GROUP 6

You are a finance officer of a certain Advertising Company. The Chief Operating Officer
wants to know the future salary schemes that the company could offer to its employees
in the next five years following the existing fixed percentage increase per year. You are
expected to come up with a five year salary scale scheme for the employees of the
company. Your recommendations will be presented to the Chief Operating Officer and
the CEO of the Company.

The person that is starting its job is on probation meaning he/she doesn't have a
permanent place in the company. He/she is under supervision to be watched if he/she
can do the job properly or poorly.

The employee's gonna receive their starting salary that is P14,000 in his/her first 6
months on the job.

Monthly salary: P14,000

After 6 months:
If the employee is doing great and does the job properly in the first 6 months he/she will
be given a P2,000 Bonus.

But, if the employee shows that he did poorly with his performance his/her salary would
be stagnant or will stay at P14,000.

Employees Salary:
With Bonus: Without the bonus:
14,000 + 2,000= 16,000 =14,000

A year in the job:

If the employee stays in the job for a year he/she will get a 10% increase and also a
Tenure bonus in his/her basic salary for staying in the company.
> 14,000 ÷ 10%= 1,400 (10% increase)
14,000 (Basic salary)
2,000 (Performance bonus)
3,000 (Tenure Bonus)
= P20,400

> 14,000 ÷ 10%= 1,400 (10% increase)

14,000 (Basic salary)
3,000 (Tenure Bonus)
= P18,400