Department of Education

Region III
DIVISION OF MABALACAT CITY

Name: __________________________________Grade&Strand: ________________

School:__________________________________Date: _________________________

LEARNING ACTIVITY SHEET

ABM 11 Business Mathematics (Q2-WK3)
Benefits of Wage Earners

I. Introduction

If you are applying for a job, one of the things to consider are the benefits
that the company offers you. On the other hand, if you are the owner of a
business, know the laws that governs the benefits of a wage earner so that
you are aware what are the benefits you could offer to your employees. If
your mother or father is working, ask them what their benefits are.
In this learning activity sheet, you will know the benefits of a wage earner
and determine the benefits that are mandatory.

II. Learning Competency

1. Define salary, wage, income, benefits. ABM_BM11SW-IIc-1

2. Compute gross and net earnings. ABM_BM11SW-IId-2

III. Objectives

At the end of this learning activity sheet, you are expected to:
1. define wage and benefits,
2. enumerate the benefits of a wage earner; and
3. define each of the benefits given to a wage earner.
IV. Discussion

In your last activity sheet, you learned how to compute the net earnings of
an employee. You have experienced that computation of the net earnings
is very important task. You need to determine the things that belongs to
deduction and earnings. Salary is a fixed regular payment paid in a
monthly or every two weeks made by an employer to its employee for the
rendered services. However, a wage is a fixed regular payment, typically
paid on a daily or weekly basis; it is part of total production that is the
return to labor as earned income. They are paid according to contract on
an hourly, daily, or part-time basis. Income is the money earned by an
employee in exchange of work or services performed or through
investments. Benefit is a payment or gift made by the employer or a
company. It is additional privileges which are sometimes mandatory while
others are not.

The following are the benefits of a wage earner according to Presidential

Decree No. 442 also known as the Labor Code of the Philippines.

1. Long term benefits: retirement, death, and disability. The computation

for the retirement is given by:
R = 22.5×P×T
where R = retirement pay
P = daily rate
T = number of years served

2. Minimum wage earner is the lowest rate of compensation depending

on the region, province, and industry sector. It is based on 40 hours of
work in a week or 8 hours a day. The daily 1-hour lunch break is not
included in 8-hour workday since it is mandatory thus, it is not
compensated.

3. Overtime pay is given if the employee works beyond 8 hours of work

per day. Its computation depends if it is done in a regular workday, holiday,
rest day or at night (between 10PM to 6AM).

4. Premium pay is an additional payment of work on rest days and special

holidays. According to R.A 9849, special holidays consist of Ninoy Aquino
Day, All Saint’s Day and last day of the year.
Rates of Premium Pay
a. Rest day or special holiday- an additional of 30% of his basic pay.
b. Rest day and special holiday – an additional 50% of his daily basic
pay.

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 c. Regular holiday and rest day – an additional 30% of the regular
holiday rate of 200% to employees covered by the holiday-pay rule.
5. Holiday pay refers to the payment of the regular daily wage for any non-
working regular holiday. If the employee worked in a regular holiday, he or
she will receive twice of his or her daily wage. The following are the regular
holidays in the Philippines based on R.A 9849.
a. New Year
b. Maundy Thursday
c. Good Friday
d. Eid ul-Fitr
e. Eid ul-Adha
f. Araw ng Kagitingan (Bataan and Corregidor Day)
g. Labor Day
h. Independence Day
i. National Heroes Day
j. Bonifacio Day
k. Christmas Day
l. Rizal Day

6. Night shift differential where an additional pay given to an employee

if work is done between 10PM to 6AM. The rate is additional 10% to the
regular wage per hour of work rendered. However, the following employees
are NOT entitled to the night shift differential pay:
a. Government employees
b. Those of retail and service establishments regularly employing not
more than five (5) workers;
c. Domestic helpers and persons in the personal service of another;
d. Managerial employees;
e. Officers or members of a managerial staff; and
f. Field personnel and other employees whose time and performance
are unsupervised by the employer.
g. Workers of companies duly registered as Barangay Micro
Business Enterprises (BMBEs)

7. Service incentive leave is entitled to employees who rendered at least

one year of service of five (5) days with pay.

8. Parental leaves. It has three types namely maternity leave, paternal

leave, and solo-parent leave.
a. Maternity leave can be avail by pregnant employees in
government and private sector including those in the informal economy,
married or not married shall be granted one hundred (105) days maternity
leave with pay and an option to extend additional thirty (30) days without
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pay. Provided they’ve made at least three-monthly contributions to the
Social Security System (SSS) in the 12 months preceding the semester of
the birth and have notified their employer in private sector. The maternity
arrangements for workers who are not covered by the SSS will be governed
by the Philippine Health Insurance Corporation.
The computation of maternity leave is as follows.
Caesarian = 2.6x where x = average monthly
salary
Normal Delivery = 2x

b. Paternal parent is given to those married male employee whose

legitimate spouse had delivery or miscarriage. A leave of seven (7) days
which is shouldered by the employer and not reimbursed by SSS.

c. Solo-parent leave is a leave of seven (days) given to solo-parent

employees who are working for at least a year.

9. 13th month pay is given to all employees, who have resigned or have
been separated from the company earlier to the payment of the13th month.
𝑥
The computation is 12 where x is the annual basic salary of an employee.
It is non- taxable if it does not exceed ₱30,000 otherwise it is taxable.

10. Gross benefits and De minimis benefits are compensation that give
to reward employees for their performance. It is non-taxable if it is below
₱8,200 otherwise it is taxable.

11. Social Security System covers the private sector employees. The
employer and employees must pay monthly contribution. The benefits are
maternity, retirement, sickness, disability, death, and pension benefits.

12. Philhealth covers a portion of medical expenses of an employee. The

employer and employee must pay a monthly contribution to the Philippine
Health Insurance Corporation.

13. Home Development Mutual Fund (Pag-ibig Fund) is mandatory to

all workers who are compulsory covered by GSIS or SSS. It has benefits
like savings, loans, and low-cost housing programs.

Problem Solving
Let us try to solve problems in computing the benefits of a wage earner.

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1. Assuming your father is planning to retire. He served Company A for 26
years with daily rate of ₱540. How much is the minimum retirement pay
that he will receive?

Solution: Use the formula in computing retirement. R = 22.5×P×T where R

is retirement pay, P is the daily rate and T is the number of years served.
Given: R = ?, P = ₱540, T = 26
R = 22.5×P×T = 22.5 × ₱540 × 26 = ₱315, 900
Therefore, your father will receive the retirement pay of ₱315, 900
For 26 years of service in Company A.

2. Sheila receives an annual salary of ₱367,890.25. How much is her 13th

month pay at the end of the year?

𝑥
Solution: Use the formula in finding the 13th month pay = where x is the
12
annual basic salary.
𝑥 ₱367,890.25
= = ₱30,657.52
12 12
Therefore, her 13th month ₱30,657.52 at the end of the year.

3. Mrs. Aguinaldo undergo caesarian when she gave birth to her first child.
How much is her maternity benefit if her average monthly salary is
₱23,650?

Solution: For caesarian delivery, use the formula 2.6x where x be the
average monthly salary of the employee.
2.6x = 2.6(₱23,650) = ₱61,490
Mrs. Aguinaldo has a maternity benefit of ₱61,490

4. Abby has a daily rate of ₱469 and was given 14 days of vacation and
sick leave. Suppose that her leave is convertible to cash, how much will he
get if she has incurred 3 absences?

Solution: Subtract the 3 absences from 14 days leave. 14-3 = 11

Therefore, there are still 11 days that can be converted to cash.
Multiply it to her daily rate. 11×₱469 = ₱5,159
Therefore, she can get ₱5,159 for the vacation and sick leave conversion.

5. The total allowance of Mr. Solis is 20% of his monthly salary. His
monthly salary is ₱32,450 and a clothing allowance of ₱2,500. How much
is his meal allowance?

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Solution: Multiply his monthly salary to the percentage of his monthly
salary.
₱32,450×0.20 = ₱6,490
Subtract the amount of his total allowance to clothing allowance
₱6,490 - ₱2,500 = ₱3,990
Therefore, his meal allowance is ₱3,990

V. Activities

It is now your turn to answer different activities for to enhance your

knowledge about the lesson.

A. Write TRUE if the statement is true otherwise write FALSE.

1. All wage earners can avail all benefits of any wage earner.
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2. Thirteen-month pay is equivalent to of the annual salary of any
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employee.
3. Holiday and special pays are synonymous.
4. The total earnings of any employee is not always equal to the basic pay.
5. Field personnel and other employees whose time and performance are
unsupervised by the employer can avail night shift differential.

B. Identify if it is salary or wage.

1. Mrs. Reyes receives ₱32,980 monthly pay as area manager.
2. Carla is paid ₱560 a day as a promoter in a department store in SM
Clark. Hence, she is paid ₱6,720 for two weeks.
3. Natalia’s take home pay is ₱37,000 monthly as a manager in a bank.
4. Mang Ramon is paid ₱450 as a foreman in a construction site.
5. Mr. Malong is the chief engineer in a company and receives ₱45,090
every two weeks. So, his total earnings in a month is ₱90,180.

C. Solve the following problems. Show your solutions.

1. Kristina’s annual salary is ₱400,000 as an assistant supervisor. How
much would be her 13th month pay? ₱33,333.33
2. Mrs. Albert give birth to her first child in a normal delivery. Her monthly
salary is ₱25,980. How much will her maternity benefit? ₱51,960
3. Roger received his retirement pay of ₱438,750 in Company B. His basic
pay is ₱650. How many years did he served Company B? T= 30 years

For items 4-5. The total allowance of Edgar is 12% of his monthly salary.
His monthly salary is ₱27,500 and a meal allowance of ₱1,500.
4. How much is his total allowance? 3,300
5. How much is his clothing allowance? 1,800

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VI. Assessment

A. Multiple Choice. Read each question carefully then write the letter of the
best answer from the given choices. Use separate sheet of paper for your
answer and solution.

1. Ramon’s wife gave birth to their second son. He plans to file leave so
that he can attend the needs of his wife. What benefit that Ramon could
avail?
A. Sick leave C. Maternity leave
B. Paternal leave D. Vacation leave
2. Aria got sick for three days so she could not go to work. What benefit
that she could avail if she wanted to be paid for three days absences?
A. Maternity leave C. Retirement
B. Vacation leave D. Sick Leave
3. Which of the following statement is TRUE?
A. A leave of seven (days) given to solo-parent employees who are
working for at least a year.
B. Retirement benefit can only be availed if the age of an employee
is more than or equal to 65 years old.
C. A wage is fixed regular payment paid in a monthly basis or
sometimes every two weeks.
D. Holiday pay is additional payment of 30% of his daily rate.
4. Which of the following is special holiday?
A. New Year’s Day C. Ninoy Aquino Day
B. National Heroes Day D. Independence Day
5. What benefit can be availed married male employee whose legitimate
spouse had delivery or miscarriage?
A. Leave benefits C. 13th month pay
B. Paternity Leave D.
6. Aida worked on Labor Day because there was a lack of manpower. How
much will be her earnings that day?
A. An additional of 30% of her basic pay.
B. An additional 50% of her daily basic pay.
C. An additional 30% of the regular holiday rate.
D. She will receive twice her daily wage.
7. Roger need to work during his rest day because his boss told him to do
so. How much will be his earnings on that day?
A. An additional of 30% of her basic pay.
B. An additional 50% of her daily basic pay.
C. An additional 30% of the regular holiday rate.
D. He will receive 200% his daily wage.

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8. What benefit can a wage earner avail at the end of the year?
A. 14th month pay C. 12th month pay
B. 13th month pay D. 11th month pay
9. Company A will monetized Ms. Garcia’s sick leave credits which is
equivalent to 14 days. Assuming that her daily rate is ₱400, then what is
her additional income?
A. ₱2,000 C. ₱4,500
B. ₱2,900 D. ₱5,600
10. An employee worked for 35 years in Company B. He decided to retire
and prepare for his retirement benefit. How much is his minimum
retirement pay if he has an average daily rate of ₱550?
A. ₱433,125 C. ₱560,420
B. ₱480,245 D. ₱610,450
11. Abby receives her 13th month pay of ₱43,560. How much is her annual
salary?
A. ₱252,270 C. ₱522,720
B. ₱347,520 D. ₱750,240
12. How much is the daily rate of an employee if he received his retirement
pay of ₱209,250 for 15 years of service?
A. ₱350 C. ₱560
B. ₱420 D. ₱620
13. Jenny earns ₱20,000 a week. She is paid every two weeks. What gross
pay does she receive every payday?
A. ₱30,000 C. ₱50,000
B. ₱40,000 D. ₱60,000
14. Grace is working in a department store with a daily rate of ₱520 for 8
hours a day. How much will be her total earnings for the month if she
worked 26 days with 2 legal holidays?
A. ₱14,560 C. ₱12,680
B. ₱13,520 D. ₱11,890
15. For two weeks, Leon worked during his two rest days. How much is his
total earnings for two weeks if he has daily rate of ₱490?
A. ₱5,880 C. ₱7,154
B. ₱6,540 D. ₱8,120

VII. Reflection
Now that you understand all the benefits of a wage earner, I want you to
examine the importance of these benefits to employees. Are these benefits
enough for the wage earner? If no, what do you think would be the
additional benefits that we could add? Explain. From all the benefits that
you have read in this learning activity sheet, what particular benefit you
want to improve? Why? Explain

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VIII. References
Dagal, Keneth Adrian P.,Lopez, Brian Roy C.,Martin-Lundag, & Leah
C.(2016a). Business Math Teacher’s Manual. Department of
Education. Quezon City. Vibal Group, Inc.
Dagal, Keneth Adrian P.,Lopez, Brian Roy C.,Martin-Lundag, & Leah
C.(2016b). Business Math Learner’s Material. Department of
Education. Quezon City. Vibal Group, Inc.
Santos, Durwan C. & Sta. Maria, Karl Bryan V. (2015). MATH ACTIVATED:
Engaged Yourself and Our World. Business Math. Salesiana Books
by Don Bosco Press Inc.
Jericho Del Puerto [Link]
philippine-labor-law
[Link]
Nicolas and De Vega Law Offices, June 10 2020. Retrieved from
[Link]
philippines/
Mercer. March 1, 2019. Retrieved from [Link]
thinking/law-and-policy-group/philippines-expands-paid-maternity-
leave-benefits.

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 10
11. C 6. D 1. B
12. D 7. A 2. D
13. B 8. B 3. A
14. A 9. D 4. C
15. C 10. A 5. B
Assessment
C. 1. ₱33,333.33 B. 1. Salary A. 1. FALSE
2. ₱51,960 2. Wage 2. FALSE
3. T= 30 years
3. Salary 3. FALSE
4. ₱3,300 4. Wage 4. TRUE
5. ₱1,800
5. Salary 5. FALSE
Activities
IX. Answer Key
 X. Development Team

Development Team of the Learning Activity Sheets

Writer: Aurora T. Sarmiento

Editor: Anthony Rayley M. Cabigting,DEM
Reviewer:
Layout Artist:
Management Team: Engr. Edgard C. Domingo, PhD, CESO V
Leandro C. Canlas, PhD, CESE
Elizabeth O. Latorilla, PhD
Sonny N. De Guzman, EdD
Elizabeth C. Miguel, EdD

For inquiries or feedback, please write or call:

Department of Education – Division of Mabalacat

P. Burgos St., Poblacion, Mabalacat City, Pampanga

Telefax: (045) 331-8143

E-mail Address: mabalacatcity@[Link]

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