SENIOR

Business Math HIGH

SCHOOL

Module
Salary,Wage,Income 4
eme Quarter 2
Business Math
Quarter 2– Module 4: Salary, Wage, Income
First Edition, 2020

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Published by the Department of Education Division of Pasig City

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Writer: Carmelita B. Peralta
Editors: Mrs. Nenet M.Peṅaranda
Reviewers: Marygrace A. Salon
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Management Team: Ma. Evalou Concepcion A. Agustin
OIC-Schools Division Superintendent
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10. Teresita P. Tagulao, Ed. D., Mathematics

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Business SENIOR
HIGH

Math
SCHOOL

Module

4
Quarter 2

Salary,Wage,
Income
Introductory Message

For the facilitator:

Welcome to the Business Math for Senior High School Module on Salary, Wage,
Income !

This module was collaboratively designed, developed and reviewed by educators

from Schools Division Office of Pasig City headed by its Officer-In-Charge Schools
Division Superintendent, Ma. Evalou Concepcion A. Agustin in partnership with
the Local Government of Pasig through its mayor, Honorable Victor Ma. Regis N.
Sotto.
The writers utilized the standards set by the K to 12 Curriculum using the Most
Essential Learning Competencies (MELC) while overcoming their personal, social,
and economic constraints in schooling.

This learning material hopes to engage the learners into guided and independent
learning activities at their own pace and time. Further, this also aims to help
learners acquire the needed 21st century skills especially the 5 Cs namely:
Communication, Collaboration, Creativity, Critical Thinking and Character while
taking into consideration their needs and circumstances.

In addition to the material in the main text, you will also see this box in the body of
the module:

Notes to the Teacher

This contains helpful tips or strategies
that will help you in guiding the learners.

As a facilitator you are expected to orient the learners on how to use this module.
You also need to keep track of the learners' progress while allowing them to
manage their own learning. Moreover, you are expected to encourage and assist the
learners as they do the tasks included in the module.
For the learner:

Welcome to the Business Math Module on Salary, Wage, Income !

The hand is one of the most symbolized part of the human body. It is often used to
depict skill, action and purpose. Through our hands we may learn, create and
accomplish. Hence, the hand in this learning resource signifies that you as a
learner is capable and empowered to successfully achieve the relevant
competencies and skills at your own pace and time. Your academic success lies in
your own hands!

This module was designed to provide you with fun and meaningful opportunities
for guided and independent learning at your own pace and time. You will be
enabled to process the contents of the learning material while being an active
learner.

This module has the following parts and corresponding icons:

Expectation - These are what you will be able to know after

completing the lessons in the module

Pre-test - This will measure your prior knowledge and the

concepts to be mastered throughout the lesson.

Recap - This section will measure what learnings and skills

that you understand from the previous lesson.

Lesson- This section will discuss the topic for this module.

Activities - This is a set of activities you will perform.

Wrap Up- This section summarizes the concepts and

applications of the lessons.
Valuing-this part will check the integration of values in the
learning competency.

Post-test - This will measure how much you have learned from
the entire module. Ito po ang parts ng module
 EXPECTATION
At the end of the learning module, you are expected to:

1. define employee compensation;

2. define salary, wage, income, and employees’ benefits, and
3. solve problems related to piece-rate earners and hourly-paid earners
including overtime pay.

PRETEST

Direction: Read the following statements carefully and write the letter of the best
answer on your piece of paper or notebook.

1. A fixed regular payment, typically paid on a daily or weekly basis made by an

employer to an employee.

A. gross earning B. net pay C. salary D. wage

2.It is the lowest hourly wage an employer can pay an employee for work.

A. piece wage B. tipped wage C. fair wage D. minimum wage

3.Salary surveys could include all of the following except,

A. bonuses B. salaries C. benefits D. tips

4. Can the employers decrease the salaries unilaterally?

A. True B. False
5. Ramona earns Php 50.00 per hour. For the week, she worked a total of 35 1/2
hours. How much did she earn?

A. Php 1 775.00 B. Php 1770.00 C. Php 1 757.00 D. Php 1

750.00

6. Catherine receives a monthly salary of Php 18 800.00. how much is her annual
salary?

A. Php 252 600.00 C. Php 225 550.00

B. Php 225 600.00 D. Php 226 500.00

7. If Paulo receives Php 360 000.00 annually, how much is his monthly income?

A. Php 31 000.00 C. Php 30 000.00

B. Php 32 000.00 D. Php 36 000.00
 RECAP

Sales agents and brokers are generally paid commissions as incentives for
increasing a firm’s sales. Some sales agents are paid solely through plain
commission only while others are paid with basic pay or gross earnings plus
commission.

Marketing and or product managers are generally paid overrides on the sales
of people under them. The gross earnings will be their basic pay plus commission
plus override.

If the sales are on installment basis, companies do not give commission

based on sales. Rather, they are given commission based on their collection or the
payment made by the buyers.

LESSON

Definition of terms:

Employee compensation – refers to the remuneration or reward that an employee

receives or gets in exchange of his or her services. This includes wages, salaries,
employee benefits including sick leave and vacation leave, and incentive pay, which
includes productivity pay, commission, override, bonus and profit sharing.

Wage – is a monetary compensation paid by an employer to an employee in

exchange for the work done. Payment may be calculated as a fixed amount for
each task completed or at an hourly or daily rate, or based on an easily measured
quantity of work done such as on a piece-rate. This is made by an employer to an
employee especially to a manual or unskilled worker.

Types of Wages

1. Piece wage or Piece rate

A worker employed on a “piecework” basis is paid in proportion to the
quantity of work he or she finishes. The rate used can be fixed irrespective of
the quantity produced, which is called a fixed piece-rate plan. On the other
hand, it can be graduated, increasing as the quantity produced increases,
which is called differential piece-work plan.
2. Minimum wage – it is the lowest hourly wage an employer can pay an
employee for work.
 3. Prevailing wage – refer to the rate of pay contractors and vendors must offer
their employees when doing business with a government agency.
4. Tipped wage – a base wage paid to an employee who receives a substantial
portion of his or her compensation from tips. If the amount combined with
tips does not equal the minimum wage, the employer must pay all tipped
employees at least the minimum wage.
5. Fair wage – wage that align with the skills necessary of the job being
performed.

Examples:

1. Jessica is paid on a per piece basis at the rate of Php 3.50 per face mask. If
she finishes 500 face masks a week, how much is her total earnings?
Given: Rate = Php 3.50 per piece
Quantity produced = 500 pieces
Find: total earnings
Solution: Total earnings = Quantity x Rate
= 500 pieces x Php 3.50/pc
= Php 1 750.00

2. Connie is employed to repack and seal ground pepper. She is paid on the
following differential pay plan schedule:

Quantity Daily rate/100 packs

Less than 100 Php 100.00
100 – 149 Php 105.00
150 – 199 Php 107.50
200 or more Php 110.00

For the week, Connie repacked the following quantities; Monday, 90;
Tuesday, 100; Wednesday, 140; Thursday, 155; and Friday, 210. Compute her
total wage for the week.

Solution:

Quantity x Rate

Monday 90 Php 1.00 = Php 90.00

Tuesday 100 Php 1.05 = Php 105.00

Wednesday 140 Php 1.05 = Php 147.00

Thursday 155 Php 1.075 = Php 166.63

Friday 210 Php 1.10 = Php 231.00

Connie’s Total wage = Php 739.63

Note: The rate can be converted on a per-piece basis.

Php 100/100 = Php 1.00/pc Php 107.50/100 = Php 1.075/pc

Php 105/100 = Php 1.05/pc Php 110.00/100 = Php 1.10/pc

Hourly rate – Many employees are paid on an hourly basis. To compute for the
pay, we simply multiply the number of hours of work by the hourly rate.

For example: If an employee worked for 40 hours during the week and his or her
rate is Php 12.50 per hour, his or her wage is;40 hours x Php12.50/hr =
Php500.00

Employees who work more than the required number of hours are entitled to
overtime pay.

Overtime premium refers to the excess payment over the regular rate.

Salary – is the compensation usually paid annually or monthly for an employee.

- a fixed regular payment (specified in an employment contract), typically

paid on a monthly or bi-weekly basis but often expressed as an annual
sum, made by an employer to an employee, especially a professional or
white-collar worker.

Remember:

1 year = 12 months = 24 semi-monthly = 6 bi-monthly

1 year = 52 weeks = 26 bi-weekly

1 month = 2 semi-monthly

semi-monthly = 2/5 every month

bi-monthly = every 2 months

bi- weekly = every 2 weeks

Note: There are 52 weeks in a year not 48.

Example:

Assuming an annual salary of Php75,000.00, let us study the following

conversions;

Annualsala ry Php75,000
1. Monthly salary = = = Php 6 250.00
12 12
Annualsala ry Php75,000
2. Semi-monthly salary = = = Php 3 125.00
24 24
monthlysal ary Php6,250
Or = = Php 3,125.00
2 2
 Annualsala ry Php75,000
3. Weekly salary = = = Php 1 442.31
52 52
Annualsala ry Php75,000
4. Bi-weekly salary = = = Php 2,884.62
26 26
Or weekly salary x 2 = Php 2,884.62

To convert monthly salary into hourly rate, we first determine the number of
regular hours in a workweek. Some companies have 40-hour workweek while
others have a 48-hour workweek.

If the regular week load is 40 hours;

Weeklyrate
Hourly rate =
40hours

If the regular week load is 48 hours;

Weeklyrate
Hourly rate =
48hours

In our example, with an annual salary of Php 75,000.00 and a weekly salary
of Php 1,442.31;

If the regular week load is 40 hours;

Weeklyrate Php1,442.31
Hourly rate = = = Php 36.06/hr
40hours 40hrs.
If the regular week load is 48 hours;

Weeklyrate Php1442.31
Hourly rate = = = Php 30.05/hr
48hours 48hrs
Income – is the money an individual receives in compensation for his or her labor,
services, or investments. People who are not employees may have their income in
other forms, such as;

- commission income if they are paid for the commission on sales they
make,
- rental income if they have properties they rent-out;
- dividend income if they are stockholders;
- royalties if they are authors; and other income for whatever endeavor
they engage in including profit-making businesses.
Examples:

1. Leslie is a stockholder of CBP Corporation. For the current year, the

corporation declared a 10% cash dividend to stockholders. Leslie owns 1200
shares of the company’s Php 12.00 par value shares.
To compute for her dividend income;
Leslie’s dividend income = No. of shares x Par value x Dividend rate
= 1200 shares x Php 12.00 x 10%
= Php 1 440.00

2. Mr Viar is an author of an English book for freshmen and his book sold
3,500 copies for the first semester. His book sells at Php 420.00 per copy.
He receives a 5% royalty from his publisher. His royalty income would be;
Mr. Viar’s royalty = 3,500 copies x Php 420/copy x 5%
= Php 73,500.00

ACTIVITIES

1. Maria is paid based on a graduated piece-rate as follows:

Daily per piece
First 100 Php 1.00
Next 100 Php 1.25
Next 100 Php 1.50
Exceeding 300 Php 1.75
Compute Maria’s earnings assuming the following theoretical productions;
a. 145 pieces
b. 305 pieces
c. 208 pieces
d. 99 pieces
e. 350 pieces

2. Find the gross weekly wage of the following employees.

Employees Production Piece - rate Gross Earning

a. F. Recto 115 Php 0.25
b. C. Cruz 92 Php 2.75
c. B. Gamboa 281 Php 1.25
d. A. San Juan 36 Php 9.50
e. E. Ramos 9 Php 28.00

WRAP–UP
Employee’s compensation – refers to the remuneration or reward that an
employee receives or gets in exchange of his or her services. What does it include?
Which among the different types of wages is the lowest hourly wage an
employer can pay an employee for work?
How do you convert the monthly salary to hourly rate?

VALUING

The whole world is fighting with COVID-19 which has a huge impact on
world economy. It will be the duty of every individual to contribute for the revival of
the economy for the survival of mankind. It will effect badly on daily wage workers,
small and medium industries, and farmers due to migrant laborers.

What should be an individual’s contribution for the revival? What should be

our contribution towards strengthening the economy and survival post COVID-19?

POSTTEST

Direction: Read the following problems carefully. Write the letter of the best
answer on your piece of paper or notebook. Show your complete solution.

1. Assuming Maila’s annual salary is Php 96,000.00. How much is her,

a. Monthly salary?
A. Php 5 000.00 B. Php 6 000.00 C. Php 7 000.00 D. Php 8 000.00

b. Weekly salary?

A. Php 1 850.00 B. Php 1 846.15 C. Php 1 846.00 D. Php 1 847.00

c. Daily salary?

A. Php 263.01 B. Php 264.00 C. Php 262.90 D. Php 265.00

d. Hourly rate if the regular weekly hour load is 40 hours?

A. Php 46.00 B. Php 45.89 C. Php 46.15 D. Php 46.50

 e. Hourly rate if the regular weekly hour load is 48 hours?

A.Php 37.50 B. Php 39.00 C. Php 38.50 D. Php 38.00

2.Melanie is employed to repack and seal mixed nuts. She is paid on the following
differential pay plan schedule;

Quantity Daily rate/100 packs

Less than 100 Php 50.00
101 – 149 Php 60.00
150 – 199 Php 75.00
200 or more Php 100.00

For the past week, she was able to repack and seal the following quantities;

Monday 102 Thursday 185

Tuesday 95 Friday 120

Wednesday 130 Saturday 203

Question: How much is Melanie’s total wage for the week?

A. Php 600.00 B. Php 600.45 C. Php 605.45 D. Php 645.00

3. Jan is paid on a per-piece basis at the rate of Php 2.75 per piece. If he was
able to finish 185 pieces for the past week, how much is his total earnings?

A. Php 507.85 B. Php 505.75 C. Php 508.75 D. Php 500.85

KEY TO CORRECTION

252.00 Php e.
342.00 Php d.
351.25 Php c.
253.00 Php b.
28.75 Php a.
2.
462.50 Php e.
99.00 Php d.
237.00 Php c.
383.75 Php b.
156.25 Php a.
1.
3. C Activities
2. B C 7.
C e. B 6.
C d. A 5.
A c. B 4.
B b. D 3.
D 1. a. D 2.
Posttest D 1.
Pretest

REFERENCES

Best Wallet Hacks by Jim Wang; Updated, May 20, 2020.

Gov Docs by Kelsey Basten; Published on October 5, 2017.

Business Mathematics, Norma D. Lopez-Mariano, PhD