SALARY, WAGE, INCOME

and BENEFITS
SALARY

is a fixed amount of money that an

employee typically receives on a monthly
or bi-monthly basis, but it may also be
expressed as an annual sum.
Example 1. Computing for the Monthly Salary
• Jessica works as Bookeeeper in a government agency. If she earns Ps.
360,000 in a year, how much is her monthly salary?

A year has 12 months. So we divide the given annual salary by

12 to get the monthly salary; that is
360,000 / 12 = 30,000
Thus, Jessica’s monthly salary if Ps. 30,000.
WAGE
-is an employee’s compensation that is based
on an hourly rate of pay and the number of
hours worked. It is typically paid on a daily or
weekly basis, but in certain cases, it may also
be paid on a monthly or bimonthly basis.
FORMULA FOR CALCULATING THE
TOTAL WAGE
The total wage of an employee, denoted by W, is
computed by multiplying the total number of hours (n)
an employee renders and his/her hourly rate (R). In
symbols,

W = nR
Example 2. Computing for the Total Wage
Lito works in a computer shop that pays him Ps.70 an hour. He works 6
hours a day on weekdays and 4 hours every Saturday. He rests from
work on Sundays. How much is Lito’s weekly wage?
The following table shows Lito’s total working hours in a week:
Days Number of Days Number of hours in Total Number of
a day Hours
Weekdays 5 6 30
Saturday 1 4 4

Total 34
Lito works a total of 34 hours a week. Since his hourly rate if Ps.70, his
weekly wage is computed as follows:

W = nR=(34)(70)= 2,380

Therefore, Lito’s weekly wage is Ps. 2,380.

INCOME
The total amount that people earn from their employment,
businesses, investment, and the professional services that
they render.
Example 3. Calculating the Income
A teacher receives a monthly salary of Ps. 20,179. She also works as a
tutor for 3 hours every Saturday. If she is paid Ps. 150 an hour for her
tutoring services, how much is her total monthly income? Assume that
there are 4 Saturdays in a month
As a tutor, she works for 3 hours in each of the 4 Saturdays in a month.
So for her tutoring services, the total amount that she earns in a month
may be computed as follows:
150 x 3 x 4 = 1,800
To get her total income in a month, simply add Ps.180 to her monthly
salary of Ps.20,179, that is,
20,179 + 1,800 = 21,979
Example 4: Calculating the Income
Aron works as a waiter in Nes’ Café. He works 8 hours a day and
receives an hourly wage of Ps 60. Aron is required to work 6 days in a
week but during certain week, he was absent for 2 days. How much
was his total income that week?
The daily wage of Aron is computed as follows:

W = nR = 60 x 8 =480
The daily wage of Aron is computed as follows:
Since Amlong was absent for 2 days, he worked for only 4 days that week. So we multiply his
daily wage by 4 days that is,
480 x 4 = 1,920