SALARIES
AND WAGES
Prepared by: Ms. Ghia R.
Relucio
Topic Outline- Final Term
Performance Task
Who Am I?
Discussion
What is your dream
job?
Top 10 Highest- Paying Job in
the
Philippines
Discussion- Salary
Discussion-Salary
Discussion-Salary
Examples:
1. Mr. Sarmiento, a manager of the Maharlika Company earns ₱420,000
annually. If he is paid monthly, how much does he get on his
paycheck?
2. A university assistant professor in a state university gets a monthly
salary of ₱50,000.How much will he receive if the salary is given
semi-monthly?
3. Mrs. Sanchez works as an accountant and gets a salary of ₱15,000
which is given semimonthly. How much will be her annual salary?
4. 4. Mr. Reyes gets a salary of ₱10,000 which is given bi-weekly. How
much will be his annual salary?
Discussion-Wage
Wage is usually paid on a weekly basis, but it may be quoted in an
hourly rate or daily rate of an employee. To solve for the wage,
remember that:
wage = (hourly rate)(no. of hours worked)
= (daily rate)(no. of days worked)
Wage Earners
•➢ These are the employees who receive the wages and usually get
paid either weekly or monthly depending on the employer’s
convenience.
•➢ These employees are under the “no work, no pay” policy
where they are only paid for the actual number of hours or days
that they rendered work but they are paid for working overtime.
Discussion-Wage
Examples:
1. Mari Glenne works as a math tutor and is paid ₱150 per hour. How
much wage does she earn for a 10-hour per week of work?
2. Mang Pedro, a minimum wage earner in Metro Manila is paid ₱450.50 for an
8-hour
workday. What is his hourly wage?
Discussion-Income
Types of Income
1. Active Income
Active income is when you do the work and are paid for
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that work. If you do nothing, you will no longer be paid.
2. Passive Income
Passive income is when the payment is not directly tied to
active work. It is usually front-loaded with active work and
gets paid with small amount, while the bulk of income
comes later.
Sources of Income
Commission Income – payment for the commission on sales
Rental Income – payment from rentals of properties and real
estates
Discussion Dividends– from investments and partnerships
Royalties – payments for authors, products sold or license
-Income Business Income – profits from businesses
Interest – from a variety of loans from individuals or
companies
g. Capital Gains – from the sales of investments
h. Goods – such as crops, fish and other products
Discussion-Benefits
Examples of Benefits
• Vacation and Sick Leaves
• Housing allowance
• Group Insurance
• Rice Subsidy
• Cash Benefits
• 13th month pay
• Mean and Transportation
• Hospitalization Benefits
• Clothing Allowance
• Commission, Overrides, Bonuses
Discussion-Benefits
Kristine Joy is an elementary teacher and got an offer from
two different private schools in nearby city.
Great Minds School offers a monthly salary of ₱30,000.
However, the school is far from where she lives where
renting a house costs ₱5,000 a month.
On the other hand, Bright Kids Academy offers a monthly
salary of ₱27,000 and a free accommodation near the
school.
Based on the given information, which company is offering
a better compensation and benefit package?
Discussion-Benefits
Kristine Joy is an elementary teacher and got an offer from
two different private schools in nearby city.
Great Minds School offers a monthly salary of ₱30,000.
However, the school is far from where she lives where
renting a house costs ₱5,000 a month.
On the other hand, Bright Kids Academy offers a monthly
salary of ₱27,000 and a free accommodation near the
school.
Based on the given information, which company is offering
a better compensation and benefit package?
Activity
Activity
• Directions: Read and analyze each word problem and then solve each.
Activity
• Directions: Read and analyze each word problem and then solve each.
Summary
-All employees have the following benefits: (a) Cost-of-Living Adjustment (COLA); (b) Holiday pay; (c)
Premium pay; (d) Overtime pay; (e) Night shift differential; (f) 13th month pay; and (g) Retirement pay.
- Leave benefits that an employee is entitled to under existing laws are: (a)service incentive leave; (b)
Maternity Leave; (c) Paternity Leave; (d) Solo Parent Leave; (e) Leave for Victims of Violence Against
Women and their Children (VAWC); and (f) Special Leave for Women for surgery caused by gynecological
disorders.
-Non-Taxable Benefits are benefits under de minimis. All other benefits given by employers which are not
included in the above enumeration shall not be considered “de minimis benefits, and hence, shall be
subject to income tax as well as withholding tax on compensation income.
-There are some government mandated benefits such as Social Security System (SSS), Government Social
Insurance Security.
- (GSIS), PhilHealth, and Pag-IBIG/HDMF. Those mentioned government mandated benefits allow the
employer to do mandatory deductions to their employees for they are required by law to deduct each pay
period.
Summary
Private companies and even government offices give different benefits to
their employees as an additional compensation beyond their monthly salary.
Some of those were as follows:
• A worker who is paid the basic pay, whether he worked or not, is entitled to
the Cost-of-Living Adjustment (COLA). It is an increase in Social Security
benefits to counteract inflation. Inflation is measured using the consumer
price index for urban wage earners and clerical workers (CPI- W). The COLA
for 2021 is 1.3%.
• Holiday pay refers to payment of the regular daily wage for any unworked
regular holidays: o New Year’s Day o Independence
Day
o Maundy Thursday o Eid al-Adha
o Good Friday o National Heroes
o The Day of Valor Day
o Labor Day o Bonifacio Day
o Eidul-Fitar o Christmas Day
o Rizal Day
Summary
• Facts about regular holiday pay:
The employee is entitled to a holiday pay if he/she is present on
the workday immediately preceding the regular holiday; or he/she
should be on leave of absence with pay on the day immediately
preceding the regular holiday.
An employee who availed the regular holiday will enjoy the 100%
of the daily wage rate (Basic pay + COLA).
When an employee reports to work on a regular holiday, he/she is
entitled to receive a holiday rest which is equal to 200% of basic.
Summary
• Overtime pay refers to the additional pay for work performed
in excess of 8 hours a day.
✓ Over Time Pay= Hourly Rate X Over Time Factor X
Overtime
Hours worked
✓ On an ordinary day, the overtime rate per hour is
determined as
follows:
Regular Hourly Rate X 125%
Summary
On a rest day or special day, the overtime rate per hour is
determined
as follows:
Regular Hourly rate x 169%
• Chinese Lunar New Year’s day • All Saints’ Day
• People Power Anniversary • All Souls’ Day
• Black Saturday • Feast of the Immaculate
• Ninoy Aquino Day Conception
• Christmas Eve
• New Year’s Eve
Summary
On a special holiday and rest day at the same time, the
overtime rate
per hour is determined as follows:
Regular Pay Rate x 195%
• Chinese Lunar New Year’s day • All Saints’ Day
• People Power Anniversary • All Souls’ Day
• Black Saturday • Feast of the Immaculate
• Ninoy Aquino Day Conception
• Christmas Eve
• New Year’s Eve
Summary
On a regular holiday overtime, the overtime rate per hour is
determined as
follows:
Regular Pay Rate x 260%
o New Year’s Day o Independence Day
o Maundy Thursday o Eid al-Adha
o Good Friday o National Heroes Day
o The Day of Valor o Bonifacio Day
o Labor Day o Christmas Day
o Eidul-Fitar o Rizal Day
Summary
On a regular holiday and rest day at the same time, the overtime rate per
hour is determined as follows:
Regular pay Rate X 338%
Overtime pay refers to the additional pay for work performed in excess of 8
hours a day.
Over Time Pay= Hourly Rate X Over Time Factor X Overtime Hours
worked
Summary
On a regular holiday and rest day at the same time, the overtime rate
per
hour is determined as follows:
Regular pay Rate X 338%
Overtime pay refers to the additional pay for work performed in
excess of 8
hours a day.
Over Time Pay= Hourly Rate X Over Time Factor X Overtime
Hours worked
Activity
1. Mr. Santiago is a government employee and has 10
days sick leave credits and seven days vacation leave
credits. His daily rate is Php 525 and did not avail the sick
and vacation leave credits, so the agency monetized it.
How much will be his additional earning and how much of
it will be taxed?
Activity
2. Mr. Martin’s employer provides her employees an
amount of Php8,000.00 Christmas Bonus. How much of
the bonus is taxable? Considering that Mr. Martin’s tax
percentage is 25%, how much is her tax payable for the
said bonus, and how much will be her net income from
the bonus?
Activity
3. An employer provides a living allowance to his
employees monthly. Considering that the living allowance
is defined as follows:
Living allowance= clothing + laundry + daily meal
+ transportation
How much of the additional earning will be taxed if an
employee’s living allowance is Php 5,000 and each part
in the definition is 0.25 of the living allowance?
Activity
4. Catherine’s daily rate was Php 484.00. She works
regularly from 8:00 AM to 6:30 PM. How much did she
earn that day?
Activity
5. Marcus works as a night shift at a warehouse. He starts
at 7:00PM and ends at 5:00 AM. If his hourly rate is Php
100.00, then how much will he earn monthly if he works
20 days every month?
Activity
6. Mr. Santiago is one of the government employee who
did not avail the sick and vacation leave credits. He is
earning a daily rate of Php 515 and has 10 days sick
leave credit and 6 days vacation leave credits in which
the agency will monetized his unused credits. How much
will be his additional earning and how much of it will be
taxed?
Activity
7. Ms. Ledie is working at Company A for 10 hours
yesterday, a regular day and her hourly rate is Php 53.00.
How much did she earn in that particular day supposing
that there will be 25% increase for every hour exceeding
the standard of 8 hours?
