What are the

considerations
(expenses) involved
in putting a
business?
• Milk Tea Shop
• Shop – rent
• Business Permits
• Equipment
• Furnitures
• Cups
• Ingredients
• Advertisements
• Other expenses for Delivery
• Salaries / Wages
Wages, Salaries, Commission
and other benefits
• Business also deals with people (workers) who handles and operate the business.
• Sales representatives / salesperson
• Secretaries
• Factory workers
• Dealers
• Managers
• Clerks
• Maintenance
• Utility workers
• others
• All of them play vital roles for business to survive.
Business owners need employees
that can get the job done, because
employee performance is critical
to the overall success of the
company.
Importance of
Employees
• Business owners need employees that can get
the job done, because employee performance is
critical to the overall success of the company.
• They are the most vital assets of an
organization
• They are the drivers to increase sales / revenue
• They have influence over customers
• They have the most powerful energy to bring
to your company
Wages and salaries
• Wages and salaries
• The payment for work agreed between an employee
and his or her employer under the contract of
employment in the private sector and for contractual
agents in the public service, or employment for civil
servants.

• Both Salaries and Wages put money in an Employees pocket

• Salaries are paid to Full-Time Employees of a Company
as Fixed, regular payments (typically on a monthly basis)
for work performed.
• Someone who is paid wages gets paid a certain amount
for each hour worked.
 1. Salaries provide consistency with Fixed
The difference paychecks whereas Wages tend to

between Salaries fluctuate based on the number of hours

worked.

and Wages 2. People earning Wages are entitled to

Overtime if they work more than 8
hours per day. Exceeding hours will be
considered as overtime.
 • Each employee must meet some mandated deductions
base from his/her salary
• BIR income taxes
• Tax withheld
• PHILHEALTH
• PAG-IBIG

Deductions • SSS
• GSIS
• HMO
• company insurances
• Retirement
• savings and so on.
 • Vacation Pay and Sick Leaves
• Medical and Hospitalization Benefits
• Meal Allowance
• Transportation Allowance
Benefits •
•
Clothing Allowance
Incentive Pay for Productivity
• Bonuses and commissions
 • Gross pay
• What employees earn before taxes,
benefits and other payroll deductions
Gross pay are withheld from their wages.

and Net pay • Net pay

• The amount remaining after all
withholdings are accounted for is net pay
or take-home pay.
Workers are governed and protected by
“workers’ rights, compensation and benefits”

“Labor Code of the

Philippines”
According to the law…

• The law prescribes that each employee should render a minimum of eight (8) hours of
work.
• Exceeding hours will be considered as overtime.
• The Labor Code also sets the minimum rates:
• overtime pay
• The overtime rate, ranges from 25% to 100% or double pay and above the regular pay.
• night differential pay
• special pays during regular or special holidays.
 • All minimum wage earners in Region III
shall receive an additional Cost of Living
Allowance (COLA) in the amount of Twenty
2021 Cost of Living Pesos (P20.00) per day.
• Applied to all covered workers and
Allowance (COLA) employees in the private sector in Region
III regardless of position, designation or
status of employment and irrespective of
the method by which their wages are paid.
 2021 Overtime
For work done more than eight
hours (overtime work), he/she shall
be paid an additional 30 percent of
his/her hourly rate on the said day
• [hourly rate of the basic wage x
130% x number of hours worked].
Regular working hours (Minimum of
8 hours of work)
• 8:00 AM – 12:00 NN
• 12:00 NN – 1:00 PM (Lunch break)
• 1:00 PM – 5:00 PM
• 5:01 PM – onwards (Overtime)
Example • Minimum wage in Region 3
per 8 hours of work
•
• Non-agriculture
• P413 (if the company
has less than 10
workers)
• P420 (if the company
has less than 10
workers)
Guided Practice

•
Which is more delicious?

Special or Regular?
Special • Basic Daily Wage + 30%
of basic daily wage
Non-working • Overtime pay applies
(30% of the special pay)
Holiday • COLA (P20.00)
• Special Non-Working
Holidays
• Chinese New Year –
(Flexible)
• EDSA People Power
Revolution – February
25
• Black Saturday
• Ninoy Aquino Day –
August 21
• All Saints Day –
November 1
• Feast of Immaculate
Concepcion –
December 8
• Last day of the Year -
December 31
Example

•
Regular • Basic Daily Wage +
100% of basic daily
Regular Holidays
• New Year’s Day – January 1

Holiday wage (Double pay)

• Overtime pay
• Maundy Thursday – April 1
• Good Friday – April 2
applies (30%) • Araw ng Kagitingan – April 9
• COLA (P20.00) • Labor Day – May 1
• Eid’l Fitr –
• Independence Day – June
12
• National Heroes’ Day –
August 30
• Bonifacio Day – November
30
• Christmas Day – December
25
• Rizal Day – Decembe
 •

Example
 • If an employee works on a special day that also falls on
his/her rest day, he/she shall be paid an additional 50
percent of his/her basic wage on the first eight hours of
work
Working on a • [(basic wage x 150%) + COLA]
• Regular working days: Monday – Friday
Special Day • Rest days: Saturday and Sunday
 •

Example
 •

Guided
Practice
 Overtime
Work on
Special Non-
working/
Regular • Excess of 8 hours – plus 30% of hourly rate on said day

Holiday
Example

•
Guided Practice

•
 Night differential pay is an
additional pay for work between
10:00 PM – 6:00 AM the following
Night day (Night / Graveyard Shift)
Differential
Pay
Additional pay of 10% for every
hour of work done
 •

Example
 • Employee Name: Sam Gyup Sal
• Daily Basic Wage: P420.00
• COLA: P20.00
Guided • Working Hours
• 7:00 PM – 4:00 AM (inclusive of 1 hour break)
Practice • Night shift: ???
• Night differential pay: ???
• Gross pay: ???