Lesson Notes By Weeks and Term - Primary 6

Wages and income distribution





TOPIC: Wages and income distribution 

Behavioral Objectives

By the end of this lesson, pupils should be able to:

  1. Define wages
  2. Mention some other income
  3. State the reasons why some workers receive higher salaries and wages than others. 


Pupils textbook


Scheme of work

All relevant materials     

6-Years Basic Education Curriculum

Online information


Pupils are familiar with the topic in their previous classes.



Concept of wages and income distribution 

A wage is money received by workers at regular Intervals or end of the month  Salaries and wages are the amount of money paid to workers by their employers after the workers have done their job.

The main difference between salaries and wages is that salaries are fixed, they are regular, and are usually paid every month. Wages, on the other hand, are paid according to the number of hours, days or weeks that a person works. Every worker should be paid by the employer.


 Other incomes

In addition to salaries and wages, there are other incomes workers can get.

The following are the other main incomes:

  • Transport allowance: This is paid to most workers to help them to come to work and go home easily by bus or taxi.
  • Housing allowance: This is paid by most employers to their workers, to enable them to pay the rents of the houses in which they live.
  • Interest from saving: People who have savings accounts in banks or cooperative societies receive interest. This interest is added to the money they save. The savings then increase.
  • Dividends: Some people buy shares in big companies. They get part of the profits made by these companies. This payment is called dividend. 5 Gratuity: Gratuity is paid to workers at the time they are retiring from work. It is paid once.
  • Pension: Workers who have retired from the government service or private companies get a monthly pension. A pension is a percentage of a person’s former salary and allowances. This is usually paid by pension fund administrators.

 Why some workers receive higher salaries and wages than others All employees and workers do not earn the same salaries and wages. There are reasons for this. Here are some of such reasons:

  • A person with a higher qualification usually receives a higher pay than a person with a lower qualification in the same organisation. This is why, for instance, a medical doctor gets more pay than a clerk in the same hospital. 
  • A person who does his work better and impresses his employers with his attitude to work may get a higher pay.
  • A very big industry or company will, most likely, pay higher salaries and wages to its workers than a small company.
  • Those who do more work than others may get higher pay.
  • Workers who do delicate or dangerous work often receive higher pay than people who do normal work. Effects of unequal wages and salaries

Workers with the same qualification and experience should normally receive the same pay. This should be so in all workplaces. However, in some cases, this is not so. When this happens, the workers who feel that they have been badly affected or treated usually do the following: 1 They may stage a demonstration or go on strike.

  • They may protest through action or by writing to their managers to complain.
  • They may work without giving their best, because they are unhappy. 4 They may decide to resign, or even reduce the rate at which they produce goods

Relationship between income and standard of Living 

(The higher our wages, the higher standard of Living) 

  • Qualification
  • Hours of work
  • Risk of work
  • Reward of work
  • Reward for talent
  • Causes of wage increase
  • Inflation
  • Trade union activities
  • Incentive to workers
  • Aspect of income management
  • Household expenses
  • Savings
  • Investment
  • Charity
  • Reserve

Assessment & Evaluation:

  1. Define wages
  2. Mention some other income
  3. State the reasons why some workers receive higher salaries and wages than others


Teacher goes over the topic once again to enhance better understanding          


What is the difference between a salary and a wage?

  • What is the difference between gratuity and pension?
  • Salaries are usually paid at the end of _____________

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