SALARY COST MULTIPLIER PLUS DIRECT NON-SALARY

EXPENSE

A. Compute for Salary Cost

Salary – direct salaries (includes salaries of partners/principals & clerical staff)

plus benefits (leave –sick, vacation, holiday; gov’t mandated benefits – SSS,
Philhealth, PAG-IBIG, retirement)

This problem assumes that there is are no other employees of the Civil
Engineer. Only his services are required. No retirement premium will be added
as the SSS contribution will take care of it.

Annual Salary of a Civil Engineer = Php 258,989.00

Monthly Salary = Php 21,582.42

Mandated Benefits includes SSS, Philhealth and Pag-big/HDMF.

Service Incentive Leave of 15 days annually is equivalent to 1.25 day per

month. In monetary value, it is equivalent to Php21,582.42/26 days * 1.25
days = Php 1,037.62

For SSS, the monthly premium for a salary of Php 21,582.42 is Php 2,825.00
(see table for SSS Contribution Table).

For Philhealth, the monthly premium for a salary of Php 21,582.42 is Php
863.30 (see table for Philhealth Contribution Table), that is 4.00% of the
monthly salary.

For Pag-big/HDMF, the monthly premium for a salary of Php 21,582.42 is Php
431.65 (see table for Pag-ibig/HDMF Contribution Table), that is 2.00% of the
monthly salary.

Total Salary = 21,582.42 + 863.30 + 431.65 + 1,031.62 = Php 26,739.99

Considering a single a multiplier of 2.50

Salary Cost = Php 26,739.99 x 2.50 = Php 66,849.98

B. Take the sum of all Direct Non-Salary Expense (Reimbursable)

Direct Non-salary expense – living/traveling expenses, communication

expenses, expenses for services & equipment, supplies & reproduction,
expenses for insurance & specialized health & safety programs.
The following were incurred expenses during the month supported by receipts:
1. Communication expenses = Php 850.00
2. Traveling expenses = 4,500.00
3. Service & Equipment = 25,000.00
4. Office Supplies = 3,000.00
5. Insurance premium = 2,500.00

Total = Php 35,850.00

C. Compute for total bill for the client to pay

Total Billing = Salary Cost + Direct Non-Salary Expense

= Php 66,849.98 + Php 35,850.00

Total Billing = Php 102,699.98