Angono Private High School

SENIOR HIGH SCHOOL DEPARTMENT

Salaries and
Wages
BUSINESS MATH LESSON 6

DON’T GIVE UP ON YOUR DREAMS

 INCOME OR EARNINGS
▪ Amount of money received by an individual for work
he or she has done.
▪ May mean salary or wages.

DON’T GIVE UP ON YOUR DREAMS

 GROSS EARNINGS
▪ Refers to amount an employee earns before any
deductions for benefits or taxes.

DON’T GIVE UP ON YOUR DREAMS

 SALARY
▪ Refers to the compensation paid on the basis of a
fixed annual rate.
▪ Does not depend on the actual number of hours
worked.
▪ Compensation for managerial or administrative
employees.

DON’T GIVE UP ON YOUR DREAMS

 WAGE
▪ Compensation paid on the basis of a rate per hour
worked.
▪ Calculated by multiplying the number of hours worked
by the hourly rate of pay.
▪ Compensation during manual work
▪ If they work more than 40 hours per week, they are
entitled to an OVERTIME PAY.

DON’T GIVE UP ON YOUR DREAMS

 EXAMPLE 1
▪ Anna has to decide whether to accept a job
that offers an annual salary of ₱ 250, 000. If she
will be paid semi-monthly, what will be her gross
semi-monthly pay or earnings?

DON’T GIVE UP ON YOUR DREAMS

 EXAMPLE 2
▪ Allen’s time card shows that he has worked this
week for these number of hours (hrs): 7 hrs (Mon) ,
7.5 hrs (Tue) , 6 hrs (Wed) and 8 hrs (Fri). At a pay
rate of ₱224 an hour, how much will be his gross
earnings?

DON’T GIVE UP ON YOUR DREAMS

 GROSS EARNINGS
▪ Regular Pay:
hourly rate x number of regular hours
▪ Number of Overtime hours worked:
total hours worked – regular hours worked
▪ Overtime rate:
hourly rate x 1.25
▪ Overtime pay:
overtime rate x number of overtime hours worked
▪ Gross earnings:
regular pay + overtime pay
DON’T GIVE UP ON YOUR DREAMS
 EXAMPLE 3
▪ The Labor Code prescribes a maximum of 8 hrs per
day as the normal working hour. Hence, overtime pay
is given. Sam receives a regular wage of P150 per
hour. If he has worked 52.50 hrs last week, how much
will be his gross earnings for the week if he is paid an
additional 25% of his hourly wage per regular overtime
work?

DON’T GIVE UP ON YOUR DREAMS

 EXAMPLE 4
▪ Your time record shows that you have worked 36 hrs
on a regular hourly rate of P224 and have worked
overtime for 1.5 hrs on Mon, 2 hrs on Tue, 3 hrs on Wed,
and 2.5 hrs on Fri. How much will be your gross
earnings if you are paid an additional 25% or your
hourly rate for overtime work?

DON’T GIVE UP ON YOUR DREAMS

 EXAMPLE 5
▪ A factory worker is paid on a piecework rate of P62.
What will be her gross earnings if she will be able to
finish 70 units of a certain product this week?

▪ Piecework is a type of employment where an

employee is paid a fixed rate for each unit produced.

DON’T GIVE UP ON YOUR DREAMS

 EXAMPLE 6
▪ A garment factory pays its workers using the
differential piecework rate.
Output Piecework Rate
For the first 40 units P 62
For the next 20 units P 72
For the excess of the units P 82

▪ What will be the gross earnings of the factory worker

who finished 72 units?
DON’T GIVE UP ON YOUR DREAMS
 PRACTICE SET
A. Juan worked 8, 7.5, 8, 8 and 7 hours this week. How much did
he earn this week if he receives an hourly rate of P259?
B. A garment factory worker completed 47 children’s dresses
last week. If she is paid P125 for each piece, what were the
garment factory worker’s gross earnings last week?
C. In relation to problem B, how much more will the garment
factory worker’s gross earnings be if the factory owner
implements a differential piecework rate of P100 per piece
for the first 20 dresses, P150 for the second 20 dresses and
P200 for the excess.
 PRACTICE SET
Professor Snapes receives a semi-monthly basic
salary of P 11,250, a transportation allowance of
P575 and rice allowance of P 850. His overtime pay
for the period amounted to P 2 330.47.
His Pag- IBIG, SSS, and PhilHealth contributions were
P 110, P 581.30, and P 262.50, respectively. If his
withholding tax amounted to P 4 745.76, how much
was his net earnings?
 OVER TIME RATE FORMULAS
A. Rest Day, Regular 8 hours Night shift
= Hourly Rate x 1.30 x number of hours Hourly Rate x 1.30 x 1.10

B. Rest Day, beyond 8 hours

= Hourly rate x 1.30 x 1.50 x number of hours

C. Special Holiday, Regular 8 hours

= Hourly Rate x 1.30 x number of hours

D. Special Holiday, beyond 8 hours

= Hourly Rate x 1.30 x 1.30 x number of hours

E. Special Holiday, rest day

= Hourly rate x 1.30 x 1.50 x number of hours
 OVER TIME RATE FORMULAS
F. Special Holiday, night shift
= Hourly rate x 1.30 x 1.10 x number of hours

G. Special Holiday, rest day, night shift

= Hourly rate x 1.30 x 1.50 x 1.10 x number of hours

H. Regular Holiday, Regular 8 hours

= Hourly Rate x 2.00 x number of hours

I. Regular Holiday, beyond 8 hours/rest day/night shift (x 1.10)

= Hourly rate x 2.00 x 1.30 x number of hours
 PRACTICE SET

Richard earns a daily rate of P2,800. His regular working

hours are from 8:00 am to 5:00 pm with one hour lunch
break, and his rest days are Tuesday and Thursday.
Compute his daily gross earnings based on their time
record using the overtime rate formulas.
 PRACTICE SET
REGULAR HOLIDAY (8:00AM – 7:00PM)
Regular hours of work: 8 hours
Lunch break: 1 hour
OT Hours:11 hours – 9 hours = 2 hours
Hourly rate: P2,800 ÷ 8 = P350

Regular Holiday, beyond 8 hours

= Hourly rate x 2.00 x 1.30 x number of hours worked
= 350 x 2.00 x 1.30 x 10
= P9,100.00
 PRACTICE SET
SATURDAY SPECIAL HOLIDAY (8:00AM – 6:30PM)
Regular hours of work: 8 hours
Lunch break: 1 hour
OT Hours:10.5 hours – 9 hours = 1.5 hours
Hourly rate: P2,800 ÷ 8 = P350

Special Holiday, beyond 8 hours

= Hourly Rate x 1.30 x 1.30 x number of hours worked
= 350 x 1.30 x 1.30 x 9.5
= P5,619.25
 PRACTICE SET
TUESDAY REST DAY (8:00AM – 5:00PM)
Regular hours of work: 8 hours
Lunch break: 1 hour
OT Hours: 9 hours – 9 hours = no OT
Hourly rate: P2,800 ÷ 8 = P350

Rest Day, Regular 8 hours

= Hourly Rate x 1.30 x number of hours worked
= 350 x 1.30 x 8
= P3,640
 PRACTICE SET
SUNDAY REGULAR HOLIDAY (8:00AM – 8:00PM)
Regular hours of work: 8 hours
Lunch break: 1 hour
OT Hours: 12 hours – 9 hours = 3 hours
Hourly rate: P2,800 ÷ 8 = P350

Regular Holiday, beyond 8 hours

= Hourly rate x 2.00 x 1.30 x number of hours
= 350 x 2.00 x 1.30 x 11
= P10,010
 PRACTICE SET
TUESDAY REST DAY (8:00AM – 6:00PM)
Regular hours of work: 8 hours
Lunch break: 1 hour
OT Hours: 10 hours – 9 hours = 1 hour
Hourly rate: P2,800 ÷ 8 = P350

Rest Day, beyond 8 hours

= Hourly Rate x 1.30 x number of hours
= 350 x 1.30 x 1.50 x 9
= P6,142.5
 PRACTICE SET
SPECIAL HOLIDAY (8:00AM – 6:30PM)
Regular hours of work: 8 hours
Lunch break: 1 hour
OT Hours: 10.5 hours – 9 hours = 1.5 hours
Hourly rate: P2,800 ÷ 8 = P350

Special Holiday, beyond 8 hours

= Hourly Rate x 1.30 x 1.30 x number of hours worked
= 350 x 1.30 x 1.30 x 9.5
= P5,619.25
 PRACTICE SET
WEDNESDAY REGULAR HOLIDAY (8:00AM – 5:30PM)
Regular hours of work: 8 hours
Lunch break: 1 hour
OT Hours: 9.5 hours – 9 hours = 0.5 hours
Hourly rate: P2,800 ÷ 8 = P350

Regular Holiday, beyond 8 hours

= Hourly rate x 2.00 x 1.30 x number of hours
= 350 x 2.00 x 1.30 x 8.5
=P7,735
 PRACTICE SET
WEDNESDAY (8:00AM – 6:30PM)
Regular hours of work: 8 hours
Lunch break: 1 hour
OT Hours: 10.5 hours – 9 hours = 1.5 hours
Hourly rate: P2,800 ÷ 8 = P350

Basic Computation (daily gross earnings)

▪Gross earnings:
regular pay + overtime pay 2,800 + 656.25 = P3,456.25
▪Regular Pay:
hourly rate x number of regular hours 350 x 8 = 2,800
▪Overtime rate:
hourly rate x 1.25 350 x 1.25 = 437.5
▪Overtime pay:
overtime rate x number of OT hours 437.5 x 1.5 = 656.25