Salaries and Wages – General Mathematics (Lesson 1)

30 vocabulary flashcards covering key terms, formulas, multipliers, and labor rules related to salaries, wages, commissions, and benefits as discussed in Lesson 1.

Salary

A fixed, periodical payment to an employee hired to perform specific functions, usually quoted monthly or annually.

Wage

Earnings calculated on hours worked or quantity produced, often paid daily or weekly.

Annual Salary

Total compensation for one year; used as the basis for computing salary per payroll period.

Weekly Salary

Annual Salary divided by 52 weeks.

Bi-weekly Salary

Annual Salary divided by 26 pay periods (every two weeks).

Monthly Salary

Annual Salary divided by 12 months.

Semi-monthly Salary

Annual Salary divided by 24 pay periods (twice a month).

Quarterly Salary

Annual Salary divided by 4 quarters.

Semi-annual Salary

Annual Salary divided by 2 half-year periods.

Piece-rate Wage

Compensation based on the number of items finished rather than time worked.

Straight Piece-rate Wage

Same fixed rate paid for every unit produced, regardless of quantity.

Graduated Piece-rate Wage

Increasing rates apply as production quantity rises; gross pay is the sum of each tier’s rate times quantity.

Hourly Wage

Pay computed by multiplying an employee’s hourly rate by hours worked in the period.

Overtime Pay

Additional compensation for hours worked beyond standard hours, calculated using Labor Code multipliers.

Ordinary Day Multiplier

1.25 × hourly rate for overtime on a regular workday.

Rest Day Multiplier

1.30 × daily rate for work on an employee’s rest day.

Special Holiday Multiplier

1.30 × daily rate for work on a special non-working holiday.

Regular Holiday Multiplier

2.00 × daily rate for work on a regular holiday.

Night Shift Differential

At least 10 % extra pay for hours worked between 10 PM and 6 AM.

Commission

Payment based on a percentage of sales; can be straight, salary-plus-commission, or graduated.

Straight Commission

Employee earns only a fixed percentage of total sales with no base salary.

Graduated Commission

Different commission rates apply to successive sales brackets (e.g., 3 %, 4 %, 5 %).

Salary + Commission

Compensation structure combining a base salary with a commission on sales.

Income

Broad term for all earnings such as wages, salaries, dividends, royalties, and rent.

Employee Benefit

Remuneration beyond basic pay, including leaves, allowances, insurance, bonuses, and profit sharing.

Minimum Wage (NCR 2025)

₱645 per day for non-agricultural workers in the National Capital Region after a ₱35 increase.

Minimum Wage (Region XII 2025)

₱430 per day for retail/service and non-agriculture; ₱410 for agriculture.

Labor Code of the Philippines

Primary legal source governing wages, hours of work, benefits, and overtime multipliers.

Piecework Formula

Gross Pay = R₁Q₁ + R₂Q₂ + … + RₙQₙ, used for graduated piece-rate wage calculations.

Pay Slip

Document summarizing an employee’s earnings, deductions, and net pay for a period.