WEEKLY LEARNING ACTIVITY SHEETS

Bus. Math 11, Quarter 2, Week 3

SALARY, WAGE, INCOME, AND BENEFITS

COMPUTE GROSS AND NET EARNINGS

Name: ____________________________________ Section: ________________

Most Essential Learning competencies:

 Definition of salary, wage, income, and benefits (ABM_BM11SW-11c-1).
 Computation of Gross and net earnings ((ABM_BM11SW-11d-2).
Learning Objectives:
 define salary, wage, income, and benefits;
 Compute gross and net earnings;

Time Allotment: 4 hours

Key Concepts
 SALARY: is a fixed regular payment, typically paid on monthly or biweekly
basis but often expressed as an annual sum, made by the employer to an
employee.
 WAGE: a fixed regular payment, typically paid on a daily or weekly basis, made
by an employer to an employee; it is the part of total production that is the
return to labor as earned income, as distinct from the remuneration received
by capital as unearned income.
 INCOME: money earned by working or through investments.
 BENEFITS: a payment or gift made by an employer, the state, or an insurance
company.
 GROSS EARNINGS:
 COMPUTATION OF GROSS AND NET EARNINGS
Example: consider the problem.
For his salary in the previous month, Mr. Ever received the payslip
below:
EARNINGS
BASIC: P14,850.43 PREV. OL/EL: -
ABSENCES BSC: - RLE – ALW -
LA/SFA 8,909.57 OTH-ALW/HON: -
OTHER EARN: PREV. RLE -
ABS-ALLOWS: PREV. BASIC: -
TTL: 2,887.50 PREV. LA/SFA: -
HOLIDAY PAY: 4,400.00
OL/EL: 9,900.01
TOTAL EARNINGS P 40,947.51
DEDUCTIONS
TAX WHELD: 9,865.38
SSS PREMIUM 581.30
PHELT 437.50
PAG-IBIG 100.00
SSS EN: 692.17
CASH ADVANCE -
PAG-IBIG LOAN -
RET. CONT. -
TOTAL DEDUCTIONS 11,676.35
NET PAY:
MONTHLY NET: P 29,271.16
IST HALF NET: P14,635.58
2ND HALF NET: P14,635.58

Author: Reynaldo V. Daniela

School/Station: Tagbina National High School
Division: Surigao del Sur
Email address: reynaldo.daniela001@deped.gov.ph
  In the figure shown above, it can be seen that, in a payslip, there are three
parts, namely Total Earnings, Total deductions, and Net pay.
TOTAL EARNINGS P 40,947.51
TOTAL DEDUCTIONS 11,676.35
NET PAY:
MONTHLY NET: P 29,271.16
IST HALF NET: P14,635.58
2ND HALF NET: P14,635.58

 By looking closely to the figures, one can notice that:

P 40,947.51- 11,676.35 =P 29,271.16
P 29,271.16/2 = P14,635.58
With this, we get Gross – deduction = Net.
In Mr. Ever’s payslip, it can be noticed that the words “total earnings”,
“deductions”, and “net appeared. “total earnings” is also known as ‘gross
earnings”. It is the amount gained by the worker without any deductions.
When we say, “net pay”, it is the payment received less deductions of any
employee.
 Before going further, let’s have these prerequisite skills:
Find the value of x in the following equations (solve these in your
separate paper but do not pass it and compare your answer to the
answers key):
1. x + 32,145.15 = 51,782.18
2. x = 27,123.70 − 17,562.50
𝑥 1,927.25
3. =
1,892.5 4,000
 Now, let’s proceed to the computation:
Let E be the total earnings, D be the total deduction, and N be the net
earnings.
In equation, E = D + N
or in manipulation,
N = E – D and
D=E–N
Example1: If E = P21,230.21 and D = P4,871.15, what is the value of N?
Solution: We use the formula:
N = E – D = P21,230.21- P4,871.15 = P16,359.06
Example 2: If D = P15,622.40 and N = P8,236.68, what would be the value of E?
Solution: We use the formula:
E = D + N = P15,622.40 + P8,236.68 = P23,859.08
Example 3: Florenz has a monthly net amounting to P10,568.23. If
he receives a total deduction of P4,235.18, how much is her total earning?
Solution: We use the formula:
E = D + N = P4,235.18 + P10,568.23 =P14,803.41

ACTIVITIES:

Activity no. 1:
Direction: Write True or False. Write it after every number.
1. Gross earning is sometimes greater than the net income. _________
2. Net earnings can be greater than the gross earnings. __________
3. The total deduction is always equal to the net earnings. ___________

Author: Reynaldo V. Daniela

School/Station: Tagbina National High School
Division: Surigao del Sur
Email address: reynaldo.daniela001@deped.gov.ph
 4. If the total deduction is 0, then the gross earnings is equal to net earnings.
___________
5. Taxes are added in the deductions. ___________
Activity No.2:
Direction: Please solve and answer the following problems. Use separate paper
for your solution. Write only your final answer after each number. No solutions
are needed.
1: If E = P22,271.16 and N = P11,721.30, what is the value of D? __________
2: Jonathan has total earnings amounting to P20,524.17. If he receives a total
deduction of P3,826.21, how much is his net earnings? ________
3. Suppose that, for all gross annual income G that is greater than or equal
to P250,000, the tax T is 0.25G. If your gross annual income is P250,000,
what is your tax? _______
Activity No.3☹Performance Task
Direction: Prove or disprove the statement below: Write your answer on the
space provided.
Situation: If the total D is the sum of the tax T and benefits B, then an increase
in D will automatically imply an increase in T.

Prove or Disprove?

Reflection: upon reading the topics of salary, wage, income, and benefits, and with
your understanding on the computation of Gross and net earnings, what is/are your
realization in a 0 or small net pay of an individual during receiving their salary?
My realization in a zero or small net pay

Author: Reynaldo V. Daniela

School/Station: Tagbina National High School
Division: Surigao del Sur
Email address: reynaldo.daniela001@deped.gov.ph
 Rubrix for the Performance Task and Reflections

Categories Excellent (5) Satisfactory (4) Developing (3) Beginning (2)

Mathematical Concept
Accuracy of computation
Practicality
Organization of the Concept
Demonstrate a thorough Demonstrate an Demonstrate incomplete Shows lack of
understanding of the understanding of the understanding and have understanding and has
topic appropriately. concepts and use it to some misconceptions severe misconceptions.
simplify the problem
All computations are The computations are Generally, most of the Errors in computations
correct and are logically correct but are not computations are not are severe.
presented. arranged. correct.
The output is suited to The output is suited to The output is suited to The output is not suited
the needs and can be the needs and can be the needs and cannot be to the needs and cannot
executed easily. executed easily. executed easily. be executed easily.
solutions presented are Solutions presented are
correct and neat. correct but not
arranged.
Highly organized, flows Satisfactorily organized. Somewhat cluttered. Illogical and obscure. No
smoothly, observes Sentence flow is Flow is not consistently logical connections of
logical connections of generally smooth and smooth, appears ideas. Difficult to
points. logical. disjointed. determine the meaning.

Answers’ Key:

Activity No. 1:
1. False 2. False 3. False 4. True 5. True
Activity No. 2:
1.P10,549.86 2. P16697.96 3. P62,500

Activity No.3: Performance Task (This is where you need to write what is being
asked)

Reference for Learners:

Lopez, Brian Roy C., Martin – Lundag, Leah C., Dagal, Keneth Adrian P. “Business
Mathematics, Senior High School, pp 104 - 106”

Author: Reynaldo V. Daniela

School/Station: Tagbina National High School
Division: Surigao del Sur
Email address: reynaldo.daniela001@deped.gov.ph