Dumaguete City National High School

Dumaguete City Division

BUSINESS MATHEMATICS
Prepared by: MISS CLAREEN JUNE E. DAGOY

Quarter 2 - Week 3
Gross and Net Earnings

Content Standard:
The learners demonstrate an understanding of the fundamental operations of mathematics as
applied in salaries and wages.

Performance Standard:
The learners are able to apply appropriate mathematical operation in computing salaries and
wages.

Most Essential Learning Competencies (MELC):

 Define salary, wage, income, benefits
 Compute gross and net earnings

Concept:

Gross and Net Earnings

Prepared by Miss Clareen June E. Dagoy

Gross earning is the amount earned by any person before subtracting the taxes, benefits, loans,
and other possible deductions.

Net earnings is the amount earned by any person less the total deductions.

Deduction is the amount held by any authority as a form of payment for some necessary dues
like taxes, loans, etc.

Salary is a fixed regular payment, typically paid on a monthly or biweekly basis but often
expressed as an annual sum, made by an employer to an employee.

Now let;

E = is the total earnings D = is the total deduction N = is the monthly net

The equation: E=D+N

Example A:

1. Ellaine has a monthly net amounting to P 10, 568.23. If he receives a total deduction
of P 14, 235.18, then how much will she receive as her total earning?

Solution: E = D + N

= P 4, 235.18 + P 10, 568.23

= P 14, 803. 41 is the total earning of Ellaine

2. Jill has a total earnings amounting to P 20, 524.17. If he receives a total deduction
of P 3, 826.21, then how much will he receive as her net earning?

Solution: N= E + D

= P 20, 524.17 + P 3, 826.21

= P 16, 697.96 is the total net earning of Jill

Prepared by Miss Clareen June E. Dagoy

 3. April receives the total earnings worth of P 22, 271.16. If it happens, that he has the
monthly net worth of P 11, 721.30, what is the value of her total deduction?
Solution: D= E + N

= P 22, 271.16 - P 11, 721.30

= P 10, 549.86 is the total deduction of April

CHECK WHAT YOU KNOW

A. Identify if each statement is True or False. (2 pts. each)

_____1. Gross earning is sometimes greater than net income.

_____2. Net earning can be greater than the gross earning.

_____3. The total deduction is always equal to the net earning.

Prepared by Miss Clareen June E. Dagoy

 _____4. Gross + Net earning is equal to Deduction plus twice the Net Earning.

_____5. If the deduction is 0, then Gross earning = Net Earning.

_____6. Overtime pay is the part of the deduction.

_____7. Taxes are added in the deduction.

_____8. Other benefits and Payment of Loans are deducted from the Net Earning.

_____9. Net Earning is part of Gross Earning.

_____10. If the deduction is more than the net earning, then the net earning is more than half
of the gross earning.

B. Solve the value in following problems: (5 pts. Each and show your solution)

1. If D = P 2, 122.00 and N = P 17, 517.29, what is the value of E?

2. If E = P 72, 130. 22 and D = P 28, 875.21, what is the value of N?

3. If E = P 28, 091.16 and N = 11, 213.00, what is the value of D?

4. If D = P 17, 122. 05 and N = 21, 318.29, what is the value of E?

Prepared by Miss Clareen June E. Dagoy

5. John earns an annual income of P100,000 from his financial management consultancy
work. John also earns P70,000 in rental income from his real estate properties, P10,000 in
dividends from shares he owns at Company XYZ, and $5,000 in interest income from his
savings account. When calculating all of his expenses, it reached up to P15,222.00. What
is John’s gross income?

Prepared by Miss Clareen June E. Dagoy