GEN-MATH REVIEWER
Wage
• remuneration or earnings, however designated, capable of being
expressed In terms of money, whether fixed or ascertained on a time,
tasks, piece or commission basis, which is payable by an employer to
an employee under a written or unwritten contract of employment
Hourly wage - amount earned for each hour
Daily wage - amant of money earned for each day of actual work
(does not include payment on days the employee did not work)
SALARY - Fixed regular wage, typically paid monthly, semi-monthly, or
weakly
Annual salary - amount earned for one year, usually from a fixed
monthly salary
Monthly salary- fixed amount of money an employer earn every
month.
Monthly salary = Annual salary / 12 months
Semi-monthly salary- amount of money earned twice a month or
intervals not exceeding sixteen days.
Monthly salary / 2 = Semi- monthly salary
Weekly salary- income received in a week
Weekly salary = Annual salary / 52 weeks
Overtime Pay - extra pay given for working beyond 8 hours .
Philippines → 1.25 x regular hourly rate
Rest Day or special Holiday → 1.5 x daily rate
Regular Holiday → 1.5 x daily rate
Regular holiday that falls on rest days → 2 x daily rate
Commission Income is earned as a percentage of sales made. It
can be pure or base salary plus commission.
Piecework earnings based on the number of items or products
completed
Gross Income - total earnings before deductions
Gross Income = Salary + Alowances
Net pay - take home pay amount left after deductions or
subtracted from gross payNet pay = Gross Income - Total
Deductions
Deductions - amounts subtracted from gross pay by law or
[Link] deduction in the Philippines:
1.) social security system (SSS)
- Private sector employees
- retirement, disability, maternity, sickness death benefits
- Rate = Based on schedule tied to the monthly salary
- 15% contribution → 10% employer, 5% employee share; every
month
2.) government service insurance system
- Government employees only
- lite insurane, retirement, disability , and survivorship
- 9% of monthly salary rounded to the nearest peso (employee
share)
3.) Pag-ibig (home development fund)
- all employees
- Housing loans, savings, calamity loans
- 2% of monthly salary rounded to the nearest peso (employee
share)
4.) PhilHealth
- All employees
- Healthcare benefits and health hospitalisation coverage
- 5% of monthly salary shared between employee and employer
5.) Withholding tax(BIR)
- All employees
- Income tax collected in advance by the employer
- Monthly salary bracket applicable exemptions for tax rate
- Income tax (business employer/employee properties)
- Tax code of 1997
- Annual income is 250,000 pesos less The employer is not required
withhold tax
6.) other deduction (optional or conditional)
- Loans, cash advance, insurance premium, union dues, deductions
for absence or tardiness
Percentage change indicates the extent to which a quantity has increased or
decreased in relation to its original value.
A percentage increase happens when a price, cost, or value goes
[Link] the result is positive, it indicates a percentage increase.
+15%: The value increased by 15% from the original
A percentage decrease happens when a price, cost, or value
goes [Link] the result is negative, it indicates a percentage
decrease.
-10%: The value decreased by 10% from the original.
Inflation and Wage Impact:
Inflation increases the cost of goods over time.
To maintain purchasing power, wages must rise at the same or
higher rate.
Cost Price (CP): Original price paid to acquire or produce a product
Selling Price (SP): Price at which the product is sold to
Mark-up, Mark-on, and Discount:
Mark-up: Added to cost price → Selling Price
Mark-on: Added to selling price → Peak Selling Price
Mark-down: Subtracted from selling price → Sale Price
Mark-up Rate = Mark-up - Cost Price
Mark-down Rate = Mark-down + Selling Price
Computing Mark-up PercentageMark-up= Selling Price-Cost
Price / Cost Price x 100
• Calculating Final Prices After Discounts
Discount Price = Original Price x (1 - Discount Rate)
Value-Added Tax (VAT):
In the Philippines, standard VAT is 12%. Businesses collect VAT from
customers and remit it to the government.
To compute VAT:
VAT = Price × 0.12
Final Price = Price + VAT
Or reverse.
Base Price = Final Price ÷ 1.12
VAT = Final Price - Base Price
Profit, Loss, and Break-even:
Profit = Revenue - Total Cost (Direct + Indirect)
Loss = Total Cost > Revenue
Break-even = Revenue = Total Cost
Profit Rate (%) = Profit ÷ Total Cost × 100
Break-even Point: When profit = 0