SALARIES AND WAGES - An employee who receives

the same amount every pay

Compensation period, regardless of hours
- A way to provide monetary worked, holidays, etc.
value to employees in
exchange of their
work/service performed. - Companies usually pay
- Usually presented in payroll employees weekly, biweekly,
semi-monthly, or monthly. In
Payroll this manner employees can
- The total amount required to manage their money based
pay workers and employees from their pay schedule. The
during a week, month or computations of salaries are
other period. as follows:
- The total sum of money to be o Weekly salary
paid out to employees at  annual salary 
given time. 52
o Biweekly salary
Gross pay (gross earnings)  annual salary 
- The total amount of 26
employee’s earnings before o Semi-monthly salary
deductions have been made  annual salary 
by the employer 24
- It may be in the form of o Monthly salary
salary or wage, on either a  annual salary 
time rate or a piece-rate and 12
other form of remuneration. - Other way of computing the
remuneration of employees
Wage by using the formula for EMR
- The monetary remuneration (Equivalent Monthly Rate) of
computed on hourly, daily, monthly paid employees is:
weekly, or piece work basis. o EMR
 (Applicable Daily
Wage earner
Rate x 365 )  12
- An employee who is paid by
- The factor of 365 days
the hour, weekly or piece
consists of:
work basis
o 302 ordinary working
Salary days
- A fixed amount of money for o 51 rest days
each time period worked, o 10 regular holidays
such as day, week, month, or o 2 special days.
year. - Regular holidays in the
Philippines
Salaried employee o New Year’s Day
 January 1
 o Maundy Thursday
 Movable date Given: P260,000
o Good Friday
 Movable date a. weekly salary = annual salary
o Araw ng Kagitingan  52
 April 9 = 260,000  52
o Labor Day = 5,000
 May 1 b. biweekly salary = annual
o Independence Day salary  26
 June 12 = 260,000  26
o National Heroes Day = 10,000
 Last Sunday of c. semi-monthly salary = annual
August salary  24
= 260,000  24
o Bonifacion Day = 10,833.33
 November 30
o Christmas Day
 December 25 d. monthly salary = annual
o Rizal Day salary  12
 December 30 = 260,000  12
- Special Holidays in the = 21,666.67
Philippines
o Edsa People Power Time Basis Pay
Revolution - Most of the time, especially
 February 25 in office related works,
o Ninoy Aquino Day employees’ earnings is based
 August 21 on time worked. The
o All Saints Day compensation is usually
 November 1 stated as specific rate per
o Chinese New Year hour, day, week, month, or
 Movable Date year.
o Black Saturday - Total wage
 Movable Date o total number of time
o Eid’l Fitr rendered x rate per
 Movable Date unit of time
o Idul Adha
 Movable Date Example 1: May receives P82.50 an
hour and works for 34 hours this
Example 1: For an employee who week. Find her gross pay.
earns an annual salary of
P260,000, what is the: Given: Hourly rate = P82.50
a. weekly salary? Number of Hours Worked
b. biweekly salary? = 37
c. semi-monthly salary?
d. monthly salary?
Wage = number of hours worked x
hourly rate
= 37 x 82.50
= 3,052.50

Piece-Rate Pay (Pieceworker)

- Workers paid according to
the number of pieces/units
they produce

o Standard Pay
 no. of working
hours x rate per
hour
o Standard Pay
 no. of units
produced x rate
per unit
o Premium Pay
 (Extra Units 
Quota units) x
Standard Pay
o Total Pay
 Standard Pay +
Premium Pay
-
Example: George’s daily
production is 105 units during
an 8-hour work for which he is
paid P86.20 an hour. He
receives for the extra units he
produces during day of work.
Find the gross pay for:
(a) a day when he produced 100
units,
(b) another day when he
produced 130 units. (Wala
talagang Solution)
GROSS PAY allowance, and P3,367.72 for
commission. Calculate Amy’s gross
Gross Pay / Gross Earnings / pay.
Total Pay / Total Earnings
- Total amount earned by an
employee. It consists of one Solution:
type or a combination of Gross Pay = 9,077 +
different types of 4,992.35 +
remuneration. 3,367.72
= P17,437.07
Net Pay / Net Earnings Example 4: Ben’s monthly salary
- The amount received by the is P32,500. His monthly deductions
employee after deductions are as follows: Union dues P1,300,
are made from the gross pay. Insurance Premium P3,120, and
Credit Cooperative Savings P6,500.
- The gross pay earned by Income tax is 20% of gross pay.
wage earners is found by Calculate Ben’s net pay.
multiplying the pay per hour Solution
by the numbers of hours Net Pay = 32500 – [1,300 +
worked: 3,120 +
o Gross Pay 6500 + (0.20 x
 Hourly Rate x 32500)
Number of Hours = 15,080
worked
Payslip/ Pay Statement
Example 1: Kim is paid P55 an - A form that shows earnings
hour. Last week Kim worked 8 for a defined pay period. It
hours a day for five days. Find her shows gross pay, less total
gross pay for last week. deductions that includes all
Solution: statutory deductions along
Gross Pay = 55 x (8 x 5) with other voluntary
= 2,200 deductions.

Example 2: Jon earns P18,400 a Premium Pay

week. Jon is paid every two weeks. - Additional compensation
What gross pay does he receive required by law for work
each payday? performed within 8 hours on
Solution: nonworking days such as
Gross Pay = 18400 x 2 scheduled rest days and
= 36,800 holidays

Example 3: Amy is a part time Computing Pay Premiums

worker in an insurance agency. For  Rest Day: 130% x hourly
the month of July, she earned the rate
following: P9,077 for basic salary,  Special (Non-working) day:
P4,992.35 for transportation 130% x hourly rate
  Special (Non-working) Day
that is also a scheduled Rest Rest Day/Special (Non-working)
Day: 150% x hourly rate Day: 130% x hourly rate for Rest
 Regular Holiday: 200% x Day, Special (Non-working) Day,
hourly rate Regular Day
 Regular Holiday that is also a
scheduled Rest Day: 260% x Illustration:
hourly rate
 Double Holiday: 300% x Ordinary Day Night Shift
hourly rate Differential
= 52 x 8 x 1.10 = P41.60

Illustration: Special (Non-working) Day Night

Suppose an employee’s Differential = 52 x 8 x 1.3 x 1.30 =
hourly rate is P52 per hour and he P54.08
works 8 hours a day.
Special (Non-working) Day + Rest
Rest Day Pay = 52 x 8 x 1.3 = day Night differential
P540.80 = 52 x 8 x 1.5 x 1.30 = P62.40

Special (Non-working) Day Pay Holiday Night Differential

= 52 x 8 x 1.3 = P540.80 = 52 x 8 x 2 x 1.30 = P83.20

Special (Non-working) Day + Regular Holiday + Rest Day Night

Rest Day Pay = 52 x 8 x 1.5 = Differential = 52 x 8 x 2.6 x 1.30 =
P624.00 P108.16

Regular Holiday Pay = 52 x 8 x 2

= P832.00 Double Holiday Night Differential
= 52 x 8 x 3 x 1.30 = P124.80
Regular Holiday + Rest Say Pay
= 52 x 8 x 2.6 = P1,081.60 Overtime Pay
- All employees required to
Double Holiday Pay = 52 x 8 x 3 work beyond regular 8 hours
= P1,248.00 are entitled to overtime pay.
The overtime could also be
Night Shift Differential for every hour that the
- Every Filipino wage earner is employee works over 40
entitled a night shift hours in a week
differential for performing - Overtime pay rates depend
work between 10 PM to 6 AM. on the day the work is
performed, whether it is an
Computing Night Shift ordinary day, a special (non-
Differential working) day, a regular
holiday, a rest day, or a night
Ordinary Day: 110% x hourly rate shift.
 Service Charges and Tips
- An employee who works for a
service establishment
Computing Overtime Pay: (hotels, restaurants, night
clubs, etc. which charge an
On Ordinary Days: 125% x hourly additional 10% to the
rate customer’s bill is entitled to
an equal share in the 85% of
On Rest Day, Special (Non- the total of such charges.
Working) Day or Regular Holiday: Not included are managerial
130% x hourly rate for Rest Days, employees. The
Special Days, Regular establishment may retain the
Holidays remaining 5% for the
management and 10% to
Illustration: answer for losses and
breakage.
Suppose an employee’s hourly rate - If the establishment does not
is P52 per hour. collect service charges but
instead pools tips given
Ordinary Day Overtime Rate per voluntarily by customers to
hour employees, the tips must be
= 52 x 1.25 = P65 pooled and distributed in the
same manner as the service
Rest Day Overtime Rate per hour charges.
= 52 x 1.3 x 1.3 = P87.88
Illustration:
Special (Non-working) Day Ken works at a restaurant
Overtime Rate per hour where there are a total of 15
= 52 x 1.3 x 1.3 = P87.88 employees excluding the
managers. If in a day, the total tip
Special (Non-working) Day Rest given by the customers amounted
Day Overtime Rate per hour to P8,500. How much will each of
= 52 x 1.5 x 1.3 = P101.40 the 15 employees will receive from
the accumulated tips given by the
Regular Holiday Overtime Rate per customers?
hour Solution:
= 52 x 2 x 1.3 = P135.20 =8500 x 0.85
= 7225  15
Regular Holiday + Rest Day =481.67
Overtime Rate per hour
= 52 x 2.6 x 1.3 = P175.76

Double Holiday Overtime Rate per

hour
= 52 x 3 x 1.3 = P202.80
Compensation and Benefits Maternity, Paternity, and
Parental Leave
Compensation and Benefits - Eligible wage earner can
- Minimum wage avail of maternity, paternity,
- Overtime pay and parental leaves with pay.
- Premium pay (rest day and - Maternity Leave
special holidays) o A female wage earner
- Premium pay (regular is entitled to a
holiday) maternity leave benefit
- Night shift differential equivalent to 100% of
- Service charge her current wage for 60
days in case of normal
The following wage earners do delivery, or for 78 days
not receive the previous in case of caesarean
compensation and benefits delivery, for up to four
- Government employees pregnancies.
- Managerial employees o The full payment shall
- Field personnel be advanced by the
- Domestic helpers employer within 30
- Persons who are performing days from the filing of
personal service for another the maternity leave
- Workers who are paid by application and the
results or based on their amount will be
output reimbursed by SSS to
the employer upon
Service Incentive Leave completion of all
- Every Filipino wage earner required documents.
who has rendered at least - Paternity Leave
one year of service is entitled o A male wage earner is
to a service incentive leave entitled to a paternity
of 5 days with pay. leave benefit of 7 days
- It may either be a sick leave for each of the first four
or a vacation leave. deliveries of his
- If it is not used at the end of legitimate spouse. 
the year, it can be converted o A paternity leave is
into cash by applying the paid by the employer
daily wage rate of the and is not reimbursed
employee. by the SSS.
- One year of service means a o A parental leave
service of 12 months, benefit of 7 days is also
whether continuous or granted to solo-parent
broken, reckoned from the wage earners to enable
date the employee started them to perform
working. parental duties and
responsibilities where
physical presence is
 required.
o In order to be entitled
to this benefit, a solo-
parent employee
should have rendered
at least one year of
service, whether
continuous or broken,
for the same employer.
- 13th Month Pay - Retirement Pay
o Every Filipino wage o Upon reaching the
earner is entitled to a retirement age, every
13th month pay, eligible Filipino wage
provided that he or she earner is entitled to a
worked for at least one retirement pay.
month during a o It is equivalent to at
calendar year. least half-month salary
o It is a form of monetary for every year of
benefit equivalent to service. A fraction of at
the monthly basic least 6 months is
salary of an employee considered as a whole
or at least one-twelfth year.
of his annual basic o Retirement Age
salary.  Retirement age is
o It is computed on a established in
prorated basis employment
according to the contracts or in
number of months any agreement
within a year that the between
employee has rendered employees and
service for the their employer.
employer.  In the absence of
- Separation Pay such agreement,
o Filipino wage earners employees may
who are validly retire upon
dismissed from a reaching the age
company for causes of 60 or more,
other than serious but not more
misconduct is entitled than 65, provided
to a separation pay that they have
o Instances during served for at
which a separation least 5 years in
pay must be paid to the same
a dismissed company.
employee:  An age of 60 or
more, but below
 65, is considered
as the voluntary
retirement age.
 An age of 65 is
considered as the
compulsory
retirement age.
o
 exceeding P300 per month
Non-Taxable Benefits
- employees’ achievement
Non-Taxable Benefits awards with annual monetary
- 13th month pay value not exceeding P10,000
- Christmas bonuses
- Productivity and incentive
bonuses - gifts given during Christmas
- Other benefits of the same and major anniversary
nature in cash or in kind celebrations not exceeding
P5,000 per employee per
De Minimis Benefits annum
- Benefits or compensations of
small value which are - daily meal allowance for
nontaxable overtime work and night or
graveyard shift not
- monetized unused vacation exceeding 25% of the basic
leave credits of employees minimum wage on a per-
not exceeding 10 days during region basis
the year -

- monetized value of vacation

and sick leave credits paid to
government officials and
employees

- medical cash allowance to

dependents of employees,
not exceeding P750 per
employee per semester or
P125 per month

- rice subsidy of P1500 or 1

sack of 50 kg of rice per
month amounting to not
more than P1500

- Uniform and clothing

allowance not exceeding
P5000 per annum

- actual medical assistance not

exceeding P10,000 per
annum

- laundry allowance not

STANDARD DEDUCTIONS in which his or her monthly
salary falls.
Social Security System Example: an employee earning
- By law, private sector P13,000 a month falls in the salary
employees must be covered bracket of 13,000.00 – 13,999.99,
under the SSS. salary bracket 7. The
- Based on each employee’s corresponding value under the
gross monthly pay, both the “Employee Share” column is
employer and employee 162.50.  This means that an
remit monthly contributions amount of P162.50 will be his or
to SSS her monthly Philhealth
- the employee receives the HDMF or Pag-IBIG Contribution
following benefits from the
SSS: - HDMF
o maternity o Home Development
o retirement Mutual Fund
- PAG-IBIG
o sickness
o Pagtutulungan sa
o disability Kinabukasan: Ikaw,
o death Bangko, Industria at
o pension benefits. Gobyerno
- contributions that an employee - Mandatory to all employees who
remits his or her savings which are covered by GSIS or SSS
will serve as basis for the - Benefits of Pag-IBIG
granting of the mentioned social Contribution:
security benefits in times of o National savings
contingencies. program and affordable
- SSS Table Codes: house financing system
o EE – employee’s share for Filipino employees
o ER – employer’s share o Provides:
o EC – employee’s  Savings
compensation program  short term loans
o SE – self-employed  access to low-
members cost housing
o VM – voluntary program
members - Both the employees and the
o OFW –members who employers contribute
are overseas Filipino monthly premiums to the
workers fund
- SSS Contribution - Pag-IBIG Contribution
o look for the range where o C = rS
his or her salary falls. Where
Then find the S – the sum of employee’s
corresponding value
monthly basic salary and his COLA
under the EE column
R – pag-IBIG contributon rate
Philhealth Contribution C –amount of contribution
- find the salary bracket or range
 - COLA
o Cost of Living
Allowance
o An incentive given to
an employee by the
employer

- Taxation
o The imposition of a
mandatory tax of the
government of a
country to their citizens
-Withholding Tax
o The tax that every employee
pays at the end of each month
o Monthly withholding tax =
base tax + tax rate (taxable
income –personal exemption
- Taxable Income
o gross earnings – total
deductions
o Gross Earnings
o basic salary + overtime
pay + holiday pay +
premium pay + night
shift differential
o Total Deductions
o SSS contribution +
PhilHealth contribution
+ pag-IBIG contribution
+ salary deductions for
tardiness or unpaid
leaves
PRESENTATION OF DATA
Methods of Presentation
- Textual method Frequency distribution table
o narrative description
- partitions data into classes or
of the data gathered intervals and show how many
- Tabular method data values are in each class
o a systematic
arrangement of Parts of a statistical table
information into - Table heading
columns and row o includes the table
o Frequency number and thetitle of
Distribution Table the table, the title
(FDT) should be clear and
 Qualitative FDT should convey the
 Quantitative FDT correct idea about the
o FDT for Qualitative data
or Categorical Data - Body
 the data are o main part of the table
grouped that contains the
according to information or figures
some qualitative - Stubs or classes
characteristics / o classification or
non-numerical categories describing
categories. the data and usually
o FDT for Quantitative found at the left most
side of the table.
Data
- Caption
 Data are grouped
o designation or
according to
identifications of the
some numerical
information contained
or quantitative
in a column
characteristics.
STEPS:
1. Determine the RANGE (R)
2. Determine the number of
classes (k)
3. Determine the class size
(c) by calculating the
preliminary class size (c’)
4. Enumerate the classes or
categories
5. Tally the observations
6. Compute for values in
other columns of the FDT
 that show the
relationship
between two sets
of data.
 Possible relationships:
 Perfect positive or
perfect negative
relationship
 Strong positive or
strong negative
relationship
 Weak positive or weak
negative relationship
o Line Graphs
 useful in
displaying data or
information that
changes
continuously over
time.

- Graphical method
o illustrative description o Histogram
of the data  consist of a series of
o Pie Chart columns representing a
 illustrate variation
proportions. in frequency (the number
o Bar Graphs of times an event occurs)
 useful for of a variable over a
comparing facts. discrete or continuous
o Scatter Plots interval or class.
 A graph of
plotted points
Measures of Central Tendency
- is any single value that is two parts of equal size,
used to identify the “center” with 50% of the values
of the data or typical value. below the median and
- 3 types 50% of the values
o Mean above the median
o Median o Advantages:
o Mode  extreme values
- The Arithmetic Mean do not affect the
o most popular measure median as
of central location and strongly as they
more popularly known do the mean
as MEAN  useful when
o defined as the comparing sets of
arithmetic average of data
the set  it is unique -
o calculated by summing there is only one
all values, then dividing answer.
by the number of o Disadvantages:
values.  not as popular as
o Advantages: mean.
 Most popular - The Mode
measure in fields o it is the observed value
such as business, that occurs most
engineering and frequently
computer o it locates the point
science. where the observation
 It is unique - values occur with the
there is only one greatest density
answer. o it is possible to have
 Useful when more than one
comparing sets of mode, and it is possible
data. to have no mode, if
o Disadvantages: there is no mode-write
 Affected by "no mode", do not write
extreme values zero (0) .
- The Median o the data is said to be
o the positional middle of unimodal if there is
an array only one mode,
o defined as the middle bimodal if there are
value when two modes, trimodal if
observations are there are three modes
ordered from smallest o Advantages:
to largest (or vice  extreme values
versa) do not affect the
o divides the dataset into mode.
o Disadvantages:
  not as popular as
mean and
median
 not necessarily
unique - may
have more than
one value
 when no values
repeat in the
data set, the
mode is every
value and is
useless
 when there is
more than one
mode, it is
difficult to
interpret and/or
compare

Mean, Median and Mode of

Ungrouped Data