Comprehensive Study Notes on Salary, Wages, Allowances, Commission, and Overtime Compensation

Fundamental Compensation Concepts

  • Direct Compensation Types
    • Salary: A form of direct compensation received by employees, particularly in professional or white-collar jobs, in exchange for services rendered. It is typically provided on a fixed, regular basis and is commonly paid on a bi-monthly or monthly schedule.
    • Wage: A form of direct compensation received by workers, particularly those in non-professional or blue-collar jobs. It is generally not considered a fixed payment and typically refers to compensation based on the number of hours worked per day or week.
    • Allowance: An additional payment given to employees, separate from salary or wages, to cover specific work-related expenses such as relocation, transportation, clothing, internet, or meals.
    • Commission: A form of compensation paid to employees, typically to salespeople, serving as an incentive or motivation to complete tasks or achieve successful sales that contribute to overall company revenue.

Salary Rate Conversions and Calculations

  • Standard Working Time Constants

    • 1 working year=52 working weeks1\text{ working year} = 52\text{ working weeks}
    • 1 working week=40 working hours1\text{ working week} = 40\text{ working hours}
    • 1 working year=52×40=2,080 working hours1\text{ working year} = 52 \times 40 = 2,080\text{ working hours}

  • Conversion Formulas

    • Weekly Salary=Annual Salary52\text{Weekly Salary} = \frac{\text{Annual Salary}}{52}
    • Monthly Salary=Annual Salary12\text{Monthly Salary} = \frac{\text{Annual Salary}}{12}
    • Bi-monthly Salary=Monthly Salary2=Annual Salary24\text{Bi-monthly Salary} = \frac{\text{Monthly Salary}}{2} = \frac{\text{Annual Salary}}{24}
    • Hourly Rate=Annual Salary2,080\text{Hourly Rate} = \frac{\text{Annual Salary}}{2,080}

  • Worked Examples for Salary Conversions

    • Example 1: Converting Annual Salary to Sub-period Rates
    • Danny receives an annual gross salary of ₱750,000\text{₱}750,000. Calculate his salary per hour, weekly, monthly, and bi-monthly.
    • Given: Annual Salary = ₱750,000\text{₱}750,000
    • Hourly Rate:       Hourly Rate=₱750,0002,080=₱360.58\text{Hourly Rate} = \frac{\text{₱}750,000}{2,080} = \text{₱}360.58
    • Weekly Salary:       Weekly Salary=₱750,00052=₱14,423.08\text{Weekly Salary} = \frac{\text{₱}750,000}{52} = \text{₱}14,423.08
    • Monthly Salary:       Monthly Salary=₱750,00012=₱62,500.00\text{Monthly Salary} = \frac{\text{₱}750,000}{12} = \text{₱}62,500.00
    • Bi-monthly Salary:       Bi-monthly Salary=₱62,500.002=₱31,250.00\text{Bi-monthly Salary} = \frac{\text{₱}62,500.00}{2} = \text{₱}31,250.00
    • Example 2: Converting Hourly Rate to Annual and Monthly Salary
    • Ms. Em works in a company and is compensated at ₱140.00\text{₱}140.00 per hour. Calculate her annual salary and monthly salary.
    • Given: Hourly Rate = ₱140.00\text{₱}140.00
    • Annual Salary:       Annual Salary=₱140.00×2,080=₱291,200.00\text{Annual Salary} = \text{₱}140.00 \times 2,080 = \text{₱}291,200.00
    • Monthly Salary:       Monthly Salary=₱291,200.0012=₱24,266.67\text{Monthly Salary} = \frac{\text{₱}291,200.00}{12} = \text{₱}24,266.67

Compensation for Overtime Work

  • Legal Framework and Rates

    • A standard workday consists of 8 regular working hours. Any service rendered beyond 8 hours constitutes overtime work.
    • Source: Respicio & Co. Law Offices (July 8, 2025)

  • Summary of Overtime Pay Rates

    • Ordinary Working Day:
    • First 8 Hours: 100%×Daily Wage100\% \times \text{Daily Wage}
    • Overtime Pay Rate: 125%×Hourly Rate=1.25×Hourly Rate125\% \times \text{Hourly Rate} = 1.25 \times \text{Hourly Rate}
    • Rest Day or Special Non-Working Day:
    • First 8 Hours: 130%×Daily Wage=1.3×Daily Wage130\% \times \text{Daily Wage} = 1.3 \times \text{Daily Wage}
    • Overtime Pay Rate: 130%×130%×Hourly Rate=1.3×1.3×Hourly Rate=1.69×Hourly Rate130\% \times 130\% \times \text{Hourly Rate} = 1.3 \times 1.3 \times \text{Hourly Rate} = 1.69 \times \text{Hourly Rate}
    • Rest Day and Special Non-Working Day:
    • First 8 Hours: 150%×Daily Wage=1.5×Daily Wage150\% \times \text{Daily Wage} = 1.5 \times \text{Daily Wage}
    • Overtime Pay Rate: 150%×130%×Hourly Rate=1.5×1.3×Hourly Rate=1.95×Hourly Rate150\% \times 130\% \times \text{Hourly Rate} = 1.5 \times 1.3 \times \text{Hourly Rate} = 1.95 \times \text{Hourly Rate}
    • Regular Holiday:
    • First 8 Hours: 200%×Daily Wage=2.0×Daily Wage200\% \times \text{Daily Wage} = 2.0 \times \text{Daily Wage}
    • Overtime Pay Rate: 200%×130%×Hourly Rate=2.0×1.3×Hourly Rate=2.6×Hourly Rate200\% \times 130\% \times \text{Hourly Rate} = 2.0 \times 1.3 \times \text{Hourly Rate} = 2.6 \times \text{Hourly Rate}
    • Rest Day and Regular Holiday ("Double Holiday"):
    • First 8 Hours: 260%×Daily Wage=2.6×Daily Wage260\% \times \text{Daily Wage} = 2.6 \times \text{Daily Wage}
    • Overtime Pay Rate: 260%×130%×Hourly Rate=2.6×1.3×Hourly Rate=3.38×Hourly Rate260\% \times 130\% \times \text{Hourly Rate} = 2.6 \times 1.3 \times \text{Hourly Rate} = 3.38 \times \text{Hourly Rate}

  • Overtime Calculations and Worked Examples

    • Scenario 1: Ordinary Working Day
    • General Formula:       Overtime Pay=1.25×(Hourly Rate)×(Number of Overtime Hours)\text{Overtime Pay} = 1.25 \times (\text{Hourly Rate}) \times (\text{Number of Overtime Hours})Total Pay=Daily Wage+1.25×(Hourly Rate)×(Number of Overtime Hours)\text{Total Pay} = \text{Daily Wage} + 1.25 \times (\text{Hourly Rate}) \times (\text{Number of Overtime Hours})
    • Worked Example: Danica has a daily wage of ₱750.00\text{₱}750.00. Her employer instructed her to render an additional 4 hours of overtime on an ordinary working day. Calculate her total compensation on that day.
      • Given: Daily Wage = ₱750.00\text{₱}750.00, Overtime = 4 hours
      • Hourly Rate: ₱750.008=₱93.75\frac{\text{₱}750.00}{8} = \text{₱}93.75
      • Overtime Pay: 1.25×₱93.75×4=₱468.751.25 \times \text{₱}93.75 \times 4 = \text{₱}468.75
      • Total Pay: ₱750.00+₱468.75=₱1,218.75\text{₱}750.00 + \text{₱}468.75 = \text{₱}1,218.75
    • Scenario 2: Rest Day or Special Non-Working Day
    • General Formula:       Total Pay=1.3×(Daily Wage)+1.3×1.3×(Hourly Rate)×(Number of Overtime Hours)\text{Total Pay} = 1.3 \times (\text{Daily Wage}) + 1.3 \times 1.3 \times (\text{Hourly Rate}) \times (\text{Number of Overtime Hours})
    • Worked Example: Danica has a daily wage of ₱750.00\text{₱}750.00. Her employer instructed her to work for 12 hours on her rest day (12−8=4 hours overtime12 - 8 = 4\text{ hours overtime}). Calculate her total earnings for that day.
      • Given: Daily Wage = ₱750.00\text{₱}750.00, Overtime = 4 hours
      • Hourly Rate: ₱750.008=₱93.75\frac{\text{₱}750.00}{8} = \text{₱}93.75
      • First 8 Hours Pay: 1.3×₱750.00=₱975.001.3 \times \text{₱}750.00 = \text{₱}975.00
      • Overtime Pay: 1.3×1.3×₱93.75×4=1.69×₱93.75×4=₱633.751.3 \times 1.3 \times \text{₱}93.75 \times 4 = 1.69 \times \text{₱}93.75 \times 4 = \text{₱}633.75
      • Total Pay: ₱975.00+₱633.75=₱1,608.75\text{₱}975.00 + \text{₱}633.75 = \text{₱}1,608.75
    • Scenario 3: Regular Holiday
    • General Formula:       Total Pay=2.0×(Daily Wage)+2.0×1.3×(Hourly Rate)×(Number of Overtime Hours)\text{Total Pay} = 2.0 \times (\text{Daily Wage}) + 2.0 \times 1.3 \times (\text{Hourly Rate}) \times (\text{Number of Overtime Hours})
    • Worked Example: Emee, a saleslady at NCCC Mall, earns a monthly salary of ₱16,500.00\text{₱}16,500.00. She was permitted to work for 11 hours on Independence Day (11−8=3 hours overtime11 - 8 = 3\text{ hours overtime}). Calculate her total compensation for that day.
      • Given: Monthly Salary = ₱16,500.00\text{₱}16,500.00, Overtime = 3 hours
      • Annual Salary: ₱16,500.00×12=₱198,000.00\text{₱}16,500.00 \times 12 = \text{₱}198,000.00
      • Hourly Rate: ₱198,000.002,080=₱95.19\frac{\text{₱}198,000.00}{2,080} = \text{₱}95.19
      • Daily Wage: ₱95.19×8=₱761.52\text{₱}95.19 \times 8 = \text{₱}761.52
      • First 8 Hours Pay: 2.0×₱761.52=₱1,523.042.0 \times \text{₱}761.52 = \text{₱}1,523.04
      • Overtime Pay: 2.0×1.3×₱95.19×3=2.6×₱95.19×3=₱742.482.0 \times 1.3 \times \text{₱}95.19 \times 3 = 2.6 \times \text{₱}95.19 \times 3 = \text{₱}742.48
      • Total Pay: ₱1,523.04+₱742.48=₱2,265.52\text{₱}1,523.04 + \text{₱}742.48 = \text{₱}2,265.52
    • Scenario 4: Regular Holiday Falling on a Rest Day ("Double Holiday")
    • General Formula:       Total Pay=2.6×(Daily Wage)+2.6×1.3×(Hourly Rate)×(Number of Overtime Hours)\text{Total Pay} = 2.6 \times (\text{Daily Wage}) + 2.6 \times 1.3 \times (\text{Hourly Rate}) \times (\text{Number of Overtime Hours})
    • Worked Example: Emee earns a monthly salary of ₱16,500.00\text{₱}16,500.00 (Hourly Rate = ₱95.19\text{₱}95.19, Daily Wage = ₱761.52\text{₱}761.52). If Emee rendered service on a regular holiday that falls on her rest day for 11 hours (3 hours overtime3\text{ hours overtime}), calculate her total earnings on that day.
      • First 8 Hours Pay: 2.6×₱761.52=₱1,979.952.6 \times \text{₱}761.52 = \text{₱}1,979.95
      • Overtime Pay: 2.6×1.3×₱95.19×3=3.38×₱95.19×3=₱965.232.6 \times 1.3 \times \text{₱}95.19 \times 3 = 3.38 \times \text{₱}95.19 \times 3 = \text{₱}965.23
      • Total Pay: ₱1,979.95+₱965.23=₱2,945.18\text{₱}1,979.95 + \text{₱}965.23 = \text{₱}2,945.18
    • Scenario 5: Special Non-Working Holiday Falling on a Rest Day
    • General Formula:       Total Pay=1.5×(Daily Wage)+1.5×1.3×(Hourly Rate)×(Number of Overtime Hours)\text{Total Pay} = 1.5 \times (\text{Daily Wage}) + 1.5 \times 1.3 \times (\text{Hourly Rate}) \times (\text{Number of Overtime Hours})
    • Worked Example: A skilled worker earns a daily wage of ₱1,200.00\text{₱}1,200.00. Due to necessity, he rendered 16 hours of service (16−8=8 hours overtime16 - 8 = 8\text{ hours overtime}) during a special non-working holiday that falls on a rest day. Calculate his daily compensation for that day.
      • Given: Daily Wage = ₱1,200.00\text{₱}1,200.00, Hourly Rate = ₱1,200.008=₱150.00\frac{\text{₱}1,200.00}{8} = \text{₱}150.00, Overtime = 8 hours
      • First 8 Hours Pay: 1.5×₱1,200.00=₱1,800.001.5 \times \text{₱}1,200.00 = \text{₱}1,800.00
      • Overtime Pay: 1.5×1.3×₱150.00×8=1.95×₱150.00×8=₱2,340.001.5 \times 1.3 \times \text{₱}150.00 \times 8 = 1.95 \times \text{₱}150.00 \times 8 = \text{₱}2,340.00
      • Total Pay: ₱1,800.00+₱2,340.00=₱4,140.00\text{₱}1,800.00 + \text{₱}2,340.00 = \text{₱}4,140.00

Types of Commission and Calculations

  • 1. Straight Commission

    • Definition: Computed based purely on the percentage of total sales generated, with no basic wage.
    • Formula:     Commission=(Total Sales)×(Commission Rate)\text{Commission} = (\text{Total Sales}) \times (\text{Commission Rate})     Where Total Sales refers to the overall amount generated from selling products, goods, or services, and Commission Rate is the percentage earned from each sale.
    • Worked Example: Precy earns a 5% commission on every product she sells. If she sold ₱50,000.00\text{₱}50,000.00 worth of products, how much straight commission will she receive?
    • Given: Total Sales = ₱50,000.00\text{₱}50,000.00, Commission Rate = 5%=0.055\% = 0.05
    • Calculation:       Commission=₱50,000.00×0.05=₱2,500.00\text{Commission} = \text{₱}50,000.00 \times 0.05 = \text{₱}2,500.00

  • 2. Graduated or Tiered Commission

    • Definition: Calculated based on sales brackets, where the commission rate increases as total sales increase across specified tiers.
    • Formula:     Commission=CommissionTier 1+CommissionTier 2+…\text{Commission} = \text{Commission}_{\text{Tier 1}} + \text{Commission}_{\text{Tier 2}} + \dots
    • Worked Example: Earl, a salesperson, sells appliances and earns 3% on the first ₱50,000.00\text{₱}50,000.00, 4% on the next ₱50,000.00\text{₱}50,000.00, and 5% on any amount beyond ₱100,000.00\text{₱}100,000.00. If he sold ₱160,000.00\text{₱}160,000.00 worth of appliances, calculate his total commission.
    • Breakdown of Sales:
      • Tier 1 (First ₱50,000.00\text{₱}50,000.00 at 3%3\%): ₱50,000.00×0.03=₱1,500.00\text{₱}50,000.00 \times 0.03 = \text{₱}1,500.00
      • Tier 2 (Next ₱50,000.00\text{₱}50,000.00 at 4%4\%): ₱50,000.00×0.04=₱2,000.00\text{₱}50,000.00 \times 0.04 = \text{₱}2,000.00
      • Tier 3 (Remaining ₱60,000.00\text{₱}60,000.00 at 5%5\%): ₱60,000.00×0.05=₱3,000.00\text{₱}60,000.00 \times 0.05 = \text{₱}3,000.00
    • Total Commission:       Total Commission=₱1,500.00+₱2,000.00+₱3,000.00=₱6,500.00\text{Total Commission} = \text{₱}1,500.00 + \text{₱}2,000.00 + \text{₱}3,000.00 = \text{₱}6,500.00

  • 3. Salary Plus Commission

    • Definition: Added on top of the basic salary of an employee and usually calculated as a percentage of sales generated.
    • Formula:     Total Earnings=Basic Salary+Commission\text{Total Earnings} = \text{Basic Salary} + \text{Commission}Total Earnings=Basic Salary+(Sales)×(Commission Rate)\text{Total Earnings} = \text{Basic Salary} + (\text{Sales}) \times (\text{Commission Rate})
    • Worked Example: Leslie has a basic monthly salary of ₱18,000.00\text{₱}18,000.00 and receives a 6% commission on sales. In a certain month, he sells ₱150,000.00\text{₱}150,000.00 worth of products. What are his total earnings for that month?
    • Given: Basic Salary = ₱18,000.00\text{₱}18,000.00, Total Sales = ₱150,000.00\text{₱}150,000.00, Commission Rate = 6%=0.066\% = 0.06
    • Commission Earned: ₱150,000.00×0.06=₱9,000.00\text{₱}150,000.00 \times 0.06 = \text{₱}9,000.00
    • Total Earnings:       Total Earnings=₱18,000.00+₱9,000.00=₱27,000.00\text{Total Earnings} = \text{₱}18,000.00 + \text{₱}9,000.00 = \text{₱}27,000.00

  • 4. Draw Against Commission

    • Definition: A compensation structure where an employee receives an advance payment (called a "draw") that is offset against future earned commission.
    • Formula:     Pay Due=Commission Earned−Draw\text{Pay Due} = \text{Commission Earned} - \text{Draw}Pay Due=(Sales)×(Commission Rate)−Draw\text{Pay Due} = (\text{Sales}) \times (\text{Commission Rate}) - \text{Draw}
    • Worked Example: Mr. Marco Leyte receives a monthly draw of ₱20,000.00\text{₱}20,000.00. He earns a 5% commission on the total sales of company products. In one month, he sold products worth ₱350,000.00\text{₱}350,000.00. How much will he receive on that month?
    • Given: Draw = ₱20,000.00\text{₱}20,000.00, Commission Rate = 5%=0.055\% = 0.05, Total Sales = ₱350,000.00\text{₱}350,000.00
    • Commission Earned: ₱350,000.00×0.05=₱17,500.00\text{₱}350,000.00 \times 0.05 = \text{₱}17,500.00
    • Net Pay Due:       Pay Due=₱17,500.00−₱20,000.00=−₱2,500.00\text{Pay Due} = \text{₱}17,500.00 - \text{₱}20,000.00 = -\text{₱}2,500.00
    • A negative pay due of ₱2,500.00\text{₱}2,500.00 indicates that Mr. Marco Leyte earned a commission lower than the advance payment or draw received, which will then be carried over to be deducted from the next month's earnings.

  • 5. Override Commission

    • Definition: Awarded to a supervisor or manager, where the amount depends on a percentage share of the total sales made by their subordinates or team.
    • Formula:     Override Commission=(Total Sales)×(Override Rate)\text{Override Commission} = (\text{Total Sales}) \times (\text{Override Rate})
    • Worked Example: Earl is a real estate area manager and earns an override of 3% from his team's sales. This month, his team sold three condominium units worth a total of ₱4,500,000.00\text{₱}4,500,000.00. How much is Earl's override commission?
    • Given: Total Sales = ₱4,500,000.00\text{₱}4,500,000.00, Override Rate = 3%=0.033\% = 0.03
    • Calculation:       Override Commission=₱4,500,000.00×0.03=₱135,000.00\text{Override Commission} = \text{₱}4,500,000.00 \times 0.03 = \text{₱}135,000.00

Multiple Choice Assessment & Solutions

  • Question 1: Direct compensation or monetary payment received by employees, commonly paid on a bi-monthly or monthly schedule in exchange for services rendered, is called ____________.

    • A. wage
    • B. salary
    • C. commission
    • D. allowance
    • Correct Answer: B. salary

  • Question 2: What is the form of direct compensation or monetary payment received by workers, particularly those in non-professional or blue-collar jobs?

    • A. wage
    • B. salary
    • C. commission
    • D. allowance
    • Correct Answer: A. wage

  • Question 3: Which of the following is the additional payment given to employees, provided to cover expenses such as relocation, transportation, clothing, internet, or meals?

    • A. wage
    • B. salary
    • C. commission
    • D. allowance
    • Correct Answer: D. allowance

  • Question 4: What is the compensation paid to an employee, typically to salespeople, as an incentive or motivation to complete tasks or achieve successful sales?

    • A. wage
    • B. salary
    • C. commission
    • D. allowance
    • Correct Answer: C. commission

  • Question 5: To compute an employee’s hourly rate, divide the annual salary by ______________.

    • A. 52
    • B. 2,500
    • C. 2,080
    • D. 5,200
    • Correct Answer: C. 2,080

  • Question 6: If a worker’s hourly rate is ₱100\text{₱}100, then how much is the annual salary?

    • A. ₱52,000\text{₱}52,000
    • B. approximately ₱17,333.33\text{₱}17,333.33
    • C. ₱208,000\text{₱}208,000
    • D. approximately ₱34,666.67\text{₱}34,666.67
    • Correct Answer: C. ₱208,000\text{₱}208,000
    • Solution: Annual Salary=₱100×2,080=₱208,000.00\text{Annual Salary} = \text{₱}100 \times 2,080 = \text{₱}208,000.00

  • Question 7: What is the monthly salary of the employee in Question 6?

    • A. ₱52,000\text{₱}52,000
    • B. approximately ₱17,333.33\text{₱}17,333.33
    • C. ₱208,000\text{₱}208,000
    • D. approximately ₱34,666.67\text{₱}34,666.67
    • Correct Answer: B. approximately ₱17,333.33\text{₱}17,333.33
    • Solution: Monthly Salary=₱208,000.0012=₱17,333.33\text{Monthly Salary} = \frac{\text{₱}208,000.00}{12} = \text{₱}17,333.33

  • Question 8: An employee receives a daily wage of ₱800\text{₱}800. One day he worked for 12 hours as permitted by his employer. How much will he receive on that day?

    • A. ₱1,000\text{₱}1,000
    • B. ₱1,300\text{₱}1,300
    • C. ₱1,400\text{₱}1,400
    • D. ₱1,600\text{₱}1,600
    • Correct Answer: B. ₱1,300\text{₱}1,300
    • Solution:     Hourly Rate=₱800.008=₱100.00\text{Hourly Rate} = \frac{\text{₱}800.00}{8} = \text{₱}100.00Overtime Hours=12−8=4 hours\text{Overtime Hours} = 12 - 8 = 4\text{ hours}Overtime Pay=1.25×₱100.00×4=₱500.00\text{Overtime Pay} = 1.25 \times \text{₱}100.00 \times 4 = \text{₱}500.00Total Pay=₱800.00+₱500.00=₱1,300.00\text{Total Pay} = \text{₱}800.00 + \text{₱}500.00 = \text{₱}1,300.00

  • Question 9: A worker with an hourly rate of ₱105\text{₱}105 works for 11 hours during his rest day. How much is his pay for the first 8 hours?

    • A. ₱1,092\text{₱}1,092
    • B. ₱1,300\text{₱}1,300
    • C. ₱1,501.50\text{₱}1,501.50
    • D. ₱1,624.35\text{₱}1,624.35
    • Correct Answer: A. ₱1,092\text{₱}1,092
    • Solution:     Daily Wage=₱105.00×8=₱840.00\text{Daily Wage} = \text{₱}105.00 \times 8 = \text{₱}840.00Rest Day First 8 Hours Pay=1.3×₱840.00=₱1,092.00\text{Rest Day First 8 Hours Pay} = 1.3 \times \text{₱}840.00 = \text{₱}1,092.00

  • Question 10: Referring to Question 9, how much will the worker receive in total for rendering 11 hours during his rest day?

    • A. ₱1,092\text{₱}1,092
    • B. ₱1,300\text{₱}1,300
    • C. ₱1,501.50\text{₱}1,501.50
    • D. ₱1,624.35\text{₱}1,624.35
    • Correct Answer: D. ₱1,624.35\text{₱}1,624.35
    • Solution:     Overtime Hours=11−8=3 hours\text{Overtime Hours} = 11 - 8 = 3\text{ hours}Overtime Pay=1.3×1.3×₱105.00×3=1.69×₱315.00=₱532.35\text{Overtime Pay} = 1.3 \times 1.3 \times \text{₱}105.00 \times 3 = 1.69 \times \text{₱}315.00 = \text{₱}532.35Total Pay=₱1,092.00+₱532.35=₱1,624.35\text{Total Pay} = \text{₱}1,092.00 + \text{₱}532.35 = \text{₱}1,624.35

Applied Problem-Solving Activity Solutions

  • Problem 1

    • Statement: An employee worked for 12 hours on a special non-working holiday that falls on a rest day. How much is his total pay on that day if his daily wage is ₱900\text{₱}900?
    • Detailed Solution:
    • Given: Daily Wage = ₱900.00\text{₱}900.00, Total Hours = 12 hours (8 regular+4 overtime8\text{ regular} + 4\text{ overtime})
    • Step 1: Compute Hourly Rate       Hourly Rate=₱900.008=₱112.50\text{Hourly Rate} = \frac{\text{₱}900.00}{8} = \text{₱}112.50
    • Step 2: Compute Pay for First 8 Hours (150%150\% rate)       Regular Pay=1.5×₱900.00=₱1,350.00\text{Regular Pay} = 1.5 \times \text{₱}900.00 = \text{₱}1,350.00
    • Step 3: Compute Overtime Pay (1.5×1.3×Hourly Rate×4 hrs1.5 \times 1.3 \times \text{Hourly Rate} \times 4\text{ hrs})       Overtime Pay=1.5×1.3×₱112.50×4=1.95×₱112.50×4=₱877.50\text{Overtime Pay} = 1.5 \times 1.3 \times \text{₱}112.50 \times 4 = 1.95 \times \text{₱}112.50 \times 4 = \text{₱}877.50
    • Step 4: Compute Total Pay       Total Pay=₱1,350.00+₱877.50=₱2,227.50\text{Total Pay} = \text{₱}1,350.00 + \text{₱}877.50 = \text{₱}2,227.50

  • Problem 2

    • Statement: Referring to Problem 1, how much is the total pay if the employee works on a regular holiday that falls on his rest day?
    • Detailed Solution:
    • Given: Daily Wage = ₱900.00\text{₱}900.00, Hourly Rate = ₱112.50\text{₱}112.50, Total Hours = 12 hours (8 regular+4 overtime8\text{ regular} + 4\text{ overtime})
    • Step 1: Compute Pay for First 8 Hours (260%260\% rate)       Regular Pay=2.6×₱900.00=₱2,340.00\text{Regular Pay} = 2.6 \times \text{₱}900.00 = \text{₱}2,340.00
    • Step 2: Compute Overtime Pay (2.6×1.3×Hourly Rate×4 hrs2.6 \times 1.3 \times \text{Hourly Rate} \times 4\text{ hrs})       Overtime Pay=2.6×1.3×₱112.50×4=3.38×₱112.50×4=₱1,521.00\text{Overtime Pay} = 2.6 \times 1.3 \times \text{₱}112.50 \times 4 = 3.38 \times \text{₱}112.50 \times 4 = \text{₱}1,521.00
    • Step 3: Compute Total Pay       Total Pay=₱2,340.00+₱1,521.00=₱3,861.00\text{Total Pay} = \text{₱}2,340.00 + \text{₱}1,521.00 = \text{₱}3,861.00

  • Problem 3

    • Statement: Josie has a basic monthly salary of ₱20,000\text{₱}20,000 and receives a 5% commission on sales. In one month, she sells ₱100,000\text{₱}100,000 worth of different products. How much are her total earnings for that month?
    • Detailed Solution:
    • Given: Basic Monthly Salary = ₱20,000.00\text{₱}20,000.00, Commission Rate = 5%=0.055\% = 0.05, Total Sales = ₱100,000.00\text{₱}100,000.00
    • Step 1: Compute Commission Earned       Commission=₱100,000.00×0.05=₱5,000.00\text{Commission} = \text{₱}100,000.00 \times 0.05 = \text{₱}5,000.00
    • Step 2: Compute Total Earnings       Total Earnings=₱20,000.00+₱5,000.00=₱25,000.00\text{Total Earnings} = \text{₱}20,000.00 + \text{₱}5,000.00 = \text{₱}25,000.00

  • Problem 4

    • Statement: Jimmy gets a 7% commission from total sales of ₱320,000\text{₱}320,000. How much are his total earnings if he received a draw of ₱18,000\text{₱}18,000?
    • Detailed Solution:
    • Given: Total Sales = ₱320,000.00\text{₱}320,000.00, Commission Rate = 7%=0.077\% = 0.07, Monthly Draw Received = ₱18,000.00\text{₱}18,000.00
    • Step 1: Compute Gross Commission Earned       Gross Commission=₱320,000.00×0.07=₱22,400.00\text{Gross Commission} = \text{₱}320,000.00 \times 0.07 = \text{₱}22,400.00
    • Step 2: Compute Net Pay Due Beyond the Draw       Net Pay Due=₱22,400.00−₱18,000.00=₱4,400.00\text{Net Pay Due} = \text{₱}22,400.00 - \text{₱}18,000.00 = \text{₱}4,400.00
    • Jimmy's total monthly earnings amount to ₱22,400.00\text{₱}22,400.00, consisting of the ₱18,000.00\text{₱}18,000.00 advance draw already received plus the remaining net payout of ₱4,400.00\text{₱}4,400.00.