 Employee compensation refers to

the remuneration or reward that an

employee gets form his or her
employer for the services he or she
gives the latter
 Anemployee, be it of a profit-making
entity or non-profit organization, is
paid something in return for his or her
services.
ARE WAGES AND
SALARY
DIFFERENT?
 Wages is used where the amount of
money the employee receives may
vary from one pay period to the
next, as the amount paid is directly
dependent on the amount of hours
worked.
 Salary refers to an agreed and fixed
annual amount of money the
employee receives regardless of the
hours worked.
Basic pay in an employee’s
compensation package refers
to the wages or salaries they
get. Wages refer to the
earnings received by a
worker on a piece-rate,
hourly rate or daily rate.
A worker employed on a “piecework”
basis is paid in proportion to the quantity
of work he or she finishes.
 Fixed piece-rate plan is the rate used that
is fixed irrespective of the quantity
produced.
 Differential piece-work plan is the
increasing rate when the quantity
produced increases.
Tammy is paid on a per-piece basis at
the rate of 1.20 pesos per piece. If
she finishes 360 pieces a week, how
much is her total earnings?
Linda is employed to repack and seal pepper.
She is paid on the following differential pay
plan schedule:
Daily
Daily
rate/100
Quantity rate/100 Quantity
packs
packs

Less than 100 pesos 150-199 107.50 pesos

100
200 or more 110 pesos
100-149 105 pesos

For the week, Linda repacked the following

quantities: Monday, 95; Tuesday, 102; Wednesday,
130; Thursday, 152; and Friday, 201. Compute for her
total wage for the week.
 Many employees are paid on an hourly
basis. To compute for the pay, simply
multiply the numbers of hours of work by
the hourly rate.
 Employees who work more than required
number of hours are entitled to overtime
pay.
 OVERTIME PREMIUM refers to the excess
payment over the regular rate.
1. Article 83 of the Labor Code enunciates
that the normal hours of work of any
employee shall not exceed eight (8) hours a
day. This is exclusive of the one hour lunch
break. Article 85 provides that subject to
such regulations as the Secretary of labor
may prescribe, it shall be the duty of every
employer to give his or her employees not
less than sixty (60) minutes time-off for
their regular meals.
2. Article 87 provides that work may be
performed beyond eight (8) hours a day
provided that the employee is paid for the
overtime work an additional compensation
equivalent to his regular wage plus at least
25% thereof. Work performed beyond 8
hours on a holiday or rest day shall be paid
an additional compensation equivalent to
the rate of the first eight hours on a holiday
or rest day plus at least 30% thereof.
 Article 93 provides that:
a. Where an employee is made or permitted to
work on his or her scheduled rest day, he or
she shall be paid an additional compensation
of at least 30% of his or her regular wage. An
employee shall be entitled to such additional
compensation for work performed on Sunday
only when it is his or her established rest day.
b. When the nature of the work of the employee
is such that he or she has no regular work
days and no regular rest days can be
scheduled, he or she shall paid an additional
compensation of at least 30% of his or her
regular wage for work performed on Sundays
and holidays.
c. Work performed on any special holiday
shall be paid an additional compensation of
at least 30% of the regular wage of the
employee. Where such holiday work falls on
the employee’s scheduled rest day, he or
she shall be entitled to an additional
compensation of at least 50% of his or her
regular wage.
d. Where the collective bargaining
agreement or other applicable employment
contract stipulates the payment of a higher
premium pay than that prescribed under
this Article, the employer shall pay such
higher rate.
4. Article 94 provides that:
a. The employer may require an employee
to work on any holiday but such
employee shall be paid a compensation
equivalent to twice his regular rate.
b. Work on a rest day which falls on a
special day shall be paid 150% of regular
hourly rate.
c. Work on a regular holiday shall be paid
200% of regular hourly rate.
d. Work on a rest day which falls on a
regular holiday shall be paid 260% of
regular hourly rate.
 Assuming that the minimum daily
wage rate is 340 pesos, how much is
the overtime pay?
Myrna earns the regular daily rate of 340
pesos giving her an hourly rate of 42.50
pesos. If she works 10 hours on a regular
day, how much is her pay?
HOURLY RATE (on rest day or special
day) = 130% of regular hourly rate.

OVERTIME RATE = hourly rate on rest

day + 30% hourly rate on rest day
Linda earns the regular daily rate of 340
pesos giving her an hourly rate of 42.50.
she was requested by her boss to work on a
Saturday, her rest day.

a. Find the total pay

b. Worked for 10 hours, find the total pay
HOURLY RATE (on rest day which falls on a
special day) = 150% of regular hourly rate

OVERTIME RATE = Hourly rate on rest day + 30%

of hourly rate on rest day
Zenaida earns the regular daily rate of 340
giving her an hourly rate of 42.50. She was
requested by her boss to work on her rest day,
which falls on Maundy Thursday.

a. Find the total pay

b. Worked for 10 hours, find the total pay
HOURLY RATE (on regular holiday) = 200% of
regular hourly rate

OVERTIME RATE = Hourly rate on regular

holiday + 30% Hourly rate on regular holiday
Ester earns the regular daily rate of
340 giving her an hourly rate of 42.50.
She was requested by her boss to
work on May 1, Labor Day.
a. Find the total pay
b. Worked for 10 hours, find the total
pay
HOURLY RATE (on a rest day which falls on a
regular holiday) = 260% of Regular hourly rate

OVERTIME RATE = Hourly rate on a rest day +

30% of hourly rate which falls on a regular
holiday
Teresita earns the regular daily rate of 340
giving her an hourly rate of 42.50. She was
requested by her boss to work on December
30, Rizal Day, which is a regular holiday.
However, Rizal Day fell on a Monday, which
was Teresita’s rest day.
a. Find the total pay
b. Worked for 10 hours, find the total pay
Joselito is paid on an hourly basis. Forty hours
a week is considered his regular hours and
anything in excess is considered overtime. His
regular rate is 15 pesos per hour and he is paid
25% premium on overtime. He worked for the
following hours for the past week:
Monday – 8 hours Thursday – 10 hours
Tuesday – 4 hours Friday – 8 hours
Wednesday – 8 hours
 Find his gross earnings
 Assuming that he worked 10 hours
for Wednesday and Friday, find his
gross earnings
 Itis referred as the earnings of employees
paid on a monthly or annual basis.
1 year = 12 months = 24 semi-monthly = 6 bi-monthly
1 year = 52 weeks = 26 bi-weekly
1 month = 2 semi-monthly
Semi-monthly = 2/5 every month
Bi-monthly = every 2 months
Bi-weekly = every 2 weeks
 Giventhe annual salary of 72,000 pesos,
compute
1. Monthly salary
2. Semi-monthly salary
3. Weekly salary
4. Bi-weekly salary
 Itis a broader term than wages or salary.
Wages and salaries are income to the persons
receiving it. However, for people who are not
employees, their income may not be in the
form of wages or salaries. They can have
commission income if they are paid for the
commission on sales they make, rental
income if they have properties they rent out,
dividend income if they are stockholders,
royalties of they are authors etc.
1. Janine is a stockholder of the Wisdom
Corporation. For the current year, the
corporation declared 10% cash dividend to
stockholders. Janine owns 1000 shares of
the company’s 10 pesos par value shares.
Compute for the dividend income
1. John Abram is an author and his book sold
10,000 copies for the first semester. His
book sells at 375 pesos per copy. He
receives 22% royalty from his publisher.
Compute for the royalty income
Employee benefits cover remuneration other
than basic pay. It includes vacation and sick
leaves, medical and hospitalization benefits,
meal allowance, transportation allowance,
clothing etc. and incentive pays.
 Vacation pay: Thirteen (13) vacation days,
with additional one vacation day every year
starting on the second year of service and
convertible to cash at the end of the year.
Maximum total vacation leave is 18 days.
 Sick leave: Twelve (12) days per year for the
first two years of service. With additional
one sick leave every year starting on second
year of service. Maximum total sick leave is
15 days. All unused leave days are
convertible to cash in December of each
year.
Beth is paid based on a graduated piece-rate as
follows:
Daily Per Piece
First 100 1.00
Next 100 1.25
Next 100 1.50
Exceeding 300 1.75
Compute Beth’s earnings assuming the following
theoretical productions:
1. 142 pieces
2. 310 pieces
3. 203 pieces
4. 95 pieces
Carmen is a worker in a textile firm. She is paid a
regular hourly rate of 12 pesos. She is paid “time-
and-a-half” for regular overtime and “double-
time”. Find her gross earnings .

Monday -8 hours
Tuesday -10 hours
Wednesday -12 hours
Thursday -4 hours
Friday -10 hours
Saturday -8 hours
Sunday -4 hours
THANK
YOU!
Reporter: John Argie Betchaida