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BusMath Q2 W3.2

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46 views18 pages

BusMath Q2 W3.2

Uploaded by

davidjennilyn929
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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SHS ABM

Business Mathematics:
Salaries and Wages
Quarter 2 / Week 3

Subject Teacher: Engr. Florentino R. Diaz III


COMPETENCIES
A. Content Standards
The learners demonstrate an understanding of…
1. key concepts in buying and selling.

B. Performance Standards
The learners are able to…
1. key concepts in buying and selling a business: buying products and
selling products.

C. Learning Competencies/Objectives
1. Define salary, wage, income, benefits (ABM_BM11S W-IIc-1)
2. Compute gross and net earnings (ABM_BM11S W-IId-2)
Ways of Service Payment
I. Salary and Wage
II. Income and Benefits
III.Gross Income
IV.Net Income
Motivation
Salary and Wage

Salary is the compensation usually quoted annually or


monthly for an employee.

Wage, on the other hand, is compensation quoted in


an hourly or daily rate for an employee.
The difference between salary and wage
Example 1: A tutor who is paid ₱200 per hour is earning a wage.
How much does he earn for a 10-hour week work?

Example 2: A university assistant professor is usually given a


monthly salary. If his salary is ₱40,000 per month, how
much does he get every two weeks?

Example 3: A fast food service crew is paid per hour. If he is


paid an average wage of ₱77.43 per hour, how much
will he get if he works for 6 hours and 6 days a week
for 4 weeks?
Art. 143, P.D. 442
Wages shall be paid at least once every two (2) weeks or
twice a month at intervals not exceeding sixteen (16) days. If on
account of force majeure or circumstances beyond the employer’s
control, payment of wages on or within the time herein provided
cannot be made, the employer shall pay the wages immediately after
such force majeure or circumstances have ceased. No employer
shall make payment with less frequency than once a month.
The payment of wages of employees engaged to perform a
task which cannot be completed in two (2) weeks shall be subject to
the following conditions, in the absence of a collective bargaining
agreement or arbitration award: That payments are made at
intervals not exceeding sixteen (16) days, in proportion to the
amount of work completed; That final settlement is made upon
completion of the work.
Income and Benefits

Income is money that an individual receives in exchange


for providing a good/service or through investing
capital.
Income and Benefits
However, for people who are not employees, their income may not be in
the form of wages or salaries. They can have…
1. Commission income if they are paid for the commission on sales they
make
2. Rental income if they have properties they rent out
3. Dividend income if they are stockholders
4. Royalties if they are authors
5. Other income for whatever endeavor they engage in including profit-
making businesses
…a business firm’s income is in the form of profits that the business earns.
Income and Benefits

Example 1: Joviemel is a stockholder of the Wisdom


Corporation. For the current year, the corporation
declared 10% cash dividend to stockholders. Joviemel
owns 1, 000 shares of the company’s ₱10.00 per value
shares.

**To compute his dividend income,


Joviemel’s dividend income = No. of shares × Dividend rate =
1 000 shares × ₱10.00 per value × 10% = ₱1,000.00
Income and Benefits

Example 2: Daniel Mon is an author and his book sold 2, 500


copies for the first semester. His book sells at ₱375 per
copy. He receives a 22% royalty from his publisher.

**His royalty income would be:


Daniel Mon’s royalty = 2,500 × ₱375 × 22% = ₱206,250.00
Income and Benefits

Benefits is employee compensation given by an


employer on top of the basic salary/wage. Note
that benefits may come in the form of cash or
in kind.

Examples:
1. Cash Benefits: 13th month pay, bonuses, rice subsidy,
transportation allowance

2. 2. Non-cash benefits: SSS/GSIS, Pag-ibig, PhilHealth


Gross Income

The GROSS INCOME of an individual refers to the total


amount he/she earned before deductions are made.
Other adjustments may be payment for loans, etc.
Examples:
1. A teacher who gets a basic monthly salary of ₱20,000 and a living
allowance of ₱2,000 per month has an annual gross income of
(20,000 x 12) + (2,000 x 12) = ₱264,000.
2. A policeman who gets a basic salary of ₱25,000 per month, a living
allowance of ₱2,500 per month and a hazard pay of ₱12,000 per
year has an annual gross income of (25,000 x 12) + (2,500 x 12) +
12,000= ₱342,000.
Net Income

The NET INCOME of an individual is the difference


between his/her gross income and
deductions.

Example of deductions applicable are income tax, SSS or


GSIS contributions, PhilHealth and Pag-ibig contributions.

The deductions can be a fixed amount or a percentage of the


basic salary. .
Net Income

Example 1. A teacher who gets a basic monthly salary of


₱20,000 and a living allowance of ₱2,000 per month has an
annual gross income of (20,000 x 12) + (2,000 x 12) =
₱264,000.

Suppose this teacher has to pay every year ₱22,500 for


income tax, ₱4,500 for PhilHealth, PhP1,200 for Pag-ibig and
₱6,975.60 for SSS contributions, then his annual net income
is 264,000 – (22,500 + 4,500 + 1,200 + 6,975.60) =
₱228,824.40.
Net Income

Example 2. A policeman who gets a basic salary of ₱25,000


per month, a living allowance of ₱2,500 per month and a
hazard pay of ₱12,000 per year has an annual gross income
of (25,000 × 12 ) + (2,500 × 12) + 12,000= ₱342,000.

Suppose this policeman has to pay annually ₱25,000 for


income tax, ₱4,500 for Philhealth, ₱1,200 for Pag-ibig and
₱27,000 for GSIS contributions, then his net annual income is
342,000 – (25,000 + 4,500 + 1,200 +27,000) = ₱284,000.
Enrichment Activity 1: Problem Solving

1. A clerk earns a salary of ₱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? per hour?
2. An employee is paid a monthly salary of ₱16,000 for
working 20 days in a month. A taxi driver earns ₱750 per
day. Assuming both work 8 hours a day, who has a
higher hourly wage?
3. Jenny is paid on per-piece basis at the rate of ₱2.20 per
piece. If she finishes 210 pieces a week, how much is her
total earnings?
Antonio works as a part-time crew in a fast food
chain in the city with the following schedule for one
week: Monday, 5 hours; Tuesday, 6 hours;
Wednesday, 4 hours; Thursday, 6 hours; Friday, 3
hours. If he was paid ₱104.25 an hour, how much
will he get for the week?

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