Salaries & Wages

Lesson 8
Salary Wage
A regular payment that is typically paid on a Remuneration for skilled and unskilled labor
monthly or yearly basis made by an employer to an where the payment or rates are based on
employee, usually a white-collar worker time, piece on commission basis.

Types of Wages
Pay
Salaries and Wages are considered as payments
Piece Rate
• Fixed
for the service or work done by the employee. • Differential
Hourly Rate
Daily Rate
Overtime Pay

Gross Pay/ Earnings Net Pay/ Earnings Formula for Net Pay
Gross Pay for a payroll In the payroll
The total earnings of an employee deductions. Net Pay= Gross Pay - Total Deductions
for a payroll period before taxes SSS

₱xx
Philhealth & PAG-IBIG contributions
and other deductions are taken Gross Pay/Earnings
Withholding taxes
out Union Dues and other deductions
Total Deductions (xx)
This is the amount to be paid to the
employee.
Net Pay/Take-home Pay ₱xx

OVERTIME PAY

1. Ordinary Day 4. Rest Day on a Special Day

Regular Hourly Rate= Regular Hourly Rate / 8 Hourly Rate on Rest Day on a Special Day=
Overtime Rate= Regular Hourly Rate + 25% of Regular Hourly Rate Regular Hourly Rate + 50% of Regular Hourly Rate

2. Holiday Overtime Rate= Hourly Rate on Rest Day on a Special

Holiday Hourly Rate= Regular Hourly Rate x 200%
Overtime Rate= Holiday Hourly Rate + 30% of Holiday Hourly Rate
3. Rest Day and Special Day
Hourly Rate on Rest Day= Regular Hourly Rate + 30% of Regular Hourly Rate Regular Hourly Rate + 160% of Regular Hourly Rate
Overtime Rate= Hourly Rate on Rest Day = 30% of Hourly Rate on Rest Day
Day + 30% of Hourly Rate on Rest Day on a Special
Day
5. Rest Day on a Holiday
Hourly Rate on Rest Day on a Holiday=
Overtime Rate= Hourly Rate on Rest Day on a Holiday
+ 30% of Hourly Rate on Rest Day on a Holiday