11

BUSINESS
MATHEMATICS
Quarter 4- Module 3:

Department of Education ● Republic of the Philippines

Business Mathematics
Alternative Delivery Mode
First Edition, 2020

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Author/s: Naneth M. Valdehuesa

Shendy P. Waminal
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Chairperson: Dr. Arturo B. Bayocot, CESO III

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Regional Director
Dr. Victor G. De Gracia Jr. CESO V
Assistant Regional Director
Jonathan S. dela Peña, PhD, CESO V
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Rowena H. Para-on, PhD
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Mala Epra B. Magnaong, Chief ES, CLMD

Members: Neil A. Improgo, PhD, EPS-LRMS; Bienvenido U. Tagolimot, Jr., PhD, EPS-ADM;
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Celieto B. Magsayo, LRMS Manager; Loucile L. Paclar, Librarian II;
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 11

BUSINESS
MATHEMATICS
Quarter 4- Module 3:
Commissions and Overrides
Salaries and Wages

This instructional material was collaboratively developed and

reviewed by educators from public and private schools, colleges, and
universities. We encourage teachers and other education stake
holders to email their feedback, comments, and recommendations to
the Department of Education at action @deped.gov.ph

We value your feedback and recommendations.

Department of Education ● Republic of the Philippines

 TABLE OF CONTENTS
What This Module is About …………………………………...…………………………...........1
What I Need to Know ………………………………………………...……………...........1
General Instruction ……………………………………………………...………………2
Icons of this Module ……………………………………………………………....…......3
What I Know ……………………………………………………………...………4
Lesson 1:
Commissions and Overrides
What’s In ………………………………….……….……….…………...……5
What’s New ….………………………………….………………………….…...5
What is It .…….………………………………….……………………………5
What’s More …….………………………………….…………….………….......9
What I have Learned ……………………………………………….………………….10
What I can do ………………………………………………………….………….11
Additional Activity ……………………………………………………...…...………….11
Lesson 2:
Salaries and Wages
What’s In ……………………………….….…………………………………12
What’s New …………………………………….……………………………….12
What is It ……………………………………….………………………….... 12
What’s More ………………………………………….…………………........... 30
What I have Learned …………………………………………….…………………… 30
What I can do ……………………………………………………………………. 31

Assessment ………………………….……………………………………………….…………... 31
What This Module is About

In this lesson, you will know the concepts of commissions and overrides which
are mostly being practiced in different types of business organizations. You will also
learn the fundamental operations of Business Mathematics as applied in salaries and
wages. Most graduates land for employment and receive compensation after finishing
Senior High School. But some of them will use their creativity and innovativeness to
become awesome entrepreneurs. You will learn how to differentiate salary, wage,
income, and benefits, and compute gross and net earnings. In addition, you will learn
how to enumerate the benefits of a wage earner, distinguish taxable from non-taxable
benefits, and compute for income tax.

The Lessons included in this module are:

Lesson 1- Commissions and Overrides
Lesson 2- Salaries and Wages

What I Need to Know

After reading this module, you are expected to:

1. illustrate the different types of commissions;
2. compute commissions in cash basis and commissions on installment basis;
3. define salary and earnings;
4. differentiate gross from net earnings;
5. compute gross and net earnings;
6. define employee compensation;
7. differentiate salary, wage and income;
8. solve problems related to piece-rate earners and hourly-paid earners
including overtime pay;
9. convert annual salaries to monthly, semi-monthly, and weekly salaries;
10. enumerate and define the different benefits given to an employee;
11. compute for overtime pay on regular days and other instances;

1
 12. compute for gross earnings to include overtime pay and net earnings
considering the different payroll deductions;
13. distinguish taxable from non-taxable employee benefits; and
14. use e-spreadsheet in the computation of regular pay, overtime pay, gross
earnings, deductions and net pay.

General Instruction:

1. Read every detail in this module with comprehension.

2. Answer the activities diligently and intelligently.
3. Be mindful of the deadlines set. Submit activities and exercises on time.
4. Be responsible and do not crumpled or write anything on this module.
5. Be honest at all times in answering the activities and assessments .

2
Icons of this Module:

What I need to This part contains learning objectives that

Know are set for you to learn as you go along
the module.

What I Know This is an assessment as to your level of

knowledge to the subject matter at hand,
meant specifically to gauge previous
knowledge.

What’s In This part connects previous lesson with

that of the new lesson.

What’s New This part is an introduction of the new

lesson through various activities before it
is presented to you.

What is It This part provides the discussion of the

activity conducted to deepen your
understanding of the concepts.

What’s More This part provides activities that serve as

follow-up or enrichment to master the
learning competencies.

What I have This part assesses you on how far you

Learned have mastered the competencies.

What I can Do This provides tasks for you to

demonstrate the knowledge and skills you
gained and apply it real life experiences.

3
 What I Know

A. Read and analyze the scenarios given. Give what are asked and answer
the questions.

1. Roger works as sales agent for Hardworking Trading and earns a basic
monthly salary of ₱8,000.00 plus 5% commission on all his sales. If he made
total sales of ₱50,000.00 for the month, find his:
A. Commission
B. Gross Earning
2. Lito works as a salesman for Integrity Merchandising. He is paid a basic
salary of ₱8,500.00 per month plus 4% commission on all his sales. For the
current month, he made total sales of ₱45,000.00. Find his:

A. Commission
B. Gross Earning
3. Rolando earns ₱30.00 per hour. For the week, he worked a total of 35 hours.
How much did he earn?

4. Pearl works as a dressmaker. She is paid ₱150.00 for every dress that she
finishes. For the week, Pearl finished 5 dresses. How much did she earn?

5. Identify if the statement is True or False.

1. Employees with monthly income below ₱21,000 is exempted from paying

personal income tax (PIT).

2. A pregnant employee may not be qualified for a maternity leave benefit.

3. All wage earners can avail all benefits of any wage earner.

4
 Lesson Commissions and
1 Overrides

What’s In

Before we will proceed to our lesson, can you tell me what comes into your mind
when you hear the word commissions and overrides? Write your answer in the activity
notebook.

What’s New

Activity 1. True or False. On the space provided before the number, write T if the
statement is true and F if the statement is false.
__________1. Commission is the amount received by a customer.
__________2. Products manager and sales or marketing manager mostly earns
overrides.
__________3. If the agent reaches the company target surely the agent will receive
commission.

What is It

Agents, salesman and brokers are generally paid commissions as incentives for
increasing a firm’s sales. Salesmen are employees of the firm either paid on a straight
commission basis or on salary plus commission basis.
Product and or marketing managers are generally paid overrides on the sales of
people under them. It also applies when a different commission rate is applied if a
certain target is reached.
Commission is a fee paid to an agent or employee for transacting a piece of
business or performing a service. It is a percentage of the money received from a total
paid to the agent responsible for the business.

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Example:

A sales agent earns a basic monthly salary of ₱20,000.00 and is paid a 5%

commission on all his or her sales for the month. If he/she sold ₱50,000.00 for the
month, his/her gross earnings and commission will be:

Gross Earnings = Basic Salary + Commission

= ₱20,000 + (5% x ₱50,000)
= ₱20,000 + ₱2,500
= ₱22,500

Plain Commission
Agents earn commission only; they are not paid any salary. Therefore, they exert
their best effort to increase their sales because the more they sell, the more they earn.

Example:

1. Shakaine Mabao is a sales agent for High Ace Realty. She is paid based on
commission only. She is given a 4% commission on her sales. For the current
month, her sales were ₱2,080,000.00. How much would be her commission?

Answer:

Total Sales Commission Rate Gross Earnings

₱2,080,000.00 4% ₱83,200.00

2. Gian Carlo Porras is a car sales agent. He is paid commission only at the rate
of 2.5%. For the current month, he sold two cars totaling ₱3,975,000.00. How
much is his commission?
Answer:

Total Sales Commission Rate Gross Earnings

₱3,975,000.00 2.5% ₱99,375.00

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Commission and Salary
A salesman is given a basic salary in addition to the commission. Therefore,
his/her gross earning is equal to.
• Gross Earnings = Basic Salary + Commission

Example:

1. Using the example giving in plain commission, solve for Shakaine Mabao’s
gross earnings if she has a basic salary of ₱20,000.00 per month.

Answer:

Basic Salary Commission Gross Earning Percentage Sales

₱20,000.00 ₱83,200.00 ₱103, 200.00 4% ₱2,080,00.00

2. If Gian Carlo gross earns a basic salary of P25,500.00, what will be his gross
income?

Answer:

Basic Salary Commission Gross Earning Percentage Sales

₱25,500.00 ₱99,375.00 ₱124, 875.00 2.5% ₱3,975,000.00

3. Chrisler Emata is a sales representative earning a basic salary of ₱18,000.00 a

month plus 3% commission on his sales exceeding his quota of ₱15,000. Let’s
assume that he made a total sales of ₱36,000.00 for the current month. Find his
gross earnings:

Given:
Basic salary – ₱18,000.00
Commission rate – 3%
Sales quota above ₱15,000.00
Total Sales – ₱36,000.00

Solution:
Gross Earnings = Basic Salary + Commission
= ₱18,000.00 + 3% (₱36,000.00 – ₱15,000.00)
= ₱18,000.00 + 3% (₱21,000.00)
= ₱18,000.00 + ₱630.00
= ₱18,630.00

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OVERRIDES
For people who have people under them doing the sales, overrides are given by
their companies in addition to their basic salary. Product managers and sales or
marketing managers earn overrides.

Example:
Aretas M. is a product manager with 5 sales representatives under him. The
company gives him an annual salary of ₱126,000.00; commission of 5% on his own
sales; and an override of ½% on his men’s sales. Find his gross earnings for the month
if his total sale is ₱365,000.00 with his men selling a total of ₱1,548,263.00 for the
month.

Given: Annual Salary = ₱126,000.00

His sales = ₱365,000.00
His men’s sales = 1,548,263.00
His commission = 5% of his sales
His override = ½% of his men’s sales

Find: Gross earnings of Aretas U.

Solution:
Commission = 5% x his own sales
= 5% x ₱365,500.00
= ₱18, 275.00
Override = ½% x his men’s sales
= 0.005 x ₱1,548,263.00
= ₱7,741.32
Basic salary = Annual salary
12

= ₱126,000.00
12
= ₱10,500.00
Gross earnings = ₱36,516.32

8
Commission on Sales in Installment Basis
If it is sales on installment basis, companies do not give commission based on
sales. Rather, they are given commission based on collection, that is payment made
by the buyer.

Transportation & Representation Allowance

Some companies are giving their managers and even sales person
transportation and representation allowance. Just remember that any allowance given
to a person is an addition to the basic salary, commission, and override that he or she
is entitled to.
Example:
For a sale of ₱120,000.00 paid in monthly installments of ₱10,000.00, the
commission is based on the ₱10,000.00 payment made by the buyer. Therefore, if the
commission paid is 3%, the monthly commission would be: ₱10,000.00 x 3% =
₱300.00.

What’s More

Activity 2: Practice your skills:

1. Zion is a sales representative. He is given a monthly salary of ₱10,000.00 and
a commission of 8% on his sales. If he sold a total of ₱128,000.00 for the month
of July, find his gross earnings for the month.
2. Tristan is a marketing manager. He has four salesmen under him. He earns a
basic salary of ₱15,000.00 per month. On his own sales, he is given a
commission of 5%. On his men’s sales, he is granted an override of 2%. For
the month of June, his own sales total is ₱75,000.00. His men sold a total of
₱250,000.00. Compute for his gross earnings for the month of June.
3. Andrie is a straight commission salesman. He is given a commission on the
basis of the following schedule:
Monthly Sales:
Less than ₱50,000 1%
₱50,000 – ₱99,999 2%
₱100,000 - ₱149,999 3%
₱150,000 and above 4%
Compute for his commission assuming his total sales are:
a) ₱75,800
b) ₱49,900
c) ₱151,200
d) ₱123,500

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 4. Crisrey is a Marketing Manager earning an annual salary of ₱150,000.00, a
commission on his own sales of 2%, and an override of ½% on his men’s sales.
His men are entitled to 4 ¼% commission on their own sales plus a basic
monthly pay of ₱8,600 and transportation allowance of ₱1,200.00. Crisrey is
also entitled to transportation and representation allowance of ₱1,500 a month.
For the past month, Crisrey has total sales of ₱385,360.00 while his men sold
as follows:
a) Earl ₱254,125.00
b) Carlo ₱88,194.00
c) Paolo ₱128,460.00
d) Vincent ₱99,295.00
Compute for the gross earnings of Crisrey and each of his men.

Activity 3:
1. Kyle is a sales engineer receiving a basic monthly compensation of ₱32,500.00
and commission on all sales of 1.25%. Compute for his gross earnings for the
month if he has a total sale of ₱169,088.00.
2. Gericho is a broker who earns commission of 3 ½% on all securities sales that
he makes. For the past year, he closed sales amounting to ₱928,867.00. Find
the amount of commission he earned for the year.

What I have Learned

Activity 4 Reflective Question:

How does solving commissions and overrides help you as an ABM
student?

10
 What I Can Do

Activity 5: Practice your skills

Your brother Michael is a sales representative receiving an annual salary of
₱180,000.00 plus commission on all his sales above quota of ₱30,000.00 in
accordance with the following schedule.

First Less than ₱30,000.00 quota ½%

Next ₱50,000.00 – ₱69,999.00 1%
Next ₱70,000.00 – ₱99,999.00 2%
over ₱100,000.00 3%

Compute for his gross earnings if his sales for the month are:
a. ₱28,500.00 c. ₱58,200.00
b. ₱72,900.00 d. ₱102, 300.00

Additional Activities

Complete the sentence below.

After doing the activities:
1. I noticed __________________________________________________
__________________________________________________________
__________________________________________________________

2. A question I have is ____________________________________________

__________________________________________________________
__________________________________________________________
3. I’m not sure ___________________________________________________
__________________________________________________________
__________________________________________________________

4. I realized _____________________________________________________

__________________________________________________________
___________________________________________________________

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Lesson
2 Salaries and Wages

What’s In

In your previous lesson, you learned about commissions and overrides. Now,
we will be talking about employee compensation. Majority of workers in the Philippines
are earning the lowest acceptable pay mandated by law called the minimum wage.
The minimum wage is the lowest daily rate for every Philippine-based worker and it
varies in every region in the country. In this lesson, you will learn about the mandatory
wages and benefits of an employee.

What’s New

Activity 1. True or False. On the space provided before the number, write T if the
statement is true and F if the statement is false.
________1. Wage is a money earned by working or through investments.
________2. Benefit is a payment or gift made by an employer, state or company.
________3. Income is a fixed regular payment, paid in daily, weekly and monthly.
________4. Allowances include budget for rice, travel, meal and clothing.
________5. Retirement pay will be received by employees within the tenure of
service.

What is It

Salary is applied to managerial, supervisory and administrative services. It is the

rate of salary expressed in terms of a month or a year.
Wage is the remuneration to skilled or unskilled labor. The rates are stated on an
hourly, daily or weekly basis
Benefit is a payment or gift made by an employer, state or insurance company.
Regular working hours shall not be more than eight hours in any one day nor
more than 40 hours in any one week

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Employee compensation refers to the remuneration given an employee in exchange
of his or her services. This is a legal and moral obligation of any business. This
includes wages, salaries, employee benefits including sick leave, vacation leave, and
incentive pay which includes productivity pay, commission, override, bonus, and profit
sharing.

Employment law does not provide a specific definition of a wage or salary earner. The
term “wages” is used where the amount of money the employee receives may vary
from one pay period to the next as the amount paid is directly dependent on the
number of hours worked while the term “salary” refers to an agreed and fixed annual
amount of money the employee receives regardless of the hours worked.

Wages. Basic pay in an employee’s compensation package refers to the wages or

salaries they get. Wages refers to the earnings received by a worker on a piece rate,
hourly rate, or daily rate.

Piece Rate. Worker employed on a “piecework” basis is paid in proportion to the

quantity of work he or she finishes. The rate used can be fixed irrespective of the
quantity produced, in which case it is called fixed piece-rate plan. On the other hand,
it can be graduated, increasing as the quantity produced increases, in which case it is
called differential piece-work plan.

Examples:
• Susan is paid on a per-piece basis at the rate of ₱1.20 per piece. If she finishes
360 pieces a week, how much is her total earnings?
Given: Rate= ₱1.20 per piece
Quantity produced= 360 pieces (base)
Find: Total earnings
Solution: Total earnings= Quantity x Rate
= 360 x ₱1.20
= ₱432.00

• Emilia is employed to repack and seal pepper. She is paid on the following
differential pay plan schedule:
Quantity Daily Rate
Per 100 Packs
Less than 100 ₱100.00
100-149 ₱106.00
150-199 ₱107.50
200 or more ₱110.00
For the week, Emma repacked the following quantities:
Monday - 90
Tuesday - 104
Wednesday - 140
Thursday - 156
Friday - 210
Compute for her total wage for the week.

13
 Quantity x Rate Amount
100
Monday 90 x ₱100.00/100 = 90 x 100 = 90 x 1 = ₱90.00
106 11 024
Tuesday 104 x ₱106.00/100 = 104 x = = ₱110.24
100 100
106 14 840
Wednesday 140 x ₱106.00/100 = 140 x = = ₱148.40
100 100
107.50 16 770
Thursday 156 x ₱107.50/100 = 156 x = = ₱167.70
100 100
110 23 100
Friday 210 x ₱110.00/100 = 210 x = = ₱231.00
100 100

Total ₱747.34

Take note that dividing by 100, we move the decimal point two places to the left, so
11 024 becomes 110.24.
Or
We can convert the rate on a per-piece basis:
₱100.00/100 pc = ₱1.00 / pc.
₱106.00/100 pc = ₱1.06 / pc.
₱107.50/100 pc = ₱1.075 /pc.
₱110.00/100 pc = ₱1.10 / pc.

Then, we multiply the quantity produced by the piece rate thus obtained:
Monday = 90 x ₱1.00 = ₱90.00
Tuesday = 104 x ₱1.06 = ₱110.24
Wednesday = 140 x ₱1.06 = ₱148.40
Thursday = 156 x ₱1.075 = ₱167.70
Friday = 210 x ₱1.10 = ₱231.00

Hourly Rate
Several employees are paid on an hourly basis. To compute for the way, we
simply multiply the number of hours of work by the hourly rate. For example, if an
employee worked for 40 hours during the week and his or her rate is P20.00 per hour,
his or her wage is 40 hours x P20.00 /hour = P800.00.
Employees who work more than the required number of hours are entitled to
overtime pay. Overtime premium refers to the excess payment over the regular rate.
The following are the different articles of the Labor Code relevant to normal hours an
overtime work:
1. Article 83 of the Labor Code enunciates that the normal hours of work of any
employee shall not exceed eight (8) hours a day. This is exclusive of the one (1)
hour lunch break. Article 85 provides that subject of such regulations as the
Secretary of Labor may prescribed, it shall be the duty of every employer to give
his or her employees not less than sixty (60) minutes time-off for their regular
meals.
2. Article 87 provides that work may be performed beyond eight (8) hours a day
provided that the employees is paid for the overtime work an additional
compensation equivalent to his regular wage plus at least twenty-five percent
(25%) thereof.

14
3. Article 93 provides that:
a. Where an employee is made or permitted to work on his or her scheduled rest
day. He or she shall be paid an additional compensation of at least thirty percent
(30%) of his or her regular wage. An employee shall be entitled to such
additional compensation for work performed on Sunday only when it is his or
her established rest day.
b. When the nature of work of the employees is such that he or she has no regular
work days and no regular rest days can be scheduled, he or she shall be paid
an additional compensation of at least thirty percent (30%) of his or her regular
wage for work performed on Sundays and holidays.
c. Work performed on any special holiday shall be paid an additional
compensation of at least thirty percent (30%) of the regular wage of the
employee’s scheduled rest day, he or she shall be entitled to an additional
compensation of at least fifty percent (50%) of his or her regular wage.
d. Where the collective bargaining agreement or other applicable employment
contract stipulates the payment of a higher premium pay than that prescribed
under this Article, the employer shall pay such higher rate.
4. Article 94 provides that:
a. The employer may require an employee to work on any holiday but such
employee shall be paid a compensation equivalent to twice his regular rate.
b. Work on a rest day which falls on a special day shall be paid 150% of regular
hourly rate.
c. Work on a regular holiday shall be paid 200% of regular hourly rate.
d. Work on a rest day which falls on a regular holiday shall be paid 260% of a
regular hourly rate.

Computation of Overtime Pay

Assuming that the minimum daily wage rate is ₱365.00, how much is the
overtime rate per hour?

Ordinary Day
On an ordinary day, the overtime rate per hour is determined as follows:
• First, compute the hourly rate of the employee:
Regular hourly rate = Daily wage rate/ 8 hours
= ₱365.00/8 hours
= ₱45.63 per hour

• Now, to determine overtime rate per hour:

Overtime rate = Regular hourly rate + 25% of Regular hourly rate

Overtime rate = ₱45.63 + (25% of 45.63) = ₱45.63 + ₱11.41 = ₱57.04

15
The overtime premium is therefore:

Overtime premium = ₱45.63 x 25% = ₱11.41

The overtime rate = Regular rate + Overtime premium

Overtime rate = ₱45.63 + ₱11.41 = ₱57.04

Alternatively, the overtime would be:

Overtime rate = ₱45.63 X 125%= ₱57.04

Example:

Aira earns the regular daily rate of ₱365.00 giving her an hourly rate of P45.63.
If she works 10 hours on a regular day, her pay would be:

Total pay for the day = Regular pay + Overtime pay

= ₱45.63 x 8 hours + (₱45.63 x 125% x 2 hours)
= ₱365.00 + ₱114.075
= ₱479.075

On Rest Day and Special Day

Employees generally have their rest days, which may not fall on a Sunday. If
an employee is made to work on a Sunday, his or her rest day could be Monday or
any other day of the week to compensate for the Sunday that he or she worked. If an
employee is made to work on his or her rest day or special holiday like Maundy
Thursday or Good Friday, whose dates are not fixed, the computation of his or her pay
would be as follows:

Compute the hourly rate of the employee on a rest day or special day. The hourly rate
on rest day and special day is 130% of the regular rates:
Hourly rate = 130% of Regular hourly rate
(on rest day
Or special day) = 130% x ₱45.63
= ₱59.32 per hour

To determine overtime rate per hour:

Overtime rate = Hourly rate on rest day + 30% Hourly rate on rest day
= ₱59.32 + (30% of ₱59.32)
= ₱59.32 + ₱17.796
= ₱77.12

Alternatively, the overtime rate per hour would be:

Overtime rate = Hourly rate on rest day x 130%
= ₱59.32 x 130%
= ₱77.12

16
Example:
Stacey earns the regular daily rate of ₱365.00 giving her an hourly rate of
₱45.63. She was requested by her boss to work on a Sunday, her rest day.

a. She worked for 8 hours.

Total pay for the day = 8 hours x (₱45.63 x 130%)
= 8 x (₱59.32)
= ₱474.55

b. She worked for 10 hours

Total pay for the day = [(8 hours x Hourly rate on rest day) + (2 hours x Hourly
rate on rest day x 130%)]
= [(8 x ₱59.32) + (2 x ₱59.32 x 130%)]
= ₱474.56 + (2 x ₱77.12)
= ₱474.56 + ₱154.23
= ₱628.79

On Rest Day which falls on a Special day

Compute the hourly rate of the employee on a rest day which falls on a special day:
Hourly rate = 150% of Regular hourly rate
= 150% x ₱42.50
= ₱63.75

To determine overtime rate per hour:

Overtime rate = Hourly rate on rest day + 30% of Hourly rate on rest day
= ₱63.75 + (30% of P63.75)
= ₱63.75 + ₱19.125
= ₱82.88
Alternatively,
Overtime rate = Hourly rate on rest day x 130%
= ₱63.75 x 130%
= ₱82.875

Example:

Sheilou earns the regular daily rate of ₱365.00 giving her an hourly rate of
₱45.63. She was requested by her boss to work on her rest day, which falls on Maundy
Thursday.

a. She worked for 8 hours. Her total pay for the day would be:
Total pay for the day = 8 hours x Regular hourly rate x 150%
=8 x (P45.63 x 150%)
=8 x P68.44
= ₱547.56

17
 b. She worked for 10 hours. Her total pay for the day would be:

Total pay for the day = [8 hr. x (₱45.63 x 150%)] + [2 hr. x (₱45.63 x 150%) x 130%]
= 8 hr. x ₱68.44 + 2 hr. (₱68.44 x 130%)
= ₱547.52 + (2 x ₱88.97)
= ₱547.52 + ₱177.94
= ₱725.46

On a Regular Holiday
Compute the hourly rate on regular holiday:
Hourly rate = 200% of Regular hourly rate
(on regular holiday) = 200%x ₱45.63
= ₱91.26 per hour

To determine overtime rate per hour:

Overtime rate = Hourly rate on regular holiday + 30% of Hourly rate on regular
holiday
= ₱91.26 + (30% of ₱91.26)
= ₱91.26 + P27.38
= ₱118.64

Alternatively,
Overtime rate = Hourly rate on regular holiday x 130%
= ₱91.26 x 130%
= ₱118.64

Example:

Ester earns the regular daily rate of P365.00 giving her an hourly rate of
P45.63. She was requested by her boss to work on May 1, Labor Day.
a. She worked for 8 hours. Her total pay for the day would be:
Total pay for the day = 8 hours x 200% of Regular hourly rate
= 8 x 200% x ₱45.63
=8 x ₱91.26
= ₱730.08

b. She worked for 10 hours. Her total pay for the day would be:

Total pay for the day = [(8 hours x 200%of Regular hourly rate) + 2 hours x
(200% of Regular hourly rate x 130%)]
= (8 x ₱45.63 x 200%) + 2 x (₱45.63 x 200% x 130%)
= (8 x ₱91.26) + (2 x ₱118.64)
= ₱730.08 + ₱237.28
= ₱967.36

18
On a Rest Day which falls on a Regular Holiday

Compute the hourly rate:

Hourly rate = 260% of Regular hourly rate (on a rest day which falls on a regular
holiday)
= 260% x ₱45.63
= ₱118.64

To determine overtime rate per hour:

Overtime rate = Hourly rate on a rest day + 30% of Hourly rate which falls on a
regular holiday
= ₱118.64 + (30% of ₱118.64)
= ₱118.64 + ₱35.59
= ₱154.23
Alternatively,
Overtime rate = Hourly rate on a rest day which falls on a regular holiday x 130%
= ₱118.64 x 130%
= ₱154.23

Example:
Ana earns the regular daily rate of ₱500.00 giving her an hourly rate of ₱62.50.
She was requested by her boss to work on December 30, Rizal Day, which is a regular
holiday. However, Rizal Day fell on a Monday, which was Ana’s rest day.

a. Ana worked for eight hours. Her total pay for the day would be:
Total pay for the day = 8 hours x Regular hourly rate x 260%
= 8 x ₱62.50 x 260%
= 8 x ₱162.50
= ₱1,300

b. She worked for 10 hours. Her total pay for the day would be:
Total pay for the day = [(8 hours x Regular hourly rate x 260%) + (2
hours x (Regular hourly rate x 260%) x 130%)]
= (8 x ₱162.50) + (2 x ₱211.25)
= ₱1,300 +₱422.50
= ₱1,722.50
Salary
Earnings of employees paid on monthly or annual basis is generally referred to
as salary. It is necessary to convert salaries on an annual basis into monthly basis,
weekly to monthly, monthly to semi-monthly. In this case, we should always remember
that:
1 year = 12 months = 24 semi-monthly = 6 bi-monthly
1 year = 52 weeks = 26 bi-weekly
1 month = 2 semi-monthly
2
Semi-monthly = 5 every month
Bi-monthly = every two months
Bi-weekly = every two weeks

19
 1
The prefix “semi” means 2, while the prefix “bi” means twice. It is important to
note that a month is not equal to 4 weeks. If it is, then there would only be 48 weeks
in a year, which is not the case. There are 52 weeks in a year, not 48. To convert
monthly salary into weekly salary, we have to convert the monthly into annual salary
first and then divide by 52.
Let us study the following conversions, assuming the annual salary is P264,000:

𝐴𝑛𝑛𝑢𝑎𝑙 𝑆𝑎𝑙𝑎𝑟𝑦 𝑃264,000

1. Monthly salary = = = ₱22,000
12 12
𝐴𝑛𝑛𝑢𝑎𝑙 𝑆𝑎𝑙𝑎𝑟𝑦 𝑃264,000
2. Semi-monthly salary = = = ₱11,000
24 24

𝑀𝑜𝑛𝑡ℎ𝑙𝑦 𝑆𝑎𝑙𝑎𝑟𝑦 𝑃22,000

OR = = = ₱11,000
2 2
𝐴𝑛𝑛𝑢𝑎𝑙 𝑆𝑎𝑙𝑎𝑟𝑦 𝑃264,000
3. Weekly salary = = = ₱5,076.92
52 52
𝐴𝑛𝑛𝑢𝑎𝑙 𝑆𝑎𝑙𝑎𝑟𝑦 𝑃264,000
4. Bi-weekly salary = = = ₱10,153.85
26 26

OR = Weekly salary x 2 = ₱5,076.92 x 2

= ₱10,153.84

To convert monthly salary into hour rate, we first determine the number of
regular in a workweek. Some companies have 40-hour workweek while others have
48-hour workweek.
If the regular week load is 40 hours,
𝑊𝑒𝑒𝑘𝑙𝑦 𝑟𝑎𝑡𝑒
Hourly rate = 40 ℎ𝑜𝑢𝑟𝑠

Example:
If the regular week load is 40 hours;
Weekly rate
Hourly rate = 40 hours
₱5.076.92
= 40

= ₱126.92

If the regular week load is 48 hours,

𝑊𝑒𝑒𝑘𝑙𝑦 𝑟𝑎𝑡𝑒
Hourly rate = 48 ℎ𝑜𝑢𝑟𝑠
₱5,076.92
= 48

= ₱105.77

20
Income
Income is a broader term than wages or salary. Wages and salaries are income
to the persons receiving it. However, for people who are not employees, their income
may not be in the form of wages or salaries. They can have commission income if they
are paid for the commission on sales they make; rental income, if they have properties
they rent out; dividend income if they are stockholders, royalties if they are authors;
and other income for whatever endeavor they engage in including profit-making
businesses. A business firm’s income is in the form of profits that the business earns.

Examples:
1. Xanthia is a stockholder of the AbC Corporation. For the current year, the
corporation declared a 10% cash dividend to stockholders. Xanthia owns 1,000
shares of the company’s ₱15.00 par value shares.

To compute for her dividend income:

Xanthia’s dividend income = No. of shares x Par value x Dividend rate
= 1,000 shares x ₱15.00 par value x 10% = ₱1,500

2. George Owell is an author and his book sold 2,000 copies for the first semester.
His book sells at ₱400.00 per copy. He receives a 20% royalty form his
publisher.

His royalty income would be:

George Owell = 2,000 copies x ₱400 x 20% = ₱160,000

Employee Benefits
Employee benefits cover remuneration other than basic pay. It includes vacation
and sick leave, medical and hospitalization benefits, meal allowance, transportation
allowance, clothing allowance, incentive pay for productivity such as commission,
overrides, bonuses and profit-sharing. Here in Philippines, the following benefits are
given to employees:
❖ Vacation Pay
Thirteen (13) vacation days, with additional one vacation day every year starting
on second year of service and convertible to cash at the end of the year. Maximum
total vacation leave is 18 days.
❖ Sick Leave
Twelve (12) days per year for the first two years of service. With additional one sick
leave every year starting on second year of service. Maximum total sick leave is
15 days. All unused leave days are convertible to cash in December of each year.
❖ Holiday pay
Twelve nationwide holidays have been declared which are as follows:
1. January 1, 2020, Friday-New Year’s Day
2. April 1, 2020, Thursday-Holy Thursday
3. April 2, 2020, Friday- Good Friday
4. April 9, 2020, Friday- Araw ng Kagitingan

21
 5. May 1, 2020, Saturday-Labor Day
6. June12, 2020, Saturday- Independence Day
7. August 30,2020, Monday- National Heroes Day
8. November 1, 2020, Monday- All Saint’s Day
9. November 2, 2020, Tuesday- All Soul’s Day
10. November 30, 2020, Tuesday- Bonifacio Day
11. December 25, 2020, Saturday- Christmas Day
12. December 30, 2020, Thursday- Rizal Day

In lieu of vacation pay, Article 95 of the Labor Code provides service incentives
leave for every employee who has rendered at least one year of service of 5 days with
pay. Some benefits are taxable just like wages, salaries, commission, royalties, and
etc. however some benefits are non-taxable.

MINIMUM WAGE EARNERS

No withholding tax shall be required on the Statutory Minimum Wage (SMW) of the
Minimum Wage earner in the private/public sectors as defined in RR 2-98, as
amended by RR 11-2018, including:
• Holiday pay
• Overtime pay
• Night shift differential
• Hazard pay

DE MINIMIS BENEFITS NOT SUBJECT TO WITHHOLDING TAX

a. Monetized unused vacation leave credits to employees not exceeding ten (10)
days during the year;
b. Monetized value of vacation and sick leave credits paid to government officials and
employees;
c. Medical cash allowance to dependents of employees, not exceeding ₱1,500 per
employee per semester of ₱250 per month;
d. Rice subsidy of ₱2,000 or one sack of 50kg rice per month amounting to not more
than ₱2,000;
e. Uniform and clothing allowance not exceeding ₱6,000 per annum;
f. Actual medical assistance, e.g. medical allowance to cover medical and healthcare
needs, annual medical/executive check-up, maternity assistance, and routine
consultations, not exceeding ₱10,000.00 per annum;
g. Laundry allowance not exceeding ₱300 per month;
h. Employees achievement awards, e.g. for length of service or safety achievement,
which in the form of a tangible personal property other than cash or gift certificate,
with an annual monetary value not exceeding P10,000 received by the employee
under an established written plan which does not discriminate in favor of highly
paid employees;
i. Gifts given during Christmas and major anniversary celebrations not exceeding
₱5,000 per employee per annum;

22
j. Daily meal allowance for overtime work not exceeding twenty five percent (25%) of
the basic minimum wage;
k. Benefits received by an employee by virtue of a collective bargaining agreement
(CBA) and productivity incentive schemes provided that the total annual monetary
value received from both CBA and productivity incentive schemes combined do
not exceed ten thousand pesos (Php 10,000.00) per employee per taxable year;

WITHHOLDING TAX ON COMPENSATION

Compensation or Wages - refers to all remuneration for services performed by an
employee for his employer under an employee-employer relationship unless
exempted by the NIRC and pertinent laws.

KINDS OF COMPENSATION
• Regular
a. Basic Salary
b. Fixed allowances
• Supplementary
a. Commission
b. Overtime pay
c. Fees, including directors’ fees
d. Profit sharing
e. Monetized vacation leave in excess of ten (10) days
f. Sick leave
g. Fringe benefits received by rank and file employees
h. Hazard pay
i. Taxable 13th month pay and other benefits
j. Other remuneration received from an employee-employer relationship

Retirement Benefit
Philippine-based workers aged 60 to 65 and has worked for at least five years from
the time they turned 60 to 65 years old are eligible to receive retirement pay. By law,
retirement pay must be equal to at least half of the monthly basic salary multiplied by
the number of years in service, where a fraction of a year that’s at least six months is
considered a full year. The Department of Labor and Employment (DOLE) defines a
retiree’s half-month salary as the sum of a) the retiree’s 15 days’ worth of pay based
on the pre-retirement rate, b) the cash equivalent of five days’ worth of service
incentive leave, and c) one-twelfth of the retiree’s 13th month pay. If the retiree’s
company has a collective bargaining agreement (CBA), benefits given under the
CBA may be included in the retirement pay.
To sum up what comprises the half-month salary for the
computation of retirement pay, it is roughly equal to 22.5 working days.
Put together, this formula can be used to compute the retirement pay:
Retirement pay = Daily rate x 22.5 x Number of years worked

23
13th Month pay
13th month pay is the bonus pay given to rank-and-file employees equivalent to not
less than one-twelfth (1/12) of the prorated annual basic pay for the year. Rank-and-
file employees who haven’t rendered at least 1-month worth of work on or before 24
December aren’t entitled to receive 13th month pay.
Let x be the annual basic salary of an employee. The 13th month pay
1
of this employee must be of x.
12

To better understand how the 13th month pay is computed, here are some examples.
• If you were hired last year and you want to know your 13th month pay for this year,
provided that you’re still in the company by the end of the current year, you’re
entitled to get your entire month’s basic salary as 13th month pay.
1. If you left the company on the same year you were hired, you’re still entitled for a
prorated amount of your basic monthly salary as your 13th month pay. The
computation is prorated from the month you were hired up to your last working
month with your employer.
• If you were hired before January 1 of the current year and left the company before
you could complete the entire work year, you’re also entitled for a prorated amount
of your basic monthly salary as your 13th month pay. The computation is prorated
from January 1 up to your last working month with your employer.
• The 13th month pay is given to active rank-and-file employees not later than 24
December of each year, and it isn’t taxable if it’s equal to or below the Php 90,000
tax exemption ceiling. If you’ve already resigned before the year ends, your 13th
month pay will be given as part of your back pay or final pay.

Maternity Benefit
All working mothers-including those employed in the informal sector- can take up to
105 days of paid maternity leave for each pregnancy, 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. Previously,
women were entitled to leave for up to four pregnancies. The maternity arrangements
for workers who aren’t covered by the SSS will be governed by the Philippine Health
Insurance Corporation.

Paid maternity leave is available to all working mothers, regardless of their civil status
and the legitimacy of their child. Women who suffer a miscarriage or have an
emergency termination can take up to 60 days of maternity leave with full pay.
Private-sector employers must take full payment to employees within 30 days after
receiving a leave application. The SSS will reimburse the employers.
Employees can extend their leave by additional 30 days without pay, subject to
notifying their employer 45 days before the end of the leave. Mothers who are single
parents can request an additional 15 days leave with full pay.

24
Example 1:
Mr. Emilio receives an annual salary of ₱300,000. At the end of the year, what
would be his 13th monthly pay?
1
The 13th month pay is given by 𝑥, where x is the annual basic salary of the
12
employee.
Using the formula, we get
1
13th month = 12 (300,000) = ₱𝟐𝟓, 𝟎𝟎𝟎.

Therefore, Mr. Emilio will receive ₱25,000 as his 13th month pay.

Example 2:
Mrs. Wanda’s daily rate is ₱950.00, and is given a sick leave of 40 working
days. Suppose the sick leave benefit is convertible to cash and she has incurred
10 absences only (all due to sickness). How much will she get?

Solution:

First, since she incurred 10 absences, so there are only 40-10=30 days that can
still be converted to cash. Thus, she gets 30x950= ₱28,500.00

Therefore, she will receive the amount of ₱28,500.00 for the sick leave
conversion.

Rate of Contributions to SSS

All employees of private enterprises are covered by the Social Security System.
Self-employed individuals can also become members. The monthly contributions are
based on the compensation of members. The SSS new contribution rate, which is set
to take effect in January 2021, will be at 13% - 1% higher than the current rate pursuant
to Republic Act 11199 or the Social Security Act of 2018. For employed members
including OFW members in countries with Bilateral Labor Agreements (BLAs) with the
Philippines and sea-based OFW members, the additional 1% will be divided equally,
bringing the contribution rate breakdown to 8.5% for their employers and 4.5% for the
employee.
For instance, those who will be paying under the ₱10,000 monthly salary credit
(MSC) wil pay a monthly contribution of ₱1,300 which is ₱100 higher than the ₱1,200
in 2020.
For example, a member will be paying under the ₱25,000 MSC. Based on the
new 13% contribution rate, their monthly contribution will be ₱3,250- of which ₱2,600
will go to the regular social security fund, while the remaining ₱650 will go to the WISP.

25
 Rate of Contributions to Philhealth
All employees, whether of private entities or government entities are to be
members of Philhealth. This is basically intended to cover them and their
beneficiaries help in times of sickness.

https://www.google.com/search?q=phic+philhealth+contribution+2020

Rate of Contributions to GSIS

All government employees holding permanent and non-permanent positions
are members of the GSIS. Premium contributions are based on monthly
compensation. There are two types of insurance coverage.
1. Regular- refers to compulsory premium payments on life insurance and
retirement benefits
2. Employees Compensation Fund- refers to premium payments paid by your
government agency so you get full coverage in case of a work-related
accident.
Rate of premium contributions are as follows:
Type of
Personal Personal Government Government
insurance
Share Share Share
Coverage Share Life
Life Retirement Retirement
Regular 2% 7% 2% 10%
Employees
1% not to
Compensation None 0% none
exceed P100
Fund

26
Withholding Taxes
Withholding Tax on compensation is the tax withheld from income payments to
individuals arising from an employer-employee relationship. Withholding tax table is
also available from the BIR and in the internet.
How to compute your Philippine BIR Withholding Tax
To be able to compute your BIR Withholding Tax for the month, the following information
are needed. You may want to check out your payslips for the other information.
• Your BIR Tax Status (Single/Married)
• Do you have any dependents and how many?
• How much is your SSS/PhilHealth and PagIbig contributions?
• Allowances and other benefits (if any)
• Copy of the latest BIR Withholding Tax table
Let us assume the following:
• Basic Salary: ₱20,000.00
• Status: Single (No dependents)
• Overtime Pay: ₱2,500.00
• Late/Under time deduction: ₱500.00
• SSS Contribution: ₱3,280.00
• PhilHealth Contribution: ₱250.00
• PagIbig Contribution: ₱100.00
To get your taxable income are the following:

Basic Salary P 20,000.00

A Add: Overtime Pay 2,500.00
Le Less: Late/Undertime deduction 500.00
SSS Contribution 3,280.00
PhilHealth Contribution 250.00
PagIbig Contribution 100.00
T Total Taxable Income 1 18,370.00 Tax Exempt

27
Your tax will be computed based on your taxable income. The tax can be computed
with the help of the BIR Withholding Tax Table.

Pag-Ibig Fund Contributions

The Home Development Mutual Fund (HDMF), more popularly known as the Pag-
Ibig Fund, was established to provide a national savings program and affordable
shelter financing for the Filipino workers. The fund offers its members short-term loans
and access to housing programs. It is mandatory for all SSS and GSIS- covered
employees; uniformed members of the AFP, BFP, BJMP and PNP as well as Filipinos
employed by foreign-based employers. With the signing of RA No.9679 membership
to the fund shall be mandatory for the following:
a. All employees, workers, professionals, officers and companies who are
compulsorily covered by the SSS and GSIS
b. Uniformed members of the Armed Forces of the Philippines
c. Overseas Filipino Workers (OFWs) and
d. Filipinos employed by foreign-based employers, whether deployed locally or
abroad.

The monthly contribution is shown below:

Percentage of Monthly Compensation

Monthly Compensation
Employee Share Employer Share

₱1500 and below 1% 2%

Over ₱1,500 2% 2%

Therefore, a person who earns ₱12,000.00 per month will contribute 2% of such salary
or ₱240.00 to the Pag-Ibig Fund.

28
How to compute for Net Pay
To compute for NET PAY:
❖ Net Pay = Gross earnings – Deductions
Example:
Joy receives a basic pay of ₱8,500.00 a month and a 1% commission on her sales.
She sold ₱65,000.00 for the month. Her deductions are: 4% for SSS based on her basic
monthly pay; ₱100.00 for PhilHealth; Pag-Ibig and 10% Withholding Tax based on gross
earnings. Compute for her net pay.

Solution:
Step One. Compute for her gross earnings.
Gross earnings = Monthly pay + Commission
= ₱8,500 + 1% (65 000)
= ₱8,500 + ₱650
= ₱9,150
Step two. Compute for her deductions.
SSS = 4.5% x Basic monthly pay
= 4.5% (₱8,500)
= ₱382.50

PhilHealth = ₱100 (given)

Pag-Ibig = 2% x ₱9,150
= ₱183
Withholding tax = 0 since her basic monthly salary is below ₱20,833.00
Step three. Compute for her net pay.
Net pay = Gross earnings- Deductions
= ₱9,150 – (SSS + Medicare + Pag-Ibig + WTax)
= ₱9,150 – (₱382.50 + ₱100 + ₱183 + 0.00)
= ₱9,150 – ₱665.50
= ₱8,484.50

29
 What’s More

Practice makes Progress.

Activity 2
Ms. Xiane plans to retire and utilize his retirement benefit. How much is the
minimum retirement pay that he will receive for serving the company in 20 years with
an average daily rate of ₱550.00.

Activity 3
The total allowance that the Brown Company gives to their employees is exactly
18% of their salary. Mr. Xander’s salary this month is ₱45,000.0, and his allowances
are meal and clothing. If his clothing allowance is fixed at ₱6,000.00, then what is his
meal allowance for the month?

What I have Learned

Let’s Share Ideas

Activity 4
Bella is a worker in a manufacturing company. Forty hours a week is
considered her regular hours and anything in excess is considered overtime.
Her regular rate is ₱25.00 per hour and she is paid 25% premium overtime.
She worked for the following hours for the past week. Bella worked for the
following hours for the week:
Number of Hours work
Monday 8
Tuesday 10
Wednesday 12
Thursday 4
Friday 10
Saturday 8
Sunday 4
Total Hours worked 56
Find her gross earnings.

Activity 5. Find the gross weekly wage of the following employees.

Piece Gross
Employees Production
Rate Earnings
B. Moren 110 ₱0.50
C. Awitin 95 ₱2.75
R. Silaw 245 ₱3.25
T. Santos 55 ₱4.50
J. Jaena 9 ₱10.00

30
 What I Can Do

Activity 6
Ben is paid on an hourly basis. Forty-eight hours a week is considered his
regular hours and anything in excess is considered overtime. His regular rate is ₱55.00
per hour and he is paid 25% premium on overtime.
Hours work
Monday 12
Tuesday 8
Wednesday 10
Thursday 8
Friday 10

Compute for his gross earnings using the formula:

Gross earnings = Number of hours worked x Hourly rate

Activity 7
Assuming that instead of 8 hours for Tuesday and Thursday, Ben worked 10 hours
for those days. So, add the total number of hours: 12+10+10+10+10=52.Compute for
the gross earnings.

Assessment

Practice your skills.

1. Michael is a straight commission salesman. He is given commission on the
basis of the following schedule:

Monthly Sales
Less than ₱50,000.00 ……………………….. 1%
₱50,000.00 – ₱99,999.00 …………………… 2%
₱100,000.00 – ₱149,999.00 ………………… 3%
₱150,000.00 and above …………………..… 4%

Compute for his commission assuming his total sales are

a) ₱95,800.00
b) ₱39,900.00
c) ₱157,200.00
d) ₱134,500.00

31
2. Cyril is a sales representative receiving an annual salary of ₱130,000.00 plus
commission on all his sales above quota of ₱25,000.00 in accordance with
the following schedule:
First ₱30,000.00 above quota - ½%
Next ₱50,000.00 - 1%
Next ₱70,000.00 - 2%
over ₱150,000.00 - 3%

Compute for his gross earnings if his sales for the month are:
a. ₱24,800.00
b. ₱57,600.00
c. ₱67,700.00
d. ₱120, 300.00

3. Shyla works fifteen hours a week and earns ₱52.50 per hour. How much does
she earn in a week?

4. Patterson is paid a weekly salary of ₱7,000.00. How much would Patterson

earn in 5 weeks of work?

5. Karen earns ₱7,500.00 a week. Karen is paid every two weeks. What gross
pay does she receive each payday?

6. Mr. Li received an annual salary of ₱500,000. At the end of the year, how much
would be his 13th month pay?

7. Mrs. Uno served Bizz Company, Inc. for 35 years with an average daily rate of
₱1,500.00. He plans to retire and avail of his retirement benefit. How much is
the minimum retirement pay that he will receive?

8. Pam, Claire, Reez and Jam are working in a factory producing different
products and are paid on a per- piece basis weekly. The following are their
production for the week:

Quantity Rate/100 pc
Pam 220 ₱150
Claire 165 ₱175
Reez 330 ₱120
Jam 285 ₱145

Compute for their individual earnings by:

a. Direct multiplication method
b. Converting the rate /100 pc into a per-piece basis

32
 Answer Key

Lesson 1 Lesson 2
What I Know What’s New

A. 1) False
2) True
1) A. ₱2,500
3) False
B. ₱10,500
2) A. ₱1,800 4) True
B. ₱10,300 5) False
3) ₱1,050
4) ₱750 What’s More (Activity 1.1)

B. The minimum retirement pay is given by

1) True
R = 22.5 x P x T
2) False
3) True
where, R is the retirement pay, P is the daily rate,
and T is the number of years served.
What’s New
1) F Given the formula, we get
2) T
R = 22.5 x 550.00 x 20 = ₱247,500.
3) T
Therefore, Ms. Xiane will receive a retirement
What’s More Activity 2
pay of ₱247,500 for the 20 years of service in the
1) ₱20,240.00
company.
2) ₱23,750.00
3) a. ₱1,516.00
b. ₱499.00
Activity 1.2
c. ₱6,048.00
Since, it is given that 18% of his salary is
d. ₱3,705.00
from allowances, so we have
4) Crisrey ₱24,557.57
₱45,000 x 0.18 = ₱8,100.00
Earl ₱20,600.3125
and total allowance = meal allowance + clothing
Carlo ₱13,548.245
allowance, we have
Paolo ₱15,259.55
Vincent ₱14,020.0375
8,100.00 = meal allowance + 6,000.00
8,100.00−6,000.00 = ₱2,100.00 meal allowance
What’s More Activity 3

1) ₱34,613.60
2) ₱32,510.345

What I can Do Activity 5

1) a. ₱15,000.00
b. ₱16,458.00
c. ₱15,582.00
d. ₱18,069.00

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Continuation of Lesson 2
Assessment
What I Have Learned
1) a. ₱1,916.00
Activity 1.3
b. ₱399.00
To compute for the total pay:
c. ₱6,288.00
Multiply the regular rate ₱25.00 x 125% =
d. ₱4,035.00
₱31.25 – Overtime premium.
Total Hours worked = 56 hours
2) a. ₱10,833.33
Regular Hours = 40 hours x ₱25.00 = ₱1,000.00
b. ₱11,409.33
Overtime Hours = 16 hours x ₱31.25 = ₱ 500.00
c. ₱11,510.33
Gross earnings = ₱1,500.00
d. ₱13,239.33
Activity 1.4
Production Piece Rate Gross Earnings 3) ₱787.50
B. Moren 110 P0.50 P55.00 4) ₱35,000
C. Awitin 95 P2.75 P261.25 5) ₱15,000
R.Silaw 245 P3.25 P796.25 1
6) 13th month = 12 (500,000)
T.Santos 55 P4.50 P247.50
J.Jaena 9 P10.00 P90.00 = ₱41,666.67.
7) R = 22.5 x P x T
What I Can Do R = 22.5 x 1,500 x 35
= ₱1,181,250.00
Activity 1.5
Gross Earnings = 48 hours x ₱55.00 Therefore, Mr. Uno will receive the
= ₱2,640.00 retirement pay of ₱1,181,250.00
for 35 years of serving Bizz
Activity 1.6 Company, Inc.
Gross Earnings = Regular Pay + Overtime Pay
= (Regular Hours x Hourly Rate) + 8)
(Overtime Hours x Overtime premium) a. Direct multiplication method
= (48 x ₱55.00) + 4 x (₱55.00 x 125%) 150
= ₱2,640.00 + 275 Pam = 220 x 100 = ₱330
175
= ₱2,915.00 Claire = 165 x 100 = ₱288.75
120
Reez = 330 x 100 = ₱396
145
Jam = 285 x 100 = ₱413.25

b. Per piece basis

Pam = ₱150/100 = ₱1.50/pc
Claire = ₱175/100 = ₱1.75/pc
Reez = ₱120/100 = ₱1.20/pc
Jam = ₱145/100 = ₱1.45/pc

Pam = 220 x ₱1.50/pc = ₱330

Claire = 165 x ₱1.75/pc = ₱288.75
Reez = 330 x ₱1.20/pc = ₱396
Jam = 285 x ₱1.45/pc = ₱413.25

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References:

Business Mathematics by Norma D. Lopez – Mariano, PhD 1st ed., Published by REX
Books Store Manila, Philippines:856 Nicanor Reyes, Sr. St. Tel. Nos. 736 – 05 –
67. 735 – 13 – 64.

Business Math Textbook, Authors: Brian Roy C. Lopez, Leah C. Martin - Lundag and
Keneth Adrian P. Dagal Editor Ian June L. Garces, PhD Department of Education.
GOP TEXTBOOK FUNDS

For inquiries or feedback, please write or call:

Department of Education – Division of Misamis Oriental,
Don A.Velez St., Cagayan de Oro City
Contact number: 0917 899 2245
Email address: misamis.oriental@deped.gov.ph

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