Grade 12 - Business Mathematics

3. Opening Prayer

4. Salaries
and
Wages

5. Learning Objectives
 define salary, wage, income, and benefits.
2
At the end 60 minutes, the learners are able to:
 differentiate between salary and wage.
 distinguish between salary earner and wage
earner; and
 distinguish between income and benefit.

6. Review!
Interest & Commission
Interest is money earned when money is
invested. Interest is charged incurred
when a loan or credit is obtained.

7. Commission
- Commission, also known as
sales commission, is a payment
given to employees based on the
sales they make.

8. What do you think are
these people doing?
Where are these people
going?

9. Compensation Income
- It includes salaries, wages, bonuses, and allowances.

10. It is a fixed regular payment or
compensation usually quoted
annually or monthly or every
two weeks for an employee.
A salary is a form of periodic payment from an
employer to an employee, which may be specified
in an employment contract.

11. Illustrative Example
Ms. Shanna C. Dela Cruz
receives a monthly payment
of ₱19,500.00 as inventory
officer.
Hence, the amount of
₱19,500.00 is an
example of a salary.
Hint: monthly

12. It is a fixed regular payment or
compensation quoted at an hourly
or daily rate for an employee.
a payment usually of money for
labor or services generally according
to contract and on an hourly, daily, or
piecework basis .

13. Illustrative Example
Perry is paid ₱475.00 a day
as an internet café assistant. Thus, the amount
of ₱475.00 is an
example of a wage.
Hint: a day

14. They usually get paid every 15 days
(bi-monthly). They are not saved
money on the off chance that they
work for just a small amount of the
necessary number of hours and they
are likewise not paid for staying at
work past 40 hours.
is someone who earns a fixed
regular payment made by an
employer, often monthly, for
professional or office work.

15. Illustrative Example
Mr. Benjie T. Lopez takes
home ₱21,900.00 every
month as the bank manager.
Hence, Mr. Lopez
is a salary earner.
Hint: every monthly

16. They are usually paid daily,
weekly or semi-monthly, or
even monthly, at their
employer's convenience. They
are under the “no work, no pay
policy” which implies they are
just paid the actual number of
hours or days that they worked.

17. Illustrative Example
Mrs. Rina A. Santos earns
₱75.00 per hour as a store
clerk.
Thus, Mrs. Santos is
a wage earner.
Hint: per hour

18. 16
Cash that an individual gets in return for
giving a good/service or through
contributing capital.

19. Illustrative Example
Mr. Zandro Y. Lucero
receives ₱22,400.00 per
month as a bank teller. Hence, Mr. Lucero
receives a monthly
income of
₱22,400.00 as a
bank teller.

20. It is a worker's pay given by a business on top of the basic
compensation/wage. Note that benefits may come in the
form of money or in kind.
De Minimis benefits
include a variety of
products or services
that employers may
provide to employees,
and which employees
are not required to
claim as part of their
gross income.

21. Illustrative Example
Wilfredo receives a sack of rice
every month for his rice subsidy
from the company he works with. Thus, rice subsidy is
one example of De
Minimis benefits.

22. Examples of De Minimis benefits that may be excluded from the
employee’s gross income include occasional benefits from the
following areas:
Monetized unused vacation leave credits of private employees not exceeding ten
(10) days during the year;
Monetized value of vacation and sick leave credits paid to government officials
and employees;
Medical cash allowance to dependents of employees, not exceeding P1,500 per
employee per semester or P250 per month;
Rice subsidy of P2,000 or one (1) sack of 50 kg. rice per month amounting to not
more that P2,000;
Uniform and clothing allowance not exceeding P6,000 per annum;
Laundry allowance not exceeding P300 per month
Meals, meal vouchers, or meal money provided to employees working overtime

23. Mastery Development ( Short Quiz)
_____ 1.Salary
_____ 2. salary earner
_____ 3. wage
_____ 4. wage earner
_____ 5. benefit
_____ 6. income
_____ 7. compensation income
A. get paid either weekly or sometimes even
monthly, at their employer's convenience
B. usually get paid every 15 days (bimonthly)
C. includes salaries, wages, bonuses, and
allowances
D. compensation quoted in an hourly or daily
rate for an employee
E. the compensation usually quoted annually
or monthly for an employee
F. money that an individual receives in
exchange for providing a good/service or
through investing capital
G. additional privileges are given to employees
Match-Up Activity
Time Allotment: 10 minutes
A. Write the letter of the correct match next to each item.

24. Mastery Development ( Short Quiz)
E _____ 1.Salary
B _____ 2. salary earner
D _____ 3. wage
A _____ 4. wage earner
G _____ 5. benefit
F _____ 6. income
C _____ 7. compensation income
A. get paid either weekly or sometimes even
monthly, at their employer's convenience
B. usually get paid every 15 days (bimonthly)
C. includes salaries, wages, bonuses, and
allowances
D. compensation quoted in an hourly or daily
rate for an employee
E. the compensation usually quoted annually
or monthly for an employee
F. money that an individual receives in
exchange for providing a good/service or
through investing capital
G. additional privileges are given to employees
Match-Up Activity
Time Allotment: 10 minutes
A. Write the letter of the correct match next to each item.

25. A. Determine if the given type of compensation falls under salary or
wage. Write S for salary, otherwise W for a wage.
_____1. Mr. Gonzales receives a gross pay of ₱355,000.00
as a Chief Finance Officer in an investment company.
_____2. Engr. Palacio takes home pay of ₱85,000.00 monthly as a
consultant in a construction venture.
_____3. Mrs. Reyes earns ₱475.00 per day as a helper in the RTW store.
_____4. Ms. Santos is paid ₱50.00 per hour as an internet café assistant.
She works part-time for 4-5 hours a day.
Application:
Situation Analysis
Time Allotment: 15 minutes

26. C. Which of the following situation illustrates income? Justify your
answer.
1. Janella bought ingredients for mango float for her mother’s birthday
celebration.
2. Princess receives base pay of ₱21,500.00 per month as a pre-school
teacher in an international school.
3. Hazel spent ₱3,000.00 on her new shoes.
4. Winnie receives the amount of ₱2,300.00 from her online selling
business.
Situation Analysis

27. A. Determine if the given type of compensation falls under salary or wage.
Write S for salary, otherwise W for a wage.
__S___1. Mr. Gonzales receives a gross pay of ₱355,000.00
as a Chief Finance Officer in an investment company.
__S___2. Engr. Palacio takes home pay of ₱85,000.00 monthly as a
consultant in a construction venture.
__W___3. Mrs. Reyes earns ₱475.00 per day as a helper in the RTW store.
__W___4. Ms. Santos is paid ₱50.00 per hour as an internet café assistant.
She works part-time for 4-5 hours a day.
Application:
Situation Analysis
Time Allotment: 15 minutes

28. C. Which of the following situation illustrates income? Justify your answer.
1. Janella bought ingredients for mango float for her mother’s birthday
celebration.
Ans. NO, because the ingredients bought for Mango float is for personal
use.
2. Princess receives base pay of ₱21,500.00 per month as a pre-school teacher
in an international school.
Ans. YES, because the amount of ₱21,500.00 is her salary as a pre-school
teacher
3. Hazel spent ₱3,000.00 on her new shoes.
Ans. NO, because buying shoes for personal use is not an income. It is an
expense.
4. Winnie receives the amount of ₱2,300.00 from her online selling business.
Ans. YES, receiving ₱2,300.00 from her online selling business is an income.
Situation Analysis

29. Choose the letter of the best answer.
1. Which of the following are paid according to the contract on an
hourly basis?
A. salary B. wage C. income D. benefit
2. Which of the following are paid on a fixed regular monthly?
A. salary B. wage C. income D. benefit
3. Which of the following worker under the “no work, no pay policy”?
A. salary earner B. wage earner C. income earner D. professional
4. Which of the following workers are not paid less if they work for only a
fraction of the required number of hours?
A. salary earners B. wage earners C. income earners D. professionals
5. Which of the following can be in the form of cash or in-kind?
A. salary B. wage C. income D. benefit
Time Allotment: 5 minutes

30. Choose the letter of the best answer.
1. Which of the following are paid according to the contract on an
hourly basis?
A. salary B. wage C. income D. benefit
2. Which of the following are paid on a fixed regular monthly?
A. salary B. wage C. income D. benefit
3. Which of the following worker under the “no work, no pay policy”?
A. salary earner B. wage earner C. income earner D. professional
4. Which of the following workers are not paid less if they work for only a
fraction of the required number of hours?
A. salary earners B. wage earners C. income earners D. professionals
5. Which of the following can be in the form of cash or in-kind?
A. salary B. wage C. income D. benefit
Time Allotment: 5 minutes

31. Study in advance:
1.Gross Income and Net Income