1. The document discusses salary, wage, income, benefits, gross income and net income. It provides examples of how to calculate salary, wage, gross income and net income.
2. Key terms are defined, including salary as fixed compensation, wage as hourly compensation, benefits as additional compensation, and the difference between gross and net income.
3. Examples are provided for calculating salary, wage, gross income and net income for various occupations.
1. The document discusses salary, wage, income, benefits, gross income and net income. It provides examples of how to calculate salary, wage, gross income and net income.
2. Key terms are defined, including salary as fixed compensation, wage as hourly compensation, benefits as additional compensation, and the difference between gross and net income.
3. Examples are provided for calculating salary, wage, gross income and net income for various occupations.
1. The document discusses salary, wage, income, benefits, gross income and net income. It provides examples of how to calculate salary, wage, gross income and net income.
2. Key terms are defined, including salary as fixed compensation, wage as hourly compensation, benefits as additional compensation, and the difference between gross and net income.
3. Examples are provided for calculating salary, wage, gross income and net income for various occupations.
Ways Of Service Payment Salary The Compensation is a fixed amount of money for each time period worked
Salaried employees are paid the same amount every pay
period The amount is determined usually in a contract which signed before employment starts Wage The compensation quoted in an hourly, daily or weekly rate for an employee
The employee is paid at a regular rate for a stated minimum
number of hours (regular hours) and a higher rate for extra hours worked (overtime hours) Wage earners even paid more per hour when working on Holidays, Sundays, Evenings, etc. Minimum Wage Refers to the lowest amount of money you are allowed to be paid for one hour of work as defined by law
The minimum wage rate is based on the regular working hours
of eight hours a day Those who are hired for a specific project only
Those who are hired for the
purpose of hiring them permanently as their skills are needed for the continued operation of the company Example 1 Salary A university assistant professor is usually given a monthly salary. if his salary is Php 40,000 per moth, how much is his annual salary?
Solution: If he gets Php 40,000 per month as his salary,
then his annual salary is Php 40,000 x 12 months = Php 480,000 Example 2 Salary A clerk earns a salary of Php 20,000 per month. Assuming that he works 8 hours a day for 20-days work month, how much does he get per day?
Solution: If a clerk earns Php 20,000 per month as
salary, then he gets Php 20,000 / 20 days = Php 1,000 per day Wage A school cleaner is paid per hour. If he is paid an average wage of Php 55 per hour, how much will he get if he works for 8 hours and 5 days a week for 4 weeks?
Solution: If the cleaner works for 8 hours a day, he earns
Php 55 x 8 = Php 440 a day. In 5 days a week, Php 440 x 5 = Php 2,200 a week. In 4 weeks or in a month, the cleaner gets Php 8,800 Income Money that an individual receives in exchange for providing a good/service or through investing capital
Some sources of income
I. Farmers, fisherman and vendors earn income by providing goods such as crops, fish and vegetables, respectively.
II. Individuals may earn income by investing their capital in
stocks, mutual funds or bank deposits. Benefit Employee compensation given by an employer on top of the basic salary/wage
Benefits may come in the form of cash or in kind.
Gross Income Refers to the total amount an individual earned before deductions are made
Also called as total earning or total pay
Gross income = adding all income received Net Income Refers to the amount earned by any person from the gross earnings less the total deductions
Examples of deductions: income tax, SS or GSIS, PhilHealth
and Pag-ibig contributions.
The deduction can be a fixed amount or a percentage of the
basic salary.
Net Income = Gross income - total deductions.
Gross Income A company secretary gets a basic monthly salary of Php 18,000 and a transportation allowance of Php 2,000 per month. How much is his annual gross income? Solution Basic salary = 18,000 x 12 = 216,000 Transportation allowance = 2,000 x 12 = 24,000 Annual gross income = 216,000 + 24,000 = Php 240,000
Php 240,000 is the annual gross income of the company
secretary. Gross Income A minimum wage earner in metro manila is paid Php 481 for an 8 hour workday. If he works for 20 days in one month, then how much will be the monthly gross income? Solution Php 481 x 20 days = Php 9,620
Php 9,620 is the monthy gross income of a minimum wage
earner. Net Income A minimum wage earner in Metro Manila is paid Php 481 for an 8 hour workday and he is exempted from paying income tax. If he works for 20 days in one month and suppose his deductions per month are Php 100 for Pag- ibig, Php 200 for PhilHealth and Php 370 for SSS. How much is his monthly net income? Solution Monthly Gross income = Php 481 x 20 days = Php 9,620 Total Deductions = 100 + 200 + 370 = Php 670 Monthly Net Income = Php 9,620 - Php 670 = Php 8, 950
Php 8,950 is the annual net income of a minimum wage earner.
Identify if SALARY or WAGE 1.)The employee is paid at a regular rate for a stated minimum number of hours and a higher rate for extra hours worked 2.) It has an hourly basis for payment 3.) The Compensation is a fixed amount of money for each time period worked
4.) A fixed pay given to an individual on a monthly/ an annual
basis for the work done by him/her Problem Solving (1 whole yellow paper) 1.) A minimum wage earner in Metro manila is paid Php 537 for an 8 hour workday. What is hourly wage?
2.) A fast food service crew is paid per hour. If he is paid
an average wage of Php 77.43 per hour, how much will he get if he works for 6 hours and 6 days a week for 4 weeks? Problem Solving (1 whole yellow paper) 3.) A policeman gets a basic salary of Php 25,000 per month, a living allowance of Php 2,500 per month and a hazard pay of Php 12,000 per year. How much is his annual gross income? Identify if SALARY or WAGE 1.)The employee is paid at a regular rate for a stated minimum number of hours and a higher rate for extra hours worked Wage 2.) It has an hourly basis for payment Wage 3.) The Compensation is a fixed amount of money for each time period worked Salary 4.) A fixed pay given to an individual on a monthly/ an annual basis for the work done by him/her Salary Answers 1.) A minimum wage earner in Metro manila is paid Php 537 for an 8 hour workday. What is hourly wage? Php 67.125 per hour 2.) A fast food service crew is paid per hour. If he is paid an average wage of Php 77.43 per hour, how much will he get if he works for 6 hours and 6 days a week for 4 weeks? Php 11,149.92 for 4 weeks Answers 3.) A policeman gets a basic salary of Php 25,000 per month, a living allowance of Php 2,500 per month and a hazard pay of Php 12,000 per year. How much is his annual gross income?