SALARY AND

WAGE
By Gie Anne Marie R. Inot, LPT
OBJECTIVES
 To define terms involving compensation
 To
compute the gross earnings of a salary-
based and wage-based employee
 Tocompute the holiday pay, premium
pay, overtime pay, and piece-rate
compensation of an employee
 To solve problems involving compensation
Compensation
Is the remuneration in cash and in kind paid
to employees at regular intervals for time of
work or work done

Monetary compensation can be:

 Commission
 Salary
 Wage
Salary Wage
A fixed rate that is A rate that is
quoted on a quoted on an
weekly, monthly, hourly or daily basis
bi-monthly, or an
annual basis  The employee’s
 The number of compensation is
hours an employee positively related to
works does not the number of
affect his hours he works
compensation
ASSIGNMENT:

Search for some BASIC LABOR

LAWS implemented in the
Philippines and be ready for an
interactive discussion about it
next meeting.

*wait for the instruction about this to those pure

online students
 Gross Earning

Is the total amount of income earned over a

period of time by an individual. It is the income
earned without any deductions.
SAMPLE PROBLEMS
1. A nationwide survey has
determined that the average
monthly salary of a high school
teacher is Php 25 600. On
average, how much does a
high school teacher earn in a
year? In a week? In two weeks?
SAMPLE PROBLEMS
1. A nationwide survey has determined that
the average monthly salary of a high
school teacher is Php 25 600. On average,
how much does a high school teacher
earn in a year? In a week? In two weeks?

ANS : Annual = 25 600 * 12 = Php 307 200

SAMPLE PROBLEMS
1. A nationwide survey has determined that
the average monthly salary of a high
school teacher is Php 25 600. On average,
how much does a high school teacher
earn in a year? In a week? In two weeks?

ANS : Annual = 25 600 * 12 = Php 307 200

Weekly = 307 200 / 52 = Php 5 907.69
SAMPLE PROBLEMS
1. A nationwide survey has determined that
the average monthly salary of a high
school teacher is Php 25 600. On average,
how much does a high school teacher
earn in a year? In a week? In two weeks?

ANS : Annual = 25 600 * 12 = Php 307 200

Weekly = 307 200 / 52 = Php 5 907.69
Bi-weekly = 5 907.69 * 2 = Php 11 815.38
SAMPLE PROBLEMS
2. Karl is paid Php 386 per hour.
His regular days of work are
from Tuesday to Sunday.
Assuming that he worked
eight hours per day and no
overtime work was done,
determine his daily gross pay.
Determine his wage for an
entire week.
SAMPLE PROBLEMS
2. Karl is paid Php 386 per hour. His regular
days of work are from Tuesday to
Sunday. Assuming that he worked eight
hours per day and no overtime work was
done, determine his daily gross pay.
Determine his wage for an entire week.

ANS : Daily = 386 * 8 = Php 3 088

SAMPLE PROBLEMS
2. Karl is paid Php 386 per hour. His regular
days of work are from Tuesday to
Sunday. Assuming that he worked eight
hours per day and no overtime work was
done, determine his daily gross pay.
Determine his wage for an entire week.

ANS : Daily = 386 * 8 = Php 3 088

Weekly = 3 088 * 6 = Php 18 528
 Holiday Pay

Compensation received by an employee for

an unworked holiday. It may also refer to
additional income received for working
during a regular holiday.
SAMPLE PROBLEMS
3. Mark reported for work from
June 8 to June 13, except
June 12. On each day he
worked eight hours during his
shift, for which he is paid Php
125 per hour. Determine the
amount received at the end
of the week.
 JUNE 8 = (Php125)(8hrs)

 JUNE 9 = (Php125)(8hrs)

 JUNE 10 = (Php125)(8hrs)

 JUNE 11 = (Php125)(8hrs)

 JUNE 12 = Regular Holiday (entitled

of 8hrs work payment)

 JUNE 13 = (Php125)(8hrs)
SAMPLE PROBLEMS
3. Mark reported for work from June 8 to
June 13, except June 12. On each day
he worked eight hours during his shift, for
which he is paid Php 125 per hour.
Determine the amount received at the
end of the week.

ANS : Gross Pay = 125 * 8 * 6 = Php 6 000

June 12 is paid since it is a regular
holiday
SAMPLE PROBLEMS
4. If Mark reported for work from
June 8 to June 13, including
June 12, and still paid Php 125
per hour. Determine the
amount received at the end
of the week if he rendered
8hrs.
 JUNE 8 = (Php125)(8hrs)

 JUNE 9 = (Php125)(8hrs)

 JUNE 10 = (Php125)(8hrs)

 JUNE 11 = (Php125)(8hrs)

 JUNE 12 = (Php 125)(8hrs)(2)double

paid, since regular holiday

 JUNE 13 = (Php125)(8hrs)
SAMPLE PROBLEMS
4. If Mark reported for work from June 8 to
June 13, including June 12, and still paid
Php 125 per hour. Determine the amount
received at the end of the week if he
rendered 8hrs.

ANS : Gross Pay = 125 * 8 * 7= Php 7 000

June 12 is a regular holiday, so Mark
will receive twice his daily wage on
that day
SAMPLE PROBLEMS
5. If Mark reported for work on
April 9, which happens to be
Maundy Thursday and Valor
Day, and still paid Php 125 per
hour. Determine the amount
received on this day if he
works for 8 hours.
 APRIL 9 = (Php 125)(8hrs)(3)triple
paid, since double
regular holiday
SAMPLE PROBLEMS
5. If Mark reported for work on April 9,
which happens to be Maundy Thursday
and Valor Day, and still paid Php 125 per
hour. Determine the amount received
on this day if he works for 8 hours.

ANS : Gross Pay = 125 *8*3= Php 3 000

April 9 is a double regular holiday, so
Mark will receive thrice his daily wage
on that day
 Premium Pay
PREMIUM
PAY
Compensation received by an
_____________employee for performing a work on
special holiday (additional 30%), on his rest days
(additional 30%), both (additional 50%), or rest
day and regular holiday (additional 100% and
30%). Take note that if an employee does not
report for work on a special holiday or on his rest
day, he will not receive any compensation.
SAMPLE PROBLEMS
6. Racel worked eight hours a day
from August 17 (Monday) to 22
(Saturday). Her rest days are
scheduled on Tuesdays and she is
compensated at a rate of Php 240
per hour for her service. Determine
the amount she receives at the
end of the week.
 AUG 17 = (Php 240)(8hrs)

 AUG 18 = (Php 240)(8hrs)(1.3) with additional

30% due to rest day

 AUG 19 = (Php 240)(8hrs)

 AUG 20 = (Php 240)(8hrs)

 AUG 21 = (Php 240)(8hrs) (1.3) with additional

30% due to special holiday

 AUG 22 = (Php 240)(8hrs)

SAMPLE PROBLEMS
6. Racel worked eight hours a day from August
17 (Monday) to 22 (Saturday). Her rest days
are scheduled on Tuesdays and she is
compensated at a rate of Php 240 per hour
for her service. Determine the amount she
receives at the end of the week.

ANS : Gross Pay = (240 * 8 * 4) + (240 * 8 * 2 * 1.3)

= Php 12 672
August 18 is her rest day and August 21 is
a mandated special holiday. Thus she is
entitled of additional 30% on her wage
on those dates.
SAMPLE PROBLEMS
7. If Racel’s rest days are
rescheduled to Fridays and is
still compensated at a rate of
Php 240 per hour for her
service. Determine the
amount she receives for
working eight hours a day
from August 17 (Monday) to
22 (Saturday).
 AUG 17 = (Php 240)(8hrs)

 AUG 18 = (Php 240)(8hrs)

 AUG 19 = (Php 240)(8hrs)

 AUG 20 = (Php 240)(8hrs)

 AUG 21 = (Php 240)(8hrs) (1.5) with

additional 50% due to special
holiday and rest day
 AUG 22 = (Php 240)(8hrs)
SAMPLE PROBLEMS
7. If Racel’s rest days are rescheduled to
Fridays and is still compensated at a rate of
Php 240 per hour for her service. Determine
the amount she receives for working eight
hours a day from August 17 (Monday) to 22
(Saturday).

ANS : Gross Pay = (240 * 8 * 5) + (240 * 8 * 1.5)

= Php 12 480
Since August 21 is a mandated special
holiday and her rest day. Thus she is
entitled of additional 50% on her wage
on that date.
SAMPLE PROBLEMS
8. Angelo has six regular work
days in a week. Last week, he
reported for work on a regular
holiday, which coincided with
his rest day. If he receives an
hourly rate of Php 175,
determine his gross pay for
that week given that he
worked eight hours each day.
 1st day = (Php 175)(8hrs)

 2nd day = (Php 175)(8hrs)

 3rd day = (Php 175)(8hrs)

 4th day = (Php 175)(8hrs)

 5th day = (Php 175)(8hrs)

 6th day = (Php 175)(8hrs)(2)(1.3) with

additional 100% due to regular
holiday and 30% due to rest day
SAMPLE PROBLEMS
8. Angelo has six regular work days in a week.
Last week, he reported for work on a regular
holiday, which coincided with his rest day. If
he receives an hourly rate of Php 175,
determine his gross pay for that week given
that he worked eight hours each day.

ANS : Gross Pay = (175 * 8 * 5) + (175 * 8 * 2 * 1.3)

= Php 10 640
On the day that is both his rest day and
a regular holiday, thus he is entitled of
additional 100% and 30% on his wage
on that date.
ASSIGNMENT (for F2F)

Have a print out all the

legal/regular and special
holidays in the Philippines
Overtime Pay
Compensation received for additional work
beyond eight hours. Additional 25% on a
regular working day and additional 30% on
a rest day, special holiday, regular holiday,
or combinations of the three. Unlike holiday
or premium pay, multipliers for overtime pay
are not applied directly on the basic daily
pay, but on the applicable hourly rate of
the employee.
SAMPLE PROBLEMS
9. Jon’s regular working days are
from Tuesday to Sunday. Last
week he rendered 56 hours of
work. If he is paid Php 315 per
hour, determine his gross pay
for the week.
8hrs * 6days = 48 ordinary working hours

56hrs – 48hrs = 8 overtime hours

 Tuesday - Sunday

= (Php 315)(48hrs) + (Php 315)(8hrs)(1.25)

with additional 25% due to overtime on
ordinary working day
SAMPLE PROBLEMS
9. Jon’s regular working days are from
Tuesday to Sunday. Last week he
rendered 56 hours of work. If he is paid Php
315 per hour, determine his gross pay for
the week.

ANS : Gross Pay = (315 * 48) + (315 * 8 * 1.25)

= Php 18 270
If overtime hours are rendered on a
regular working day , the employee
receives an additional of 25% on his
hourly rate.
SAMPLE PROBLEMS
10. Joseph’sregular working days
are from Monday to Saturday.
Last week, he worked 10 hours
for each of the six days.
Suppose Thursday last week
was a regular holiday. If he is
paid Php 225 per hour,
determine Joseph’s earning
for the week.
 Mon = (Php 225)(8hrs) + (Php 225)(2hrs)(1.25)

 Tue = (Php 225)(8hrs) + (Php 225)(2hrs)(1.25)

 Wed = (Php 225)(8hrs) + (Php 225)(2hrs)(1.25)

 Thu = (Php 225)(8hrs)(2) + (Php 225)(2hrs)(2)(1.30)

 Fri = (Php 225)(8hrs) + (Php 225)(2hrs)(1.25)

 Sat = (Php 225)(8hrs) + (Php 225)(2hrs)(1.25)

*overtime on an ordinary working day

**working on a regular holiday

***overtime on a regular holiday

SAMPLE PROBLEMS
10. Joseph’s regular working days are from
Monday to Saturday. Last week, he worked
10 hours for each of the six days. Suppose
Thursday last week was a regular holiday. If
he is paid Php 225 per hour, determine
Joseph’s earning for the week.

ANS : Gross Pay = (225*8*5) + (225*2*1.25*5)

+ (225*2*8) + (225*2*1.3*2)
= Php 16 582.50
If overtime hours are rendered on a holiday
or rest day , the employee receives an
additional of 30% on his hourly rate.
ONLINE PRACTICE:

 Gie Anne earns Php 404 for each day of

eight-hour work, which runs from Tuesday
to Sunday, excluding Friday because it is
her rest day. Last week, she was called in to
work ten hours during Thursday, a special
holiday. Compute her gross pay last week.
Piece-Rate Compensation
Compensation is based on the number of
units an employee produces. Each unit of
output produced by a particular employee
is referred to as a piece.
SAMPLE PROBLEMS
11. Ellyis paid Php 75 for each
fountain pen she assembles. If
within the day she was able to
assemble 60 pieces, how
much is her gross pay for the
day?
SAMPLE PROBLEMS
11. Elly is paid Php 75 for each fountain pen
she assembles. If within the day she was
able to assemble 60 pieces, how much is
her gross pay for the day?

ANS : Gross Pay = 75 * 60 = Php 4 500

An example of Straight Piece Rate,
wherein scheme stays constant
regardless of the number of pieces
completed
SAMPLE PROBLEMS
12. Paul works in a factory that
assembles boxed meals. His pay
system entails that he is paid Php
10 per piece for the first 100 boxed
meals, Php 15 per piece for the
101st to 350th box, and Php 30 per
piece for the excess 350 boxes.
Within the day, he was able to
assemble 550 boxes. Determine his
gross pay at the end of the day
SAMPLE PROBLEMS
12. Paul works in a factory that assembles
boxed meals. His pay system entails that he
is paid Php 10 per piece for the first 100
boxed meals, Php 15 per piece for the 101st
to 350th box, and Php 30 per piece for the
excess 350 boxes. Within the day, he was
able to assemble 550 boxes. Determine his
gross pay at the end of the day
ANS : Gross Pay = (10*100) +(15*250) +(30*200)
= Php 10 750
An example of Graduated Piece Rate,
wherein the rate of income increases as
the number of pieces completed
increases.