Term | Definition |
Income | Money earned from work, property, investment or an allowance |
Salary | A fixed yearly amount of money (annual income) that is paid weekly, fortnightly or monthly, usually to professional people and office workers. Since a salary is fixed, it is not dependent on the number of hours worked. |
Wage | An amount of money paid to people for work, calculated on the number of hours worked. A wage is paid at an hourly rate and the greater the number of hours worked, the higher the wage. Wages are usually paid weekly. |
Gross | A total without any deductions. A gross income is the total amount of money earned. |
Net | The amount remaining after all deductions. Net income is the gross income minus all deductions. |
Allowance | an amount of money paid to an employee to meet expenses. Examples include travel expenses, meal allowances and wet weather allowances. |
Bonus | An extra amount of money paid to employees who produce work of high quality or volume. |
Commission | A payment as remuneration for services rendered or products sold. It is a common way to reward sales people. Payments are calculated on the basis of a percentage of the goods sold, |
Piecework | income earned according to the number of tasks a person completes or the number of objects he or she makes. Payment is not dependent on the time taken for the work. |
Overtime | The amount of time someone works beyond normal working hours |
discount | A reductions in the prices of goods or services |
Holiday loading | Extra pay given during annual leave (holidays). It is paid at a rate of 17.5% of four weeks normal pay |
Superannuation | A way to save for your retirement. The money comes from contributions made into your super fund by your employer and, ideally, topped up by your own money. |
Taxation | A financial charge or other levy imposed upon a taxpayer by a government to fund various public expenditures |