BusinessMath Module5 13-16

Business
Mathematics
Module 5
Learner’s Packet
1
Business Mathematics
Benefits of Wage Earners
Taxable and Nontaxable Benefits
Standard Deductions
“Wealth gained hastily will dwindle, but whoever gathers little will increase it.”
- Proverbs 13:11, ESV
Prepared by:
MARICEL G. SACRAMENTO
MT II, TAYTAY SENIOR HIGH SCHOOL
What I Need to Know
13
This module was designed and written with you in mind. It is here to help you
master the key concepts on the fundamental operations of mathematics as applied in
salaries and wages. Particularly, the knowledge and skills you have learned from the
previous lessons are significant to define and enumerate the benefits given to wage
earner.
After going through this module, you are expected to:
1. define wage and benefits;
2. enumerate the benefits of a wage earner; and
3. define each of the benefits given to a wage earner.
What I Know
Multiple Choice. Choose the letter of the best answer. Write the chosen letter on a separate
sheet of paper.
1. It is a fixed regular payment, typically paid on a daily or weekly basis, made by an

employer to an employee.
a. benefit b. holiday pay c. wage d. tax
2. It is a payment or gift made by an employer, the state, or an insurance company.

a. tax b. benefit c. salary d. retirement
3. Which of the following is NOT a benefit of a wage earner?

a. car insurance b. maternity pay c. 13th month pay d. rice incentive
4. It refers to payment of the regular daily wage for any non-working regular holiday.
a. tax b. bonus c. holiday pay d. wage
5. Which of the following is NOT a long-term benefit?

a. retirement b. clothing allowance c. death d. disability
6. Which of the following government agencies/departments do you think is the least

relevant in relation to salaries and wages?
a. Department of Labor and Employment c. Bureau of Internal Revenue
b. Social Security System d. Department of Education
7. The minimum retirement pay R is given by the formula R = 22.5 x P x T where P is the
daily rate and T is the number of years served. Suppose P = 2,500 and T = 10 then what
is the value of R?
a. Php 520,000 b. Php 526,500 c. Php 565,200 d. 562,500
8. The company will monetize Ms. J-cel’s sick leave credits which is equivalent to 22 days.
Assuming that her daily rate is Php 500, then what is her additional income?
a. Php 10,000 b. Php 11,000 c. Php 12,000 d. Php 13,000
9. J-rus worked on a holiday where the pay is 1.25 of the regular pay. If the regular daily
rate is Php 1,800, then what is his holiday pay?
10. What is the computation to get the minimum retirement benefit?

a. R = 20.5 x P x T c. R = 22.5 x P x T
b. R = 21.5 x P x T d. R = 23.5 x P x T
11. Which of the following is NOT a leave incentive?

a. holiday pay b. sick c. maternity d. paternity
12. It is the equivalent to 100% of the member’s average daily salary credit multiplied by
60 days for normal delivery or miscarriage, 78 days for caesarean section delivery.
a. maternity benefit b. solo parent c. paternity d. retirement
13. If a call center agent has incurred 7 absences due to sickness, how many days can
still be converted to cash?
a. 7 days b. 25 days c. 24 days d. 23 days
14. If the said call center agent mentioned in number 13 has a daily rate of P845.00, how
much will he get?
15. What is Mike’s 13th-month pay if his basic monthly salary is Php 30,000?
Lesson
1 Benefits of Wage Earners
Employees who have earned a minimum wage income at the same time receive benefits
while they are working. As employees aged, they retire from work since they will be
receiving benefits. But due to poverty nowadays, many old ones prefer working to earn
money.
What’s In
Before you proceed to the new lesson, let us recall first what you have learned from the
previous lessons so that you will identify the benefits and deductions made in the payslip.
Complete Me!
Complete the table below by solving for the unknown values.
Total Earnings (E) Total Deductions (D) Monthly Net (N)

1. _______________ Php 2,122.00 Php 17,517.29
2. Php 72,130.22 Php 28,875.21 ______________
3. Php 28,091.16 _______________ Php 11,213.00
4. _______________ Php 17,122.05 Php 21,318.29
5. _______________ Php 1,423.16 Php 18,211.12
What’s New
Fam with Benefits
Conduct an interview with your mother or father or any relative who is working.
Then ask the following questions:
a. What benefits does your mother or father have?
b. What benefits are shown on the next page?
c. Which of these benefits are mandatory for every worker?
d. What are the advantages of knowing these benefits?
What is It
Definition of Terms:
• 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.
• Benefit – a payment or gift made by employer, the state, or an insurance company.
The list below are the possible benefits of a wage earner. Note that not all benefits are
obligatory. Take for example, a hazard pay which is given to the employees of a mining
company but not in a Department store. The Presidential Decree No. 442, also known as
the Labor Code of the Philippines, provides a list of benefits for wage earner.
The Benefits of the Wage Earner

1. Long-term benefits: retirement, death, disability
2. Minimum wage earner tax exemption
3. Bonuses and allowances (e.g. travel, rice, meal, clothing and laundry)
4. 13th month pay, holiday pay, special pay, overtime pay, night shift differential, and hazard
pay.
5. Leave incentives: sick, maternity, paternity, solo parent and others
6. Health-related benefits and insurances
• Retirement – this benefit is like a savings account. The employee pays a monthly
retirement fee for the retirement pay which will be received after the employee’s service.
• Minimum Wage Earner Tax Exemption (RA 9504) – if the employee’s salary is at the
minimum set by the Department of Labor and Employment for each region in the
country, then the employee is entitled of the exemption.
• Maternity/Paternity Benefit – this benefit can only be availed by a female or male
employee when the female employee will deliver a child, and for cases that the male is
needed, the male can apply for a leave as provided in the Paternity Leave Act of 1996
(RA 8187).
• Bonuses/Allowances (travel, rice, meal, clothing, etc.) – these are some amount given
by the company to their employees for them to enjoy.
The computations of some benefits are as follows:

1. Retirement Benefit
The minimum retirement pay given by R = 22.5 x P x T where R – retirement pay, P – the
daily rate and T – the number of years served.
2. 13th-Month Pay
Let x be the annual basic salary of an employee. The 13th month pay of this employee
1
must be 12
of x.
3. Maternity Benefit
Let x be the average monthly salary of the employee. Then 2.6x and 2x for caesarean and
normal delivery, respectively.
4. Holiday Pay
Holiday pay refers to payment of the regular daily wage for any non-working regular
holiday. Note if the employee worked on a holiday, then he will receive twice his daily
wage.
Example 1.
Mr. Eduardo served Company ABM for 25 years with an average daily rate of Php 480.00.
He plans to retire and avail of his retirement benefit. How much is the minimum
retirement pay that he will receive?
Solution:
The minimum retirement pay is given by
R = 22.5 x P x T
where R is the retirement pay, P is the daily rate and T is the number of years served.
Given the formula above, we get:
R = 22.5 x 480.00 x 25 = Php 270,000.00
Therefore, Mr. Eduardo will receive the retirement pay of Php 270,000.00 for 25 years of
service in Company ABM.
Example 2.
Mr. Sacramento receives an annual salary of Php 780,000. At the end of the year, what
would be his 13th month pay?
1
Definition: The 13th month pay is given by 𝑥, where x is the annual basic salary of the
12
employee.
Using the formula, we get

1
13th month = 12
(780,000) = Php 65,000.
Therefore, Mr. Sacramento will receive Php 65,000 as his 13th month pay.
Example 3.
Mr. Delos Santos plans to retire and claim his retirement benefit. How much is the
minimum retirement pay that he will receive for serving the company in 20 years with an
average daily rate of Php 490.25?
Solution:
The minimum retirement pay is given by
R = 22.5 x P x T
where R is the retirement pay, P is the daily rate and T is the number of years served.
Given the formula above, we get:
R = 22.5 x 490.25 x 20 = Php 220,612.50
Therefore, Mr. Delos Santos will receive a retirement pay of Php 220,612.50 for the 20
years of service in the company.
Example 4.
Mr. Isidro’s daily rate is P750.00 and he is given a sick leave of 30 working days. Suppose
the sick leave benefits is convertible to cash and he has incurred 5 absences only (all due
to sickness). How much will he get?
Solution:
First, since he incurred 5 absences, so there are only 30 – 5 = 25 days that can still be
converted to cash. Thus, he gets
25 x 750 = Php18,750.
Therefore, he will receive the amount of Php18,750 for the sick leave conversion.
What’s More
A. Identify if the statement is True or False. Write T if it true and F is false.

1. A pregnant employee may not be qualified for a maternity leave benefit.
2. Holidays and special pays are synonymous.
3. Retirement benefit can only be availed if the age of an employee is more than equal to 60
years old.
4. Tax exemption benefit to minimum wage earners is only limited to the basic salary,
excluding allowances.
5. All wage earners can avail all benefits of any wage earner.
1
6. 13th month pay is equivalent to of the annual salary of any employee.
13
7. The total earnings of any employee is not always equal to the basic pay.
8. An employer can give 14th month pay to all of his employees is equivalent to the 13th
month pay.
9. Living allowances is a must benefit given to all employees.
B. State whether the following is a benefit of a wage earner or not. Write Y for if it is a benefit
and N if not.
10. SSS Premium Pay 17. Special Day Pay
11. Holiday Pay 18. Travel Allowance
12. 13th Month Pay 19. Tax
13. Rice Incentive 20. Paternity Leave
14. 5-Year Service Pay 21. Health Insurance
15. Living Allowance 22. Motor Car Insurance
16. Maternity Benefit for all fathers 23. Leave Without Pay
C. Solve the following problems.

1. Mr. Sebby’s 30-year annual basic income is given by the formula:
y = 130,000 + 20,000(x – 1980), where x is the year and y is the basic income. He started
working in 1981 and retired in 2010. How much is his retirement pay after 30 years of
service in the company? (Hint: To find the daily rate, find the average annual basic income
and divide it to 24 x 12).
2. Mr. Reyes received an annual salary of Php 300,000. At the end of the year, what would
be his 13th month pay?
What I Have Learned
Let us summarize what you have learned from this module by completing the following
statements. Write the correct word/s in a separate sheet of paper.
1. ____________ is 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.
2. __________ refers to money earned by working or through investments.
3. __________ is a payment or gift made by employer, the state, or an insurance company.
4. __________________ benefits: retirement, death, disability
5. Bonuses and _______________ (e.g. travel, rice, meal, clothing and laundry)
6. ___________________________: sick, maternity, paternity, solo parent and others
7. The minimum retirement pay given by ___________________.
1
8. The _____________________________ of this employee must be of x.
12
9. ___________________________ is a benefit that can only be a availed by a female or male
employee when the female employee will deliver a child.
10. If the employee worked on a holiday, then he will receive __________ his daily wage.
What I Can Do
Want It All Vs. Need It All
When it comes to money, people usually spend money on what they need or want.
What’s the difference between a need and a want?
I think a need is ______________________________________________________.
I think a want is ______________________________________________________.
Does everyone have the same needs and wants? Why or why not?
_________________________________________________________________________________________
________________________________________________________________________________________
____________________________________________________________________________________
List three needs and three wants in your personal and school life.
Area of your life Needs Wants
Personal 1. 1.
2. 2.
3. 3.
Retirement Plan 1. 1.
2. 2.
3. 3.
Health 1. 1.
2. 2.
3. 3.
Assessment
sheet of paper.
1. It is a payment or gift made by an employer, the state, or an insurance company.

a. salary b. benefit c. tax d. retirement
2. It is a fixed regular payment, typically paid on a daily or weekly basis, made by an

employer to an employee.
a. holiday pay b. tax c. wage d. benefit
3. It refers to payment of the regular daily wage for any non-working regular holiday.
a. bonus b. wage c. holiday pay d. tax
4. Which of the following is NOT a benefit of a wage earner?

a. salary loan b. maternity pay c. 13th month pay d. rice incentive
5. Which of the following government agencies/departments do you think is the least

relevant in relation to salaries and wages?
a. Department of Labor and Employment c. Bureau of Internal Revenue
b. Social Security System d. Department of Foreign Affairs
6. Which of the following is NOT a long-term benefit?

a. retirement b. travel allowance c. death d. disability
7. The company will monetize Ms. Miche’s sick leave credits which is equivalent to 22 days.
Assuming that her daily rate is Php 500, then what is her additional income?
8. The minimum retirement pay R is given by the formula R = 22.5 x P x T where P is the
daily rate and T is the number of years served. Suppose P = 2,500 and T = 10 then what
is the value of R?
a. Php 520,000 b. Php 526,500 c. Php 565,200 d. 562,500
9. Mark worked on a holiday where the pay is 1.25 of the regular pay. If the regular daily
rate is Php 1,800, then what is his holiday pay?
10. What is the computation to get the minimum retirement benefit?

a. R = 22.5 x P x T c. R = 19.5 x P x T
b. R = 21.5 x P x T d. R = 20.5 x P x T
11. Which of the following is NOT a leave incentive?

a. bonus b. sick c. maternity d. paternity
12. It is the equivalent to 100% of the member’s average daily salary credit multiplied
by 60 days for normal delivery or miscarriage, 78 days for caesarean section delivery.
a. maternity benefit b. solo parent c. paternity d. retirement
13. If a marketing agent has incurred 5 absences due to sickness, how many days can
still be converted to cash?
a. 5 days b. 25 days c. 24 days d. 23 days
14. If the said marketing agent mentioned in number 13 has a daily rate of P845.00, how
much will he get?
15. What is Lanie’s 13th-month pay if his basic monthly salary is Php 28,000?
Additional Activities
Watch the video clips from Youtube. Web address is written below. Examine the
labor law of our country. In this labor issues, discuss the role of labor organizations
employee’s compensation program of DOLE.
https://www.youtube.com?v=OYy0hV6EK_s&ebc=ANyPxKrKCTy7FNOZLpL4Jo
JEjDjbNnABodMGvCc_uTzhr4tzb27JbXfA9sCfQ-
aNaI14qXCeliP23gNezbLUFPChw4mQw
Answer Key
What I Know 18. Y

1. c 19. N
2. b 20. Y
3. a 21. Y
22. Y
4. c
23. N
5. b C.
6. d 24. Php 700,000
7. d 25. Php 25,000
8. b
9. b What I Have Learned
10. c 1. Wage
11. a 2. Income
12. a 3. Benefit
13. d 4. Long-term
5. Allowances
14. a
6. Leave incentives
15. c
7. R = 22.5 x P x T
8. 13th-month pay
What’s In
9. Maternity Benefit
1. E = Php 19,639.29 10. Twice
2. N = Php 43,255.01
3. D = Php 16,878.16 What Can I do
4. E = Php 38,440.34 Answers may vary
5. E = Php 19,634.28
Assessment:
What’s More
A. 1. b
1. F 2. c
2. T
3. c
3. T
4. T 4. a
5. F 5. d
6. F 6. b
7. F 7. b
8. T 8. d
9. T 9. b
B. 10. a
10. Y
11. a
11. Y
12. Y 12. a
13. Y 13. b
14. Y 14. b
15. Y 15. c
16. N
17. Y
References
Lopez, Brian Roy C., Martin-Lundag, Leah C. & Garces, Ian June L., Business
Mathematics. (Quezon City, Vibal Group, Inc., 2016)
Lopez-Mariano, Norma D., Business Mathematics. (Quezon City, Rex Book Store, Inc.,
2016)
13
What I Need to Know
This module was designed and written with you in mind. It is here to help you master
the key concepts on the fundamental operations of mathematics as applied in salaries and
wages. Particularly, the knowledge and skills you have learned from the previous lessons
are significant to define and enumerate the taxable and non-taxable benefits given to wage
earner and determine the deduction and its computation.

1. distinguish taxable from nontaxable benefits; and
2. enumerate the standard deductions with the corresponding computation.
What I Know
Multiple Choice. Choose the letter of the best answer. Write the chosen letter on a
separate sheet of paper.
1. Suppose Company ABM gives its employees a clothing allowance amounting to

Php 3,500 semiannually, then which of the statements is true?
a. The allowance is taxable.
b. The allowance is not taxable.
c. It depends if the employee is a private or government employee.
d. Some amount of the allowance is taxable.
2. It is the amount subtracted from the gross income.

a. deduction b. net income c. leave d. bonus
3. Which of the following is NOT the standard deduction in the payslip?

a. withholding tax b. SSS premium c. PAG-IBIG d. housing loan
4. Which of the following statements is taxable?

a. Salary amounting to Php 35,000
b. Uniform allowance of Php 2,000
c. Laundry allowance of Php 150 per month.
d. Anniversary bonus of Php 5,000.
5. What amount does a laundry allowance should not exceed to make it not taxable?
a. Php 300/month b. Php 300/week c. Php 300/day d. Php 300/year
6. Find the value of x in the equation, 10,000,000 = 27.5 (x) (60,000)

a. 7.07 b. 6.06 c. 5.05 d. 4.04
7. Which of the following is an employee’s achievement awards?

a. anniversary b. overtime work c. length of service d. hazard
8. A medical allowance will not be taxable if it will not exceed by _________.

a. Php 750/semester b. Php 750/year c. Php 900/year d. Php 500/week
9. A policeman who gets a basic salary of Php 25,000 per month, a living allowance of Php
2,500 per month and a hazard pay of PhP12,000 per year, what is his annual gross
income?
10. A university professor who has a basic monthly salary of Php 80,000, a living allowance
of Php 2,000 per month, who also has an investment of Php 500,000 which earns an
interest of 6% per year, how much is his annual gross income?
a. PhP 1,014,000 b. Php 1,410,000 c. Php 1,041,000 d. Php 1,401,000
11. It is the amount contributed by any wage earner to the government.

a. PhilHealth b. PAG-IBIG c. Withholding Tax d. SSS/GSIS
12. It collects annual/ quarterly/ monthly contributions from its members to ensure that
they will receive their benefits.
a. SSS/GSIS b. Withholding Tax c. PAG-IBIG d. PhilHealth
13. It focuses more on providing discounts when it comes to health-related problems.

a. SSS/GSIS b. Charges c. PAG-IBIG d. PhilHealth
14. It focuses on providing discounts monetary assistance for lands or mortgages.

a. PhilHealth b. Charges c. PAG-IBIG d. SSS/GSIS
15. It can be best interpreted as deductions made by the employer for some other reasons.
a. PhilHealth b. Charges c. Withholding Tax d. SSS/GSIS
Lesson Taxable and Nontaxable Benefits
2
and Standards Deductions
People who are working receive benefits. These benefits can be either taxable or non-
taxable. One example of these is the cash gift awarded by company once an employee is
chosen as the “Employee of the Year”. This one is an example of a taxable benefit.
What’s In
Think and Answer!
Analyze the payslip below. Identify the benefits and write them on a separate answer
sheet.
Earnings Deduction
Regular Pay: Php 18,382.35 Withholding Tax: Php 4,530.00
De Minimis: 1,925.00 SSS Premium: 500.00
Performance Bonus: 560.00 PhilHealth: 250.00
Basic Pay: 20,867.95 PAG-IBIG 100.00
Overload-Coll 1,769.50 Retirement Fund 626.00
Holiday Pay 6,748.88 Charges/Misc. 360.00
What’s New
Does a Php 15,000.00 Christmas bonus be taxable or not? Defend your answer.
Then answer the What I Know and What I want to Know of the KWL chart below.
Taxable or Non-Taxable
What I Know What I Want to Know What I Learned

What is It
From the payslip given in the previous activity, one of the benefits is the de minimis.
As stipulated in the Revenue Regulation No. 5-2011, the de minimis benefit should not
be taxed with some constraints. For example, uniform and clothing allowance not exceeding
Php 4,000.00 shall not be taxed.
As stated in the Revenue Regulation No. 5-2011of the Bureau of Internal Revenue, the
following benefits are not taxable (de minimis benefits).
1. Monetized unused vacation leave credits of private employees not exceeding ten (10) days
during the year.
2. Monetized value of vacation and sick leave credits paid to government official and employees.
3. Medical cash allowance to dependents of employees, not exceeding Php750 per employee
per semester or Php125 per month.
4. Rice subsidy of Php1,500 or one (1) sack of 50 kg rice per month amounting to not more
than P1,500.
5. Uniform and clothing allowance not exceeding Php 4,000 per annum.
6. Actual medical assistance, e.g. medical allowance to cover medical and healthcare needs,
annual medical/executive check-up, maternity assistance, and routine consultations, not
exceeding Php 10,000 per annum.
7. Laundry allowance not exceeding Php300 per month.
8. Employees achievement awards, e.g. for length of service or safety achievement, which must
be in the form of tangible personal property other than cash or gift certificate, with an annual
monetary value not exceeding Php 10,000 received by the employee under an established
written plan which does not discriminate in favor of highly paid employees.
9. Gifts given during Christmas and major anniversary celebrations not exceeding P5,000 per
employee per annum.
10. Daily meal allowance for overtime work and night/graveyard shift not exceeding 25% of the
basic minimum wage on a per region basis.
After identifying taxable benefits from not and knowing that tax is one of the standard
deductions, we now proceed on enumerating deductions in the payslips provided above.
They are:
1. Withholding Tax
2. SSS Premium
3. PhilHealth
4. PAG-IBIG
5. PAG-IBIG/SSS Loan
6. Retirement Fund
7. Charges/Miscellaneous
These are some standard deductions for a wage earner.

• Withholding tax is the amount contributed by any wage earner to the government.
• The SSS (Social Security System) or GSIS (Government Services Insurance System) collects
annual/ quarterly/ monthly contributions from its members to ensure that they will receive
their benefits.
• PhilHealth and PAG-IBIG are almost the same with SSS/GSIS only that PhilHealth focuses
more on providing discounts when it comes to health-related problems, while PAG-IBIG
Fund focuses on providing discounts monetary assistance for lands or mortgages.
• Charges/Miscellaneous can be best interpreted as deductions made by the employer for
some other reasons. (e.g. tardiness/absences)
Example 1.
Mr. Ely is working as a staff in the treasury office of the Local Government. He has ten
(8) days sick leave credits and seven (7) days vacation leave credits. His daily rate is Php
650 and did not avail the sick and vacation leave credits, so the agency monetized it.
How much will be his additional earnings and how much of it will be taxed?
Solution:
(8 + 7) x 650 = Php 9,750
Therefore, Mr. Ely will receive an additional earning of Php 9,750 and will not be taxed
since he is a government employee.
Example 2.
Edison’s employer provides each employee an amount of Php 10,000 Christmas Bonus.
How much of the bonus is taxable? Considering that Edison’s tax percentage is 25%,
how much is her tax payable for the said bonus, and how much will be his net income
from the bonus?
Solution:
Since any amount exceeding Php 5,000 is taxable, then 10,000 – 5,000 = 5,000. And
since her his tax percentage is 0.25, then his tax is 5,000 x 0.25 = Php 1,250 and so,
his additional income is
Php 10,000 – 1,250 = Php 8,750.00
Example 3.
Tea Gumps owner provides a living allowance to his employees monthly. Considering
that the living allowance is defined as follows:
Living allowance = clothing + laundry + daily meal + transportation
How much of the additional earnings will be taxed if an employee’s living allowance is
Php 5,000 and each part in the definition is 0.25 of the living allowance?
Solution:
Allowances or benefits that are not included in the de minimis benefits are considered
taxable. In every part of the living allowance, we have: 0.25x, where x is the amount of
the living allowance.
Then 0.25x = 0.25(5,000) = Php 1,250.
The taxable portion is the sum of the four taxable parts:
For clothing allowance which is Php 1,250, the non-taxable part is only
Php 4,000/12, and for laundry, the non-taxable part is 300, and the other two, daily
meal and transportation are all taxable.
Note that the only exemption for clothing is Php 4,000 per annum, for laundry is Php
300 per month, daily meal allowance for overtime, and transportation is not stated for
de minimis benefit.
We let T be the taxable portion of the allowance. Thus, we get
4000
𝑇 = (1250 − )+ (1250 − 300) + 1250 + 1250 = 𝑃ℎ𝑝 4,366.67
12
Therefore, the portion of the living allowance, which is taxable is Php 4,366.67.
Example 4.
The employee’s earning has a tax percentage of 20%. Twenty-two percent of his total
allowance comes from Christmas gifts, all other allowances are not taxable, and his total
allowance is 17% of his basic pay (less the allowance) which is Php 100,000. What is his
total earning and how much is his tax?
Solution:
Let T be the total earnings, b be the basic pay, and A be the total allowances.
A = 0.17B = Php 100,000
B = 100,000/0.17 = Php 588,235.29
T = B + A = 588,235.29 + 100,000 = Php 688,235.29
So, his total earning is Php 688,235.29.
Let t be his tax.
t = 0.2 (B + (0.22A – 5000))
t = 0.2 (588,235.29 + (0.22(100,000) – 5,000))
t = Php 121,047.06
So, his tax is Php 121,047.06.
To see how the equation for t becomes t = 0.2 (B + (0.22A – 5000)), please refer to
Item 9 of the Revenue Regulations 5-2011 of BIR.
What’s More
A. Identify if the statement is True or False. Write your answer on a separate answer sheet.
1. All allowances are nontaxable.
2. If the monthly clothing allowance is Php 400.00, then the taxable amount for clothing
allowance is Php 1,200.
3. Allowances are considered part of earnings.
4. Nontaxable benefits include all monetized leave credits.
5. Some bonuses or allowances are nontaxable.
6. All benefits of government officials and employees are nontaxable.
7. Taxes are added in the deduction.
8. Thirteenth moth pay may or may not be taxed.
9. If the total deduction is 0, then it follows that gross earnings is nontaxable.
10. There is a possibility that a certain employee will be exempted from tax even if she/he
receives some benefits.
B. Solve the following problems below.

11. The CAN (Collective Negotiation Agreement) is considered as a benefit for public employees
computed in one year.
Given the formula below:
CAN + 13th Month Pay + other benefits > Php 30,000 are taxable.
Suppose a certain government employee earns a CAN = Php 12,764.12, 13th Month Pay
= Php 24,291.78, and he has no other benefits. How much of his additional earnings will
be taxed?
12. In connection with the previous problem, suppose a certain government employee earns
a CAN = Php 2,214.12/month, 13th Month Pay = Php 12, 119.72, and he has other benefits
amounting to Php 4,000.00. How much of the additional earnings will be taxed?
13. Suppose in the previous problem, the other benefits include clothing allowance. Will there
be a change in the amount taxable? If yes, how much? If no, why?
14. If an employee X has CAN = Php 18,291.09, 13th Month Pay = Php 27,891.00, other
benefits = Php 10,000 and Php 3,000 of the other benefits is the clothing allowance. How
much of his benefits is taxable? How much is nontaxable?
15. Based on the previous problem, if his tax rate is 0.08, how much is his tax and what is
his net amount from is benefits?
What I Have Learned

Complete your KWL Chart on Taxable and Non-Taxable Benefits by
indicating what you learned in the third column/box in the chart.
Taxable or Non-Taxable
What I Know What I Want to Know What I Learned

What I Can Do
Write-Up
Write a short write-up about the scenario.
Taxable and nontaxable benefits are definitely not easy to compute for reasons that
answers depend on situation and the implementing rules definition is not that perfectly
defined and clarified due to variety of differences and preferences. With this idea in mind,
what do you think is the best way to solve such problem? Please provide concrete solution
to this problem.
Assessment
Multiple Choice. Choose the letter of the best answer. Write the chosen letter on
a separate sheet of paper.
1. It is the amount contributed by any wage earner to the government.

a. PhilHealth b. PAG-IBIG c. Withholding Tax d. SSS/GSIS
2. It collects annual/ quarterly/ monthly contributions from its members to ensure that
they will receive their benefits.
a. SSS/GSIS b. Withholding Tax c. PAG-IBIG d. PhilHealth
3. It focuses more on providing discounts when it comes to health-related problems.

a. SSS/GSIS b. Charges c. PAG-IBIG d. PhilHealth
4. It focuses on providing discounts monetary assistance for lands or mortgages.

a. PhilHealth b. Charges c. PAG-IBIG d. SSS/GSIS
5. It can be best interpreted as deductions made by the employer for some other
reasons.
a. PhilHealth b. Charges c. Withholding Tax d. SSS/GSIS
6. Suppose Company ABM gives its employees a clothing allowance amounting to

Php 3,500 semiannually, then which of the statements is true?
a. The allowance is taxable.
b. The allowance is not taxable.
c. It depends if the employee is a private or government employee.
d. Some amount of the allowance is taxable.
7. It is the amount subtracted from the gross income.

a. deduction b. net income c. leave d. bonus
8. Which of the following is NOT the standard deduction in the payslip?

a. withholding tax c. PAG-IBIG
b. SSS premium d. housing loan
9. Which of the following statements is taxable?
a. Salary amounting to Php 35,000
b. Uniform allowance of Php 2,000
c. Laundry allowance of Php 150 per month.
d. Anniversary bonus of Php 5,000.
10. What amount does a laundry allowance should not exceed to make it not
taxable?
a. Php 300/month b. Php 300/week c. Php 300/day d. Php 300/year
11. Find the value of x in the equation, 10,000,000 = 27.5 (x) (60,000)
a. 7.07 b. 6.06 c. 5.05 d. 4.04
12. Which of the following is an employee’s achievement awards?

a. anniversary b. overtime work c. length of service d. hazard
13. A medical allowance will not be taxable if it will not exceed by _________.
a. Php 750/semester b. Php 750/year c. Php 900/year d. Php
500/week
14. A policeman who gets a basic salary of Php 25,000 per month, a living allowance
of Php 2,500 per month and a hazard pay of PhP12,000 per year, what is his
annual gross income?
15. A university professor who has a basic monthly salary of Php 80,000, a living
allowance of Php 2,000 per month, who also has an investment of Php 500,000
which earns an interest of 6% per year, how much is his annual gross income?
a. Php 1,014,000 b. Php 1,410,000 c. Php 1,041,000 d. Php 1,401,000
Mr. Santos received the following compensation and benefits for a year, working
as an IT officer.
Annual Basic Salary Php 300,000
13th Month Pay and Bonuses 75,000
Uniform Allowance 5,000
Laundry Allowance 4,000
Rice Subsidy 27,600
Determine how much of Mr. Santos’ total compensation is taxable and how
much of it is non-taxable.
Answer Key
What I Know 14. Taxable Benefit (Tax) - Php2,094.57

1. d 15. Non-taxable benefit (Net Benefits) –
2. a Php54,087.52
3. d
4. a
5. a What I Have Learned
6. b KWL Chart – Answers may vary
7. c
8. a What Can I do
9. a Answers may vary
10. a
11. c
Assessment:
12. a
13. d 1. c
14. c 2. a
15. b 3. d
4. c
What’s In 5. b
Part of the Christmas bonus will be 6. d
taxable since it exceeds to Php 5,000. 7. a
Answers may vary 8. d
9. a
What’s More
10. a
A.
1. False 11. b
2. True 12. c
3. True 13. a
4. True 14. a
5. False 15. a
6. False
7. False
8. True Additional Activities
9. True Taxable:
10. True Annual Basic Salary Php300,000
B. Non-taxable:
11. Php 7,055.90 Clothing Allowance Php5,000,
12. No addition earning will be taxed. Laundry Allowance Php3,600,
13. None, because the benefit’s worth
Rice subsidy Php18,000
is Php4,000 and it is stipulated in
the law that allowances related to
clothing and not exceeding Php400
are nontaxable.
References
Lopez, Brian Roy C., Martin-Lundag, Leah C. & Garces, Ian June L., Business Mathematics.
(Quezon City, Vibal Group, Inc., 2016)
2016)
Paredes, Lorna I, Walo, Lailani B., Ramos Jr., Aurelio P., Asinas, Mark Adrian S. and
Cando-Asuncion, Joy, Business Mathematics – Teacher’s Guide (Quezon City, CHED,
2016)
Overtime Pay
“Diligent hands will rule, but laziness ends in forced labor.”

-Proverbs 12:24
Prepared by:
What I Need to Know 14
This module was designed and written to help you learn the fundamental
operations of mathematics as applied in salaries and wages. Specifically, computation
of overtime pay will also be taught to you.
1. identify the variables needed in the computation of the overtime; and
2. compute overtime pay.
What I Know
sheet of paper.
1. It refers to the excess payment over the regular rate.

a. hourly rate b. overtime premium c. piece rate d. commission
2. What is he normal hours of work?

a. 8 hours b. 10 hours c. 6 hours d. 4 hours
3. It refers to additional amount added for work performed between 10PM to 6AM.
a. night shift differential c. holiday pay
b. night-time pay d. rest-day pay
4. What percentage of regular wage will be the additional compensation for the overtime work?
a. at least 10% b. at least 30% c. at least 25% d. at least 50%
5. What percentage of regular wage will be the additional compensation for the work performed
on a special holiday or rest day?
if the holiday work falls on the employee’s scheduled rest day?
7. The employer may require an employee to work on any holiday but such employee shall be
paid a compensation equivalent to ____________ his regular hourly rate.
a. twice b. thrice c. equal to d. less than
8. It includes articles that enunciate the normal hours of work of any employee shall not exceed
eight hours a day.
a. Code of Ethics b. Company’s Handbook c. Labor Code d. CBA
9. It refers to any work performed beyond the normal 8 hours work in one workday.
a. overtime pay b. overtime work c. workday d. part-time
10. Which of these formulas will be used to compute for the overtime pay on an ordinary day?
a. 25% x hourly rate x no. of hours c. 200% x basic pay
b. 30% x hourly rate x no. of hours d. 260% x basic pay
11. Which of these formulas will be used to compute for the overtime pay on a special day?
12. An employee worked from 8PM to 6AM with a regular pay of 200 per hour. What is his pay
for this time if the night differential pay, only valid from 10PM to 6AM is 1.1 of that regular
pay?
13. Joe worked on a holiday where the pay is 1.25 of the regular pay. If his regular daily rate
is P1,800, then what is his holiday pay?
14. Enzo works for 9 hours and earns Php 890 on a regular day. How much is his overtime
pay?
a. Php 97.80 b. Php 107.58 c. Php 108.57 d. Php 890
15. Suppose a regular daily wage rate is Php 466.00. Compute the overtime rate per hour.
a. Php 58.25 b. Php 19.41 c. Php 38.83 d. Php 77.67
Lesson
1 Overtime Pay
Many employees are paid on an hourly basis. Employees who work more than the
required number of hours are entitled to the overtime pay.
What’s In
“Finding Your x”
Solve for x in the following equations:

𝑥 1 𝑎−𝑏 𝑎 1
1. 𝑦
=𝑦−5 2. 𝑥
= 𝑐
3. 𝑏
= 𝑥
+𝑐
What’s New
“Workaholic”
Consider the problem presented below. Then solve the problem and answer the
following questions:
Ms. Ecel worked for 12 hours yesterday, which was just a regular day. Her hourly rate
is Php 196.00. How much did she earn yesterday supposing that there will be 25%
increase for every hour exceeding the standard working time of 8 hours?
a. How many hours does Ms. Ecel work in the company?

b. How many hours did she work overtime?
c. How do you determine the number of hours a person works overtime?
d. How do you compute overtime pay?
e. Why should you know how to compute for overtime pay?
What is It
Definition of Terms:
• In a regular day A, the overtime rate r of an employee with a regular hourly rate of h
is at least 1.25h.
• If A is a special day or a holiday, then r = 1.3h.
• A night shift differential refers to an additional amount n added to the hourly rate h.
The amount n is only added if an employee works anytime form 10:00PM to 6:00AM.
The amount n is equal to 1.1h, as stated in the Labor Code of the Philippines.
Now we derive a formula for the previous problem. We let T be the total daily earnings,
and R be the daily rate (equivalent to 8 hours), and H be the number of worked hours.
𝑅 1.25𝐻−2
𝑇 = 𝑅 + 𝑅 𝑥 1.25 𝑥 8
𝑥 (𝐻 − 8) Or 𝑇= 8
𝑥𝑅
Labor Code of the Philippines that concerns overtime work – Book III – Conditions of
Employment, Title I: Working Conditions and Rest Periods, Chapter 1: Hours of Work.
Emphasis should be given to the following articles in the Labor Code:
Art. 83. Normal Hours of Work. The normal hours of work of any employee shall not
exceed eight (8) hours a day.
Art. 86. Night Shift Differential. Every employee shall be paid a night differential of not
less than ten percent (10%) of his regular wage for each hour of work performed between
ten o’clock in the evening and six o’clock in the morning.
Art. 87. Overtime Work. Work may be performed beyond eight (8) hours a day provided
that the employee is paid for the overtime work, an additional compensation equivalent to
his regular wage plus at least twenty-five percent (25%) thereof. Work performed beyond
eight hours on a holiday or rest day shall be paid an additional compensation equivalent to
the rate of the first eight hours on a holiday or rest day plus at least thirty percent (30%)
thereof.
Art. 88. Undertime Not Offset by Overtime. Undertime work on any particular day shall
not be offset by overtime work on any other day. Permission given to the employee to go on
leave on some other day of the week shall not exempt the employer from paying the
additional compensation required in this Chapter.
• Overtime Pay is the additional compensation payable to employee for services or work
rendered beyond the normal eight hours of work. It is computed by multiplying the overtime
rate with the number of hours in excess of the regular eight hours of work.
• Overtime Work refers to any work performed beyond the normal 8 hours in one workday.
• Workday is the consecutive 24-hour period which commences from the time the employee
starts to work and ends at the same time the following day. To illustrate, if the employee
regularly works from 8 AM to 4 PM, his regular workday is the 24-hour period from 8 AM to
8 AM of the following day. Workdays do not necessarily correspond to calendar days.
Computation of Overtime Pay

Rules in computing overtime pay, pay for work done on holidays, premium on
nightshift and 13th month pay:
• Overtime:
An Ordinary Days: Plus 25% of the hourly rate multiplied by the number of hours.
On a Rest Day, Special Day, or Regular Holiday: Plus 30% of the hourly rate on said days
multiplied by the number of hours.
• Pay for work done on:
A Special Day: 130% x basic pay
A Special Day, which is also a scheduled rest day: 150% x basic pay
A Regular Holiday: 200% x basic pay
A Regular Holiday, which is also a scheduled rest day: 260% x basic pay
• Night Shift Premium Where Night Shift is a Regular Work:

On Ordinary Day: 110% x basic hourly rate
On a Rest Day, Special Day, Regular Holiday: 110% of regular hourly rate for a rest day, special
day, regular holiday
• Overtime on Night Shift:

On Ordinary Day: 110% x overtime hourly rate
On a Rest Day, Special Day, Regular Holiday: 110% of overtime hourly rate for rest days, special
days, regular holidays
• 13th Month Pay:

Total basic salary earned for the year exclusive of allowances, overtime, holiday and night shift
differential pay divided by 12 months = 13th month pay
Example 1.
Mr. Apostol’s daily rate is Php675.00. He works on a regular day from 8:00 AM to
8:00 PM. How much did he earn that day?
Solution:
Mr. Apostol worked for 12 hours in that day.
So, using the formula, we have R = 675 and H=12
1.25𝐻−2
𝑇= 8
𝑥𝑅
1.25(12) − 2
𝑇= 𝑥 675
8
13
𝑇 = 8 𝑥 675
T = Php 1,096.80
Thus, Mr. Apostol earned Php 1,096.88 on that day.
Example 2.
Mr. Gozum earns Php560.00 when he works for 10 hours in a regular day. How
much is his daily rate?
Solution:
In this problem, we find for R. Solving for R in the question
1.25𝐻−2
𝑇= 8
𝑥𝑅
we have,
8𝑇
𝑅 = 1.25𝐻−2
Using this formula, we have,
8𝑇
𝑅 = 1.25𝐻−2
8(560)
𝑅 = 1.25(10)−2
4480
𝑅= 10.5
R = Php 426.67
Therefore, Mr. Gozum’s daily rate is Php 426.67.
Example 3.
EJ works as a call center agent starts at 8:00 PM ends at 6:00 AM. If his hourly
rate is Php80.00, how much is his total earnings for a month if he works 20 days
every month?
Solution:
According to the definition, the night shift differential can only be earned from
10:00 PM to 6:00 AM. Therefore, the total eight hours of Mr. EJ’s work will earn
1.1x instead of x, where x is the hourly rate. We let T be EJ’s total earnings for a
month.
T = 20 x [2 (80) + 8 (1.1) (80)]
T = 20 x 10.8 x 80
T = Php 17,280
Hence, Mr. EJ has a monthly earning of Php 17,280.
Example 4.
Mr. Sta Ana worked for some hours yesterday (a regular day). His daily rate is Php
1,598.50. His total earnings yesterday was Php 2,000.00 and he started working
at 7:00 AM. How many hours did he work yesterday?
Solution:
We solve for H in the formula:
1.25𝐻−2
𝑇= 8
𝑥𝑅
1.25𝐻−2 𝑇
=
8 𝑅
8𝑇
1.25H – 2 = 𝑅
8𝑇
1.25H = +2
𝑅
𝟖𝑻+𝟐𝑹
H = 𝟏.𝟐𝟓𝑹
8(2000)+2(1598.50)
H = 1.25(1598.50)
H = 9.6
Thus, Mr. Sta Ana worked for about 9 hours and 30 minutes.
Example 5.
Ms. Jesuitas is an assistant manager in a 24/7 restaurant. Her shift schedule is
from 10:00PM to 8AM for 15 days without any holidays. The company agrees that
they will pay her both a night differential and an overtime pay given the schedule.
How much will she expect to receive after 15 days if her hourly rate is Php105?
Solution:
Since 10:00 PM to 6:00 AM work gives a night shift differential and the 6:00 –
8:00 AM work does not have a night shift differential, but an overtime pay since
she started working at 10:00 PM, we have the computation below (T the total
earnings).
T = 15 x [1.1(8) + 1.25(2)] x 105 = Php 17,797.50
Therefore, Ms. Jesuitas will earn an amount of Php 17,797.50 for her work.
What’s More
A. Identify if the statement is True or False. Write your answer on a separate sheet of
paper.
1. Night shift differential rate can be greater than overtime pay rate.
2. Overtime pay rate for holidays and regular days are always different.
3. If an employee works for 12 hours, then he surely have an overtime pay.
4. It is possible that overtime pay can be given to an employee who works less than 8
hours.
5. Overtime pay is only given to those who works at night.
6. All employees are required to work overtime.
7. Daily rate is sometimes equal to hourly rate.
8. If the hourly rate of employee A is equal to the daily rate of employee B, then
employee A earns more than the employee B on a daily basis.
9. If an employee worked for 6 hours yesterday and work 10 hours today, then he will
receive an equivalent to 2-day daily rate.
10. If an employee works on his rest day, then he will automatically earn an overtime
pay.
B. Solve the following problems:

11. Ana works on a holiday for 11.5 hours. How much is her additional income on that
day? (Additional income is the difference of the total daily income and the regular
daily income.)
12. If Ms. Yvette wants to earn thrice of her daily income, how many hours should she
be working? (Considering no night shift differential pay, only overtime pay.)
13. Mr. Nico’s work starts from 3:00 PM until 12:00 midnight. If his hourly rate is Php
567.50, how much is his daily income?
14. An employee has a daily rate of Php 456.76. How much is his monthly earnings if he
works for 24 days a month and 2 holidays in every month, and he incurred a total
overtime of 12 hours?
15. Max works for 9 hours and earns Php 3,890 on a regular day. How much is her
overtime pay?
16. Earl’s annual gross earnings is Php 678,452.00. If he works for 300 days in that year
and has an average of one-hour overtime per day, how much is his daily rate?
17. Xhac’s earnings is the same as that of Yuri. Xhac does not have any overtime, unlike
Yuri. If the ration of work of Xhac and Yuri is 2:3, then how much is the daily rate
of Xhac if the daily rate of Yuri is Php 567.73?
18. Arthur works for 10 hours and earns Php 4,816 on a regular day. How much I his
overtime pay?
What I Have Learned
Three W’s
Answer the Three W’s pertaining to the lesson on a sheet of paper.

• What did you learn today?
• So What? (Give its relevancy, importance and usefulness to you)
• Now What? (How does this fit into what you are learning? Does it affect your thinking?)
What I Can Do
Solve It!
Problem Solving Application:

Eros works for a BPO company at the Bonifacio Global City Taguig. His daily wage
rate is Php1,200.00. Suppose yesterday was a special (non-working) holiday in NCR.
1. What is his hourly rate?
2. How much was his salary if he did not show up to work?
3. How much did he earn if he worked yesterday (special non-working holiday)?
4. How much did he earn if he worked 10 hours yesterday?
5. How much did he earn if he worked yesterday and it was also his rest day?
6. Suppose Eros worked for 10 hours yesterday which also turned out to be his rest
day. How much did he earn?
Assessment
sheet of paper.
1. Which of these formulas will be used to compute for the overtime pay on an ordinary day?
2. Which of these formulas will be used to compute for the overtime pay on a special day?
3. An employee worked from 8PM to 6AM with a regular pay of 200 per hour. What is his pay
for this time if the night differential pay, only valid from 10PM to 6AM is 1.1 of that regular
pay?
4. Joe worked on a holiday where the pay is 1.25 of the regular pay. If his regular daily rate is
P1,800, then what is his holiday pay?
5. Enzo works for 9 hours and earns Php 890 on a regular day. How much is his overtime pay?
a. Php 97.80 b. Php 107.58 c. Php 108.57 d. Php 890
6. Suppose a regular daily wage rate is Php 466.00. Compute the overtime rate per hour.
a. Php 58.25 b. Php 19.41 c. Php 38.83 d. Php 77.67
7. It refers to the excess payment over the regular rate.

a. hourly rate b. overtime premium c. piece rate d. commission
8. What is he normal hours of work?

a. 8 hours b. 10 hours c. 6 hours d. 4 hours
9. It refers to additional amount added for work performed between 10PM to 6AM.
a. night shift differential c. holiday pay
b. night-time pay d. rest-day pay
10. What percentage of regular wage will be the additional compensation for the overtime work?
on a special holiday or rest day?
if the holiday work falls on the employee’s scheduled rest day?
13. The employer may require an employee to work on any holiday but such employee shall be
paid a compensation equivalent to ____________ his regular hourly rate.
a. twice b. thrice c. equal to d. less than
14. It includes articles that enunciate the normal hours of work of any employee shall not exceed
eight hours a day.
a. Code of Ethics b. Company’s Handbook c. Labor Code d. CBA
15. It refers to any work performed beyond the normal 8 hours work in one workday.
a. overtime pay b. overtime work c. workday d. part-time
The formula for the computation of overtime pay varies depending

on the day overtime work was rendered. You must be continually
updates/issuances pertaining to overtime pay that may be issued by
DOLE. Have a research on the Labor Advisory No. 11, Series 2015
issued by DOLE.
https://www.dole.gov.ph/files/Labor%20Advisory%20No_%2011-15.pdf
Create/Think of your own sample problem involving overtime pay and

use this Labor Advisory as reference in computing for the total earnings for a
day, overtime rate, etc.
Write your sample problem on a sheet of paper.
Answer Key
What I Know 9. False

1. b 10. True
2. a B.
3. a 11. 2 x 3.5 x 0.25 x Rate
12. 2.4 hours
4. c
13. Php 4,557.25
5. b 14. Php 12,092.721
6. d 15. Overtime pay = Php525.68
7. a 16. Daily Rate = Php2,226.72
8. c 17. Daily rate of Xhac = Php378.47
9. b 18. Overtime pay = Php1,146.675
10. a
11. b
What I Have Learned
12. b
Answers may vary
13. b
14. b What Can I do
15. a 1. Php 150
2. Php 0 (no work, no pay on special holiday
What’s In in the Philippines)
1. x = 𝑦 2 -5y 3. Php 1,560
𝑐
2. x = 𝑎−𝑏 4. Php 2,040
𝑏 5. Php 1,800
3. x = 𝑎−𝑏𝑐 6. Php 2,385
What’s New
Ms. Ecel earns Php 2,548 on Assessment:
that particular day. 1. a
a. 12 hours 2. b
b. 4 hours 3. b
c. No. of hours work – 8 hours 4. b
d. Overtime rate = hourly rate x 5. b
25% of hourly rate 6. a
e. Answers may vary 7. b
8. a
What’s More 9. a
1. True 10. c
2. True 11. b
3. True
12. d
4. True
5. False 13. a
6. False 14. c
7. False 15. b
8. True
References
Lopez, Brian Roy C., Martin-Lundag, Leah C. & Garces, Ian June L., Business
Mathematics. (Quezon City, Vibal Group, Inc., 2016)
2016)
Valencia, Edwin G. and Roxas, Gregorio F., Basic Accounting (Baguio City, Valencia
Educational Supply, 2014-2015)
http://www.laborlaw.usc-law.org/2010/02/03/overtime-pay/
https://www.dole.gov.ph/files/Labor%20Advisory%20No_%2011-15.pdf
Spreadsheet for Computation and Presentation
“Whoever increases wealth by taking interest or profit from the poor amasses it for
another, who will be kind to the poor.”
-Proverbs 28:8
Prepared by:
What I Need to Know 15
This module was designed and written for learners like you to learn the fundamental
operations of mathematics as applied in salaries and wages. Learners like you can also
explore and develop new ways to compute salary and overtime pay using technology.
1. use E-spreadsheet for computing the salary and overtime pay; and
2. prepare graphical representation of the details or particulars of the salary.
What I Know
sheet of paper.
1. It creates a simple computer application for computation of salaries, wages and some others.
a. Microsoft b. calculator c. spreadsheet d. payroll
2. It is simple to use when it comes to typing data because of its grid nature.
a. Excel b. Word c. PowerPoint d. Lotus
3. It is the place where all important tools can be placed.

a. quick access toolbar c. formula bar
b. ribbon d. status bar
4. This is where any calculations or formulas you write will appear.

a. spreadsheet grid b. quick access toolbar c. formula bar d. status bar
5. It tells us what is going on with Excel at anytime.

a. ribbon b. spreadsheet grid c. formula bar d. status bar
6. It is like an expanded menu.

7. This where all numbers, data, charts and drawings will go.
8. What is the symbol used to enter a formula?

a. + b. * c. = d. /
9. What will be the formula to use if you are going to find the total of hours in cell A1 to A10?
a. sum (A1:A10) b. =A1+A10 c. =sum(A1:A10) d. =sum(A1+A10)
10. What is the formula in Excel to compute for the overtime pay on an ordinary day?
a. =0.25 x hourly rate x no. of hours c. =200 x basic pay
b. =0.30 x hourly rate x no. of hours d. =260 x basic pay
Lesson
Spreadsheet for Computation
1 and Presentation
Microsoft Excel can help you track your employee’s wages, using formula. The most
important formulas involve total hours worked, regular time hours worked, and overtime
hours worked. You need to set up each formula in separate cells and for individual
employee.
What’s In
Guess What?
1. What computer software is shown below?

2. Are you familiar with this computer software?
3. What are the advantages of using this software?
What’s New
Spreadsheet Word Search
Below are words related to spreadsheets. Can you find them all in the word search?
cell formula chart workbook column
ribbon data row excel sum
k f s o c x e t a h
o s s r a x r l h m
o l l e c t u z u w
b a r e l m a s r o
k b l i r h o d c r
r y p o b y t d h d
o e f w o b r j a c
w x x d u z o h r n
e j s n r t f n t p
c o l u m n b y x w
What is It
MS Excel
Handling data would be one of the main reasons why you are using Excel. Excel is
quite intuitive and simple to use when it comes to typing data or handling it. Because of its
grid nature, it can store and manage thousands of data points with ease. Built-in feature
like copy, paste, find, highlight, go to, styes, etc. make the process of maintaining data very
easy for you.
When you open Excel, this is how it looks like. Excel is a spreadsheet program that
allows you to store, organize and analyze information. It is a spreadsheet that creates a
simple computer application for computation of salaries, wages, and some others.
There are five important areas in the screen:

1. Quick Access Toolbar – This is the place where all important tools can be placed. When you
start Excel for the very first time, it has only three icons (Save, Undo, Redo). But you can
add any feature of Excel to Quick Access Toolbar so that you can easily access it from
anywhere.
2. Ribbon – It is like an expanded menu. It depicts all the features of Excel in easy-to-
understand form. Since Excel has thousands of features, they are grouped into several
ribbons. The most important ribbons are Home, Insert, Formulas, Page Layout, and Data
3. Formula Bar – This is where any calculations or formulas you write will appear. You will
understand the relevance of it once you start building formulas.
4. Spreadsheet Grid – This is where all your numbers, data, charts and drawings will go. Each
Excel file can contain several sheets. But the spreadsheet grid shows few rows and columns
of active spreadsheet. To see more rows or columns, you can use the scroll bars to the left
or at bottom. If you want to access other sheets, just click on the sheet name (or use the
shortcut CTRL + Page Up or CTRL + Page Down)
5. Status Bar – This tells us what is going on with Excel at any time. You can tell if Excel is
busy calculating a formula, creating a pivot report, or recording a macro by just looking at
the status bar. The status bar also shows quick summaries of selected cells (count, sum,
average, minimum or maximum values). You can change this by right-clicking on it and
choosing which summaries to show.
In the previous figure, it can be seen that there are rectangles inside. This is now what we
call the workplace. This is where we will encode our data. Let us consider the sample payslip.
Figure 1. Sample Payslip

Computation Sample
Figure 2. Sample Payslip
Computation with entered values
We will use the formula in the previous lesson to compute for the net income given
the total earnings and total deductions. We can now enter the formula on the bar.
Figure 3. Computation for Net Pay
Click the cell for the net pay and type “=” and the cells that corresponds to the total
earnings and press “=” and then the cell for the total deduction and press enter.
Figure 4. The result of Net Pay
The figure above shows the computation for Ms. Gozum’s net pay.
Now we employ the computation for total earnings. We consider one employee of GAS
Company.
Figure 5. A sample payslip

in a spreadsheet
Notice that the total earnings formula is simply the sum of all earnings and same goes
for total deduction and once the sum has been computed, we can now use the formula:
Net Pay = Total Earnings – Total Deductions

in a spreadsheet

in a spreadsheet (finished)
In all the previous figures, we used spreadsheet to make payslip. In addition, we can
make another file for more specific computation for overtime pay. In this case, we use logical
operators to compute for the extra number of hours.
The overtime pay computation was done on a different spreadsheet since it is not
necessary to appear in the payslip, what is needed is the value Php 2,109.08 which is the
computed value for overtime pay. Any user can locate the value of the cell from the other
spreadsheet.
Figure 8. Overtime
Figure 9. Computation for
extra hours
Figure 10. Computation

for overtime pay
What’s More
Use spreadsheet to implement the indicated conditions. Make sure to show the formula used.
1. Using a spreadsheet, make a form that computes the withholding tax and the deductions of
each employee.
2. Using a spreadsheet, create a file provides every employee a summary of all his net earnings
in every month. Make a graph of his net income, total earnings and also the total deductions.
3. Use spreadsheet to compute the half-net pay given the computed monthly net of an
employee.
4. Compute for the total deduction provided that the employee is a minimum wage earner.
Include Pag-Ibig Contribution, SSS Contribution and PhilHealth.
5. Suppose there is a spreadsheet for the company A for salary computations. In the deduction
section of every employee payslip, there is an item called retirement fund. This fund is only
given by the formula 200x + 50, where x is the number of years. Implement the said condition
in the spreadsheet.
6. Suppose SSS premium are computed based on the following:
a. if the total earning of the employee is at most Php 20,000, then SSS Premium is 500.
b. for every Php100 in excess of Php 20,000, there is an additional 23% of it in the SSS
premium deduction.
7. In a company where commission is part of the payslip, specifically in the earnings section,
utilize the formulas in the spreadsheet to implement the following conditions:
a. In a separate spreadsheet, the total sales of each employee is located. Look for the value
in that particular cell and use the formula:
Y = 0.1(x – 100,000)
b. In the withholding tax cell, assume that all employees are taxed with at least Php5,000.
Make a formula in the cell for withholding tax computation, where 20% of the commission
is added to it.
8. Reverse a cell for “loanable amount” in a spreadsheet. This loanable amount is the amount
that can be granted to any employee just in case they wish to cash advance from the
company. The conditions for this “loanable amount” are specified below:
a. The employee can only avail this loan if he serves the company for at least two years.
b. Fifty percent of the monthly net earnings times 5, less 10% tax of the gross loanable
amount that should appear in the cell, that is we can view as the net.
c. Make sure that loanable amount shall not exceed Php 150,000.
Hint: Find the maximum net earnings possible to avail the loanable amount.
What I Have Learned
Fill up the table below:

Spreadsheet Frayer Model
Definition: What are they for?
SPREADSHEET
What can they do? Disadvantage
What I Can Do
You Excel!
Solve for the following using Excel:

1.
2.
3.
4.
Assessment
sheet of paper.
1. It is like an expanded menu.

2. This where all numbers, data, charts and drawings will go.
3. What is the symbol used to enter a formula?

a. + b. * c. = d. /
4. What will be the formula to use if you are going to find the total of hours in cell A1 to A10?
a. sum (A1:A10) b. =A1+A10 c. =sum(A1:A10) d. =sum(A1+A10)
5. What is the formula in Excel to compute for the overtime pay on an ordinary day?
a. =0.25 x hourly rate x no. of hours c. =200 x basic pay
b. =0.30 x hourly rate x no. of hours d. =260 x basic pay
6. It creates a simple computer application for computation of salaries, wages and some others.
a. Microsoft b. calculator c. spreadsheet d. payroll
7. It is simple to use when it comes to typing data because of its grid nature.
a. Excel b. Word c. PowerPoint d. Lotus
8. It is the place where all important tools can be placed.

a. quick access toolbar c. formula bar
b. ribbon d. status bar
9. This is where any calculations or formulas you write will appear.

a. spreadsheet grid b. quick access toolbar c. formula bar d. status bar
10. It tells us what is going on with Excel at anytime.

Using the Ecel’s Burger Bar menu above, decide on meal choices for you and
some of your friends. Write out in Excel as a table like the one below.
Answer Key
What I Know
1. c What I Have Learned
2. a Possible answers are provided below. Note
3. a that the answers may vary.
4. c
5. d
6. a
7. b
8. c
9. c
10. a
What’s In
1. MS Excel
2-3. Answers may vary
What Can I do
The exercises must be done in MS Excel. The
What’s New teacher must see to it that the student
followed the instruction correctly and the
formulas must be shown.
Assessment:
1. a
2. b
3. c
4. c
5. a
What’s More 6. c
The exercises must be done in MS 7. a
Excel. The teacher must see to it that the
8. a
student followed the instruction correctly
and the formulas must be shown. 9. c
10. d
References
Lopez-Mariano, Norma D., Business Mathematics. (Quezon City, Rex Book Store, Inc., 2016)
Valencia, Edwin G. and Roxas, Gregorio F., Basic Accounting (Baguio City, Valencia
Educational Supply, 2014-2015)
https://www.canva.com/search/templates?q=Menu&category=tACZCmpr1NE&doctype=TACQ-
j4WGew&designSpec=djE6dEFDWkNtcHIxTkU6Z2xvYmFsLWE0&width=21&height=29.7
Business and Chart Graphs
“But remember the LORD your God, for it is he who gives you the ability to produce wealth,
and so confirms his covenant, which he swore to your ancestors, as it is today.”
-Deuteronomy 8:18 NIV
Prepared by:
What I Need to Know
16
This module was designed and written for learners like you to demonstrate of the key
concepts on business data and presents them in graphs, charts, and tables.
Particularly, the knowledge and skills you have learned from the previous lessons are
significant to solve problems in real-life business situations, present data in graphical
form and analyze them.
1. Compare the forms (textual, tabular and graphical) of business data; and
2. Analyze and interprets the data presented in the table using measures of central
tendency and variability and tests of significant differences.
What I Know
Multiple Choice. Use the graphs shown at the right to answer each question. Choose the letter of
the best answer. Write the chosen letter on a separate sheet of paper.
1. Which department had the most sales?

a. furniture c. clothing
b. appliances d. supermarket
2. What percent of sales was in the Furniture

Department?
a. 6% c. 14%
b. 12% b. 28%
3. Did clothing sell more or less than furniture?

a. yes c. maybe
b. no d. they are equal
4. Which department had the same percent of

sales?
a. furniture & clothing c. appliances & clothing
b. supermarket & others d. none
5. Suppose the total sales for Sacramento Department

Store were Php 20,000,000. What was the amount of
Sales in the clothing department?
a. Php 560,000 c. Php 5,600,000
b. Php 56,000 d. Php 5,600
6. Which radio station got the most votes?
a. DWAE c. DWAC
b. DWAF d. DWAD
7. Which radio station got the least votes?

a. DWAB c. DWAC
b. DWAF d. DWAD
8. How many people voted for DWAC?

a. 6 c. 10
b. 8 d. 12
9. Which radio station got 5 votes?

a. DWAB c. DWAD
b. DWAC d. DWAE
10. What is the ratio of the votes for DWAB and DWAF?
a. 6:7 c. 6:13
b. 6:12 d. 6:5
Lesson
1 Business and Chart Graphs
Data becomes useful when it is organized in some forms and made use of to reach a
decision. There is an old cliché that says, “Data is worth its weight in gold”, which means
that data, when properly used, can help those using the said data. Business data helps
businesses grow. If it is used correctly, business data can improve the profits of the
company. Business data can be meaningful, that is, it can determine the success of the
company.
What’s In
Salary Deduction
Below is the sample payslip of Ms. Santos and its graphical representation.
Based on the bar graph below, answer the following questions:
1. Which has the highest amount of deduction?
2. Which has the lowest amount of deduction?
3. Which has the same amount of deduction?
4. Compute for the total deduction.
5. How much will be the net pay?
What’s New
“A Picture is Worth a Thousand Words”
What does it mean by the saying, “A picture is worth a thousand words.” Relate this
saying to the use of graphs and charts in presenting information. The following article
may be suggested to the students for further readings on the importance of graphs in
business: What do graphs do for us in the business world? The article can be accessed at
the website below:
https://www.mathworksheetscenter.com/mathtips/graphsandbusiness.html
What is It
Business charts are graphs that are used to show numerical facts in a simple and
informative way. There is a variety of these illustrations to show complex enormous data
visually without reading the whole text. It is advised to have a good presentation to
illustrate honest facts and not missing vital information.
Example 1. A table is a display of numerical information in rows and columns.

A frequency table summarizes the entries in each category.
SUMMER GETAWAYS NUMBER OF VISITORS

UNDERGROUND RIVER, PALAWAN 250
HOT SPRINGS, CAMIGUIN ISLAND 130
CAMSUR, CAMARINES DEL NORTE 300
CHOCOLATE HILLS, BOHOL 120
PAOAY CHURCH, ILOCOS NORTE 200
TOTAL 1000
Example 2. A line graph uses, line segments to connect data points. One axis is
usually related to time (year, month, day, or clock time).
The line graph on the previous page shows that male in number graduates generally
increase, but female graduates do not show a constant increase every year.
Example 3. A bar graph uses rectangles erected on the horizontal axis to summarize
a set of quantitative data. Several bars can be created to compare different quantity
of data.
Sales, gross margin and net profit show an increase every year.
Example 4. A pie chart is a circular-pie-like graphic representation with wedges or

sectors to show how much of the whole each part makes up. To get the measure of
each sector in the chart, multiply the percentage of each item by 360◦.
What’s More
A. Use the table below to answer the following questions.
SALAD CALORIES FAT PROTEIN SODIUM

Fruit 170 20 g 10 g 550 mg
Buko Pandan 185 18 g 12 g 601 mg
Potato 190 17.5 g 10 g 580 mg
Macaroni 250 22 g 17 g 619 mg
1. Which salad has the least fat?

2. Which salad has the most sodium?
3. Which salad has at least sodium?
4. Which salad has the fewest calories?
B. For items 5 – 7, refer to the bar graph below.
5. What was the production in the year 2011?

6. In what year did the greatest production occur?
7. In what year did the production decline the greatest compared to the previous
year?
8. Approximately how many AUV’s were produced in the Philippines from 2009
to 2015?
9. Find the average annual production of AUV’s from 2009 to 2015.
10. Assuming that production is proportional to the demand, on which
consecutive years did the most abrupt change of demand happen?
What I Have Learned
Throwback
Go back to the graphs presented in the examples, study each graph, and answer the
following questions:
1. How would you recognize which type of graph is suited for your business data?
2. Why is it important to know the best way of presenting business data?
What I Can Do
Graph Tells a Story
1. Cut-out a graph or chart from a newspaper or have a screenshot of graphs taken from
news articles found on web.
2. Study the graph.
3. Identify the essential parts of the graph.
4. Interpret the data presented in the graph.
5. What story could you tell based on the interpretation made?
Assessment
Multiple Choice. Use the graphs shown at the right to answer each question. Choose the letter
of the best answer. Write the chosen letter on a separate sheet of paper.
1. In which month did ABM store sells the

greatest number of loom bands? For items 1 – 4.
a. July c. October
b. September d. December
2. How many loom bands were sold in Nov.?

a. 200 c. 400
b. 300 d. 600
3. Find the decrease in the number of loom

bands sold between August and September.
a. 500 c. 400
b. 300 d. 200
4. Which months have the same loom bands sold?
a. September & October c. August & November
b. July & September d. August & December
5. Find the amount spent for food.

a. Php 200 c. Php 500
b. Php 360 d. Php 640
6. How much is spent for transportation?

a. Php 200 c. Php 500
b. Php 360 d. Php 640
7. Find the amount spent in savings.

a. Php 200 c. Php 500
b. Php 360 d. Php 640
8. If the student increases his food allowance

by Php 170, how much would he keep for
his savings?
a. Php 370 c. Php 810
b. Php 670 d. Php 710
9. If the student did not go out with his friends for that week, how much would his
additional savings be?
a. Php 400 b. Php 500 c. Php 600 d. Php 700
10. If his grandfather gave him an additional Php 500 for his food allowance, how can he
spend on food?
a. Php 1040 b. Php 1140 c. Php 1240 d. Php 1340
Create a Graph on a Click

1. Think of a topic in business that is of interest to you, e.g., monthly sales of a
product in a mall or a local store, daily production of a factory.
2. Gather data on the chosen topic.
3. Decide on which is the most appropriate graph to use in presenting your data.
4. Go to Create a Graph which can be accessed on an online graphing tool that is
available on the website:
http://nces.ed.gov/nceskids/creategraph/default.aspx?ID=a88059351ff41fdaa09a2a
89
Answer Key
What I Know 7. 2014

1. d 8. Around 3000
2. b 9. Around 420
3. a 10. 2012 -2013
4. d
5. c What I Have Learned
6. b Answers may vary
7. a
8. a
9. b
10. c
What Can I do
Answers may vary
What’s In
1. Income tax
2. PhilHealth & charges Assessment:
3. PhilHealth & charges
4. Php 3,092.50 1. d
5. Php 9,364.25 2. c
3. d
What’s New 4. a
Answers may vary 5. d
6. c
What’s More 7. a
1. Potato 8. c
2. Macaroni 9. d
3. Fruit 10. b
4. Fruit
5. 400
6. 2012
References
2016)
Oronce, Orlando A., & Mendoza, Marilyn O., e-math Advanced Algebra and Trigonometry
IV, (Recto, Manila, Rex Book Store, 2011)
https://www.mathworksheetscenter.com/mathtips/graphsandbusiness.html
http://nces.ed.gov/nceskids/creategraph/default.aspx?ID=a88059351ff41fdaa09a2a89
Department of Education Division Rizal
Office Address: DepEd Bldg.,Cabrera Rd.,Bgy. Dolores,Taytay,Rizal 1920
Telephone number: 09274562115/09615294771

BusinessMath Module5 13-16

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

BusinessMath Module5 13-16

Uploaded by

Copyright:

Available Formats

Business

1. It is a fixed regular payment, typically paid on a daily or weekly basis, made by an

2. It is a payment or gift made by an employer, the state, or an insurance company.

3. Which of the following is NOT a benefit of a wage earner?

5. Which of the following is NOT a long-term benefit?

6. Which of the following government agencies/departments do you think is the least

10. What is the computation to get the minimum retirement benefit?

11. Which of the following is NOT a leave incentive?

Complete the table below by solving for the unknown values.

Total Earnings (E) Total Deductions (D) Monthly Net (N)

Fam with Benefits

The Benefits of the Wage Earner

The computations of some benefits are as follows:

Using the formula, we get

A. Identify if the statement is True or False. Write T if it true and F is false.

C. Solve the following problems.

Want It All Vs. Need It All

1. It is a payment or gift made by an employer, the state, or an insurance company.

2. It is a fixed regular payment, typically paid on a daily or weekly basis, made by an

4. Which of the following is NOT a benefit of a wage earner?

5. Which of the following government agencies/departments do you think is the least

6. Which of the following is NOT a long-term benefit?

10. What is the computation to get the minimum retirement benefit?

11. Which of the following is NOT a leave incentive?

What I Know 18. Y

After going through this module, you are expected to:

1. Suppose Company ABM gives its employees a clothing allowance amounting to

2. It is the amount subtracted from the gross income.

3. Which of the following is NOT the standard deduction in the payslip?

4. Which of the following statements is taxable?

6. Find the value of x in the equation, 10,000,000 = 27.5 (x) (60,000)

7. Which of the following is an employee’s achievement awards?

8. A medical allowance will not be taxable if it will not exceed by _________.

11. It is the amount contributed by any wage earner to the government.

13. It focuses more on providing discounts when it comes to health-related problems.

14. It focuses on providing discounts monetary assistance for lands or mortgages.

Think and Answer!

What I Know What I Want to Know What I Learned

These are some standard deductions for a wage earner.

B. Solve the following problems below.

What I Have Learned

What I Know What I Want to Know What I Learned

Write a short write-up about the scenario.

1. It is the amount contributed by any wage earner to the government.

3. It focuses more on providing discounts when it comes to health-related problems.

4. It focuses on providing discounts monetary assistance for lands or mortgages.

6. Suppose Company ABM gives its employees a clothing allowance amounting to

7. It is the amount subtracted from the gross income.

8. Which of the following is NOT the standard deduction in the payslip?

12. Which of the following is an employee’s achievement awards?

What I Know 14. Taxable Benefit (Tax) - Php2,094.57

“Diligent hands will rule, but laziness ends in forced labor.”

1. It refers to the excess payment over the regular rate.

2. What is he normal hours of work?

Solve for x in the following equations:

a. How many hours does Ms. Ecel work in the company?

Computation of Overtime Pay

• Night Shift Premium Where Night Shift is a Regular Work:

• Overtime on Night Shift:

• 13th Month Pay:

B. Solve the following problems:

Answer the Three W’s pertaining to the lesson on a sheet of paper.

Problem Solving Application: