Earning Money: Quick-Review Notes

Content & Performance Standards

• Learners must solve problems on earning, buying, and selling.
• Must be able to compute salaries, wages, deductions, and income for varied employee profiles.

Key Definitions

• Salary: Fixed amount agreed upon, independent of hours worked.
• Wage: Pay based on piece, hour, or day.
• Allowance: Extra fixed payment to cover expenses or difficult conditions.
• Commission: Percentage of sales value earned by a salesperson.
• Piecework: Pay proportional to quantity produced.

Useful Time Conversions

• $1\ \text{year}=12\ \text{months}=52\ \text{weeks}$
• $1\ \text{year}=24\ \text{semi\text{-}months}=26\ \text{bi\text{-}weeks}$
• $1\ \text{month}=2\ \text{semi\text{-}months}$

Salary-Based Computations

• $Annual\ Salary = Monthly\ Salary \times 12$
• $Monthly\ Salary = \dfrac{Annual\ Salary}{12}$
• $Semi\text{-}Monthly\ Salary = \dfrac{Annual\ Salary}{24}$
• $Weekly\ Salary = \dfrac{Annual\ Salary}{52}$
• $Bi\text{-}Weekly\ Salary = \dfrac{Annual\ Salary}{26}$
• $Hourly\ Rate = \dfrac{Weekly\ Salary}{n}$ where $n$ = regular weekly hours (e.g., $40$ for PH gov’t).

Allowances

• Earnings formula: $Total\ Earnings = Basic\ Salary + Allowance$
• Legally mandatory (PH):
  • COLA – region-based aid for minimum-wage earners.
  • PERA – $\text{Php}2{,}000$ monthly for gov’t workers.
• Common optional allowances: Transportation, Representation, Clothing (≤ $\text{Php}7{,}000$ / year), Daily Meal (≤ $25\%$ of minimum wage), Rice (value of $50\,kg$), etc.

Commission

• $Commission = Sales \times Commission\ Rate$
• Combined pay: $Gross\ Earnings = Basic\ Pay + Commission$

Piecework

• $Total\ Earnings = Quantity\ Produced \times Rate\ per\ Piece$

Quick Examples

• Allowance: Technician $8{,}000 + 500 = 8{,}500$
• Commission: Salesperson $30{,}000 \times 5\% = 1{,}500$; gross $7{,}000 + 1{,}500 = 8{,}500$
• Piecework: Painter $800 \times 3 = 2{,}400$

Comparative Earnings Snapshot

• Job A (Salary + Commission): $4{,}000 + (50{,}000 \times 12\%) = 10{,}000$
• Job B (Piecework): $230 \times 20 = 4{,}600$
• Job C (With Allowance): $5{,}000 + 800 = 5{,}800$
• Highest: Job A.

Core Formulas Cheat-Sheet

• $Annual = Monthly \times 12$ ; $Hourly = \dfrac{Weekly}{n}$
• $Allowance\ Pay = Basic + Allowance$
• $Commission = Sales \times Rate$ ; $Gross = Basic + Commission$
• $Piecework = Qty \times Rate/pc$

Remember: choose the computation method (salary, allowance, commission, piecework) that matches the job contract and always apply the corresponding formula accurately.