SELF-LEARNING MODULE

BUSINESS MATHEMATICS
Quarter 2 / Module 11

Name:_______________________________Grade/Strand/Section:________________________
School:______________________________LRN:______________________ Control No.:_____

I. Objectives:
• define salary, wage, income, benefits.

II. Subject Matter: Salaries, Wages, Income, and Benefits

III. Learning Resources:

Curriculum Guide/Learning Materials
Most Essential Learning Competencies (MELCs Guide)
Media and Internet Sources

IV. Procedures and Learning Activities:

Review: As a recall on your previous lesson on commission, read and analyze each of the
following problems then solve. Write your final answer on a separate sheet of paper or
notebook. Show your solution.
1. Encar makes money by commission rates. She gets 10% of everything she sells. If Encar sold
₱150,000 worth of item, how much will she get for this month?
2. Yvette works as an agent with a monthly quota of ₱30,000 for which she gets 15%
commission on all sales beyond her monthly quota. If she sold ₱70,000 worth of goods this
month, how much will be her commission for this month?
3. Yancy receives a 5% commission on his sales of at most ₱50,000 quota. An additional
3% commission is given for the sales beyond his quota. If his sales reached ₱70,000 for
the month, how much commission will he get?
4. Andrea, a real-estate agent received a 2% commission of ₱200,000, for selling a house
and lot in a prestigious subdivision. What was the price of the house and lot?
5. Calix, a promodiser in a department store sold a set of kitchen wares for ₱20,000 and
got a ₱1,000 commission. What was the commission rate?
Discussion: People in our community have different professions (e.g. doctors, lawyers, teachers) and
jobs (e.g. carpenters, factory workers, fishermen, drivers). These people who work expect a
monetary return for their goods or services. It allows them to make a living from their labour. There
are different ways on how a person gets paid for his/her services through different manners of
payment like salary, wages, benefits and other sources of income.

ACTIVITY: The Top 10 Highest-Paying Jobs in the Philippines

What is your dream job? Have you ever wondered about the highest paying jobs in the
Philippines? The Department of Labor and Employment (DOLE), in partnership with the
Bureau of Local Employment (BLE), revealed the top 10 highest-paying jobs in their Labor
Market Trends report released in March 2019.
ESTIMATED EDUCATION
RANK JOB
SALARY REQUIREMENT
BS Aeronautics, BS Aeronautical
Aircraft Pilots, Navigators,
1 ₱116,714.00 Engineering, BS Air Transportation,
and Flight Engineers
BS Aircraft Maintenance
Securities and Finance BS Finance, BS Management
2 ₱89,831.00
Dealers and Brokers BS Administration, BS Economics
3 Civil Engineers ₱68,957.00 BS Civil Engineering
BS Accountancy,
4 Actuaries ₱60,477.00
BS Mathematics, BS Economics
BS Computer Science,
5 Computer Programmers ₱52,331.00
BS Information Technology
System Analysts and BS Computer Science,
6 ₱51,069.00
Designers BS Information Technology
BS Computer Engineering,
7 Computer Engineers ₱49,335.00
BS Information Technology

1
 BS Accountancy,
8 Accountants and Auditors ₱47,756.00
BS Management Accounting
Production Supervisor &
9 ₱47,101.00 BS Industrial Engineering
Foremen
BS Statistics,
10 Statistician ₱41,480.00
BS Mathematics
Source:https://www.sodexo.ph/blogs/top-10-highest-paying-jobs-in-the-philippines-2019/

ANALYSIS: After graduation, do you plan to work? Do you plan to put up your own business? Do
you want to pursue college and go after your dream job?

ABSTRACTION: Whatever you plan to do, you will surely use your talent, creativity, and
expertise and get compensated for what you do. Therefore, you must be familiarized with the
differences between salary, wages, income and benefits.

Salary is a fixed amount usually associated with employee compensation usually received
on a monthly or semi-monthly basis, but it may be quoted in an annual sum.

It is, sometimes, necessary to convert salaries on an annual basis into monthly basis, weekly to
monthly, monthly to semi-monthly, etc. In these cases, we should always remember that:
1 year = 12 months = 24 semi-monthly
1 year = 52 weeks = 26 bi-weekly
1 month = 2 semi-monthly
where: “semi-monthly” means “given twice a month” and
“bi-weekly” means “given every two weeks”
Salary Earners

 These are the employees who receive the salaries and usually get paid every 15 days
(semi-monthly).
 These employees are not paid less if they work for only a fraction of the required number
of hours of work.
 They are not paid for working overtime.

Examples:

1. Mr. Sarmiento, a manager of the Maharlika Company earns ₱420,000 annually. If he is

paid monthly, how much does he get on his paycheck?
Solution:
Since there are 12 months in a year, then we divide the annual salary by 12. That is:

annual salary ₱420,000

monthly salary = = 12 = ₱35,000
12

2. Mrs. Sanchez works as an accountant and gets a salary of ₱15,000 which is given semi-
monthly. How much will be her annual salary?
Solution:
Since semi-monthly salaries are given twice a month or 24 times in a year, then
we multiply the semi-monthly salary by 24. That is:
Annual salary = (semi-monthly salary)(24)
= (₱15,000)(24)
= ₱360,000

Wage is usually associated with employee compensation that is based on the number of
hours/days worked multiplied by an hourly/daily rate of pay.
Wage is usually paid on a weekly basis, but it may be quoted in an hourly rate or daily rate of an
employee. To solve for the wage, remember that:
wage = (hourly rate)(no. of hours worked)

2
 = (daily rate)(no. of days worked)
Wage Earners

 These are the employees who receive the wages and usually get paid either weekly or
monthly depending on the employer’s convenience.

 These employees are under the “no work, no pay” policy where they are only paid for
the actual number of hours or days that they rendered work but they are paid for
working overtime.

Examples:
1. Mari Glenne works as a math tutor and is paid ₱150 per hour. How much wage does
she earn for a 10-hour per week of work?
Solution:
Since the given is the hourly rate, we simply multiply it by the number of hours
worked. That is:
wage = (hourly rate)(no. of hours worked)
= (₱150)(10 hours)
= ₱1,500
2. Mang Pedro, a minimum wage earner in Metro Manila is paid ₱450.50 for an 8-hour
workday. What is his hourly wage?
Solution:
Since the given is wage and he worked for 8 hours, then we must divide the wage
by 8. That is:
wage
hourly rate =
no. of hours worked
₱450.50
= 8

= ₱56.31
Income is the total amount that people earn in exchange of the goods, employment,
businesses, investments and professional services that they have rendered.

Types of Income

1. Active Income. Active income is when you do the work and are paid for that work. If you
do nothing, you will no longer be paid.
2. Passive Income. Passive income is when the payment is not directly tied to active work.
It is usually front-loaded with active work and gets paid with small amount, while the
bulk of income comes later.
Sources of Income

a. Commission Income – payment for the commission on sales

b. Rental Income – payment from rentals of properties and real estates
c. Dividends– from investments and partnerships
d. Royalties – payments for authors, products sold or license
e. Business Income – profits from businesses
f. Interest – from a variety of loans from individuals or companies
g. Capital Gains – from the sales of investments
h. Goods – such as crops, fish and other products

Benefits are employee compensation given by an employer other than the basic salary/wage.
It may come in the form of cash or in kind.

Examples of Benefits

a. vacation and sick leaves f. 13th month pay

b. housing g. meal and transportation allowance
c. group insurance h. hospitalization benefits
d. rice subsidy i. clothing allowance
e. cash benefits j. commission, overrides and bonuses
3
 Illustration: Kristine Joy is an elementary teacher and got an offer from two different private
schools in nearby city.
Great Minds School offers a monthly salary of ₱30,000. However, the school is far from where
she lives where renting a house costs ₱5,000 a month. On the other hand, Bright Kids Academy
offers a monthly salary of ₱27,000 and a free accommodation near the school.
Based on the given information, which company is offering a better compensation and benefit
package?
Solution:
 Great Minds School offers ₱30,000 per month while renting a house amounting to
₱5,000. Therefore, the income will be reduced to :
o ₱30,000 - ₱5,000 = ₱25,000
 Bright Kids Academy offers a lower monthly salary of ₱27,000 but provides free
accommodation. Therefore the income of ₱27,000 will not be affected by the house rent.
Therefore, Bright Kids Academy offers a better compensation and benefit package.

ASSESSMENT:
Directions: Classify each of the following profession/job as to salary as to salary earner or wage
earner. On a separate sheet of paper or notebook, write SE if the given is a salary earner and WE
if it is a wage earner.
1. engineer 6. manager
2. carpenter 7. service crew
3. factory worker 8. cashier
4. public school teacher 9. construction worker
5. private tutor 10. accountant

Directions: Read and analyze each word problem and then solve each. Write your final answer
on a separate sheet of paper or notebook. Don’t forget to show your solutions.
11. Dianne works as a secretary and earns ₱180,000 annually. If she is paid semi-monthly,
how much does she get every pay day?
12. Mang Celing, an auto mechanic, is paid ₱80 per hour of work. How much will he earn in 4
weeks if he rendered 30 hours of work each week?
13. If a security guard in a five-star hotel is being offered a salary of ₱12,000 every two weeks.
How much will be his annual salary?
14. A promodiser selling appliances in a department store receives his pay check bi-weekly. If
the daily rate is ₱600 and works 6 days a week, how much will he receive every pay
day?
15. Felix works as a call center agent. His daily rate is ₱765. If he works 6 days a week, how
much will he earn after a probation period of 12 weeks?

ENRICHMENT: Conduct an interview. You can ask your family members, friends, or neighbors. Ask the
following questions then write their responses on a separate sheet of paper or notebook following
the format below.

1. What is your profession/job?

2. How much is your salary/wage for each pay day?

3. Do you have other sources of income? If yes, what are your other sources of income?
4. What are the different benefits given by your employer/company?
5. What is the importance of earning a salary/wage in your everyday living?

ANSWER KEY:
ASSESSMENT:
REVIEW: