SALARIES AND

WAGES
 CONCEPT MAP

when paid when paid for a

by the specified time period
hour
can also come

which may be
when coming from
beyond the agreed
upon period take the
combined all form of
together is
referred to as

when decreased
by give out
 OBJECTIVES

At the end of the lesson, the students are expected to:

A. define salary, wage, and income;
B. differentiate gross from net earnings;
C. enumerate ways of earning an income;
D. compute gross and net earnings accurately; and
E. manifest awareness on the current issues in the
economy of the Philippines.
 INCOME or PAY EARNINGS
• It is the payment or money received,
especially on a regular basis, for work
done or through investments.
• Synonyms: renumeration; salary;
proceeds; revenue; profits
 INCOME or PAY EARNINGS
• Two types of income:
– Wage or Minimum Wage
• is a payment made based on a certain amount
per hour worked.
• A lowest amount of money you are allowed to
be paid for one hour of work, as defined by law.
• Its rate is based on the regular working hours of
eight (8) hours a day.
• People who received are called wage earner
 INCOME or PAY EARNINGS
• Two types of income:
– Salary
• Payment made based on a certain period
worked, such as a day, week, month, or
year.
• People who received are called salaried
employees
– They are not paid for any extra work they
might do
QUESTION!!!

Do salaries and/or
wages of workers
received the same
amount?
QUESTION!!!
Why do jobs, or even the
same type of job at
different companies, have
different rates of pay?
 GROSS PAY VS. NET PAY
• Gross Pay
– Total amount earned by an employee
– Consists of one type or a combination of
different types of renumeration
– Synonyms: total earnings; total pay
• Net Pay
– Amount received by the employee after
deductions are made from the gross pay
 SITUATIONS

Kim is paid ₱55 an hour. Last week,

Kim worked 8 hours a day for 5 days.
What is her gross pay for last week?
 SITUATIONS

Jon earns ₱18,400 a week. Jon is paid

every two weeks. What gross pay does
he receive each payday?
 SITUATIONS

Amy is a part time worker in an insurance

agency. For the month of July, she earned
the following: ₱9,077 for basic salary,
₱4,992.35 for transportation allowance,
and ₱3,367.72 for commission. Calculate
Amy’s gross pay.
 SITUATIONS

Ben’s monthly salary is ₱32,500. His

monthly deductions are as follows: Union
Dues ₱1,300, Insurance Premium ₱3,120,
and Credit Cooperative Savings ₱6,500.
Additional deduction of income tax is 20%
of gross pay. Calculate Ben’s net pay.
 PAYSLIP
• It is a pay statement
• A form an employer will give you that shows
earnings for a defined pay period (could be
weekly, biweekly, semimonthly, monthly, etc.)
• It shows gross pay, less total deductions that
includes all statutory deductions along with
other voluntary deduction. After this
calculation, you will see your net pay.
 TRACKING YOUR WORK HOURS
• Punch card – at the start and end of every
shift, you insert a card into a machine that
will record the date and time.
• Daily Time Record – you use this to
manually record the time you start and
end each shift.
QUESTION!!!

What other ways can

an employee track
their work hours?
 OTHER WAYS OF EARNING AN INCOME

• Piecework
• Commission
• Service Charges and Tips
 SITUATION (PIECEWORK)

Gross pay =
# of pcs. Worked * price of a piece
Mich is a craftsperson who specializes in decorative
arts. She makes pottery bowls. She sells large bowls
for ₱450 and medium bowls for ₱350 each. One
weekend, at a farmers market, she sells 9 medium
and 6 large bowls. How much does she make?
 SITUATION (SERVICE CHARGES and TIPS)

Ken works at a restaurant where he

makes ₱78 per hour and he gets to keep
75% of his tips. If in one week he works
36 hours and makes ₱7,200 in tips,
what will his gross earnings be for that
week?
INSIGHT
• As a student, what is your
spending habits for you to
make more fortune rather
than being a salary-
focused?
EXERCISES
 Exercise 1

Allen works as a customer service

representative and is paid ₱455
per hour. He worked 38 hours last
week. Find his gross pay.
 Exercise 2

Mina worked the following schedule in one week:

Monday, 8 hrs.;
Tuesday, 7 hrs.;
Wednesday, 6 hrs.;
Thursday, 5 hrs.;
Friday, 6 hrs.
She was paid ₱120 an hour. How many hours did Mina work that
week and what was her gross pay?
 Exercise 3

Noni earned ₱60 per hour and regularly worked

30 hours per week. Every week, Noni pays ₱30,
₱80, and ₱100 toward various contributions.
Noni is deducted another amount at the rate of
15% after all other deductions have been made.
Calculate Noni’s weekly net pay.
 Exercise 4

Pia works in a watch factory. She gets paid

₱13.40 for each watch face she puts in
place. Using the chart, what will her
income be?
Day Mon. Tue. Wed. Thur. Fri.
Pcs. finished 110 102 65 135 105
 Wager Salaried
Earner? Employee
?
I, THANK YOU!