A laboratory technician is paid £20 per hour for 37.5 hours each week and works for 52 paid weeks a year.
The following deduction rules apply:
| Deduction | Rule |
|---|---|
| Income tax | The first £12,570 is tax free; earnings above this are taxed at 20% |
| National Insurance | Earnings above £12,570 are charged at 8% |
| Pension contribution | 5% of earnings above £6,240 |
The technician's earnings remain below the upper limits for these rates.
Calculate the laboratory technician's annual gross pay.
Calculate the annual income tax and the annual National Insurance the technician pays.
Calculate the laboratory technician's monthly net pay.
80 exam-style questions on OCR GCSE Economics 2.7 The labour market, covering 2.7.1 Role and operation of the labour market, 2.7.2 Determination of wages, 2.7.3 Explain gross and net pay, and 2.7.4 Calculate gross and net pay. Each one has a worked solution and a mark scheme showing where the marks go.