BENEFITS OF

WAGE EARNERS
 OBJECTIVES
In this lesson, the students will be able to:
1.Define wage and benefits,
2.Enumerate the benefits of a wage earner,
and
3.Define each of the benefits given to a
wage earner.
 DEFINITION
• Wage – a fixed regular payment, typically paid on
a daily or weekly basis, made by an employer to
an employee, especially to a manual or unskilled
worker; it is the part of total production that is
return to labor as earned income, as distinct from
the remuneration received by capital as unearned
income.
• Income – money received, especially on a regular
basis, for work or through investments.
• Benefits - a payment or gift made by an
employer, the state, or an insurance company.
 The Benefits of the Wage Earner
1.Long-term benefits: retirement, death,
disability, dependent’s allowance.
2.Minimum wage earner tax exemption.
3.Bonuses and allowance (e.g. travel, rice, meal,
clothing, and laundry).
4.13th month pay, holiday pay, special pay,
overtime pay, night shift differential, and
hazard pay.
5.Leave incentives: sick, maternity, paternity,
solo parent, and others.
6.Health-related benefits and insurances.
Let us consider some computations for some
benefits:
1. Retirement Benefit
The minimum retirement pay is given by
R is the retirement pay,
where P is the daily rate, and T is the number
of years served.
2. 13th-Month pay
Let x be the annual basic salary of any
employee. The 13th month pay of any employee
must be at least of x.
3. Maternity Benefit
Let x be the average monthly salary of the
employee. Then 2.6x and 2x for caesarean and
normal delivery, respectively.

4. Holiday Pay
Holiday pay refers to payment of the
regular daily wage for any unworked regular
holiday. Note that if the employee worked on
the holiday, then he will receive twice his
daily wage.