Salaries and Wages - Quick Review (Units 1-3)

UNIT 1: BUSINESS AND FINANCE THROUGH PROBLEMS INVOLVING EARNING MONEY, BUYING, AND SELLING

This unit focuses on converting between income terms, computing wages, and applying percentage changes in real-world contexts such as inflation, price markups, discounts, and value-added tax. It also covers using technology to solve problems involving salaries, wages, benefits, and deductions.
Key formulas include:
$\text{Monthly Salary} = \frac{\text{Annual Salary}}{12}$
$\text{Monthly Salary} = \text{Daily Wage} \times 24$
$\text{Semi-Monthly Salary} = \frac{\text{Monthly Salary}}{2}$
$\text{Weekly Salary} = \frac{\text{Annual Salary}}{52}$
$\text{Weekly Salary} = \text{Daily Wage} \times 6$
$\text{Fortnightly Pay} = \text{Weekly Pay} \times 2$
$\text{Daily Rate} = \frac{\text{Monthly Salary}}{\text{Number of Days per Month}}$
$\text{Monthly to Annual} = \text{Monthly Salary} \times 12$

• In addition, learn to apply percentage changes such as inflation, percentage markups and discounts, VAT, and to compute profit or loss in both absolute and percentage terms.

• Problems may involve salaries, wages, benefits, and deductions, including tax computations and overtime pay, often using appropriate technology for calculation.

UNIT 2: PATTERNS, ARITHMETIC AND SEQUENCES, AND SERIES (GEOMETRIC)

This unit covers describing patterns, determining the next term, identifying rules, and illustrating arithmetic and geometric sequences. It also includes solving problems involving these sequences and recognizing patterns in art and nature.

UNIT 3: FINANCIAL APPLICATION OF SEQUENCE AND SERIES

This unit applies sequences and series to financial problems such as loans, mortgages, and investment value over time, enabling determination of accumulated values and payment schedules.

SALARIES AND WAGES: KEY TERMINOLOGIES AND CALCULATIONS

Salaries and wages involve distinct terms and calculations. Income terminologies define the broad concept of pay received for work or investment. Salary terminologies describe fixed regular payments, usually monthly, not depending on hours worked, while wage terminologies refer to compensation based on time or output, often with hourly or daily rates and overtime. Minimum wage terminology identifies the legally fixed lowest hourly rate. Benefits cover additional compensation, cash or in-kind, such as 13th month pay, bonuses, allowances, and social benefits like SSS/GSIS, Pag-ibig, and PhilHealth. Salaries and wages vary by nature of work, location, and time of work, with city positions typically paying more than provincial ones. Payslips show earnings for a defined pay period, including gross pay and deductions to yield net pay.

Overtime Pay involves compensation for hours worked beyond standard hours, with multipliers depending on the scenario. Regular overtime is typically paid at a higher rate (e.g., 1.25x), with additional multipliers for rest days and holidays. Night shift differential adds a further premium (commonly 1.10x) for work between 10:00 PM and 6:00 AM. Special holidays and combinations of holidays with rest days or overtime have their own multipliers, ranging up to 3.38x for some combinations. A typical reference set includes: Regular OT = 1.25x; Rest Day = 1.30x; Rest Day + OT = 1.69x; Special Holiday = 1.30x; Special Holiday + OT = 1.69x; Regular Holiday = 2.00x; Regular Holiday + OT = 2.60x; Rest Day + Regular Holiday + OT = 3.38x; Night Differential = 1.10x.

Commission Pay is earned as a percentage of sales and can be pure commission or base salary plus commission. It is computed as $\text{Commission} = \text{Total Sales} \times \text{Commission Rate}$ and is common in sales-driven fields. Piecework earnings are based on output rather than time: $\text{Piecework earnings} = \text{Number of items completed} \times \text{Rate per item}$

Wages across different time frames are connected by simple conversions: $\text{Hourly to Weekly} = \text{Hourly Rate} \times \text{Hours per Week}$
$\text{Daily to Monthly} = \text{Daily Rate} \times \text{Days Worked per Month}$
$\text{Monthly to Annual} = \text{Monthly Rate} \times 12$

Income and salary terminology define the core concepts used to describe earnings. Netto pay and gross pay are related by deductions: $\text{Net Pay} = \text{Gross Pay} - \text{Total Deductions}$ and equivalently $\text{Gross Pay} = \text{Net Pay} + \text{Total Deductions}$

Salaries may be expressed in different time frames; a common conversion is Daily Rate from Monthly Salary: $\text{Daily Rate} = \frac{\text{Monthly Salary}}{\text{Number of Days per Month}}$

Other essential concepts include contractual and probationary employment terms, the difference between gross and net pay, and the role of a payslip as the earnings document for a defined pay period.

ADDITIONAL TOPICS: CALCULATIONS AND EXAMPLES (SELECTED)

Daily, weekly, and monthly earnings can be derived from given data. For example, if annual salary is known, monthly and weekly salaries can be computed via the formulas above. Fortnightly pay is simply the weekly pay multiplied by two: $\text{Fortnightly Pay} = \text{Weekly Pay} \times 2$, and annual to monthly or monthly to annual conversions are used to switch between time frames. Overtime scenarios illustrate the application of multipliers to base pay, with different rules for regular days, rest days, and holidays. When deductions are present, net pay is obtained by subtracting total deductions from gross pay, and gross pay can be recovered by adding deductions back to net pay. In production or service contexts, earnings may also be based on items produced or tasks completed, using per-item rates or allowances in addition to base pay.

SUMMARY OF KEY FORMULAS

• Monthly Salary from Annual Salary: $\text{Monthly Salary} = \frac{\text{Annual Salary}}{12}$

• Monthly Salary from Daily Wage: $\text{Monthly Salary} = \text{Daily Wage} \times 24$

• Semi-Monthly Salary: $\text{Semi-Monthly Salary} = \frac{\text{Monthly Salary}}{2}$

• Weekly Salary from Annual Salary: $\text{Weekly Salary} = \frac{\text{Annual Salary}}{52}$

• Weekly Salary from Daily Wage: $\text{Weekly Salary} = \text{Daily Wage} \times 6$

• Fortnightly Pay: $\text{Fortnightly Pay} = \text{Weekly Pay} \times 2$

• Daily Rate: $\text{Daily Rate} = \frac{\text{Monthly Salary}}{\text{Number of Days per Month}}$

• Monthly to Annual: $\text{Annual Pay} = \text{Monthly Salary} \times 12$

• Night Shift Differential: $\text{Night Shift Rate} = \text{Applicable Rate} \times 1.10$

• Overtime multipliers (selected): Regular OT = $1.25\times\text{regular rate}$; Rest Day = $1.30\times\text{regular rate}$; Regular Holiday = $2.00\times\text{regular rate}$; Rest Day + Regular Holiday + OT up to $3.38\times\text{regular rate}$; Night Differential = $1.10\times\text{regular rate}$

• Commission: $\text{Commission} = \text{Total Sales} \times \text{Commission Rate}$

• Piecework: $\text{Piecework earnings} = \text{Number of items completed} \times \text{Rate per item}$

• Regular to Overtime Pay: $\text{Total Pay} = (\text{Regular Rate} \times \text{Regular Hours}) + (\text{Overtime Rate} \times \text{Overtime Hours})$ (for hourly-based work)

• Daily rate (from monthly): $\text{Daily Rate} = \frac{\text{Monthly Salary}}{\text{Days per Month}}$

• Net and Gross Pay: $\text{Net Pay} = \text{Gross Pay} - \text{Total Deductions}$ ; $\text{Gross Pay} = \text{Net Pay} + \text{Total Deductions}$

These notes cover the essential ideas and formulas needed for quick reference and last-minute review of salaries and wages concepts, including how to convert between different income timeframes, how overtime and holiday multipliers work, and how commissions and piecework contribute to total earnings.