11/12

General Mathematics
Quarter 1 - Module 1

Calculating Weekly or Monthly Wage from an

Annual Salary, Wages from an Hourly Rate,
and Earnings

Eleanor Cayetana I T. Turqueza

Developer

Department of Education • Cordillera Administrative Region

General Mathematics- Grade 11
Alternative Delivery Mode
Quarter 1– Module 1: wages and Salary

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Development Team of the Module

Writer: Eleanor Cayetana I T. Turqueza

Editor: Jeramy P. Escolastico

Reviewer: Jeramy P. Escolastico

Illustrator: Eleanor Cayetana I T. Turqueza

Layout Artist: Eleanor Cayetana I T. Turqueza
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Department of Education – Cordillera Administrative Region
Office Address: Wangal, La Trinidad, Benguet
Telefax: (074) -422 -4074
E-mail Address: car@[Link]

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Introductory Message
This Self-Learning Module (SLM) is prepared so that you, our dear learners,
can continue your studies and learn while at home. Activities, questions, directions,
exercises, and discussions are carefully stated for you to understand each lesson.
Each SLM is composed of different parts. Each part shall guide you step-by-
step as you discover and understand the lesson prepared for you.
Pre-assessment is provided to measure your prior knowledge on lessons in
each SLM. This will tell you if you need to proceed with completing this module or if
you need to ask your facilitator or your teacher for assistance for better
understanding of the lesson. At the end of each module, you need to answer the post-
assessment to self-check you’re learning. Answer keys are provided for each activity
and test. We trust that you will be honest in using these.
In addition to the material in the main text, Notes to the Teacher are also
provided to our facilitators and parents for strategies and reminders on how they can
best help you on your home-based learning.
Please use this module with care. Do not put unnecessary marks on any part
of this SLM. Use a separate sheet of paper in answering the exercises and test. And
read the instructions carefully before performing each task.
If you have questions about using this SLM or any difficulty in answering the
tasks in this module, do not hesitate to consult your teacher or facilitator.
Thank you.

Date of Development: June 4, 2025

Resource Location: DepEd-CAR Regional Office, Wangal, La Trinidad, Benguet
Learning Area: General Mathematics
Grade Level: Grade 11/12
Learning Resource Type: Self-Learning Module
Language: English
Quarter/Week: Quarter 1/Week 1
Competency Code:

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 Acknowledgement
This work would not have been possible without these people: To the Almighty
Father, the source of knowledge and wisdom, for His loving guidance and
enlightenment.
To the Division LRMS team managed by Bernardo P. Beronilla, Education
Program Supervisor for the continuous quality assurance and enhancement training.
To Mrs. Hedwig M. Belmes, the Chief education Supervisor for Curriculum
Development, To Mr. Benjho P. Agaloos, the Education Program Supervisor for
Science, To Mr. Mijurodel B. Rifareal, the Education Program Supervisor for
Mathematics and to Miss Jasmine P. Bringas, the School Principal of Abra High
School, for the trust and encouragement. To my students, who are my inspiration in
preparing this activity sheet. To my parents, whose love and guidance are with me
in whatever I pursue. Most importantly, to my loving and supportive husband and
wonderful children and friends, who provide unending inspiration.

ELEANOR CAYETANA I T. TURQUEZA

SDO ABRA
Regional Learning Resources
Division Learning Resources
Management Section
Management Section
JEREMY KERMIT B. PADILLA
GRYAN LYLE C. NAVARRO Administrative Assistant II
Project Development Office II Format/Layout Evaluator
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ELIZABETH C. KIAL
RIZA E. PERALTA Teaching Aids Specialist
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Copyright Evaluator/LR Uploading
FELY B. BADIVAL
BERNARDO P. BERONILLA Librarian II
Education Program Supervisor/LR Copyright Evaluator
Manager
Final Evaluation BENJAMIN M. DIO-AL
Education Program Supervisor/LR Manager
Division Content Evaluator Final Evaluation and Uploading/Publishing

MIJURODEL B. RIFAREAL Regional Content Evaluator

Education Program Supervisor
Learning Area Focal
ASTERIO C. MADALLA
Education Program Supervisor
Consultants Learning Area Focal

HEDWIG M. BELMES Consultants

Chief Education Supervisor
Curriculum Implementation
Division JENNIFER P. ANDE
Chief Education Supervisor
Curriculum and Learning Management
CHRISTOPHER C. BENIGNO PhD Division
EdD, CESO VI
Assistant Schools Division
RONALD B. CASTILLO, CESO V
Superintendent
Director III/ Assistant Regional Director

AMADOR D. GARCIA SR. PhD,

CESO VI ESTELA P. LEON-CARIÑO EdD, CESO III
Schools Division Superintendent Director IV/Regional Director

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 Table of Contents

Title Page ………………………………………………………………………………… i

Copyright Notice ……………………………………………………………………….. ii
Introductory Message …………………………………………………………………. iii
Acknowledgement ……………………………………………………………………… iv
Table of Contents ………………………………………………………………………. v
What I Need to Know
Learning Objectives ………………………………………………………….. 1
What I Know ……………………………………………………………………………. 2
What’s In ………………………………………………………………………………… 4
What’s New ……………………………………………………………………………… 5
What Is It ……………………………………………………………………………… 5
What’s More
Assessment 1 …………………………………………………………………. 16
Assessment 1 …………………………………………………………………. 16
What I Have Learned ………………………………………………………………….. 16
What I Can Do ………………………………………………………………………….. 17
Post-Assessment ……………………………………………………………………….. 17
Additional Activity ……………………………………………………………………… 19
Answer Key ………………………………………………………………………………. 20
References ……………………………………………………………………………….. 21

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 What I Need to Know

Welcome to this module designed to enhance your understanding of various

compensation structures and their calculations. This module will guide you through
the processes of:
● Calculating Weekly or Monthly Wages from an Annual Salary: Learn how
to break down an annual salary into weekly or monthly earnings, considering
standard work hours and pay periods.
● Determining Wages from an Hourly Rate, Including Overtime and
Allowances: Understand how to compute earnings based on hourly wages,
factoring in regular hours, overtime pay (typically at 1.5 times the regular
rate), and additional allowances such as transportation or meal stipends.
● Determining Earnings Based on Commission or Piecework: Explore how
sales commissions and piecework compensation (pay per unit produced)
contribute to total earnings, and how to calculate these based on sales figures
or production output.
● Understanding Income and Benefits: Gain insight into how various benefits
(e.g., health insurance, retirement plans) and statutory bonuses (like the
13th-month pay in the Philippines) impact overall income

Quarter/Week Q1/W1
Calculate weekly or monthly wage
from an annual salary, wages from
an hourly rate including situations
Learning Competency
involving overtime and other
allowances and earnings based on
commission or piecework.
Learning Objectives:
a. Define and differentiate between salary, wages, commission or piecework,
income, and benefit.
b. Calculate weekly and monthly wages based on annual salary.
c. Determine wages based on hourly rates, including regular hours
and overtime.
d. Compute earnings from commission -based work and piecework.

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 What I Know

Pre-Assessment
I. Directions: Choose the letter of your choice that best answers the questions.
Write your answer on the space provided before each number.
1. It refers to earnings received by a worker on a piece rate, hourly rate, or daily
rate.
A. commission B. income C. salary D. wage

2. It is a fixed amount usually associated with employee compensation usually

received on a monthly or semi-monthly basis, but it may be quoted in an annual
sum.
A. benefit B. income C. salary D. wage

[Link] of the following compensation methods is based on a fixed annual

amount, regardless of the number of hours worked?
A. Commission C. Piecework
B. Hourly wage D. Salary

4. If an employee works 45 hours in a week, with the first 40 hours paid at the
regular hourly rate and the remaining 5 hours paid at 1.5 times the regular rate,
this is an example of:
A. Commission-based pay
B. Overtime pays
C. Piecework
D. Salary

5. Which compensation structure is most used for sales positions where earnings
are directly tied to the number of sales made?
A. Commission
B. Hourly wage
C. Piecework
D. Salary

II. Directions: Solve the following problem. Write the letter of your answer on the
space provided before each number.
[Link] an employee earns ₱500 per hour and works 40 hours a week, what is their
weekly wage?
A. ₱20 000 B. ₱10 000 C. ₱2 000 D. ₱1,000

[Link] employee worked 10 hours of overtime a week. If their regular hourly rate is
₱150, and the overtime pay is 125% of the regular rate, what is the overtime pay
per hour?
A. ₱225 B. ₱200 C. ₱187.50 D. ₱175

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8.A salesperson earns a 5% commission on sales. If they made ₱200 000 in sales,
how much is their commission?
A. ₱20 000 B. ₱15 000 C. ₱10 000 D. ₱5 000

9.A factory worker is paid ₱50 per piece. If they produced 1 200 pieces in a week,
what is their total earnings?
A. ₱65 000 B. ₱60 000 C. ₱55 000 D. ₱50 000

[Link] works 40 hours a week at an hourly rate of ₱150. How much does he
earn weekly?
A. ₱5 000 B. ₱6 000 C. ₱7 000 D. ₱8 000

11. Maria worked 50 hours a week. Her hourly rate is ₱120, and overtime is paid at
1.5 times the regular rate. How much did she earn that week?
A. ₱6 000 B. ₱6 600 C. ₱7 200 D. ₱7 800

12. An employee earns ₱200 per unit produced. If he produced 150 units in a week,
what is his total earnings?
A. ₱25 000 B. ₱30 000 C. ₱35 000 D. ₱40 000

13. An employee has an annual salary of ₱600 000. What is their monthly salary?
A. ₱50 000 B. ₱52 000 C. ₱55 000 D. ₱60 000

14. If an employee earns ₱40 000 per month and works 40 hours per week, what is
their hourly rate?
A. ₱200 B. ₱250 C. ₱300 D. ₱350

15. An employee's regular hourly rate is ₱150. They worked 10 hours of overtime in
a week. What are their total earnings for the week, including overtime pay?
A. ₱6 000 B. ₱6 650 C. ₱7 800 D. ₱8 250

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 Wages, Salary, Commission,
Lesson
Piecework, Income, and Benefit

In our community, individuals engage in various professions and jobs.

Professions include roles like doctors, lawyers, and teachers, while jobs encompass
positions such as carpenters, factory workers, fishermen, and drivers. Regardless of
their specific roles, these individuals expect to receive monetary compensation for
their goods or services, enabling them to earn a living from their labor.

Forms of Payment

People are compensated for their work through different methods:

Salary: A fixed regular payment, typically paid monthly or bi-weekly, often

associated with professional roles.

Wages: Payment based on the number of hours worked or the quantity of work
completed, commonly used for hourly or piece-rate jobs.

Benefits: Additional perks provided by employers, such as health insurance,

retirement plans, and paid leave.

Other Sources of Income: This category includes earnings from commission

or piecework, investments, side businesses, or freelance work.

What’s In
Activity: "Compensation Classification Challenge"
Directions: Classify each profession as one of the following:
Salary Earner (SE) Commission-Based (CB)
Wage Earner (WE) Piecework (PW)

1. Engineer
2. Factory Worker
3. Salesperson
4. Freelance Graphic Designer
5. Construction Laborer
6. Real Estate Agent
7. Call Center Agent
8. Agricultural worker
9. Nurse
10. Businessman

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 What’s New

Have you ever wondered why some people are paid a fixed monthly salary,
while others earn based on the hours they work, the sales they make, or the number
of items they produce? The way we are compensated reflects the value our work
brings to an organization and the methods companies use to motivate and reward
us.
Understanding these systems is crucial, as they not only determine how much
we earn but also influence our motivation and job satisfaction. For instance, while a
salaried position offers financial stability, commission-based roles can provide
higher earnings for high performers. Similarly, piecework can incentivize
productivity but may lead to quality concerns if not managed properly.
By the end of this module, you'll be equipped to calculate weekly or monthly
wages from an annual salary, determine earnings from hourly rates (including
overtime), and compute earnings from commission or piecework. This knowledge will
empower you to make informed decisions about your career and understand the
value of your work in the marketplace.

What Is It

As you approach the next chapter of your life—be it entering the workforce,
pursuing higher education, or launching your own business—it's essential to
understand how compensation works. Whether you're earning a fixed salary, hourly
wages, commissions, or through piecework, the way you're paid reflects the value of
your work and influences your financial planning. Therefore, you need to be
familiarized with the differences between salary, wages, commission or piecework,
income, and benefits.

What is Salary?
(Image from [Link])

A salary is a fixed amount of compensation paid to an employee by an

employer in return for work performed. Unlike hourly wages, where pay is based on
the number of hours worked, a salary remains consistent regardless of the hours
worked, providing financial stability and predictability.

Key Characteristics of Salary:

Fixed Payment: Salaries are predetermined amounts agreed upon by the
employer and employee, typically expressed annually.
Regular Intervals: While the total annual salary is fixed, it is distributed
over regular intervals, such as monthly, semi-monthly, or weekly.

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Not Hourly-Based: Salaried employees receive the same amount regardless of the
number of hours worked, distinguishing them from hourly wage
earners.
Common Salary Payment Structures:
Monthly Salary: Calculated by dividing the annual salary by 12.
Semi-Monthly Salary: Calculated by dividing the annual salary by 24 or the monthly
salary by 2.
Weekly Salary: Calculated by dividing the annual salary by 52.
Examples:
[Link] Salary: ₱480,000
Monthly Salary: ₱480,000 ÷ 12 = ₱40,000
Semi-Monthly Salary: ₱480,000 ÷ 24 = ₱20,000
Weekly Salary: ₱480,000 ÷ 52 ≈ ₱9,231
2. Maria has an annual salary of ₱480,000. She works 5 days a week. To determine
her monthly salary:
Solution:
₱480,000 ÷ 12 months = ₱40,000 per month
A monthly salary provides employees with consistent earnings,
regardless of the number of working days in a month.
3. Juan has an annual salary of ₱624,000. To determine his weekly wage:
Solution:
₱624,000 ÷ 52 weeks = ₱12,000 per week
Converting an annual salary to a weekly wage helps employees
understand their earnings on a shorter time scale, which is useful for
budgeting and financial planning.
4. Maria has an annual salary of ₱600,000. To determine her monthly wage:
Solution:
₱600,000 ÷ 12 months = ₱50,000 per month
Knowing the monthly wage from an annual salary allows employees to
plan for monthly expenses and savings, providing a clearer picture of
their financial situation.
Understanding salary structures is crucial for financial planning and
budgeting. It helps individuals anticipate their earnings and manage expenses
effectively. Salaried positions often come with additional benefits such as health
insurance, paid leave, and retirement plans, contributing to overall job satisfaction
and financial security.

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 ● What are Wages?
(Image from [Link])

Key Types of Wages

A. Hourly Wages: Employees are paid a set amount for each hour worked.
Examples:
1. If an employee earns ₱100 per hour and works 40 hours a week, their weekly wage
would be ₱4,000.

2. Juan works at a retail store and is paid ₱150 per hour. He works 40 hours
each week
Solution:
To determine Juan's weekly wages, multiply his hourly rate by the number of
hours worked:

Weekly Wages = Hourly Rate × Hours Worked

Weekly Wages = ₱150 × 40 = ₱6,000
Therefore, Juan's weekly earnings amount to ₱6,000.

3. John earns ₱100 per hour. He works 40 regular hours and 10 overtime hours in
a week. Overtime is paid at 1.5 times the regular hourly rate.
Solution:
Regular earnings: ₱100 × 40 hours = ₱4,000
Overtime earnings: ₱100 × 1.5 × 10 hours = ₱1,500
Total weekly earnings: ₱4,000 + ₱1,500 = ₱5,500
Overtime pay compensates employees for working beyond their regular
hours, encouraging productivity and acknowledging extra effort.
4. Anna works as a customer service representative. She earns ₱150 per hour and
works 35 hours a week. Additionally, she receives a weekly transportation allowance
of ₱500.
Solution:
Regular earnings
₱150 × 35 hours = ₱5,250
Total weekly earnings:
₱5,250 + ₱500 = ₱5,750
Allowances are additional payments provided to employees to cover specific
expenses, such as transportation or meals, and are added to their regular
earnings.

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5. If a worker earns ₱15 per hour and works 40 hours a week, what is his weekly
wage?
If a worker earns ₱15 per hour and works 40 hours a week, his weekly wage is:

₱600 per week

15 x 40=600

This calculation assumes no deductions or additional allowances. If the worker is

entitled to benefits such as overtime pay, night shift differential, or allowances,
those would be added to the total earnings.

6. Dexter receives a daily wage of P521.60. How much does he earn in a week if he
worked for 5 days?
Solution:
Given: Daily Rate = P521.60
Number of Days worked = 5
Regular Pay = Number of days worked x Daily rate
= 5 x P521.60
= P2,608
Thus, his weekly pay is P2, 608.
B. Piecework: In this system, employees are paid a fixed rate for each unit of
work completed. This method is common in industries like manufacturing and
agriculture. A worker employed on a “piecework” basis is paid in proportion
to the quantity of work he finishes. The rate used can be fixed irrespective of
the quantity produced, in which case it is called a piece-rate plan. On the
other hand, it can be graduated, increasing as the quantity produced
increases, which case is called differential piece-work plan.
If production/sales do not meet or exceed the quota, only the standard
wage is paid. On the other hand, if the production/sales exceeded the quota
the worker will receive the standard pay and a premium for the extra units.
Standard Pay = No. of working Hours x Rate per Hour
Standard Pay = No. of Units Produced x Rate per Unit.

Examples:

[Link] is paid on a per piece basis at the rate of P12.50 per piece. If she finishes
360 pieces in a month, how much is her total earnings?
Give: Rate = p12.50 per piece
Quantity produced = 360 pieces ( base)
Find: Total earnings

Solution: Total earnings = Quantity x Rate

= 360 x P12.50
= P4, 500.00
2. ABC Manufacturing Company employs workers under a differential piece-rate
system to incentivize higher productivity. The company has set the following
production targets and corresponding pay rates:
Up to 50 units: ₱10 per unit
51 to 100 units: ₱12 per unit

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 Above 100 units: ₱15 per unit
Worker's Performance:
Juan, a factory worker, produced 120 units in a week.
Solution:
a. First 50 units: 50 units × ₱10 = ₱500
b. Next 50 units (51–100): 50 units × ₱12 = ₱600
c. Remaining 20 units (101–120): 20 units × ₱15 = ₱300
Total Earnings: ₱500 + ₱600 + ₱300 = ₱1,400
3. Ben works in a factory assembling toy cars. He is paid ₱20 per toy car assembled.
In a week, he assembles 150 toy cars.
Solution:
Total Earnings: ₱20 × 150 = ₱3,000
Ben's earnings for the week amount to ₱3,000.
4. Anna assembles chairs and is paid ₱200 per chair. In a week, she assembles 50
chairs.
Solution:
₱200 × 50 chairs = ₱10,000
Piecework compensation motivates employees to increase output, as earnings are
directly tied to the amount of work completed.
5. Gregorio’s daily production is 105 units during an 8-hour work for which he is
paid P86.20 an hour. He receives a premium for the extra units he produces during
the day of work. Find his gross pay for (a) a day when he produced 100 units, and
(b) another day when he produced 130 units.
Solution:
a. No. of working hours = 8 hours
Rate per hour = P86.20
Note that the units produced do not exceed the quota. Thus, he will only
receive his standard pay of:
Standard Pay = No. of working ours x Rate per hour
= 8 x P86.20
= P689.60
b. The 130 units of production are more than the prescribed quota of 105
units. There is an extra 25 units, then the total pay is
Premium Pay = (Extra Units ÷ Quota Units) x Standard Pay
= (25 ÷ 105) x P689.60
= P164.19
Total Pay = Standard Pay + Premium Pay
= P689.60 + P164.19
= P853.79

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 What is a Commission?
(Image from [Link])

Types of Commission Structures

1. Straight Commission

Employees earn income solely from commissions, with no base salary. This model is
high-risk but offers high-reward potential

Example: A real estate agent sells a property for ₱5,000,000 and earns a 3%
commission.
Calculation:
₱5,000,000 × 3% = ₱150,000
Outcome: The agent earns ₱150,000 for this sale.

2. Base Salary Commission

Employees receive a fixed base salary along with a commission on sales. This model
provides income stability while incentivizing performance. Combines a fixed base
salary with a commission on sales. This structure provides income stability while
incentivizing performance.

Example: A software sales representative has:

Base Salary: ₱50,000 per month
Commission: 5% on sales
In a month, they sell ₱200,000 worth of software.
Calculation:
₱200,000 × 5% = ₱10,000
Total Earnings: ₱50,000 + ₱10,000 = ₱60,000

[Link] Commission: Commission rates increase as sales targets are surpassed,

motivating employees to exceed quotas.

Example:

A real estate agent earns:

3% Commission on sales up to ₱500,000
5% Commission on sales between ₱500,001 and ₱1,000,000
7% Commission on sales exceeding ₱1,000,000
In a month, they sell ₱1,200,000 worth of properties.
Calculation:
₱500,000 × 3% = ₱15,000

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₱500,000 × 5% = ₱25,000
₱200,000 × 7% = ₱14,000
Total Commission: ₱15,000 + ₱25,000 + ₱14,000 = ₱54,000

Pros and Cons of Commission-Based Pay

Advantages:

-Motivation for Higher Performance: Employees are driven to increase sales to boost
their earnings.
-Cost-Effective for Employers: Aligns labor costs with revenue generation.
-Attracts High-Performing Talent: Appeals to individuals confident in their sales
abilities.

Disadvantages:

-Income Instability: Earnings can fluctuate based on sales performance.

-Potential for Unethical Sales Practices: Pressure to sell may lead to compromised
customer service.
-Internal Competition: Can foster unhealthy competition among employees.

What Is Income?
(Image from [Link])

Income refers to the money or financial gain that an individual, business, or

organization receives, typically in exchange for labor, services, products, or
investments. It is a fundamental measure of economic well-being and reflects
financial health, influencing consumption, savings, investment, and overall
economic growth.

It is also the monetary payment received for goods or services, or from other sources,
as rents or investments. ([Link]
- A broader term than wages and salary. Wages and salaries are income to
those who are receiving it. However, for people who are not employees,
their income may not be in the form of wages or salaries.
Income could also be:
a. commission – for sales agents who are paid for the commission on sales
they make
b. rental income – for those who have properties they rent out
c. dividend income – for stockholders, bondholders, or investors
d. royalties – for authors or inventors
e. profit –for businessmen

Types of Income

1. Earned Income

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This is income derived from active work or services performed. It includes wages,
salaries, commissions, bonuses, and tips. Earned income is typically subject to
payroll taxes and income taxes.

Example: Sarah, a marketing executive, receives a monthly salary of P 34,000

for her work at a multinational company.

2. Passive Income

Income received from activities in which the individual is not actively involved.
Examples include rental income, royalties, and earnings from businesses in which
the individual does not materially participate

Example: John owns a vacation property and earns P150,000 per month from
renting it out to tourists during peak seasons.

3. Investment Income

Income generated from financial instruments and assets, representing a return on

existing capital. This category includes interest, dividends, and capital gains

Example: Mark invests P500,000 in stocks and receives P 50,000 in dividends

and P250,000 in capital gains over a year.

4. Business Income

Earnings from operating a business, either as a sole proprietor, partnership, or

corporation. Business income is calculated as revenue minus expenses and is
subject to business taxes.

Example: ABC Corporation operates a retail store. For the fiscal year, it
earned 15,000,000 in revenue and incurred P10,500,000 in expenses, resulting in a
net business income of P4,500,000.

Importance of Income

Understanding different types of income is crucial for financial planning,

budgeting, and tax purposes. It helps individuals and businesses assess their
financial health, make informed decisions, and strategize for future growth

What is Benefit?
(Image from [Link])

Benefit - a payment or gift made by an employer or an insurance company.

(e.g. bonuses, allowances, 13th month pay, overtime pay, hazard pay,
insurances, maternity/paternity leave)

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Employee compensation – the remuneration or reward that an employee gets
from his or her employer for the services he or she gives the latter
- Payment in return for the employee’s services

Basic pay – employee’s compensation package refers to the wages or salaries

they get

Employee benefits are non-wage compensations provided to employees in addition

to their regular salaries or wages. These benefits are designed to enhance the overall
well-being of employees, improve job satisfaction, and attract and retain talent. They
can be mandatory (required by law) or voluntary (offered at the employer's discretion).

Common Types of Employee Benefits

1. Health and Medical Benefits

These benefits cover medical expenses and promote employees' health and
well-being.
-Health Insurance: Provides coverage for medical expenses such as doctor visits,
hospital stays, and surgeries.
-Dental and Vision Insurance: Covers dental check-ups, treatments, and eye care.
-Wellness Programs: Includes gym memberships, mental health support, and stress
management resources.
2. Retirement and Financial Benefits
These benefits help employees plan for their financial future and provide
income security.
-Retirement Plans: Such as 401(k) or pension plans, where employers may match
employee contributions.
-Financial Counseling: Offers guidance on budgeting, saving, and investing.
-Employee Stock Purchase Plans: Allows employees to buy company stock at a
discounted rate.
3. Time-Off and Leave Benefits

These benefits provide employees with paid or unpaid time off for various
reasons.
-Paid Time Off (PTO): Includes vacation days, sick leave, and personal days.
-Parental Leave: Time off for new parents following the birth or adoption of a child.
-Paid Holidays: Compensation for recognized public holidays.
4. Work-Life Balance Benefits
These benefits aim to help employees balance their professional and personal
lives.
-Flexible Work Hours: Allows employees to adjust their work schedule to fit personal
needs.
-Remote Work Options: Enables employees to work from home or other locations.
-Childcare Assistance: Provides support for employees with young children.
5. Additional Perks
These are extra benefits that enhance the employee experience.
-Employee Discounts: Offers on company products or services.
-Tuition Reimbursement: Financial assistance for further education.
-Commuter Benefits: Subsidies for transportation costs.

13
 There are some government mandated benefits such as social Security system
(SSS), Government Social Insurance security (GSIS), PhilHealth, and Pag-
IBIG/HDMF. The following mandatory deductions are payroll deductions the
employer is required by law to deduct each pay period. The Social Security System
(SSS) is a private companies/institution. Some of the benefits covered by being a
member of the SSS are sickness, disability, retirement, maternity, death, and
funeral. GSIS is the counterpart social security protection for government
employees.
PhilHealth is a program focused in giving priority to health for both
government and private institutions. Some of the benefits covered by being a
member of PhilHealth are inpatient coverage (i.e. room, drugs and medicine,
laboratories, operating room and professional fees for confinements), outpatient
coverage (i.e. day surgeries, dialysis and cancer treatment procedures such as
chemotherapy and radiotherapy), and other special benefit packages(i.e. coverage for
up to fourth normal delivery, newborn care package, TB treatment through
DOTS,SARS and Avian Influenza package and Influenza A(HINI)package).
Pag-IBIG/Home Development Mutual Fund (HDMF) is a national savings
program and an affordable savings shelter/housing financing for both private and
government workers. Some of the benefits for being a member of Pag-IBIG are
provident/savings benefit, overseas program, housing bonds, provident loan, and
housing loan.
It is important for an employee to know how much his total contribution in
SSS is, GSIS, PhilHealth, and Pag-IBIG/HDMF are credited to his account together
with the counterpart employer share.

Gross earnings – the amount earned by any person before subtracting the taxes,
benefits, loans, and other possible deductions
𝐺𝑟𝑜𝑠𝑠 𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠 = 𝑁𝑒𝑡 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 + 𝑡𝑜𝑡𝑎𝑙 𝑑𝑒𝑑𝑢𝑐𝑡𝑖𝑜𝑛𝑠
Net earnings – the amount earned by any person from the gross earnings less the
total deductions
𝑁𝑒𝑡 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 = 𝐺𝑟𝑜𝑠𝑠 𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠 − 𝑡𝑜𝑡𝑎𝑙 𝑑𝑒𝑑𝑢𝑐𝑡𝑖𝑜𝑛𝑠

Deductions – the amount held by an authority as a form of payment for some

necessary dues like taxes, loans, PhilHealth, PAGIBIG, SSS, GSIS, etc.
𝑇𝑜𝑡𝑎𝑙 𝑑𝑒𝑑𝑢𝑐𝑡𝑖𝑜𝑛𝑠 = 𝐺𝑟𝑜𝑠𝑠 𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠 − 𝑛𝑒𝑡 𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠

Examples: Solving for gross income/earnings

1. Hanna is a stockholder of a corporation. For the current year, the corporation

declared a 20 % cash dividend to stockholders. Janna owns 1500 shares of the
company’s ₱ 15.00 par value shares. Compute for dividend income?
Dividend income = number of shares x par value x dividend rate
𝑑𝑖𝑣𝑖𝑑𝑒𝑛𝑑 𝑖𝑛𝑐𝑜𝑚𝑒 = 1 500 × ₱ 20.00 × 0.15 = ₱ 4 500.00

2. Anthony is an author, and his book sold 100 000 copies for the first year. His book
sells at ₱ 495.00 per copy. He receives a 25% royalty from his publisher. How much
is his royalty income?
Royalty income = number of copies x unit price per copy x royalty rate
𝑟𝑜𝑦𝑎𝑙𝑡𝑦 𝑖𝑛𝑐𝑜𝑚𝑒 = 100 000.00 × ₱ 495.00 × 0.25 = ₱ 12 375 000.00

3. Myla is paid on a per-piece basis at the rate of ₱3.50 per piece. If she finishes 300
pieces a week, how much is her gross earnings?
Solution:

14
 Given: unit price = ₱3.50 per piece
number of units = 300 pieces

𝐺𝑟𝑜𝑠𝑠 𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠 = 𝑢𝑛𝑖𝑡 𝑝𝑟𝑖𝑐𝑒 × 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑢𝑛𝑖𝑡𝑠

𝐺𝑟𝑜𝑠𝑠 𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠 = ₱3.50 𝑝𝑒𝑟 𝑝𝑖𝑒𝑐𝑒 × 300 𝑝𝑖𝑒𝑐𝑒𝑠 = ₱1 050.00
The total earning of Kyla is ₱1 050.00.
4. An employee received gross earnings of ₱12 350.00, but she has total deductions
of ₱1 750.00. How much would be her net earnings?

Solution: Substitute the given gross earnings and total deductions in the formula
for net earnings.

𝑁𝑒𝑡 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 = 𝐺𝑟𝑜𝑠𝑠 𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠 − 𝑡𝑜𝑡𝑎𝑙 𝑑𝑒𝑑𝑢𝑐𝑡𝑖𝑜𝑛𝑠

𝑁𝑒𝑡 𝐸𝑎𝑟𝑛𝑖𝑛𝑔𝑠 = ₱ 12 350.00 − ₱ 1 750.00 = ₱ 10 600.00
The net earnings of the employee is ₱ 10 600.00.
5. Linda is employed to repack and seal pepper. She is paid on the following
differential pay plan schedule:
Quantity Rate Per pack
Less than 100 ₱1.00
100 – 149 ₱1.50
150 – 199 ₱1.75
200 or more ₱2.00
For the week, Linda repacked the following quantities:
Monday – 95 Thursday - 152
Tuesday – 102 Friday – 201
Wednesday - 130

Solve for the following:

a. How much will be Linda’s gross earnings for Monday?
b. How much will be her gross earnings for Thursday?
c. How much will be her gross earnings for the whole week?
Solutions:
a. Linda packed 95 packs on Monday which is less than 100, so her rate per
pack is ₱1.00.
𝑔𝑟𝑜𝑠𝑠 𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑓𝑜𝑟 𝑀𝑜𝑛𝑑𝑎𝑦 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑎𝑐𝑘𝑠 × ₱1.00
𝑔𝑟𝑜𝑠𝑠 𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑓𝑜𝑟 𝑀𝑜𝑛𝑑𝑎𝑦 = 95 × ₱1.00 = ₱95.00
Linda’s gross earnings for Monday is ₱95.00.

b. Linda packed 152 packs on Thursday. 152 falls under the bracket 150-
199, so her rate per pack is ₱1.75.

𝑔𝑟𝑜𝑠𝑠 𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑓𝑜𝑟 𝑇ℎ𝑢𝑟𝑠𝑑𝑎𝑦 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑎𝑐𝑘𝑠 × ₱1.75

𝑔𝑟𝑜𝑠𝑠 𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑓𝑜𝑟 𝑇ℎ𝑢𝑟𝑠𝑑𝑎𝑦 = 152 × ₱1.75 = ₱266.00
Linda’s gross earnings for Thursday is ₱266.00.

c. Add all the number of packs made in each day from Monday until Friday
to get the total number of packs made for the week.
𝑡𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑎𝑐𝑘𝑠 = 95 + 102 + 130 + 152 + 201 = 680 𝑝𝑎𝑐𝑘𝑠

680 falls under the bracket of 200 or more, so the rate per pack is ₱2.00.

𝑔𝑟𝑜𝑠𝑠 𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑤𝑒𝑒𝑘 = 𝑡𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑝𝑎𝑐𝑘𝑠 × ₱2.00 𝑝𝑒𝑟 𝑝𝑎𝑐𝑘

15
 𝑔𝑟𝑜𝑠𝑠 𝑒𝑎𝑟𝑛𝑖𝑛𝑔𝑠 𝑓𝑜𝑟 𝑡ℎ𝑒 𝑤𝑒𝑒𝑘 = 680 × ₱2.00 = ₱1 360.00
For the whole week, Linda’s gross earnings is ₱1 360.00.

What’s More
Assessment 1.
Activity 1: Complete the Table
Complete the table below by solving for the missing part. Write your solutions on a
separate sheet of paper.
Gross Earnings Net Earnings Total Deductions
a) ₱ 18 500.00 ₱ 4 725.00
b) ₱ 22 550.00 ₱ 6 528.65
c) ₱ 9 675.50 ₱ 2 100.00

Assessment 2
Direction: Solve the following problems. Show your computations clearly.
1. Dianne works as a secretary and earns ₱180 000 annually. If she is paid semi-
monthly, how much does she get every pay day?
2. Mang Celing, an auto mechanic, is paid ₱80 per hour of work. How much will
he earn in 4 weeks if he rendered 30 hours of work each week?
3. Jayney Dela Fuente works on a pay schedule of ₱21 300 per month plus a
3% commission on all sales. If he sold ₱104,900, what is Jayney’s total gross
pay?

What I Have Learned

Direction: Analyze and reflect on the different compensation structures—salary and

wage—and their implications on financial stability, employee motivation, and job
suitability.
1. Which compensation structure (salary or wage) do you think offers more financial
stability? Why?
2. How might the compensation structure affect an employee's motivation and
performance?
3. In your opinion, which profession from the list above would benefit most from
earning a salary? Explain your reasoning.

What I Can Do

16
Directions: Compute for the regular hourly rate, overtime pay, and the piece rate in
the given problems.
[Link] works as a graphic designer at a marketing firm. His regular hourly wage is
₱350. He worked 40 hours a week and an additional 12 hours on a holiday.
Task:
Calculate Alex's total earnings for the week, considering:
Regular hourly rate
Overtime pays at double the regular rate for holiday work

2. John works in a factory assembling electronic components. He is paid ₱50 per

unit. In a week, he assembled 320 units.
Task:
Calculate John's total earnings for the week based on:
Piece rate
Total units produced

Post-Assessment

Multiple Choice
I. Directions: Read each question carefully. Choose the letter of the correct answer.
Write only the letter of your answer on the provided answer sheet.
[Link] is the formula to calculate weekly earnings from an annual salary?
A. Annual Salary × 52 C. Annual Salary ÷ 52
B. Annual Salary ÷ 12 D. Annual Salary × 12

2. Alex is a sales agent who earns a percentage of the sales he makes. This type of
income is known as:
A. Commissioner C. Profit
B. Dividend income D. Rental income

[Link] of the following is an example of piecework compensation?

A. ₱15 per hour worked C. ₱500 per week
B. ₱2 000 per month D. ₱20 per unit produced

4. How is commission typically calculated?

A. Fixed monthly salary C. Percentage of sales
B. Fixed amount per hour D. Per unit produced

[Link] of the following is considered an income benefit?

A. Base salary C. Piece rate
B. Overtime pay D. 13th month pay

II. Directions: Solve the following problem. Write the letter of your answer on the
space provided before each number.
6.A worker earns ₱2 000 per week. How much does he earn in a month?

17
 A. ₱8 000 B. ₱10 000 C. ₱12 000 D. ₱16 000

7. If an employee works 45 hours in a week at ₱10 per hour, and overtime is paid
at1.5 times the regular rate, what is his total earnings for the week?
A. ₱450 B. ₱475 C. ₱500 D. ₱525

8. A salesperson earns a 5% commission on sales. If he makes ₱50 000 in sales, how

much is his commission?
A. ₱2 500 B. ₱5 000 C. ₱10 000 D. ₱15 000

9. A factory worker is paid ₱100 per unit produced. If she produces 150 units in a
week, what is her total earnings?
A. ₱10 000 B. ₱15 000 C. ₱20 000 D.₱25 000

[Link] of the following is NOT typically considered a benefit?

A. Health insurance C. Base salary
B. Paid leave D. Retirement plan

11. An employee's annual salary is ₱480 000. What is his monthly salary?
A. ₱40 000 B. ₱45 000 C. ₱50 000 D. ₱55 000

12. A worker earns ₱12 per hour for the first 40 hours in a week. For overtime (above
40 hours), he earns ₱18 per hour. If he works 50 hours in a week, what is his total
earnings?
A. ₱600 B. ₱660 C. ₱720 D. ₱780

13.A salesperson has a base salary of ₱20,000 per month and earns a 3%
commission on sales. If his total sales for the month are ₱500 000, what is his
total earnings?
A. ₱25 000 B. ₱35 000 C. ₱40 000 D. ₱50 000

14.A worker is paid ₱50 per unit produced. If he produces 200 units in a week, but
20 units are rejected, how much does he earn?
A. ₱9 000 B. ₱10 000 C. ₱10 500 D. ₱11 000

[Link] employee's gross monthly salary is ₱30,000. If his deductions for SSS,
PhilHealth, and Pag-IBIG total ₱3 000, what is his net pay?
A. ₱27 000 B. ₱28 000 C. ₱29 000 D. ₱30 000

18
 Additional Activity

Directions: Solve the given word problem.

[Link] is a sales executive at a furniture store. She receives a monthly salary of ₱25
000 plus a 4% commission on her monthly sales. Last month, her total sales
amounted to ₱800 000.
Task:
Determine Liza's total earnings for the month.
Reflection:
What are the advantages and disadvantages of earning a salary plus
commission?

19
 20
Pre- Assessment What’s In Assessment 1
I.1. D 1. SE a. P3,225
2. C 2. WE b. P16,021.35
3. D 3. CB c. P11,775.50
4. B 4. CB What I Have Learned
5. A 5. WE -Answers may vary
II.6. A 6. CB
7. C 7. SE Post Assessment
8. C 8. WE 1. C 6. A 11. A
9. B 9. SE 2. A 7. B 12. B
10. B 10. PW 3. D 8. A 13. B
11. B 4. C 9. B 14. A
12. B 5. A 10. C 15. A
13. A
14. B
15. D
Assessment 2
[Link]:
Semi-Monthly Pay =
= P7,500 per pay day
2. Weekly earnings = P80 x 30 = P2400
Total earnings = P2400 x 4 = P9,600
3. Commission = P104,900 x 0.03 = P3,147
Total Gross Pay = P21,300 + P3,147
= P24,447
What I Can Do
Regular earnings = P350 x 40 = P14,000
Over time Pay = P350 x 2 x 12 = P8,400
Total earnings for the week = P14,000 + P8,400 = P22,400
Piece Rate
John is paid P50 per unit assembled
John assembled 320 units in a week
Total earnings = P50 x 320 = P16,000
Additional Activity:
Liza's total earnings for the month can be calculated by adding her base salary and commission:
Base Salary: ₱25,000
Commission: 4% of ₱800,000 = ₱32,000
Total Earnings: ₱25,000 + ₱32,000 = ₱57,000
Answer Key
References

Burns, M. 2017. "Piecework Pay, Bonus and Overtime Pay – How Do They Collide?"
American Society of Employers. [Link]

Business Management Ideas Contributors. 2025. "Wages Meaning: Eminent Authors, Wage
Levels, Acts, Exceptions, Issues." Business Management Ideas. Last modified January 1,
2025. [Link]

Capuyan, C. A. 2023. "Gross and Net Earnings." Self-Learning Module.

Hart, R. A. 2008. "Piecework Pay and Hourly Pay Over the Cycle." Labour Economics 15
(5): 1006–1022.

Halsey, F. A. 1891. "The Premium Plan of Paying for Labor." American Society of
Mechanical Engineers.

Helper, S., M. M. Kleiner, and Y. Wang. 2010. "Analyzing Compensation Methods in

Manufacturing: Piece Rates, Time Rates, or Gainsharing?" National Bureau of Economic
Research. [Link]

Investopedia Contributors. 2025. "Annual Compensation vs. Annual Salary: What's the
Difference?" Investopedia. Last modified January 1, 2025.
[Link]
[Link].

Manaloto, Jhoanna S. "Introduction to Salaries, Wages, Income, and Benefits." Self-Learning

Module.

Sirug, W. S. 2016. "Business Mathematics for Senior High School-ABM Specialized

Subject."

Sirug, W. S. 2023. "Business Mathematics for Senior High School-ABM Specialized

Subject." Revised Edition.

Wikipedia Contributors. 2025. "Employee Benefits." Wikipedia. Last modified January 1,

2025. [Link]

Wikipedia Contributors. 2025. "Personal Income." Wikipedia. Last modified January 1, 2025.
[Link]

Wikipedia Contributors. 2025. "Salary." Wikipedia. Last modified January 1, 2025.

[Link]

Wikipedia Contributors. 2025. "Wage." Wikipedia. Last modified January 1, 2025.

[Link]

21
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