1. Define the terms Wage and Salary?

Distinguish the two,

exhaustively.
The term “wage” is used to characterize the compensation paid for manual
skilled or unskilled labor. “Salary,” on the other hand, is used to describe the
compensation for a higher or superior level of employment.
In case of execution, attachment or garnishment of the compensation of an
employee received from work issued by the court to satisfy a judicially- determined
obligation, a distinction should be made whether such compensation is considered
wage or salary. Under Art. 1708 of the Civil Code, if considered a “wage,” the
employee’s compensation shall not be subject to execution or attachment or
garnishment, except for debts incurred for food, shelter, clothing, and medical
attendance. If deemed a “salary,” such compensation is not exempt from execution
or attachment or garnishment. Thus, the salary, commission and other remuneration
received by a managerial employee (as distinguished from an ordinary worker or
laborer) cannot be considered wages. Salary is understood to relate to a position or
office, or the compensation given for official or other service, while wage is the
compensation for labor.
2. Define and Distinguish Facilities and Supplements.
“Facilities” include articles or services for the benefit of the employee or his
family but does not include tools of the trade or articles or services primarily for the
benefit of the employer or necessary to the conduct of the employer’s business. They
are items of expense necessary for the laborer’s and his family’s existence and
subsistence which form part of the wage and when furnished by the employer, are
deductible therefrom, since if they are not so furnished, the laborer would spend and
pay for them just the same.
The term “supplements” means extra remuneration or special privileges or
benefits given to or received by the laborers over and above their ordinary earnings
or wages. The benefit or privilege given to the employee which constitutes an extra
remuneration over and above his basic or ordinary earning or wage is supplement;
and when said benefit or privilege is made part of the laborer’s basic wage, it is a
facility. The criterion is not so much with the nature of the benefit or item (food,
lodging, bonus or sick leave) given but its purpose. Thus, free meals supplied by the
ship operator to crew members, out of necessity, cannot be considered as facilities
but supplements which could not be reduced having been given not as part of wages
but as a necessary matter in the maintenance of the health and efficiency of the crew
during the voyage.
3. Provide at least five examples, for facilities and
supplements. Explain why they are considered as such.
Foods or snacks or other convenience provided by the employer are deemed
supplements if they are granted for the convenience of the employer. The criterion
in making a distinction between supplement and facility does not lie in the kind but
in its purpose (Mayon Hotel & Restaurant v. Adana, 2005). Profit-sharing benefits,
sick pension, retirement and death benefits are also supplements.
Facilities include housing, recreational facilities, medical treatment to
dependents and school facilities.
4. Are facilities and supplements taxable?
Under tax laws, facilities are considered under de minimis benefits
and are non-taxable while supplements are taxable as withholding tax on
wages.
5. Provide the requirements for deducting the number of
facilities.
The following are the requisites to deduct the amount of facilities from wage:
1. Proof must be shown that such facilities are customarily furnished by the
trade; 2. The provision of deductible facilities must be voluntarily accepted in
writing by the employee; an
3. The facilities must be charged at aid and reasonable value (SLL
International Cables Specialist v. NLRC, 2011).
The employer may deduct from the wages not more than 70% of the value
of the meals and snacks enjoyed by the employees, provided that such
deduction is authorized in writing by the employees. The remaining 30%
of the value has to be subsidized by the employer (IRR of Labor Code,
Book III, Rule VII-A, Sec. 1).