General Mathematics Handout 1
UNDERSTANDING AND COMPUTING SALARY, WAGE, AND COMMISSION
Key Terms and Formulas
Wage means the remuneration or earnings, however designated, capable of being expressed in terms of money, whether fixed or
ascertained on a time, task, piece, or commission basis, which is payable by an employer to an employee under a written or unwritten
contract of employment for work done or to be done, or for services rendered or to be rendered.
Hourly wage is the amount earned for each hour worked.
Daily wage is the amount of money a worker earns for each day of actual work. It does not include payment for days the
employee did not work (e.g., rest days, holidays, or leaves), unless otherwise required by law or employer policy
Salary refers to a fixed regular wage, typically paid monthly, semi-monthly, or weekly especially for professional, managerial, or
administrative positions.
Annual salary is the total amount of money a person earns in one year, usually from a fixed monthly salary.
Monthly Salary is the fixed amount an employee earns every month.
Monthly Salary = Annual Salary ÷ 12 months
Monthly Salary = Daily Wage x 24 days
Semi-monthly salary is the amount of money earned by a person twice a month at intervals not exceeding sixteen (16) days.
This can be computed by dividing monthly salary into 2
Weekly salary is the income received in a week
Weekly Salary = Annual Salary ÷ 52 weeks
Weekly Salary = Daily Wage x 6 days
Overtime pay is the extra pay given for working beyond 8 hours at the rate of an additional 25% of his regular wage.
Work on a Rest Day or Special Holiday: Multiply the daily rate by 1.30
Work on a Regular Holiday: Multiply the daily rate by 2.00
Work on a Regular Holiday that falls on a Rest Day: Multiply the daily rate by 2.60
Night Shift Differential: Multiply the applicable rate by 1.10 (for work between 10:00 PM and 6:00 AM)
Commission Income is earned as a percentage of sales made. It can be pure or base salary plus commission.
Piecework earnings based on the number of items or products completed.
Computing Weekly Salary from Daily Wage
Problem 1:
Maria works as a barista at a local coffee shop in Baguio. She works 8 hours a day, 5 days a week, and earns ₱60 per hour. How much
does she earn in a week?
Solution:
Hours per day = 8
Days per week = 5
Total hours per week = 8 × 5 = 40 hours
Hourly rate = ₱60
Weekly wage = 40 × 60 = ₱2,400
Answer: ₱2,400
Problem 2:
James is a warehouse helper in Manila and is paid ₱70 per hour for regular hours. He worked 45 hours this week. Overtime (beyond 40
hours) is paid at 1.5 times the regular rate. What is his total weekly wage?
Solution:
Regular hours = 40
Overtime hours = 45 – 40 = 5
Regular pay = 40 × ₱70 = ₱2,800
Overtime rate = ₱70 × 1.5 = ₱105
Overtime pay = 5 × ₱105 = ₱525
Total wage = ₱2,800 + ₱525 = ₱3,325
Answer: ₱3,325
Problem 3:
Angela is a real estate agent in Cebu. She earns a base weekly salary of ₱2,000 and a 2% commission on total property sales. This
week, she sold properties worth ₱500,000. What is her total weekly income?
Solution:
Base salary = ₱2,000
Commission = 2% of ₱500,000 = 0.02 × ₱500,000 = ₱10,000
Total income = ₱2,000 + ₱10,000 = ₱12,000
Answer: ₱12,000
Problem 4:
Lito is a jeans sewer in a small factory in Taytay, Rizal. He is paid ₱25 per pair of jeans sewn. He completed 150 pairs this week. If he
receives a ₱300 weekly allowance for transportation, how much is his total weekly income?
Solution:
Payment per piece = ₱25
Number of pieces = 150
Piecework earnings = 150 × ₱25 = ₱3,750
Transportation allowance = ₱300
Total weekly income = ₱3,750 + ₱300 = ₱4,050
Answer: ₱4,050
Problem 5:
Carla works as a salesclerk in a mall in Davao. She earns ₱65 per hour and worked 40 regular hours and 8 overtime hours this week.
Overtime is paid at 1.25 times her regular rate. In addition, she earns a ₱1,000 monthly attendance bonus, and this week she also
earned a ₱500 sales commission.
What is her total weekly income this week (include ¼ of the monthly bonus as weekly)?
Solution:
Regular pay = 40 × ₱65 = ₱2,600
Overtime rate = ₱65 × 1.25 = ₱81.25
Overtime pay = 8 × ₱81.25 = ₱650
Weekly portion of monthly bonus = ₱1,000 ÷ 4 = ₱250
Sales commission = ₱500
Total weekly income = ₱2,600 + ₱650 + ₱250 + ₱500 = ₱4,000
Answer: ₱4,000
Computing Weekly Salary from Annual Salary
Problem 1.
Paolo is a public-school teacher in Quezon City. His annual salary is ₱324,000. He is paid weekly. How much does Paolo earn per week,
based on his annual salary?
Solution:
Annual salary = ₱324,000
Weeks in a year = 52
Weekly wage = ₱324,000 ÷ 52 = ₱6,230.77
Answer: ₱6,230.77 per week
Problem 2:
Lani is a nurse in a private hospital in Cebu City with an annual salary of ₱420,000. She works 40 hours per week, but this week, she
worked 5 extra hours. Overtime is paid at 1.25 times her regular hourly rate. What is Lani’s total weekly pay this week, including
overtime?
Solution:
Weekly base pay = ₱420,000 ÷ 52 = ₱8,076.92
Regular weekly hours = 40
Hourly rate = ₱8,076.92 ÷ 40 = ₱201.92
Overtime rate = ₱201.92 × 1.25 = ₱252.40
Overtime pay = 5 × ₱252.40 = ₱1,262.00
Total weekly wage = ₱8,076.92 + ₱1,262.00 = ₱9,338.92
Answer: ₱9,338.92
Problem 3:
Arnel is a car sales agent in Davao. He earns a base salary of ₱240,000 per year and gets a 2% commission on sales. This week, he
sold cars worth ₱600,000. What is Arnel’s total weekly income this week?
Solution:
Weekly base salary = ₱240,000 ÷ 52 = ₱4,615.38
Commission = 2% of ₱600,000 = 0.02 × ₱600,000 = ₱12,000
Total income = ₱4,615.38 + ₱12,000 = ₱16,615.38
Answer: ₱16,615.38
Problem 4:
Mae works from home in Iloilo doing digital embroidery. She is paid ₱60 per item and gets a monthly internet allowance of ₱1,200. She
finishes 50 items per week. What is Mae’s total weekly earnings, including allowance?
Solution:
Piecework pay = 50 × ₱60 = ₱3,000
Weekly allowance = ₱1,200 ÷ 4 = ₱300
Total weekly income = ₱3,000 + ₱300 = ₱3,300
Answer: ₱3,300
Problem 5.
Bea is a customer service team lead in Makati with an annual salary of ₱480,000. She works 40 hours per week, but this week she
worked 6 extra hours (paid 1.5 times). She also received a weekly team bonus of ₱1,000 and a sales commission of ₱3,000 for
upselling services. What is Bea’s total weekly wage this week?
Solution:
Weekly base salary = ₱480,000 ÷ 52 = ₱9,230.77
Hourly rate = ₱9,230.77 ÷ 40 = ₱230.77
Overtime rate = ₱230.77 × 1.5 = ₱346.15
Overtime pay = 6 × ₱346.15 = ₱2,076.92
Total = ₱9,230.77 + ₱2,076.92 + ₱1,000 + ₱3,000 = ₱15,307.69
Answer: ₱15,307.69
Computing Monthly Salary from Daily Wage
Problem 1:
Liza works as a cashier in a sari-sari store in Iloilo and earns ₱500 per day. She works 6 days a week, and in one month, she worked 24
days. How much is Liza’s monthly wage?
Solution:
Daily wage = ₱500
Days worked = 24
Monthly wage = 500 × 24 = ₱12,000
Answer:
Liza’s monthly wage is ₱12,000.
Problem 2:
Ramon is a utility worker in a public school in Cavite and is paid ₱570 per day. One month, he worked 22 regular days and had 5 hours
of overtime. His regular work hours are 8 hours per day, and overtime is paid at 125% of the hourly rate. What is Ramon ’s total wage
for the month?
Solution:
Step 1: Regular monthly wage = ₱570 × 22 = ₱12,540
Step 2: Regular hourly rate = ₱570 ÷ 8 = ₱71.25
Step 3: Overtime rate = 125% of ₱71.25 = ₱89.06
Step 4: Overtime pay = ₱89.06 × 5 = ₱445.31
Step 5: Total monthly wage = ₱12,540 + ₱445.31 = ₱12,985.31
Answer:
Ramon’s total wage for the month is ₱12,985.31.
Problem 3:
Jenny is a sales promoter at a local appliance store in Tagbilaran, Bohol. She earns a daily wage of ₱620, a monthly transportation
allowance of ₱1,000, and a commission of 2% on total sales. In one month, she worked 26 days and made ₱80,000 in total sales. What
is Jenny’s total monthly earnings?
Solution:
Regular wage = ₱620 × 26 = ₱16,120
Commission = 2% of ₱80,000 = ₱1,600
Allowance = ₱1,000
Total = ₱16,120 + ₱1,600 + ₱1,000 = ₱18,720
Answer:
Jenny’s total monthly earnings are ₱18,720.
Problem 4:
Noel is a seasonal farm worker in Bukidnon and is paid ₱100 per kaing (basket) of mangoes harvested. He works 20 days a month, and
on average, he harvests 12 kaings per day. He plans to spend only 70% of his monthly income and save the rest. How much is Noel ’s
monthly income, and how much does he save?
Solution:
Daily income = ₱100 × 12 = ₱1,200
Monthly income = ₱1,200 × 20 = ₱24,000
Savings = 30% of ₱24,000 = ₱7,200
Answer:
Noel’s monthly income is ₱24,000, and he saves ₱7,200.
Problem 5:
Arlene is a home appliance technician in Davao City. She is paid ₱650 per day and works 22 days a month. She also gets a ₱1,500
monthly meal allowance, works 6 hours of overtime (paid at 130% of her hourly rate), and earns ₱500 commission per appliance
repaired beyond the quota. This month, she repaired 4 extra appliances. If Arlene budgets 25% of her total income for emergencies,
how much is her total monthly income, and how much does she set aside for emergencies?
Solution:
Step 1: Regular wage = ₱650 × 22 = ₱14,300
Step 2: Regular hourly rate = ₱650 ÷ 8 = ₱81.25
Step 3: Overtime rate = 130% × ₱81.25 = ₱105.63
Overtime pay = ₱105.63 × 6 = ₱633.78
Step 4: Commission = ₱500 × 4 = ₱2,000
Step 5: Meal allowance = ₱1,500
Total income = ₱14,300 + ₱633.78 + ₱2,000 + ₱1,500 = ₱18,433.78
Emergency savings = 25% of ₱18,433.78 = ₱4,608.45
Answer:
Arlene’s total monthly income is ₱18,433.78, and she sets aside ₱4,608.45 for emergencies.
Computing Monthly Salary from Annual Salary
Problem 1:
Carla is a public high school teacher in Nueva Ecija. She earns an annual salary of ₱384,000. She budgets carefully each month and
allocates 30% of her salary to savings. How much is Carla's monthly salary, and how much does she save each month?
Solution:
Annual Salary = ₱384,000
Monthly Salary = ₱384,000 ÷ 12 = ₱32,000
Monthly Savings = 30% of ₱32,000 = 0.30 × ₱32,000 = ₱9,600
Answer:
Carla earns ₱32,000 per month and saves ₱9,600 monthly.
Problem 2:
Marco works as a technician in a manufacturing plant in Laguna. He has a monthly base salary of ₱20,000. He often works overtime.
For one month, he worked 12 hours of overtime. Overtime is paid 125% of the regular hourly rate. His regular work hours are 8
hours/day for 22 working days. What is Marco’s total pay for the month including his overtime?
Solution:
Step 1: Calculate regular hourly rate
Monthly Salary = ₱20,000
Monthly hours = 8 hours/day × 22 days = 176 hours
Hourly Rate = ₱20,000 ÷ 176 = ₱113.64
Step 2: Overtime pay per hour
125% of ₱113.64 = ₱113.64 × 1.25 = ₱142.05
Step 3: Total Overtime Pay = 12 hours × ₱142.05 = ₱1,704.60
Step 4: Total Pay = Base Salary + Overtime = ₱20,000 + ₱1,704.60 = ₱21,704.60
Answer:
Marco’s total pay for the month is ₱21,704.60.
Problem 3:
Alyssa is a freelance insurance agent in Quezon City. She earns 10% commission on every policy she sells. In one month, she sold
policies worth ₱500,000 in total. She also receives a monthly allowance of ₱5,000. What is Alyssa’s total monthly earnings?
Solution:
Commission = 10% of ₱500,000 = ₱500,000 × 0.10 = ₱50,000
Total Earnings = ₱50,000 + ₱5,000 = ₱55,000
Answer:
Alyssa earns ₱55,000 for the month.
Problem 4:
Rodel is a home-based seamer in Baguio City. He is paid ₱35 per face mask sewn. On average, he completes 80 masks per day. He
works 25 days a month. He plans to save 40% of his income for buying a new sewing machine.
Questions:
a) What is Rodel’s monthly income?
b) How much does he save in a month?
Solution:
Daily Income = 80 masks × ₱35 = ₱2,800
Monthly Income = ₱2,800 × 25 = ₱70,000
Savings = 40% of ₱70,000 = ₱70,000 × 0.40 = ₱28,000
Answer:
a) Rodel’s monthly income is ₱70,000
b) He saves ₱28,000 monthly
Problem 5:
Jayson works as a call center agent in Cebu City. He has a base monthly salary of ₱25,000. He earns an extra ₱1,000 commission per
sale beyond his quota. In May, he made 5 extra sales. He also worked 10 hours of overtime, paid at 130% of his hourly rate. He works
22 days a month, 8 hours per day and wants to set aside 20% of his total income for investment.
Questions:
a) What is Jayson’s total income for May?
b) How much does he set aside for investment?
Solution:
Step 1: Regular Hourly Rate
Monthly Hours = 22 × 8 = 176 hours
Hourly Rate = ₱25,000 ÷ 176 = ₱142.05
Step 2: Overtime Pay
130% × ₱142.05 = ₱184.67
Overtime = ₱184.67 × 10 = ₱1,846.70
Step 3: Commission = 5 × ₱1,000 = ₱5,000
Step 4: Total Income = ₱25,000 + ₱1,846.70 + ₱5,000 = ₱31,846.70
Step 5: Investment = 20% of ₱31,846.70 = ₱6,369.34
Answer:
a) Jayson’s total income for May is ₱31,846.70
b) He sets aside ₱6,369.34 for investment
