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BUS. MATH Q2 - Week3

The first document defines salary as a fixed compensation paid regularly that is usually determined by contract before employment. It provides examples of calculating annual salary from monthly salary and calculating daily pay from hourly wage. The second document defines gross income as total earnings before deductions and net income as earnings after deductions like taxes. It provides examples of calculating annual gross income, monthly gross income, annual net income, and monthly net income.

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DARLENE MARTIN
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83 views

BUS. MATH Q2 - Week3

The first document defines salary as a fixed compensation paid regularly that is usually determined by contract before employment. It provides examples of calculating annual salary from monthly salary and calculating daily pay from hourly wage. The second document defines gross income as total earnings before deductions and net income as earnings after deductions like taxes. It provides examples of calculating annual gross income, monthly gross income, annual net income, and monthly net income.

Uploaded by

DARLENE MARTIN
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Name: ____________Grade & Section: Grade XI - _____

Subject: Business Mathematics Teacher: ___Score:

Lesson: Quarter 2 Week 3 LAS 1


Activity Title: Ways of Service Payment
Learning Target(s): Define salary, wage, income, benefits
Reference(s): SLM Business Mathematics
LAS Writer: DARLENE C. MARTIN
Content Validator/s:

Ways of Service Payment


Salary – The compensation is a fixed amount of money for each time period worked. The amount is
usually determined in a contract which is signed before employment starts. Salaried
employees are paid the same amount every pay period.
Example 1:
A university assistant professor is usually given a monthly salary. If his salary is Php 40,
000 per month, how much is his annual salary?
Solution: If he gets Php 40, 000 per month as his salary, then his annual salary is
Php 40, 000 x 12 = Php 480, 000.
Example 2:
A clerk earns a salary of Php 20, 000 per month. Assuming that he works 8 hours a day
for a 20-day work month, how much does he get per day?
Solution: If a clerk earns Php 20, 000 per month, then he gets Php 20, 000/20 days = Php 1, 000 per
day.
Wage - The compensation quoted in an hourly, daily or weekly rate for an employee. The employee
is paid at a regular rate for a stated minimum number of hours worked ( regular hours ) and
a higher rate for extra hours worked ( overtime hours ). Wage earners even paid more per
hour when working on holidays, Sundays, evening, etc. However, wage earners are under
the “no work, no pay policy”. They are not paid when they are not asked to work in cases
of regular holidays, special holidays, or nonworking holidays, or even the government
suspends work during typhoons or calamities.

Minimum Wage refers to the lowest amount of money you are allowed to be paid for one hour of
work as defined by law. The minimum wage rate is based on the regular working hours of
eight (8) hours a day.
Note: Salaries and wages vary depending on nature of work , location of work, and time of work.
Salaries for those working in cities are higher than those who work in provinces.
Example 1:
A Math tutor who is paid Php 500 per hour is earning a wage. How much does he earn for
an 8-hour week work?
Solution: If a Math tutor gets Php 500 per hour, and if he works for 8 hours a week, then he will paid
Php 500 x 8 hours = Php 4, 000 for that week.
Example 2:
A school cleaner is paid per hour. If he is paid an average wage of Php 55 per hour, how
much will he get if he works 8 hours and 5 days a week for 4 weeks?
Solution: If the cleaners works for 8 hours a day, he earns Php 55 x 8 hours = Php 440 per day. In 5
days a week, Php 440 x 5 days = Php 2, 200 a week. In 4 weeks or in a month, the cleaner gets
Php 8, 800.
Contractual Employees – Those who are hired for a specific project only.
Probationary Employees – Those who are hired for the purpose of hiring them permanently as their
skills are needed for the continued operations of the company.
Income – Money that an individual receives in exchange for providing a good/service or through
investing capital.
Sources of Income
1. Farmers, fishermen and vendors earn income by providing a goods such as crops, fish
and vegetables, respectively.
2. Individuals may earn by investing their capital in stocks, mutual funds or bank deposits.
Benefit – Employee compensation given by an employer on top of the basic salary/wage. Benefits
may come in the form of cash or in kind.
Examples of Benefits:
1. Cash Benefits: 13th month pay, bonuses, rice allowance/subsidy, transportation
allowance
2. Non-Cash Benefits: SSS/GSIS, Pag – Ibig, PhilHealth
Check Your Understanding
A. Identify if SALARY or WAGE.
___________________1. The pay every month varies
___________________2. It has an hourly basis for payment
___________________3. Usually paid to manufacturing-process work
___________________4. A fixed pay given to an individual on a monthly/ an annual basis for the
work done by him or her

B. Answer the following:


1. A minimum wage earner in Cotabato Province is paid Php 480 for an 8-hour workday. What is his
hourly wage?

2. A fast food service crew is paid per hour. If he is paid an average wage of Php 77.43 per hour, how
much will he get if he works for 6 hours for 6 days a week for 4 weeks?
Name: ____________Grade & Section: Grade XI - _____
Subject: Business Mathematics Teacher: ___Score:

Lesson: Quarter 2 Week 3 LAS 2


Activity Title: Gross and Net Earnings
Learning Target(s): Compute gross and net earnings
Reference(s): SLM Business Mathematics
LAS Writer: DARLENE C. MARTIN
Content Validator/s:

Gross Income and Net Income


Gross Income refers to the total amount an individual earned before deductions are made. It
also called as total earnings or total pay.
Gross Income = adding all income received.
Example 1:
A company secretary gets a basic monthly salary of Php 18, 000 and a transportation
allowance of Php 2, 000 per month. How much is his annual gross income?
Solutions: Basic Salary: Php 18, 000 x 12 = Php 216, 000
Transportation Allowance: Php 2, 000 x 12 = Php 24, 000
Annual Gross Income: Php 216, 000 + Php 24, 000 = Php 240, 000
Php 240, 000 is the annual gross income of the company secretary.
Example 2:
A minimum wage earner in North Cotabato is paid Php 450 for an 8-hour workday. If he works
for 20 days in one month, then how much will be the monthly gross income?
Solution: Php 450 x 20 days = Php 9, 000
Php 9, 000 is the monthly gross income of a minimum wage earner.
Basic Salary
Net Income refers to the amount earned by any person from the gross earnings less the total
deductions. Examples of deductions: income tax, SSS and GSIS, PhilHealth and Pag-Ibig
contributions. The deductions can be fixed amount or a percentage of the basic salary.
Net Income = Gross Income – Total deductions
Example 1:
A company employee gets a basic monthly salary of Php 22, 000 and a transportation
allowance of Php 2, 000 per month. Suppose this employee has to pay every year Php 14, 100 for
income tax, Php 4, 500 for PhilHealth, Php 3, 600 for Pag-Ibig and Php 14, 400 for SSS contributions.
How much is his annual net income?
Solutions:
Annual Gross Income = ( 22, 000 x 12 ) + ( 2, 000 x 12 ) = Php 288, 000
Total Deductions = 14, 100 + 4, 500 + 3, 600 14, 400 = Php 36, 600
Annual Net Income = Php 288, 000 – Php 36, 600 = Php 251, 400
Php 251, 400 is the annual net income of the company employee.
Example 2.
A minimum wage earner in North Cotabato is paid Php 481 for an 8-hour workday and he is
exempted from paying income tax. If he works for 20 days in one month and suppose his deductions
per month are Php 100 for Pag-Ibig , Php 200 for PhilHealth and Php 370 for SSS, how much is his
monthly net income?
Solutions:
Monthly Gross Income = Php 481 x 20 days = Php 9, 620
Total Deductions = 100 + 200 + 370 = Php 670
Monthly Net Income = Php 9, 620 – Php 670 = Php 8, 950
Php 8, 950 is the monthly net income of a minimum wage earner.
Payslip is a form that is provided to an employee showing all his earnings for a certain pay period.
This shows gross income, deductions (statutory and voluntary) and net income.
COMPUTER SOLUTION
Employee Name: Juan Dela Cruz
Department: IT HELPDESK
TIN: 534 – 452 – 002
Check Your Understanding
Pay Period: September 1 – 15, 2020
Answer the following problems.

Earnings Deductions 1. A policeman gets a basic


Basic Pay: 18, 000 Tardiness: 0 salary of Php 25, 000 per month,
Commission: 3, 000 Absences: 0 a living allowance of Php 2, 500
Paid Leave/s: 1, 200 PHIC: 200 per month and a hazard pay of
Tax Refund: 0 HDMF: 300 Php 12, 000 per year. How much
th
13 Month Pay: 0 SSS: 600
is annual gross income?
Withholding Tax: 0
Personal Loan: 1, 000
SSS Loan: 0
HDMF Loan: 0

Gross Earnings: 22, 200 Total Deductions: 2, 100 2. Coco earns a monthly salary
of Php 35, 000. He earned Php
Net Pay: 20, 100 1, 000 overtime pay for this
month. His monthly contributions
are stipulated as follows: SSS at Php 581.30, PhilHealth at Php 481.25 and Pag-Ibig at Php 100. His
monthly withholding tax deduction is Php 2, 876.11. Find his gross earnings and his net earnings for
this month.

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