Lesson 2: Salary and Overtime Flashcards
a form of payment from an employer to an
employee, which may be specified in an employment
contract
salary
a fixed regular payment, typically paid on a
monthly or biweekly basis but often expressed as an
annual sum, made by an employer to an employee,
especially a professional or white-collar worker.
salary
the amount paid to an employee before
any extras are added or taken off, such as reductions
because of salary sacrifice schemes or an increase due
to overtime or a bonus.
basic salary
such as internet for
home-based workers or contributions to phone usage,
would also be added to the basic salary.
allowances
the compensation usually quoted annually
or monthly for an employee
basic salary
the compensation usually quoted annually
or monthly for an employee
basic salary
compensation quoted in an hourly or daily rate
for an employee
wage
a particular amount of money that is paid,
usually every week, to an employee, especially one does
work that needs physical skills or strength, rather than a
job needing a college education
wage
money (or some equivalent value) that an
individual or business receives, usually in exchange for
providing a good or service or through investing capital.
income
used to fund day-to-day expenditures.
Investments, pensions
income
primary
sources of income for retirees
social security (pension)
income is most often received in the form of
wages and salary
can refer to a company’s remaining
revenues after paying all expenses and taxes
business income
income is referred to as
earnings
A product or service’s customer-oriented
strengths
benefits
statements of a valuable product or service
feature, with an emphasis on what the customer gets
from the products.
benefits
defined as a form of
compensation paid by employers to employees over and
above regular salary or wages.
employee beneits
the amount earned by any
person before subtracting the taxes, benefits,
loans, and other possible deductions.
gross earnings
the amount earned by any person
from the gross earnings less the total deductions
net earnings
the amount held by any authority
as a form of payment for some necessary dues like
taxes, loans, etc.
deductions
formula for total earnings
total earnings = deductions + net earnings
formula for net earnings
net earnings = total earnings - deductions
formula for deductions
deductions = total earnings - net earnings
the basic amount a
worker earns for a standard workday.
daily wage
the minimum wage varies by
region
each region has its own minimum
wage set by the
regional wage boards
Calculated by multiplying the daily
wage by the number of working days in a month
monthly salary
typical working days in a month for a 5 day work week
22
any work that exceeds the standard 8
hours a day or 40 hours a week.
overtime pay/work
regular overtime
1.25x hourly rate
special holiday overtime
1.30x hourly rate
regular holiday overtime
1.69 hourly rate
Employees are entitled to additional pay for working
on holidays.
holiday pay
not worked on regular holidays
100% daily wage
worked on regular holidays
200% daily wage
not worked on special non-working holidays
100% daily wage (only if employee worked the day before)
worked on special non-working holidays
130% daily wage
Fixed compensation
for employees, usually
monthly
salary
Hourly or daily
compensation for employees.
wage
withholding tax
10% of gross pay
SSS
11% of gross pay (7.67% employer, 3.33% employee)
philhealth
2.5% of gross pay (1.75% employer, 0.75% employee)
pag-ibig
1% of gross pay (0.5% employer and employee)
minimum wage law
RA 6727
labor code of the philippines
presidential decree 442
social security act of 1997
RA 8282
philhealth act of 1995
RA 7875
pag-ibig fund act of 2009
RA 9679
refers to any hours worked by an
employee that exceed their normally scheduled
working hours
overtime
the amount of time a person
works beyond working hours.
overtime
money earned at an increased rate
for working more than the usual number of hours in
one week.
overtime pay
the legal basis for overtime pay.
presidential decree 442
means the differential paid for
work performed when the majority of a prevailing rate
employees regularly scheduled non-overtime hours fall
between 3 p.m. and 8 a.m
night shift differential
night shift differential for public/government
20% hourly wage x no. of hours
night shift differential for private
10% hourly wage x no. of hours
night shift differential hours fall between
3PM to 8AM
retirement pay =
22.5 x daily rate x no. of years served
13 month pay =
1/12 x annual basic salary
maternity benefit for normal delivery
2x average monthly salary
maternity benefit for caesarean
2.6x average monthly salary
refers to payment of the regular daily wage for any non-working regular holiday
holiday pay
