COR JESU COLLEGE, INC.

SACRED HEART AVE., DIGOS CITY, PROVINCE OF DAVAO DEL SUR

GENERAL
M AT H E M AT I C S

Drawing out the best in you!

EMPLOYEE COMPENSATION
Joel and Erika discuss whether it is better to earn a fixed
salary or per hour in the industry they belong to. Joel is a
wage-earner who is paid ₱120 per hour every week, and
Erika receives a fixed salary of ₱18,720 per month. In
February, they worked for 8 hours every day for 20 days.
Who earned more, Joel or Jenny?

YOUR MATHEMATICS TEACHER

EMPLOYEE COMPENSATION
Erika’s salary - ₱18,720

Joel’s salary – (₱120)(8 hours)(20 days)

Joel’s salary - ₱19,200

Joel is earning more.

YOUR MATHEMATICS TEACHER
EMPLOYEE COMPENSATION
1. How are Joel and Erika compensated for the work they
do?
2. What is the difference between salary and wages?
3. How do you compute the total earnings of a wage
earner?

YOUR MATHEMATICS TEACHER

At the end of the lesson, the learners are expected to:

- define salary and wage

- calculate weekly or monthly wages from an annual
salary,
- calculate wages from an hourly rate, including
situations involving overtime and other allowances,
and earnings based on commission or piecework;
YOUR MATHEMATICS TEACHER
EMPLOYEE COMPENSATION
Refers to the renumeration given an employee in
exchanged of his or her services. This is a legal
obligation and moral obligation of any business.

This includes salaries, wages, employee benefits

including sick leave, vacation leave, incentive pay,
commission, and bonuses.
YOUR MATHEMATICS TEACHER
EMPLOYEE COMPENSATION

YOUR MATHEMATICS TEACHER

SALARY
a fixed amount paid to an employee for a specific pay
period.

If employees are paid weekly, they receive 52

paychecks a year; if they are paid biweekly (every
two weeks), they receive 26 paychecks a year.
Semimonthly (twice a month) paychecks are issued
24 times a year,
YOURand monthly TEACHER
MATHEMATICS paychecks come 12
times a year
SALARY

Weekly: once a week or 52 times a year.

Biweekly: every two weeks or 26 times a year.
Semimonthly: twice a month or 24 times a year.
Monthly: once a month or 12 times a year.
WAGE
an amount paid per hour of work rendered. It can be
daily or by hour.

Example of wage-earner: construction worker

YOUR MATHEMATICS TEACHER

 Gross Earnings VS. Net Income
Gross earnings (gross pay):
- the amount earned before deductions.

Net earnings (net pay) or (take-home pay):

- the amount of your paycheck.
SALARY

𝑺 = 𝑨𝑺 ÷ 𝑷𝑷
Where:
S = salary
AS = annual salary rate
PP = number of pay periods per year
YOUR MATHEMATICS TEACHER
Example 1:
Your employment contract with Company ABC entitles
you to an annual salary of ₱384,000. How much would
you earn every month?
𝑺 = 𝑨𝑺 ÷ 𝑷𝑷
Salary = ₱384,000 ÷ 12
Salary = ₱32,000
YOUR MATHEMATICS TEACHER
I would earn ₱32,000 every month.
Example 2:
Jen is the in-house bookkeeper of Company BCD. Her
employment contract entitles her to a monthly salary
of ₱31,500.00. How much is her annual salary?

YOUR MATHEMATICS TEACHER

Example 3:
Charles earns a salary of ₱60,000 a year.
(a) If Charles is paid biweekly, how much is his gross
pay per pay period before taxes are taken out?
(b) If Charles is paid semimonthly, how much is his
gross pay per pay period?

YOUR MATHEMATICS TEACHER

Example 4:
Jasmin earns ₱32,928 annually and is paid
semimonthly. Find his earnings per pay period.

YOUR MATHEMATICS TEACHER

Example 5:
After you graduate from a business course, two
companies are interested in giving you a job.
Company A offers you a steady salary of ₱24,500 per
month. On the other hand, Company B offers you ₱985
per day. If both jobs expect you to work 24 days per
month, which company will give you better
compensation? Find the daily rate.
YOUR MATHEMATICS TEACHER
Example 6:
Mark is an office supervisor who earns ₱22,000 as his
monthly salary. Assuming that there are 26 working
days in a month, how much are his weekly and daily
rates?

YOUR MATHEMATICS TEACHER

WAGE

𝐖 = 𝑹𝒙𝑯
Where:
W = wage
R = hourly rate
H = no. of hours worked within the pay
period YOUR MATHEMATICS TEACHER
 Example 1:
Tonyo works as a mason in a construction firm. They
are paying him ₱92 per hour of work rendered.
Every day, he works for 7 hours. How much would
Tonyo earn on a pay period of 5-day work?
𝐖 = 𝑹𝒙𝑯
𝐖 = ₱92 x 7 x 5
𝐖 = ₱3,220
YOUR MATHEMATICS TEACHER
Tonyo will earn ₱3,220 on a pay period of 5−day work.
 Example 2
An employee is paid ₱135 per hour. If he worked for 46
hours in a week, how much would be his earnings?
𝐖 = 𝑹𝒙𝑯
𝐖 = ₱135 𝒙46
𝐖 = ₱6,210
The employee will
YOURearn ₱6,210 for
MATHEMATICS 46 hours in a week.
TEACHER
Example 3
Mark Kozlowski earns ₱14.27 per hour and worked 55
hours in one weekly pay period. What is his gross pay?

YOUR MATHEMATICS TEACHER

Example 4:
Paulo is a factory worker who earns ₱70 per hour. If he
worked for 8 hours a day for 24 days this month, how
much are his daily and monthly wages?

YOUR MATHEMATICS TEACHER

 Other types of Compensation
Per-piece Rate Commission
● compensation per ● Compensation
piece of work equivalent to a
accomplished or portion of the sales
item produced generated in a given
period
YOUR MATHEMATICS TEACHER
Per-piece Rate

𝑪𝑷 = 𝑷𝑹 𝒙 𝑷𝑷
Where:
CP = Compensation on per piece rate
PR = Per-piece rate
PP = Number YOUR
of pieces producedTEACHER
MATHEMATICS
Example 1:
Dominick is a tailor who is paid ₱1,250 for
every suit that he sews. In March, he sewed
seven suits. How much is his income in the said
month?
𝑪𝑷 = 𝑷𝑹 𝒙 𝑷𝑷
𝑪𝑷 = ₱1,250 𝒙 𝟕
𝑪𝑷 = ₱8,750

Dominic will earn ₱8,750 in March.

Example 2:
A seamstress is getting paid ₱4.50 for every
rug that she sews. If she could finish 125 rugs in
a day, How much would she earn?
𝑪𝑷 = 𝑷𝑹 𝒙 𝑷𝑷
𝑪𝑷 = ₱4.50 𝒙 𝟏𝟐𝟓
𝑪𝑷 = ₱562.50

The seamstress will earn ₱562.50

Example 3:
Neil works at a factory, assembling children’s
toys. He is paid ₱75 per assembled toy. If he
manages to assemble 200 toys in a month, how
much is he being paid?
Example 4:
PJ makes denim jackets at a clothing store. He is
paid monthly using the following scheme:
• ₱250 per jacket for the first 25 jackets
• ₱300 per jacket for each unit in excess of 25
If PJ made 32 denim jackets for the month, how
much did he earn?
Example 5:
Last week, Jorge Sanchez assembled 317 game
boards. Find Jorge’s gross earnings for the week if
the manufacturer pays at the following differential
piece rates:
Boards assembled per week Pay per board
First 100 ₱1.82
Next 200 ₱1.92
Over 300 ₱2.08
Commission

𝑪=𝑺𝒙𝑹
Where:
C = Commission
S= Sales
R = Rate of Commission
YOUR MATHEMATICS TEACHER
Example 1:
Sonny is a part-time sales agent of an insurance
company. He is being paid 20% of his annual
sales. If he sold a total of ₱120,000 worth of
insurance in 2020, how much would he earn at the
end of 2020?
𝑪=𝑺𝒙𝑹
𝑪 = ₱120,000 𝒙 𝟎. 𝟐𝟎
𝑪 = ₱24,000
Sonny would earn ₱24,000 at the end of 2020.
 Example 2:
A sales representative of a juice company sold
₱450,000 worth of merchandise in six months. He
will earn 30% of his sales as his commission. How
much would be his commission?
𝑪=𝑺𝒙𝑹
𝑪 = ₱450,000 𝒙 𝟎. 𝟑𝟎
𝑪 = ₱135,000
The representative would earn ₱135,000 as his commission.
Example 3:
Eloise Brown is paid on a salary-plus-commission
basis. She receives ₱450 weekly in salary and 3%
of all sales over ₱8,000. If she sold ₱15,000 worth of
goods, find her gross earnings.
Example 4:
Amy is paid commissions using the following
scheme:
• 3% for the first ₱15,000 sold
• 4% for the next ₱10,000 sold; and
• 5% for sales in excess of ₱25,000
If Amy sold ₱38,000 worth of products, how much
did she earn?
Example 5:
Arthur receives 1% of eBay sales plus ₱4.00 for
each item he lists through his eBay listing service.
One month he listed 547 items that sold for a total
of ₱30,248. Find his gross earnings.
OVERTIME
The Philippine Labor Code Art. 83 states that the
normal hours of work where an employee is required to
do his /her normal work or to be prescribed in the
workplace is eight hours a day.

There will be times when the employee will be required

to work for more than their prescribed hours. In these
cases, the company is required to pay overtime pay as
stipulated in the law.
OVERTIME PAY is the additional compensation given
to the employee who work overtime.

Key Essential Information from Labor Code

• Rest Days
• Regular and Special Holidays
• Night Shift differential – 10:00pm to 6:00am
• Overtime Pay, in excess of 8 hours
 Key Essential Information from Labor Code

Effects on Daily Effects on Overtime

Rate (Hourly Rate)
Ordinary Day 1 1.25
Rest Day 1.3 1.3
Special Holiday 1.3 1.3
Regular Holiday 2 1.3
YOUR MATHEMATICS TEACHER
Rest Day that is on a Special Holiday: 1.5; Night Shift Differential: 0.10
Special holidays Regular holidays
Chinese New Year New Years Eve
Ninoy Aquino Day Day of Valor
All Saint’s Day Holy Week
Feast of Immaculate Eid’l Adha and Eid’l Fit’r
Conception Independence Day
Christmas Eve National Heroes Day
Black Saturday Bonifacio Day
EDSA People Power Christmas
Rizal Day
YOUR MATHEMATICS TEACHER
Example 1
An employee was required to work additional 3 hours
overtime to meet the deadline for their output. The daily
wage rate is ₱440. Find her gross earnings.
₱44𝑂 𝑥 3 𝑥 1.25 𝑮𝑬 = ₱206.25+₱440
𝑶𝑻 =
𝟖 𝑮𝑬 = ₱646.25
𝑶𝑻 = ₱206.25
Example 2
a. Renato, a technician had to work on Sunday/rest day to
repair the conveyor equipment. How much will he be paid if
his rate is ₱ 600 daily?

𝑹𝑫 = ₱𝟔𝟎𝟎 𝒙 𝟏. 𝟑𝟎
𝑹𝒆𝒔𝒕 𝑫𝒂𝒚 𝑷𝒂𝒚 = ₱780.00

YOUR MATHEMATICS TEACHER

 Example 2
b. However, Renato was not able to finish his repair job, so he
need to worked for another 3 hours. What will be his total
compensation?

₱𝟔𝟎𝟎 𝒙 𝟏. 𝟑𝟎 𝒙 𝟏. 𝟑𝟎 𝒙𝟑
𝑶𝑻 = 𝑮𝑬 = ₱780.00+₱380.25
𝟖 𝑮𝑬 = ₱1,160.25
𝑶𝑻 = ₱380.25
YOUR MATHEMATICS TEACHER
Example 3
Arnold, a guard was required to work on December 25. His
daily rate ₱500.00. He was able to have 4 hours as his overtime.
Compute his total earnings.

𝑷𝑫 = ₱𝟓𝟎𝟎 𝒙 𝟐 ₱500 x 2 x 1.3 x 4

𝑶𝑻 =
𝑷𝑫 = ₱1,000 8
𝑶𝑻 = ₱650
𝑮𝑬 = ₱1,000.00+₱650
YOUR MATHEMATICS TEACHER
𝑮𝑬 = ₱1,650.00
 Example 4
Roland, was required to work on November 1, a holiday and
Sunday, which is also his rest day. His daily wage is ₱500.00.
Due to an incident that day, he was required to stay an
additional 3 hours as overtime work. Compute his earnings.

𝑷𝑫 = ₱𝟓𝟎𝟎 𝒙 𝟏. 𝟓 ₱500 x 1.5 x 1.3 x 3

𝑶𝑻 =
𝑷𝑫 = ₱750 8
𝑮𝑬 = ₱750.00+₱365.63 𝑶𝑻 = ₱365.63
YOUR MATHEMATICS TEACHER
𝑮𝑬 = ₱1,115.63
Example 5
Andy worked for 10 hours on February 25,a special non-
working holiday and also his rest day. What will be his total
income for the day if his daily wage is ₱520.00?
𝑷𝑫 = ₱𝟓𝟐𝟎 𝒙 𝟏. 𝟓 ₱520 x 1.5 x 1.3 x 2
𝑷𝑫 = ₱780 𝑶𝑻 =
8
𝑶𝑻 = ₱253.5
𝑮𝑬 = ₱780.00+₱253.5
YOUR MATHEMATICS TEACHER
𝑮𝑬 = ₱1,033.5
Example 6
Mr. Deinla worked from 8:30AM to 11:30PM. If his daily rate is
₱500.00, what will be his total earnings for the day?

₱𝟓𝟎𝟎 𝒙 𝟏. 𝟐𝟓 𝒙 𝟕
𝑶𝑻 = 𝑮𝑬 = ₱500.00+₱546.88
𝟖
𝑷𝑫 = ₱546.88 𝑮𝑬 = ₱1,046.88

YOUR MATHEMATICS TEACHER

Example 7
Let say the employee hourly rate is ₱57.00/hour and
working from 10pm to 6am. What is the night differential
pay?
𝑵𝑺𝑫=₱𝟓𝟕 𝒙 𝟏. 𝟏𝟎 𝒙𝟖
𝑵𝑺𝑫 = ₱501.6

YOUR MATHEMATICS TEACHER

Example 8
Aiza works on regular holiday for 12 hours. How much is
her income for that day if her regular daily rate is
₱480.00

₱1,584.00

YOUR MATHEMATICS TEACHER

Example 9
Mr. David works on regular days from 7:00AM to 7:00PM
with a daily rate of ₱675. How much did he earn that
day?

₱1,096.88

YOUR MATHEMATICS TEACHER

Example 10
William worked on Sunday, December 25, FROM
6:00AM to 9:00PM. His daily rate is ₱600. What will be
his total earnings that day?

₱2,565.00

YOUR MATHEMATICS TEACHER

 YOUR MATHEMATICS
General Mathematics TEACHER