Understanding and Computing Salary, Wages, and Commission

Vocabulary flashcards covering key wage and salary concepts from the lesson.

Wage

Remuneration or earnings payable to an employee for work done, which can be fixed or vary based on time, task, piece, or commission.

Hourly wage

Wage earned for each hour worked; can vary with hours.

Daily wage

Wage earned for each day of actual work; does not include days not worked unless required by law or policy.

Salary

Fixed regular wage, usually paid monthly, semi-monthly, or weekly, for professional/managerial/administrative roles; fixed regardless of hours.

Annual salary

Total amount earned in one year under a fixed annual salary.

Monthly salary

Fixed amount earned each month; calculated as Annual Salary ÷ 12.

Semi-monthly salary

Salary paid twice a month; formula: Semi-Monthly Salary = Monthly Salary ÷ 2 (intervals not exceeding 16 days).

Weekly salary

Income earned in a week; formula: Weekly Salary = Annual Salary ÷ 52; or Weekly Salary = Daily Wage × 6 days.

Overtime pay

Extra pay for working beyond standard hours; typically 25% more than regular wage (1.25x) for overtime hours.

Rest day / Special holiday pay

Pay for working on a rest day or special holiday; daily rate × 1.30.

Regular holiday pay

Pay for working on a regular holiday; daily rate × 2.00.

Regular holiday on rest day pay

If a regular holiday falls on a rest day, pay is daily rate × 2.60.

Night shift differential

Additional pay for work between 10:00 PM and 6:00 AM; multiplier 1.10 on the applicable rate.

Commission income

Income earned as a percentage of sales; may be pure commission or base salary plus commission.

Piecework earnings

Earnings based on the number of items or products completed.

Formula: Monthly Salary = Annual Salary ÷ 12

Method to compute monthly salary by dividing annual salary by 12 months.

Formula: Weekly Salary = Annual Salary ÷ 52

Method to compute weekly salary by dividing annual salary by 52 weeks.

Formula: Semi-Monthly Salary = Monthly Salary ÷ 2

Method to compute semi-monthly salary by dividing monthly salary by 2.