in the lesson.
Adding up to a lifetime
This is a free online resource which follows four characters
and how they deal with financial situations. It is suitable for
Key Stage 3 to Key Stage 5. The package has approximately
25 hours of learning activities which learners can complete
online. It is presented as five modules:
• Life as a student (aged 14 upwards)
Each module has
• Working life
an audio tutorial
which can be
• Relationships
listened to in
English or Welsh.
• New life
• Active retirement.
The modules offer the whole range of manage money topics
including earning money, visit
www.addinguptoalifetime.org.uk
Websites and resources
• www.pfeg.org
pfeg (Personal Finance Education Group) is an independent charity providing a wealth
of resources to support financial education in schools. See ‘Learning about Money in the
Primary Classroom’ and ‘My Money Mathematics Resources’.
• www.barclaysmoneyskills.com/en/Information/resource-centre.aspx
A variety of resource packs for learners aged 4–25.
• www.nationwideeducation.co.uk > Employability Skills
Sections for learners and teachers entitled ‘Working Life’, ‘Working Skills’ and ‘Working
World’ for learners aged 4 to 18 and older (printable resources and online games).
• www.Addinguptoalifetime.org.uk
View the module entitled ‘Working Life’ (Welsh audio available).
• www.moneyadviceservice.org.uk/en/categories/young-people-and-money
Information on managing your money as a student.
• http://rbsmoneysense.co.uk/schools/resources/
A free interactive online programme providing resources to support learners manage
their money.
• www.hmrc.gov.uk/incometax/taxable-income.htm
Information available about income tax.
• www.gov.uk/national-minimum-wage/who-gets-the-minimum-wage
Information about the minimum wage.
• www.gov.uk/workplace-pensions
Information about pensions.
• www.hwb.wales.gov.uk/cms/hwbcontent/Shared%20Documents/vtc/atebol/maths/eng/index.
html
Spending Sense resource including 18 money-management activities.