MAKING MONEY

CONSUMER MATH
GROSS INCOME VERSUS NET INCOME

• WHAT IS THE DIFFERENCE?

• GROSS- WHAT YOU MAKE BEFORE TAXES ARE TAKEN
OUT
• NET- THE AMOUNT THAT IS DEPOSITED IN YOUR
BANK ACCOUNT (AFTER TAXES ARE TAKEN OUT)

HOURLY VERSUS SALARY VERSUS
COMMISSION

• WHAT IS THE DIFFERENCE?

• HOURLY- PAID BY THE HOUR
• SALARY- YOU MAKE A SPECIFIED AMOUNT NO
MATTER THE NUMBER OF HOURS YOU WORK
• COMMISSION- YOUR PAY IS DIRECTLY RELATED TO
JOB PERFORMANCE (SALES)
OVERTIME

• OVERTIME- MUST BE PAID WHEN YOU WORK OVER 40

HOURS IN A PAY PERIOD (WEEK)
• PAY DEPENDS ON THE COMPANY BUT IT IS USUALLY TIME AND A
HALF
• EX: IF YOU ARE PAID PHP 200 AN HOUR, THEN OVERTIME PAY WOULD
BE PHP 300 PER HOUR
• ONLY PAID OVERTIME FOR THE NUMBER OF HOURS WORKED OVER
40 HOURS.
OVERTIME- CALCULATION PRACTICE

• I WORKED 52 HOURS IN THE PAST WEEK. IF I GET

PAID PHP 200 PER HOUR, AND GET PAID TIME-AND-A-
HALF FOR OVERTIME, CALCULATE THE TOTAL
AMOUNT I WOULD GET PAID BEFORE TAXES.
HOURLY PAY

• RESEARCH 3 DIFFERENT CAREERS WHICH PAY AN

HOURLY WAGE.
• GIVE THE HOURLY PAY RANGE
• CALCULATE THE YEARLY GROSS INCOME- ASSUMING 40
HOURS PER WEEK FOR 52 WEEKS
SALARY PAY

• PAID THE SAME AMOUNT EACH MONTH, NO MATTER

HOW MANY HOURS YOU WORK.
• IF I WORKED 50 HOURS PER WEEK WOULD I GET ANY
OVERTIME?
SALARY PAY

• RESEARCH 5 DIFFERENT CAREERS WHICH PAY IN A

SALARY.
• GIVE THE SALARY RANGES
• DETERMINE THE HOURLY RATE (ASSUMING YOU WORK 40
HOURS A WEEK FOR 52 WEEKS)
COMMISSION PAY

• 2 MAJOR TYPES:
• STRAIGHT COMMISSION
• BASE SALARY PLUS COMMISSIONS
STRAIGHT COMMISSION

• PAID BASED DIRECTLY OFF HOW MUCH OF A

PRODUCT(S) YOU SELL.
• PAID ONCE A MONTH USUALLY
• OFTEN RISKY– IF YOU DON’T SELL MUCH YOU ARE NOT GOING
TO MAKE THAT MUCH FOR THE MONTH
• FOUND IN MANY RETAIL CLOTHING, COSMETICS, OFFICE
PRODUCTS AND REAL ESTATE BUSINESSES
 STRAIGHT COMMISSION

• AVERAGE COMMISSION RATES:

• CELLULAR STORES: PHP 500 PER LINE ACTIVATION, 10% ON ACCESSORY SALES
• BEAUTY RETAIL (MAKE-UP, HANDBAGS, ETC.): 3-5%
• DEPARTMENT RETAIL (SHOES, APPLIANCES, ELECTRONICS): 8-10%
• FURNITURE: 2-6%
• REAL-ESTATE: 2.5-3%
• CAR SALES: 30% OF THE FRONT END PRICE (DIFFERENCE BETWEEN SELLING PRICE
AND DEALER PRICE)
BASE SALARY PLUS COMMISSIONS

• SALESPERSON HAS A BASE SALARY PLUS THEY HAVE AN

ADDITIONAL PERFORMANCE-BASED COMMISSION STRUCTURE.
• FOUND IN MANY LARGER BUSINESSES WHERE PEOPLE HAVE TO
TRAVEL FOR SALES
• EXAMPLE: SPORTSWEAR MANUFACTURER, TECHNOLOGY COMPANY, ETC.
• USUALLY WORKS WELL FOR CAREERS WITH LONG-TERM
RELATIONSHIP BUILDING AND FOR POSITIONS WITH ACCUMULATED
EXPERTISE
COMMISSION PAY

• DRAWING AGAINST COMMISSION

• RECEIVING AN ADVANCE AGAINST A FUTURE COMMISSION–
USED WHEN SALESPERSON NEEDS MONEY NOW BUT WILL NOT
GET PAID FOR A WHILE (IF THEY HAVE A BIG CLIENT IN THE
NEXT PAY PERIOD)
COMMISSION PAY

• ASSUME YOU ARE GETTING PAID STRAIGHT

COMMISSION.
• YOU SELL PHP 150,450 WORTH OF MERCHANDISE FOR A GIVEN PAY PERIOD,
AND YOU MAKE 6% COMMISSION OFF THE TOTAL SALES. WHAT IS YOUR
PAYCHECK BEFORE TAXES FOR THE GIVEN PAY PERIOD?
COMMISSION PAY

• RESEARCH 5 DIFFERENT CAREERS WHICH PAY

BASED ON COMMISSION.
• WHAT IS THE AVERAGE COMMISSION FOR THOSE
CAREERS?
PRO’S AND CON’S

• CREATE A LIST OF AT LEAST 5 PRO’S AND AT LEAST 5

CON’S FOR EACH OF THE THREE TYPES OF PAY.
DEDUCTIONS

TAXES- VARY BY YEARLY INCOME

PAG-IBIG
SOCIAL SECURITY SYSTEM
PHILHEALTH