Salaries, Wages, Benefits, and Deductions Review

This set of flashcards covers vocabulary and formulas related to personal finance, payroll computation, inflation, and retail math based on the lecture notes.

Gross Income

The total earnings an individual receives before any deductions are made.

Net Income

The actual 'Take-Home Pay' that remains after all deductions have been subtracted from gross income.

Deductions

Amounts subtracted from an employee's total earnings, including statutory items like Tax, SSS, PhilHealth, and Pag-IBIG.

Payslip

A summary of an employee's hard work and financial obligations, detailing earnings, deductions, and net pay.

Overtime Pay

Additional compensation provided to an employee for working extra hours.

Allowances

Additional benefits provided to employees for specific needs such as rice, transport, or clothing.

Incentives

Performance-based bonuses added to an employee's earnings.

Income Tax

A mandatory payment made to the government based on an individual's earnings.

SSS/GSIS

Mandatory contributions for social insurance or pension systems.

PhilHealth

Mandatory contributions for national health insurance.

Pag-IBIG

Mandatory contributions for the national housing fund.

Gross Income Equation

$$\text{Gross Income} = \text{Basic Salary} + \text{Benefits}$$

Net Income Equation

$$\text{Net Income} = \text{Gross Income} - \text{Total Deductions}$$

Night Differential

An additional earnings component provided for work performed during night hours.

Inflation

The steady percentage rise in costs over time which decreases the purchasing power of individual consumers.

Discount

A percentage decrease applied to the prices of goods or services.

Mark-up

A percentage increase applied to the cost of an item by store owners to determine the selling price.

Profit

The financial gain achieved when a product is sold for more than its cost of production.

Loss

The financial result when a product is sold for less than its cost of production.

VAT

Value Added Tax, which is an additional percentage (e.g., $12\%\text{}$) added to the price of an appliance or product to find the final price.