Question

There are 10 full-time employees working for a company called SME's. Due to the current Convid-19 pandemic situation, the organization is considering reducing the working hours from 40 to 32 hours per week for all full-time employees. And each of the employees is paid $25 per hour. Calculate the net changes and percentage change in payroll amount due.

Answer 1

Hours before pandemic= 40
Hours after pandemic= 32
Salary before pandemic = 40 * 25 = $1000
Salary after pandemic = 32 * 25 = $875
Change in salary in percentage = 125/1000 * 100 = 12.5%