INTRODUCTION TO

SALARIES,WAGES,INCOME AND BENEFITS

Self Learning Worksheet in Business

Mathematics
Second Quarter

VANESSA C. AGPAD
Developer
Department of Education • Cordillera Administrative Region

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 Republic of the Philippines
DEPARTMENT OF EDUCATION
Cordillera Administrative Region
SCHOOLS DIVISION OF ABRA
Actividad-Economia St., Zone 2, Bangued, Abra

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DepEd Abra-Learning Resource Management and Development Section

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2020

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 INTRODUCTION TO SALARIES, WAGES, INCOME AND BENEFITS

Self Learning Worksheet in Business Mathematics

Second Quarter

Name of Learner: _______________________

Date of Delivery: _______________________

Date of Retrieval: _______________________

Teacher: ________________________

Monitored by: ________________________

Developer of the Worksheet: Vanessa C. Agpad

Teacher II

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 Review

As a recall on your previous lesson on commission, identify the type of commission

scheme and solve each of the following problems. Write your answer with complete
solution on a separate sheet of paper.

1. Tom Rush, a pharmaceutical agent sold Php 2 000 000.00 worth of medicines
in a local hospital and earns 5% commission on it. How much was his
commission?

2. Sam By is a real estate agent. She sold 3 units for the month of May with the
following rates;
a. Php 1 300 000.00 (3%)
b. Php 2 400 000.00 (4%)
c. Php 4 000 000.00 (5%)
How much was her commission for the month of May?

3. A car insurance agent sold a car worth Php 950 000.00 in August and a van
worth of Php 3Million in September. His commission rate is 7% and his
monthly salary is Php 20 000.00. How much did she earned from each
month?

4. Ferson Jay is a broker who earns commission of 3.5% on all securities sales
that he makes. For the past year, he closed sales totaling Php 928 867. Find
the amount of commission he earned for the year?

5. Jo Hara has a monthly commission plan where she receives 2.5% on the first
Php 100 000.00 of sales during the month and 3.5% on the sales above Php
100 000.00. If her total sales during the month is Php 150 000.00, compute
her commission.

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 Presentation and Discussion

SALARY
 It is a fixed amount usually associated with employee compensation
usually received on a monthly or semi-monthly but it may be quoted in
an annual sum.
 It is, sometimes, necessary to convert salaries on an annual basis into
monthly basis, weekly to monthly, monthly to semi – monthly, etc. in
these cases, we should always remember that:
1 year = 12 months = 24 semi – monthly
1 year = 52 weeks = 26 bi – weekly
1 month = 2 semi – monthly
2
Semi – monthly = every month
5
Bi – monthly = every two weeks
Bi – weekly = every two weeks
Where:
 Semi – monthly means given twice a month
 Bi – weekly means given every two weeks
SALARY EARNERS
 These are employees who receive the salaries and usually get paid
every 15 days (semi-monthly)
 These employees are not paid less if they work for only a fraction of the
required number of hours of work.
 They are not paid for working overtime.
Examples:
1. Mr. Lonmar Yacuba, a manager of Crystal Company earns Php 420
000 annually. If he is paid monthly, how much does he get on his
paycheck?
Solution:
Since there are 12 months in a year, then we divide the annual salary by
12. That is:
𝑎𝑛𝑛𝑢𝑎𝑙 𝑠𝑎𝑙𝑎𝑟𝑦 420 000
Monthly salary = = = 35 000
12 12

Therefore, Mr. Lonmar Yacuba is paid Php 35 000.00 a month.

2. Ms. Lyn Sen gets a salary of Php 10 000 which is given bi – weekly.
How much will be her annual salary?
Solution: Since bi – weekly salaries are given every two weeks or 26
times in a year, then we multiply the bi – weekly salary by 26. That is:
Annual salary = (bi – weekly salary) (26)
= ( 10 000) (26)
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 = 260 000
Therefore, Ms. Lyn Sen has an annual salary of Php 260 000.00.
3. Mr. Jeff Erson is a police officer and gets a monthly salary of Php
50 000. How much will he receive if the salary is given semi –
monthly?
Solution:
Since semi – monthly salary is given two times a month, then we divide
the monthly salary by 2. That is:
𝑚𝑜𝑛𝑡ℎ𝑙𝑦 𝑠𝑎𝑙𝑎𝑟𝑦 50 000
Semi – monthly salary = = = 25 000
2 2

Therefore, Mr. Jeff Erson will receive Php 25 000 twice in a month.
4. Mrs. Joe Bill works as an accountant and gets a salary of Php 15
000.00 which is given semi – monthly. How much will be her annual
salary?
Solution:
Since semi – monthly salaries are given twice a month or 24 times in a
year, then we multiply the semi – monthly salary by 24. That is:
Annual salary = (semi – monthly salary) (24)
= ( 15 000) (24)
= 360 000
Therefore, Mrs. Joe Bill’s annual salary is Php 360 000.

WAGE
 It refers to the earnings received by a worker on a piece rate, hourly
rate or daily rate.
 It is usually paid on a weekly basis, but it may be quoted in an hourly
rate or daily rate of an employee.
WAGE EARNERS
 These are the employees who receive the wages and usually get paid
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.
OVER TIME
 It refers to the excess payment over the regular rate.
Examples:

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 1. Will Son is paid on a per piece basis at the rate of Php 1.20 per
piece. If he finishes 360 pieces a week, how much is his total
earnings?
Solution:
Given: Rate = 1.20 per piece
Quantity produced = 360 pieces
Find: Total earnings
Solution: Total earnings = Quantity x Rate
= 360 x 1.20
= 432.00
Therefore, Will Son’s total earnings is Php 432.00.

2. Ramjay works as a math tutor and is paid Php 150 per hour. How
much wage does she earn for a 10 – hour per week of work?
Solution:
Since the given is the hourly rate, we simply multiply it by the number
of hours worked. That is:
Wage = (hourly rate) (no. of hours worked)
= (150) (10 hours)
= 1 500
Therefore, Ramjay’s wage in a week is Php 1 500.00
INCOME
 Income is a broader term than wages or salary.
 It is the total amount that people earn in exchange of the goods,
employment, businesses, investments and professional services that
they have rendered.
TYPES OF INCOME
1. ACTIVE INCOME - active income is when you do the work and
are paid for 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
Dividends – from investments and partnership
Royalties – payments for authors, products sold or license

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 Business Income – profit from businesses
Interest – from a variety of loans from individuals or companies
Capital Gains – from the sales of investments
Goods – such as crops, fish and other products
EMPLOYEE BENEFITS
 Employee benefits cover remuneration other than the basic pay.
Examples of Benefits
Vacation and sick leaves Meal and transportation
Housing allowance
Group insurance Hospitalization benefits
Rice subsidy Clothing allowance
Cash benefits Commission, overrides
13th month pay and bonuses
Illustrations:
Mirah is a nurse and got an offer from two different public hospitals in
nearby city.
Miracle Hospital offers a monthly salary of Php 50 000. However, the
hospital is far from where she lives where renting a house costs Php 8 000 a
month. On the other hand, Life Saver Hospital offers a monthly salary of Php
45 000 and a free accommodation near the hospital.
Based on the given information, which hospital is offering a better
compensation and benefit package?
Solution:
Miracle hospital offers Php 50 000 a month while renting a
house amounting to Php 8 000. Therefore, the income will be
reduced to:
50 000 – 8 000 = 42 000
Life saver hospital offers a lower monthly salary of Php 45 000
but provides free accommodation. Therefore, the income of Php
45 000 will not be affected by the rent house.

Therefore, Life Saver Hospital offers a better compensation and benefit

package.

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 Activity 1

You decided to open a small business to help your parents and yourself also
in your studies. You consulted your parents about your plan and ask them to help
you in your financial needs. Your parents told you to make a presentation about your
plan. They want to know what kind of business and how much money do you need to
open it. Make a presentation using PowerPoint. In your presentation, make a short
background about the business, how many workers do you need, salary or wages of
your workers, if they are to be paid weekly or monthly, what are the benefits that you
can give. Show your computations.

Use the rubric below as your guide in making your presentation.

CRITERIA Excellent(4) Satisfactory(3) Fair(2) Poor(1) Score
Computation/ All of the Most of the Some of the The steps and
Solution steps and steps and steps and solutions are
solutions solutions are solutions are incorrect
are correct correct correct
Content The The The The presentation
presentation presentation presentation shows one data
shows all shows three shows two only.
the needed data. data.
data.
Clarity All fonts can Most fonts Fonts are Fonts are too
be easily
can be read. different. small and was
read.
Some was hard to read.
hard to read.
Visuals All graphics Most graphics Some Graphics used
used are used are graphics used
are distracting
motivating motivating not are motivating
not distracting. not
distracting. distracting.

Consistency All slides Most slides Some slides Slides are

are uniform are uniform are uniform
different

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 Activity 2
The K’s Company hires the following employees. Using Microsoft excel or word,
copy the table below and complete the salaries in different modes of payments.
Round off your answer to the nearest centavo. Show your solutions. Write it in a
short bond paper.

Employee Annual Monthly Semi – Bi-weekly Weekly

Salary Salary monthly Salary Salary
Salary
Will Son Php 312
000
Mar Lon Php 32 500

Adel Fa Php 7 000

Nes Lyn Php 10 000

Jo Bille Php 2 500

Your work will be scored using the rubric

CRITERIA Excellent(4) Satisfactory(3) Fair(2) Poor(1) Score

Computation/ All of the Most of the Some of the The steps and
Solution steps and steps and steps and solutions are
solutions solutions are solutions are incorrect
are correct correct correct
Content The table is The table is The table is The table is
completely completely completely incomplete. Most
filled in with filled in with filled in with of the data are
the needed the needed the needed incorrect.
data. All data. Most of data. Some of
data are the data are the data are
correct. correct. correct.

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 Activity 3

Tiktok, known in China as Douyin, is a video – sharing social networking service

owned by Chinese company ByteDance. The social media platform is used to make
a variety of short form videos, from genres like dance, comedy and education, that
have a duration of 15 seconds to one minute (Wikipedia).

Direction: Based on the business you decided in Activity 1, you need to look for your
employees. Tiktok is the fastest – growing social media app on the market. Make
your own Tiktok video to look for your employees. In your video, make a short
description or background of your business, discuss the salary (if paid weekly, semi
– monthly or monthly), computation for the salary and their benefits.
Submit your output by uploading your video in your Messenger Group Chat or in
your teachers’ messenger account.

Use the rubric below as your guide in making your presentation.

CRITERIA Excellent(4) Satisfactory(3) Fair(2) Poor(1) Score
Computation/ All of the Most of the Some of the The steps and
Solution steps and steps and steps and solutions are
solutions are solutions are solutions are incorrect
correct correct correct
Content The The The The
presentation presentation presentation presentation
shows all the shows three shows two shows one data
needed data. data. only.
data.
Attractiveness The video is The video is The video is The video is not
exceptionally
attractive acceptably attractive
attractive
attractive
Visuals All graphics Most graphics Some Graphics used
used are used are graphics used
are distracting
motivating motivating not are
not distracting. motivating not
distracting. distracting.

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 Post Assessment
Directions: Read and answer each item. Write your answer on a separate sheet of
paper. Show your solution.

I. Multiple Choice. Choose the correct answer from the given options.
1. Kierra’s time record shows that she have work 38 hr on a regular hourly rate
of ₱ 300.00 and have worked overtime for 2 hr on Monday, 3 hr on Tuesday,
1.5 hr on Wednesday, and 2 hr on Thursday. How much will be her gross
earnings if she is paid an additional of 25% of her hourly rate for overtime?
A. ₱ 14, 587.00 C. ₱ 14, 787.00
B. ₱ 14, 687.00 D. ₱ 14, 887.00

2. Miss Janessa Van receives a regular semi-monthly salary of ₱ 25, 000.00. If

she is married with three qualified dependents. How much is her semi-
monthly withholding tax?
A. ₱ 4, 695.00 C. ₱ 4, 895.00
B. ₱ 4, 795.00 D. ₱ 4, 995.00

3. It is referring to the compensation paid based on a fixed annual rate.

A. Benefits C. Salary
B. Income D. Wage

4. Which of the following refers to the compensation paid based on a rate per
hour worked?
A. Benefits C. Salary
B. Income D. Wage

5. Which of the following refers to cover renumeration other than basic pay?
A. Benefits C. Salary
B. Income D. Wage

II. True or False. Write TRUE if the statement is true and write FALSE if the
statement is false
6. Overtime pay is part of deductions.
7. A pregnant employee may not be qualified for a maternity leave benefit.
8. Living allowance is a must benefit given to all employees.
9. Withholding tax is a must for every employee.
10. Paying taxes is everyone’s civic duty.
III. Problem Solving.

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Directions: Study the table below and answer the questions.

Earnings Deductions

Basic: ₱ 60, 000.00 Withholding Tax: ₱ 7, 800.00

PERA/ACA: ₱ 2, 000.00 PhilHealth ₱ 525.00

Absences: 0 Pag-IBIG: ₱ 300.00

Dependent: 2 Dependents SSS: ₱ 450.00

Bank Loan ₱ 4,000.00

Total Earnings: Total Deduction:

Questions:

11. How much is the total earnings?

12. How much is the total deductions?
13. How much is the net income?
14. How much is the daily wage of the employee?
15. How much is the gross semimonthly of the employee?

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 -1-
Review Post Assessment
1. Php 15 000 I.
2. Php 6 000 1. A
2. C
3. C
3. Php 3 000 4. D
5. A
4. Php 10 000 000
5. 5% II. True or False
1. F
2. F
3. T
Activity 1 4. T
5. T
Students’ output varies III. Problem Solving
Activity 2
1. ₱ 62, 000.00
2. ₱ 13,000.00
3. ₱ 48,925.00
4. ₱ 2,000.00
5. ₱ 30, 000.00
Activity 3
Students’ output varies
Key to Corrections