Salary & Wages

PREPARED BY: REIZEL JANE PASCUA

 Learning Objective
• Differentiate gross from net
earnings.
• Compute gross and net earnings.
 Gross Earnings
• It is the amount earned by any
person before subtracting the taxes,
benefits, loans, and other possible
deductions.
• It refers to the total amount he/she
earned before deductions are made.
• Also known as Total Earnings
 Net Earnings
• It is the amount earned by any
person from the gross earnings less
the total deductions.
 Deduction
• It is the amount held by any
authority as a form of payment for
some necessary dues like taxes,
loans, and others.
• It can be a fixed amount or a
percentage of the basic salary.
 Salary
• It is a fixed payment, typically paid
on a monthly or biweekly (twice a
month) basis but often expressed as
an annual sum, made by an employer
to an employee.
• E = Total Earnings/Gross Earnings
• D = Total Deduction
• N = Net Earning
Formula for Total Earning

𝐸 =𝐷+𝑁
Formula for Net Earning

𝑁 =𝐸−𝐷
Formula for Deduction

𝐷 =𝐸−𝑁
 Example
• If E = Php 21,230.21 and D = Php
4,871.15, what is the value of N?
 Example
• If E = Php 22,271.16 and N = Php
11,721.30, what is the value of D?
 Example
• If D = Php 15,622.40 and N = Php
8,236.68, what is the value of E?
PREPARED BY: REIZEL JANE PASCUA