Business Mathematics Module 11 Introduction to Salaries, Wages, Income, and Benefits PDF

Preview

Summary

BusinessMathematicsQuarter 2 – Module 11:Introduction to Salaries, Wages,Income, and Benefits####### Senior High SchoolWriter: JHOANNA S. MANALOTO Teacher II - San Juan High School (Mexico) Editors: JANE P. VALENCIA, Ed. – EPS – Mathematics (CHAIRMAN) CHARIZEL T. ARCILLA – SPST-I Malino National Hig...

Description

Senior High School

Business Mathematics Quarter 2 – Module 11:

Introduction to Salaries, Wages, Income, and Benefits

Writer:

JHOANNA S. MANALOTO Teacher II - San Juan High School (Mexico) Editors: JANE P. VALENCIA, Ed.D. – EPS – Mathematics (CHAIRMAN) CHARIZEL T. ARCILLA – SPST-I Malino National High School

JHOANNA S. MANALOTO

T II San Juan High School (Mexico)

What I Need to Know This module was designed and written with you in mind. It is here to help you apply the fundamental operations of mathematics as applied in salaries, wages, income and benefits. After going through this module, you are expected to: • define salary, wage, income, benefits.

What I Know

Pre-Assessment Direction: Choose the letter of the correct answer. Write the letter that corresponds to your answer on a separate sheet of paper. Show your solution. If some items are new to you, choose the best answer based on your perception. 1. It is a fixed amount usually associated with employee compensation usually received on a monthly or semi-monthly basis, but it may be quoted in an annual sum. A. salary B. wage C. income D. benefit 2. It is usually associated with employee compensation that is based on the number of hours worked multiplied by an hourly rate of pay. A. salary B. wage C. income D. benefit 3. It is the total amount that people earn in exchange of the goods, employment, businesses, investments and professional services that they have rendered. A. salary B. wage C. income D. benefit 4. It is an employee compensation given by an employer other than the basic salary/wage. It may come in the form of cash or in kind. A. salary B. wage C. income D. benefit 5. These are employees who are not paid less if they work for only a fraction of the required number of hours of work. A. salary earner C. income earner B. wage earner D. benefit earner 6. These are employees who are under the “no work, no pay” policy. A. salary earner C. income earner B. wage earner D. benefit earner 7. It is a type of income where you do the work and you are paid for that work. A. active B. passive C. captive D. abusive 8. It is a type of income where the payment is not directly tied to active work but usually front-loaded with active work and gets paid with small amount, while the bulk of income comes later. A. active B. passive C. captive D. abusive

2

9. Which of the following is NOT a salary earner? A. teacher B. engineer C. manager

D. mechanic

10. Which of the following is NOT a wage earner? A. service crew B. carpenter C. lawyer

D. private tutor

11. Julie earns ₱8,500 a week. How much will she receive each pay day if she is being paid bi-weekly? A. ₱8,500 B. ₱17,000 C. ₱34,000 D. ₱38,000 12. Freya works as a seller in a boutique. She earned ₱18,000 for working 20 days in a month. How much is her daily rate? A. ₱200 B. ₱800 C. ₱900 D. ₱1,800 13. Mrs. Carreon who works as a teacher in a private school is being paid ₱9,000 every two weeks. How much will be her annual salary? A. ₱18,000 B. ₱36,000 C. ₱216,000 D. ₱234,000 14. Maurice applies for a secretarial position in the MY Company. They offer an annual salary of ₱288,000 which will be given bi-weekly. How much will she receive every pay day if she will accept the offer? A. ₱5,538 B. ₱11,077 C. ₱12,000 D. ₱24,000 15. Carl Michael is a call center agent and got an offer from two big companies. Company ABC offers a monthly salary of ₱35,000. However, the workplace is far from where he lives where renting a house costs ₱7,000 a month. On the other hand, Company XYZ offers a monthly salary of ₱30,000 and a free accommodation near the workplace. Based on the given information, which company is offering a better compensation and benefit package? A. Company ABC C. both companies B. Company XYZ D. neither of the two companies

3

Lesson

1

Salaries, Wages, Income, and Benefits

People in our community have different professions (e.g. doctors, lawyers, teachers) and jobs (e.g. carpenters, factory workers, fishermen, drivers). These people who work expect a monetary return for their goods or services. It allows them to make a living from their labour. There are different ways on how a person gets paid for his/her services through different manners of payment like salary, wages, benefits and other sources of income.

What’s In

As a recall on your previous lesson on commission, read and analyze each of the following problems then solve. Write your final answer on a separate sheet of paper or notebook. Show your solution. 1. Encar makes money by commission rates. She gets 10% of everything she sells. If Encar sold ₱150,000 worth of item, how much will she get for this month? 2. Yvette works as an agent with a monthly quota of ₱30,000 for which she gets 15% commission on all sales beyond her monthly quota. If she sold ₱70,000 worth of goods this month, how much will be her commission for this month? 3. Yancy receives a 5% commission on his sales of at most ₱50,000 quota. An additional 3% commission is given for the sales beyond his quota. If his sales reached ₱70,000 for the month, how much commission will he get? 4. Andrea, a real-estate agent received a 2% commission of ₱200,000, for selling a house and lot in a prestigious subdivision. What was the price of the house and lot? 5. Calix, a promodiser in a department store sold a set of kitchen wares for ₱20,000 and got a ₱1,000 commission. What was the commission rate?

4

What’s New

The Top 10 Highest-Paying Jobs in the Philippines What is your dream job? Have you ever wondered about the highest paying jobs in the Philippines? The Department of Labor and Employment (DOLE), in partnership with the Bureau of Local Employment (BLE), revealed the top 10 highest-paying jobs in their Labor Market Trends report released in March 2019.

RANK

JOB

ESTIMATED SALARY

1

Aircraft Pilots, Navigators, and Flight Engineers

₱116,714.00

3

Securities and Finance Dealers and Brokers Civil Engineers

4

Actuaries

₱60,477.00

5

Computer Programmers

₱52,331.00

6

System Analysts and Designers

₱51,069.00

7

Computer Engineers

₱49,335.00

8

Accountants and Auditors

₱47,756.00

9

Production Supervisor & Foremen

₱47,101.00

2

₱89,831.00 ₱68,957.00

EDUCATION REQUIREMENT BS Aeronautics, BS Aeronautical Engineering, BS Air Transportation, BS Aircraft Maintenance BS Finance, BS Management BS Administration, BS Economics BS Civil Engineering BS Accountancy, BS Mathematics, BS Economics BS Computer Science, BS Information Technology BS Computer Science, BS Information Technology BS Computer Engineering, BS Information Technology BS Accountancy, BS Management Accounting BS Industrial Engineering

BS Statistics, BS Mathematics Source:https://www.sodexo.ph/blogs/top-10-highest-paying-jobs-in-the-philippines-2019/ 10

Statistician

₱41,480.00

Notes to the Teacher The teacher may show some pictures of different professions and may ask of the students’ dream job. Ask the students how these jobs get compensated for what they do. This will lead to the discussion of salaries and wages.

5

What is It

After graduation, do you plan to work? Do you plan to put up your own business? Do you want to pursue college and go after your dream job? Whatever you plan to do, you will surely use your talent, creativity, and expertise and get compensated for what you do. Therefore, you must be familiarized with the differences between salary, wages, income and benefits.

Salary is a fixed amount usually associated with employee compensation usually received on a monthly or semi-monthly basis, but it may be quoted in an annual sum.

It is, sometimes, necessary to convert salaries on an annual basis into monthly basis, weekly to monthly, monthly to semi-monthly, etc. In these cases, we should always remember that: 1 year = 12 months = 24 semi-monthly 1 year = 52 weeks = 26 bi-weekly 1 month = 2 semi-monthly where:

“semi-monthly” means “given twice a month” and “bi-weekly” means “given every two weeks”

Salary Earners ➢ These are the employees who receive the salaries and usually get paid every 15 days (semi-monthly). ➢ These employees are not paid less if they work for only a fraction of the required number of hours of work. ➢ They are not paid for working overtime. Examples: 1. Mr. Sarmiento, a manager of the Maharlika Company earns ₱420,000 annually. If he is paid monthly, how much does he get on his paycheck? Solution: Since there are 12 months in a year, then we divide the annual salary by 12. That is: monthly salary =

annual salary ₱420,000 = ₱35,000 = 12 12

6

2. A university assistant professor in a state university gets a monthly salary of ₱50,000. How much will he receive if the salary is given semi-monthly?

Solution: Since semi-monthly salary is given two times a month, then we divide the monthly salary by 2. That is: semi − monthly salary =

monthly salary ₱50,000 = ₱25,000 = 2 2

3. Mrs. Sanchez works as an accountant and gets a salary of ₱15,000 which is given semimonthly. How much will be her annual salary? Solution: Since semi-monthly salaries are given twice a month or 24 times in a year, then we multiply the semi-monthly salary by 24. That is: Annual salary = (semi-monthly salary)(24) = (₱15,000)(24) = ₱360,000 4. Mr. Reyes gets a salary of ₱10,000 which is given bi-weekly. How much will be his annual salary? Solution: Since bi-weekly salaries are given every two weeks or 26 times in a year, then we multiply the bi-weekly salary by 26. That is: Annual salary = ( bi-weekly salary)(26) = (₱10,000)(26) = ₱260,000

Wage is usually associated with employee compensation that is based on the number of hours/days worked multiplied by an hourly/daily rate of pay.

Wage is usually paid on a weekly basis, but it may be quoted in an hourly rate or daily rate of an employee. To solve for the wage, remember that: wage = (hourly rate)(no. of hours worked) = (daily rate)(no. of days worked) Wage Earners ➢ These are the employees who receive the wages and usually get paid either weekly or monthly depending on the employer’s convenience. ➢ These employees are under the “no work, no pay” policy where they are only paid for the actual number of hours or days that they rendered work but they are paid for working overtime. Examples:

7

1. Mari Glenne works as a math tutor and is paid ₱150 per hour. How much wage does she earn for a 10-hour per week of work? Solution: Since the given is the hourly rate, we simply multiply it by the number of hours worked. That is: wage = (hourly rate)(no. of hours worked) = (₱150)(10 hours) = ₱1,500 2. Mang Pedro, a minimum wage earner in Metro Manila is paid ₱450.50 for an 8-hour workday. What is his hourly wage?

Solution: Since the given is wage and he worked for 8 hours, then we must divide the wage by 8. That is:

hourly rate = = =

wage no. of hours worked ₱450.50 8 ₱56.31

Income is the total amount that people earn in exchange of the goods, employment, businesses, investments and professional services that they have rendered.

Types of Income 1. Active Income Active income is when you do the work and are paid for that work. If you do nothing, you will no longer be paid. 2. Passive Income Passive income is when the payment is not directly tied to active work. It is usually front-loaded with active work and gets paid with small amount, while the bulk of income comes later. Sources of Income a. b. c. d. e. f. g. h.

Commission Income – payment for the commission on sales Rental Income – payment from rentals of properties and real estates Dividends– from investments and partnerships Royalties – payments for authors, products sold or license Business Income – profits from businesses Interest – from a variety of loans from individuals or companies Capital Gains – from the sales of investments Goods – such as crops, fish and other products

Benefits are employee compensation given by an employer other than the basic salary/wage. It may come in the form of cash or in kind.

8...