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Business Mathematics Module 11 Introduction to Salaries,

Wages, Income, and Benefits
Bachelor of Science in Business Administration (Nueva Ecija University of Science and
Technology)

Studocu is not sponsored or endorsed by any college or university

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Senior High School

Business
Mathematics
Quarter 2 – Module 11:
Introduction to Salaries, Wages,
Income, and Benefits

Writer:
JHOANNA S. MANALOTO
Teacher II - San Juan High School (Mexico)
Editors:
JANE P. VALENCIA, Ed.D. – EPS – Mathematics (CHAIRMAN)
CHARIZEL T. ARCILLA – SPST-I Malino National High School
JHOANNA S. MANALOTO – T-II San Juan High School (Mexico)

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What I Need to Know

This module was designed and written with you in mind. It is here to help you apply the
fundamental operations of mathematics as applied in salaries, wages, income and benefits.

After going through this module, you are expected to:

• define salary, wage, income, benefits.

What I Know

Pre-Assessment
Direction: Choose the letter of the correct answer. Write the letter that corresponds to your
answer on a separate sheet of paper. Show your solution. If some items are new to you, choose
the best answer based on your perception.
1. 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. salary B. wage C. income D. benefit

2. It is usually associated with employee compensation that is based on the number of

hours worked multiplied by an hourly rate of pay.
A. salary B. wage C. income D. benefit

3. It is the total amount that people earn in exchange of the goods, employment,
businesses, investments and professional services that they have rendered.
A. salary B. wage C. income D. benefit

4. It is an employee compensation given by an employer other than the basic salary/wage.

It may come in the form of cash or in kind.
A. salary B. wage C. income D. benefit

5. These are employees who are not paid less if they work for only a fraction of the required
number of hours of work.
A. salary earner C. income earner
B. wage earner D. benefit earner
6. These are employees who are under the “no work, no pay” policy.
A. salary earner C. income earner
B. wage earner D. benefit earner

7. It is a type of income where you do the work and you are paid for that work.
A. active B. passive C. captive D. abusive

8. It is a type of income where the payment is not directly tied to active work but usually
front-loaded with active work and gets paid with small amount, while the bulk of income
comes later.
A. active B. passive C. captive D. abusive

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9. Which of the following is NOT a salary earner?

A. teacher B. engineer C. manager D. mechanic

10. Which of the following is NOT a wage earner?

A. service crew B. carpenter C. lawyer D. private tutor

11. Julie earns ₱8,500 a week. How much will she receive each pay day if she is being paid
bi-weekly?
A. ₱8,500 B. ₱17,000 C. ₱34,000 D. ₱38,000

12. Freya works as a seller in a boutique. She earned ₱18,000 for working 20 days in a
month. How much is her daily rate?
A. ₱200 B. ₱800 C. ₱900 D. ₱1,800

13. Mrs. Carreon who works as a teacher in a private school is being paid ₱9,000 every two
weeks. How much will be her annual salary?
A. ₱18,000 B. ₱36,000 C. ₱216,000 D. ₱234,000

14. Maurice applies for a secretarial position in the MY Company. They offer an annual
salary of ₱288,000 which will be given bi-weekly. How much will she receive every pay
day if she will accept the offer?
A. ₱5,538 B. ₱11,077 C. ₱12,000 D. ₱24,000

15. Carl Michael is a call center agent and got an offer from two big companies. Company
ABC offers a monthly salary of ₱35,000. However, the workplace is far from where he
lives where renting a house costs ₱7,000 a month. On the other hand, Company XYZ
offers a monthly salary of ₱30,000 and a free accommodation near the workplace. Based
on the given information, which company is offering a better compensation and benefit
package?
A. Company ABC C. both companies
B. Company XYZ D. neither of the two companies

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Lesson
Salaries, Wages,
1 Income, and Benefits

People in our community have different professions (e.g. doctors, lawyers, teachers) and
jobs (e.g. carpenters, factory workers, fishermen, drivers). These people who work expect a
monetary return for their goods or services. It allows them to make a living from their labour.
There are different ways on how a person gets paid for his/her services through different
manners of payment like salary, wages, benefits and other sources of income.

What’s In

As a recall on your previous lesson on commission, read and analyze each of the
following problems then solve. Write your final answer on a separate sheet of paper or
notebook. Show your solution.

1. Encar makes money by commission rates. She gets 10% of everything she sells. If Encar
sold ₱150,000 worth of item, how much will she get for this month?

2. Yvette works as an agent with a monthly quota of ₱30,000 for which she gets 15%
commission on all sales beyond her monthly quota. If she sold ₱70,000 worth of goods
this month, how much will be her commission for this month?

3. Yancy receives a 5% commission on his sales of at most ₱50,000 quota. An additional

3% commission is given for the sales beyond his quota. If his sales reached ₱70,000 for
the month, how much commission will he get?

4. Andrea, a real-estate agent received a 2% commission of ₱200,000, for selling a house

and lot in a prestigious subdivision. What was the price of the house and lot?

5. Calix, a promodiser in a department store sold a set of kitchen wares for ₱20,000 and
got a ₱1,000 commission. What was the commission rate?

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What’s New

The Top 10 Highest-Paying Jobs in the Philippines

What is your dream job? Have you ever wondered about the highest paying jobs in the
Philippines? The Department of Labor and Employment (DOLE), in partnership with the
Bureau of Local Employment (BLE), revealed the top 10 highest-paying jobs in their Labor
Market Trends report released in March 2019.

ESTIMATED EDUCATION
RANK JOB
SALARY REQUIREMENT
BS Aeronautics, BS Aeronautical
Aircraft Pilots, Navigators,
1 ₱116,714.00 Engineering, BS Air Transportation,
and Flight Engineers
BS Aircraft Maintenance
Securities and Finance BS Finance, BS Management
2 ₱89,831.00
Dealers and Brokers BS Administration, BS Economics
3 Civil Engineers ₱68,957.00 BS Civil Engineering
BS Accountancy,
4 Actuaries ₱60,477.00
BS Mathematics, BS Economics
BS Computer Science,
5 Computer Programmers ₱52,331.00
BS Information Technology
System Analysts and BS Computer Science,
6 ₱51,069.00
Designers BS Information Technology
BS Computer Engineering,
7 Computer Engineers ₱49,335.00
BS Information Technology
BS Accountancy,
8 Accountants and Auditors ₱47,756.00
BS Management Accounting
Production Supervisor &
9 ₱47,101.00 BS Industrial Engineering
Foremen
BS Statistics,
10 Statistician ₱41,480.00
BS Mathematics
Source:https://www.sodexo.ph/blogs/top-10-highest-paying-jobs-in-the-philippines-2019/

Notes to the Teacher

The teacher may show some pictures of different professions and
may ask of the students’ dream job. Ask the students how these jobs get
compensated for what they do. This will lead to the discussion of salaries
and wages.

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What is It

After graduation, do you plan to work? Do you plan to put up your own business? Do
you want to pursue college and go after your dream job?

Whatever you plan to do, you will surely use your talent, creativity, and expertise and
get compensated for what you do. Therefore, you must be familiarized with the differences
between salary, wages, income and benefits.

Salary 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.

It is, sometimes, necessary to convert salaries on an annual basis into monthly basis,
weekly to monthly, monthly to semi-monthly, etc. In these cases, we should always remember
that:

1 year = 12 months = 24 semi-monthly

1 year = 52 weeks = 26 bi-weekly
1 month = 2 semi-monthly

where: “semi-monthly” means “given twice a month” and

“bi-weekly” means “given every two weeks”

Salary Earners

➢ These are the employees who receive the salaries and usually get paid every 15 days
(semi-monthly).

➢ These employees are not paid less if they work for only a fraction of the required number
of hours of work.

➢ They are not paid for working overtime.

Examples:

1. Mr. Sarmiento, a manager of the Maharlika Company earns ₱420,000 annually. If he is

paid monthly, how much does he get on his paycheck?

Solution:
Since there are 12 months in a year, then we divide the annual salary by 12. That
is:

annual salary ₱420,000

monthly salary = = = ₱35,000
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2. A university assistant professor in a state university gets a monthly salary of ₱50,000.

How much will he receive if the salary is given semi-monthly?

Solution:
Since semi-monthly salary is given two times a month, then we divide the
monthly salary by 2. That is:

monthly salary ₱50,000

semi − monthly salary = = = ₱25,000
2 2

3. Mrs. Sanchez works as an accountant and gets a salary of ₱15,000 which is given semi-
monthly. How much will be her annual salary?

Solution:
Since semi-monthly salaries are given twice a month or 24 times in a year, then
we multiply the semi-monthly salary by 24. That is:

Annual salary = (semi-monthly salary)(24)

= (₱15,000)(24)
= ₱360,000

4. Mr. Reyes gets a salary of ₱10,000 which is given bi-weekly. How much will be his
annual salary?

Solution:
Since bi-weekly salaries are given every two weeks or 26 times in a year, then we
multiply the bi-weekly salary by 26. That is:

Annual salary = (bi-weekly salary)(26)

= (₱10,000)(26)
= ₱260,000

Wage is usually associated with employee compensation that

is based on the number of hours/days worked multiplied by an
hourly/daily rate of pay.

Wage is usually paid on a weekly basis, but it may be quoted in an hourly rate or daily
rate of an employee. To solve for the wage, remember that:

wage = (hourly rate)(no. of hours worked)

= (daily rate)(no. of days worked)

Wage Earners

➢ These are the employees who receive the wages and usually get paid either weekly or
monthly depending on the employer’s convenience.

➢ These employees are under the “no work, no pay” policy where they are only paid for
the actual number of hours or days that they rendered work but they are paid for
working overtime.

Examples:

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1. Mari Glenne works as a math tutor and is paid ₱150 per hour. How much wage does
she earn for a 10-hour per week of work?

Solution:
Since the given is the hourly rate, we simply multiply it by the number of hours
worked. That is:

wage = (hourly rate)(no. of hours worked)

= (₱150)(10 hours)
= ₱1,500

2. Mang Pedro, a minimum wage earner in Metro Manila is paid ₱450.50 for an 8-hour
workday. What is his hourly wage?

Solution:
Since the given is wage and he worked for 8 hours, then we must divide the wage
by 8. That is:

wage
hourly rate =
no. of hours worked
₱450.50
=
8
= ₱56.31

Income is the total amount that people earn in exchange of

the goods, employment, businesses, investments and professional
services that they have rendered.

Types of Income

1. Active Income
Active income is when you do the work and are paid for that work. If you do
nothing, you will no longer be paid.

2. Passive Income
Passive income is when the payment is not directly tied to active work. It is
usually front-loaded with active work and gets paid with small amount, while the bulk
of income comes later.

Sources of Income

a. Commission Income – payment for the commission on sales

b. Rental Income – payment from rentals of properties and real estates
c. Dividends– from investments and partnerships
d. Royalties – payments for authors, products sold or license
e. Business Income – profits from businesses
f. Interest – from a variety of loans from individuals or companies
g. Capital Gains – from the sales of investments
h. Goods – such as crops, fish and other products

Benefits are employee compensation given by an employer

other than the basic salary/wage. It may come in the form of cash
or in kind.
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Examples of Benefits

a. vacation and sick leaves f. 13th month pay

b. housing g. meal and transportation allowance
c. group insurance h. hospitalization benefits
d. rice subsidy i. clothing allowance
e. cash benefits j. commission, overrides and bonuses

Illustration:

Kristine Joy is an elementary teacher and got an offer from two different private schools
in nearby city.

Great Minds School offers a monthly salary of ₱30,000. However, the school is far from
where she lives where renting a house costs ₱5,000 a month. On the other hand, Bright Kids
Academy offers a monthly salary of ₱27,000 and a free accommodation near the school.

Based on the given information, which company is offering a better compensation and
benefit package?

Solution:

Great Minds School offers ₱30,000 per month while renting a house amounting
to ₱5,000. Therefore, the income will be reduced to :
₱30,000 - ₱5,000 = ₱25,000

Bright Kids Academy offers a lower monthly salary of ₱27,000 but provides free
accommodation. Therefore the income of ₱27,000 will not be affected by the
house rent.

Therefore, Bright Kids Academy offers

a better compensation and benefit package.

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What’s More

Activity 1.1 Salary Earner versus Wage Earner

Directions: Classify each of the following profession/job as to salary as to salary earner or wage
earner. On a separate sheet of paper or notebook, write SE if the given is a salary earner and
WE if it is a wage earner.

1. engineer 6. manager

2. carpenter 7. service crew

3. factory worker 8. cashier

4. public school teacher 9. construction worker

5. private tutor 10. accountant

Activity 1.2 Work! Work! Work!

Directions: Read and analyze each word problem and then solve each. Write your final answer
on a separate sheet of paper or notebook. Don’t forget to show your solutions.

11. Dianne works as a secretary and earns ₱180,000 annually. If she is paid semi-monthly,
how much does she get every pay day?

12. 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?

13. If a security guard in a five-star hotel is being offered a salary of ₱12,000 every two weeks.
How much will be his annual salary?

14. A promodiser selling appliances in a department store receives his pay check bi-weekly. If
the daily rate is ₱600 and works 6 days a week, how much will he receive every pay
day?

15. Felix works as a call center agent. His daily rate is ₱765. If he works 6 days a week, how
much will he earn after a probation period of 12 weeks?

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What I Have Learned

Did you learn something in our lesson? Fill the spaces with appropriate answers based
on our discussion about salaries, wages, income, and benefits. Write your answers on a
separate sheet of paper or notebook.

1. ______________ is a fixed amount usually associated with employee compensation

usually received on a monthly or bi-monthly basis, but it may be quoted in an annual
sum.

2. _______________ is usually associated with employee compensation that is based on the

number of hours worked multiplied by an hourly rate of pay.

3. _______________ is the total amount that people earn in exchange of the goods,
employment, businesses, investments and professional services that they have
rendered.

4. _______________ is employee compensation given by an employer other than the basic

salary/wage. It may come in the form of cash or in kind.

5. _______________ are employees who are not paid less if they work for only a fraction of
the required number of hours of work.

6. _______________ are employees who are under the “no work, no pay” policy where they
are only paid for the actual number of hours or days that they rendered work but they
are paid for working overtime.

7. ________________ income is when you do the work and are paid for that work.

8. _______________ income is when the payment is not directly tied to active work but
usually front-loaded with active work and gets paid with small amount, while the bulk
of income comes later.

9. _______________ is one of the sources of income where payments are given to authors,
products sold or license.

10. _______________ is one of the sources of income from different investments and
partnerships.

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What I Can Do

The BM Company hires the following employees. Complete the table below showing their
salaries in different modes of payments. Round off your answer to the nearest centavo. Write
your final answers on a separate sheet of paper or notebook. Don’t forget to show your
solutions.
Annual Monthly Semi-monthly Bi-weekly Weekly
Employee
Salary Salary Salary salary Salary

J. Rizal ₱312,000.00

A. Bonifacio ₱32,500.00

A. Mabini ₱7,000.00

J. Luna ₱10,000.00

M. Del Pilar ₱2,500.00

Assessment

Directions: Choose the letter of the best answer. Write the letter of your choice on a separate
sheet of paper or notebook. Don’t forget to show your solutions.
1. It is usually associated with employee compensation that is based on the number of
hours worked multiplied by an hourly rate of pay.
A. salary B. wage C. income D. benefit

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. salary B. wage C. income D. benefit

3. It is an employee compensation given by an employer other than the basic salary/wage.

It may come in the form of cash or in kind.
A. salary B. wage C. income D. benefit

4. It is the total amount that people earn in exchange of the goods, employment,
businesses, investments and professional services that they have rendered.
A. salary B. wage C. income D. benefit

5. These are employees who are under the “no work, no pay” policy.
A. income earner C. salary earner
B. benefit earner D. wage earner

6. These are employees who are not paid less if they work for only a fraction of the required
number of hours of work.
A. income earner C. salary earner
B. benefit earner D. wage earner

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7. It is a type of income where the payment is not directly tied to active work but usually
front-loaded with active work and gets paid with small amount, while the bulk of income
comes later.
A. captive B. active C. abusive D. passive

8. It is a type of income where you do the work and you are paid for that work.
A. captive B. active C. abusive D. passive

9. Which of the following is a salary earner?

A. carpenter B. service crew C. teacher D. factory worker

10. Which of the following is a wage earner?

A. engineer B. manager C. lawyer D. private tutor

11. A delivery man in a chicken store earns ₱350 daily. How much will he earn if he worked
20 days in a month?
A. ₱3,500 B. ₱7,000 C. ₱14,000 D. ₱28,000

12. Yvan, who works in a car wash, is paid ₱75 per hour of work. How much will he earn in
bi-weekly if he rendered 48 hours of work each week?
A. ₱3,600 B. ₱4,800 C. ₱7,200 D. ₱14,400

13. If an assistant principal in a private school is being offered a salary of ₱13,000 every two
weeks. How much will be his annual salary?
A. ₱26,000 b. ₱130,000 c. ₱156,000 d. ₱312,000

14. A Senior Police Officer I (SPO1) of the Philippine National Police (PNP) has a monthly
basic pay of ₱33,411. How much will be his annual salary?
A. ₱16,705 B. ₱66,822 C. ₱334,110 D. ₱400,932

15. Antonio works as a part-time crew in a fast food chain in the city with the following
schedule for one week: Monday, 5 hours; Tuesday, 6 hours; Wednesday, 4 hours;
Thursday, 6 hours; Friday, 3 hours. If he was paid ₱104.25 an hour, how much will he
get for the week?
A. ₱2,502 B. ₱2,919 C. ₱3,336 D. ₱3,544

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Additional Activities

Conduct an interview. You can ask your family members, friends, or neighbors. Ask the
following questions then write their responses on a separate sheet of paper or notebook
following the format below.

1. What is your profession/job?

2. How much is your salary/wage for each pay day?

3. Do you have other sources of income? If yes, what are your other sources of income?

4. What are the different benefits given by your employer/company?

5. What is the importance of earning a salary/wage in your everyday living?

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15
What I Can Do What’s In
Empl Annual Monthly Semi- Bi-weekly Weekly 1. ₱15,000
Salary Salary monthly salary Salary
oyee 2. ₱6,000
Salary
1. ₱312,000.00 ₱26,000.00 ₱13,000.00 ₱12,000.00 ₱6,000.00 3. ₱3,000
2. ₱390,000.00 ₱32,500.00 ₱16,250.00 ₱15,000.00 ₱7,500.00
4.₱10,000,000
5. 5%
3. ₱168,000.00 ₱14,000.00 ₱7,000.00 ₱6,461.54 ₱3,230.77
4. ₱260,000.00 ₱21,666.67 ₱10,833.33 ₱10,000.00 ₱5,000.00
5. ₱130,000.00 ₱10,833.33 ₱5,416.67 ₱5,000.00 ₱2,500.00
Assessment What I Have What's More What I Know
Learned
1. B 1. SE 1. A
1. Salary
2. A 2. WE 2. B
2. Wage
3. D 3. WE 3. C
3. Income
4. C 4. SE 4. D
4. Benefit
5. D 5. WE 5. A
5. Salary
6. C 6. SE 6. B
earners
7. D 7. WE 7. A
6. Wage
8. B earners 8. WE 8. B
9. C 7. Active 9. WE 9. D
10. D 8. Passive 10. SE 10. C
11. B 9. Royalties 11. ₱7,500 11. B
12. C 10. Dividends 12. ₱9,600 12. C
13. D 13. ₱312,000 13. D
14. D 14. ₱7,200 14. B
15. A 15. ₱55,080 15. B
Answer Key
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Development Team of the Module

Writer: JHOANNA S. MANALOTO – T-II San Juan High School (Mexico)

Editor: JANE P. VALENCIA, Ed.D. – EPS – Mathematics
Reviewer: JANE P. VALENCIA, Ed.D. – EPS – Mathematics
CHARIZEL T. ARCILLA – SPST-I Malino National High School
JHOANNA S. MANALOTO – T-II San Juan High School (Mexico)
Illustrator: JHOANNA S. MANALOTO – T-II San Juan High School (Mexico)
Layout Artist: JHOANNA S. MANALOTO – T-II San Juan High School (Mexico)
Language Reviewer:

Management Team

ZENIA G. MOSTOLES, Ed.D., CESO V, Schools Division Superintendent

LEONARDO C. CANLAS, Ed.D., CESE. Asst. Schools Division Superintendent
ROWENA T. QUIAMBAO, CESE, Asst. Schools Division Superintendent
CELIA R. LACNALALE, Ph.D., CID Chief
JANE P. VALENCIA, Ed.D., Education Program Supervisor, Mathematics
JUNE E. CUNANAN, Education Program Supervisor/ Language Editor
RUBY M. JIMENEZ, Ph.D., Education Program Supervisor, LRMDS

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