REVIEWER IN BUSINESS MATHEMATICS BENEFITS OF AN EMPLOYEE

SECOND MID-QUARTER RETIREMENT PAY = 22.5 x P x T

 SALARY AND WAGES P = daily income
T = no. of years served
 GROSS AND NET EARNINGS
MATERNITY LEAVE
 OVERTIME AND NIGHT SHIFT Normal Delivery = 2x
 PREMIUM PAY Caesarian = 2.6x
 BENEFITS OF AN EMPLOYEE x = Monthly Income
 TAXABLE AND NON-TAXABLE 13 MONTH PAY = Annual Income/12
th

BENEFITS Note: if an employee has not been in the

company, at least a year of service, he/she is entitled
SALARY AND WAGES only a portion of the 13th month pay
SALARY EARNERS – An employee who earns
a fix amount of income TAXABLE AND NOT-TAXABLE BENEFITS
WAGE EARNERS – An employee who gets paid “Stated in the Revenue Regulation No. 5-2011”
on an hourly rate The following are Not-taxable benefits
PIECE-RATE EARNERS – An employee who 1) Laundry allowance of 300 per month
gets paid per piece of work done 2) Monetized unused vacation leave credits of
private employees not exceeding to 10 days
EX. A lantern maker is paid 100 pesos for every
3) Monetized value of vacation and sick leave
lantern he makes. How much would be his gross
credits paid to government official and
earnings for making 36 lanterns? employees.
Gross = 100 x 36 = PHP 3,600 4) Uniform and clothing allowance not exceeding
PHP 4,000 per annum
Given the Annual Income (AI) 5) Rice subsidy amounting not more than PHP
Monthly = AI/12 1,500 a month
Bi-monthly = AI/24 6) Employees achievement awards in the form of
Weekly = AI/52 tangible personal property, other than cash, with
Bi-weekly = AI/104 annual monetary value not exceeding to PHP
Daily = AI/365 10,000
7) Gifts given during Christmas or major
GROSS AND NET EARNINGS anniversary celebration not exceeding PHP
GROSS EARNINGS – the total earnings 5,000 per annum
accumulated by a worker in a span of time 8) Medical cash allowance to dependents of
NET EARNINGS - The difference between employees, not exceeding PHP 125 per month.
gross earnings and all deductions 9) Actual Medical Assistance not exceeding to
STANDARD DEDUCTIONS PHP 10,000 per annum
• Withholding tax 10) Meal allowance for overtime of work or night
• Philhealth shift not exceeding to 25% of employee’s daily
wage
• PAG_IBIG/ SSS Loan
TAX PAYABLE: amount that exceeds in the maximum
• Charges/ Miscellaneous
required amount of the benefit typically computed
• SSS Premium
annually.
• PAG IBIG
• Retirement Fund PREMIUM PAY RATES
REGULAR HOLIDAY = 2
NET EARNINGS = GROSS – DEDUCTION REST DAY = 1.3
OVERTIME AND NIGHT SHIFT SPECIAL HOLIDAY = 1.3
OVERTIME = 1.25 x hourly rate DOUBLE HOLIDAY = 3
NIGHT SHIFT = 1.1 x hourly rate REST DAY + SPECIAL HOLIDAY = 1.5
Overtime – beyond 8 hours REST DAY + REGULAR HOLIDAY = 2.6
Night shift – 10pm – 6am OVERTIME ON PREMIUM PAY = 1.3