Week 8: Gross and Net Earnings

Gross - What you Make/ Total Amount

Net - What you Keep/ Remaining Amount

Week 9: Income Benefits

- refers to all benefits that are given to every worker. This covers all renumerations
other than the salary, and wage given to workers. These benefits includes vacation
leave, sick leave, bonuses, transportation and food allowances.

BENEFITS OF A WAGE EARNER

1. MINIMUM WAGE
A minimum wage rate was set per region, province and industry sector. This may vary
depending on the number of employees and gross sales of an enterprise and its industry
sector.
Note: Minimum wage earners are exempted from tax.

2. OVERTIME PAY
An overtime pay is an additional compensation given to an employee who renders service
beyond the maximum number of working hours per day (8 hours per day). The additional
compensation is equivalent to at least 125% of the employee's hourly rate.

3. PREMIUM PAY
A premium pay is an additional compensation if an employee worked within 8 hours during
non-working days such as rest days and special holidays. If an employee did not rendered
work or not required to work on this day, then he is not entitled to any compensation.

4. HOLIDAY PAY
Based on the Labor Code, all employees shall be paid with their daily basic wage for regular
holidays, whether they work on that day or not.

5. NIGHT SHIFT DIFFERENTIAL

An employee who work between 10:00 PM
and 6:00 AM receives an additional 10% premium called night shift differential (NSD), also
known as night shift pay.

6. 13th MONTH PAY

It is a monetary bonus which is mandated by the law that is given either in two installments
(May and December) or in full (before December 24). Generally, 13th month pay is 1/12 of
the employee's annual income or equivalent to one month basic pay.
 7. SERVICE CHARGES
Service charges are the amount collected by some restaurants, hotels, night clubs, and the
like. For the employees of employers collecting service charges are entitled to an equal
share in the 85% of the total charges, while the remaining15% of the charges may be
retained to the management.

8. SERVICE INCENTIVE LEAVES

An employee who has rendered at least one
(1) year of service is entitled to Service Incentive Leave (SIL) of five days with pay which can
be used for sick and vacation leave purposes. At the end of the year, unused SIL can be
converted into cash based on the salary rate.

9. PARENTAL LEAVES
A. MATERNITY LEAVE
According to the Expanded Maternity Leave
(EML) Bill, the law grants each pregnant employee 105 days of maternity leave credits. It
also allows new mothers to extend this leave for an additional 30 days, but this will be an
unpaid leave.

B. PATERNITY LEAVE
The R.A No. 8187, or Paternity Leave Act of 1996, grants seven (7) days of fully paid leave
to married fathers that is effective up to the first four deliveries of the legitimate spouse.
Under the EML, seven days of a woman's paid maternity leave credits can be transferred to
fathers, extending the allowed seven-day paternity to be extended to 14 days.

C. SOLO-PARENT LEAVE
Seven (7) days leave with pay are given to solo or single mothers and fathers for every year
of service, aside from their other leave privileges (maternity or paternity). Solo mothers can
extend their leave for 15 days, and these are paid leaves.

10. SPECIAL LEAVE BENEFITS FOR WOMEN

A. MAGNA CARTA FOR WOMEN
An employee who underwent surgery due to gynecological disorders and have rendered at
least six months of service in the company is entitled to two months leave with full pay, as
per R.A 9710 or the Magna Carta for Women.

B. LEAVE FOR WOMEN AND THEIR CHILDREN WHO ARE VICTIMS OF VIOLENCE
As per R.A 9262 or the Anti-Violence against Women and their Children Act of 2004, victims
of violence against women are entitled to 10 days leave with full pay.

11. SEPARATION PAY

A regular employee who is validly dismissed or terminated from a company is entitled to a
separation pay, except those who are terminated due to misconduct or crime involvement.
 12. RETIREMENT PAY
Upon reaching the retirement age, an employee is entitled to a retirement pay equivalent to
at least half-month salary for every year of service. A fraction of 6 months is considered as
one whole year. An employee may retire upon reaching the age of 60 or more (voluntary
retirement age), but not more than 65 (compulsory retirement age), provided the he served
for at least 5 years in the same company.
Employers may give benefits to their employees other than their regular salaries and wages
called de minimis benefits that are relatively small in value and are not taxable.

DE MINIMIS BENEFITS
• monetized unused vacation leave credits of private employees not exceeding ten (10) days
during the year;
• monetized value of vacation and sick leave credits of 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 ₽2,000 or one (1) sack of 50kg rice per month amounting to not more than
₽2,000;
• uniform and clothing allowance not exceeding P6,000 per annum;
• actual medical assistance, e.g. medical allowance to cover medical and healthcare needs,
annual medical/executive check-up, maternity, assistance and routine consultations, not
exceeding ₽10,000 per annum;
• laundry allowance not exceeding P300 per month;
• employee achievement awards, e.g. for length of service or safety achievement, which
must be in the form of tangible personal property other than cash or gift certificate, with an
annual monetary value not exceeding P10,000 received by the employee under an
established written plan which does not discriminate in favor of highly paid employees
DEDUCTIONS
- can be classified either mandatory or optional deductions.

1. Mandatory deductions - deductions include income tax payment to the Bureau of

Internal Revenue (BIR) and contributions to the social security system sos - for
private company, government Service Insurance System (GSIS- Government
Institutions), PhilHealth and Pag-ibig Fund.
2. Optional Deduction - are those for which an employee grants authority to the
employer to deduct from his pay on paydays. This include housing loan, insurance
coverage, union dues, etc.
3. Standard and Personal deductions - These are deductions that are subtracted
from the gross income of workers and are shown on pay slips on pay day. These
deductions are legal and mandated by law such as the premium contributions to sss,
GSIS, PhilHealth, Pag-ibig and withholding taxes.

SSS Premium Contribution

- All employed individuals in the private sectors are required to be members of the
Social Security System (SSS). The law provides that every individual who seeks
employment in any private entity shall first secure an SSS number. Some benefits of
an SSS member are the opportunity to avail salary, housing loans, retirement
pension and workmen's sickness compensation.
- To determine the monthly contribution, we shall find the intersection of the range of
compensation (monthly salary credit) row and employee contribution column in the
Schedule of SS and EC contribution.
GSIS Premium Contribution
- Government employees are required by the law to be members of the Government
Service Insurance System (GSIS). Both the employee and the employer had the
responsibility of paying the contribution (employee contribution is deducted from the
gross earning).

PhilHealth premium Contribution

- All government and private sector employees are required by the law to pay monthly
PhilHealth premium contributions. Some benefits employees can derive from such
contributions include coverage of hospitalization or sickness and accident expenses
where a big part of the hospital bill including the doctor's professional fees are paid
by the PhilHealth.

PAG-IBIG Fund Contributions

- Popularly Known as Pag-ibig Fund, the Home Development Mutual Fund (HDMF)
was established to provide national savings program and affordable house financing
program for Filipino workers. The contribution rate to the fund is based on the
employee's monthly compensation (Basic Cola) as follows:

Withholding Tax
- Tax is the amount of money levied by the government on its citizens and business
establishments in order to generate funds to finance its public services and
developmental projects. There are different taxes but the one that is deductedin
gross income is income tax.
- Employers are required to deduct the withholding tax from gross pay of its workers.
This is done to lessen the burder of paying tax and filing income tax in the Bureu of
International Revenue (BIR) om designated dates,
Week 10: OVERTIME PAY

Assuming that the minimum daily wage rate is ₱340, how much is the overtime rate per
hour?
On Ordinary Day Regular hourly rate
= Daily wage rate ÷ 8 hours
= ₱340 ÷ 8 hours = ₱42.50per hour
Overtime rate = Regular rate + 25% of Regular rate
= ₱42.50 + (25% of ₱ 42.50)
= ₱42.50 + ₱10.625
= ₱53.125

On Rest Day and Special Day

The hourly rate on rest day and special day is 130% of the regular rates.
Hourly rate = 130% of Regular hourly rate
= 130% ×₱42.50 =₱55.25
Overtime rate = Rate on rest day + 30% of rate on rest day
= ₱55.25 + (30% of ₱ 55.25)
= ₱55.25 + ₱16.575
= ₱71.825

On Rest Day which Falls on a Special Day

Hourly rate = 150% of Regular hourly rate
= 150% × ₱42.50 = ₱63.75
Overtime rate = Rate on rest day + 30% of rate on rest day
= ₱63.75 + (30% of ₱63.75)
= ₱63.75 + ₱19.125
= ₱82.875

On a Regular Holiday
Hourly rate = 200% of Regular hourly rate
= 200% × ₱42.50 = ₱85
Overtime rate = Rate on rest day + 30% of rate on reg holiday
= ₱85 + (30% of ₱85)
= ₱85 + ₱25.50
= ₱110.50

On a Rest Day which Falls on a Regular Holiday

Hourly rate = 260% of Regular hourly rate
= 260% × ₱42.50 = ₱110.50
Overtime rate = Rate on rest day + 30% of rate on regular holiday
= ₱110.50 + (30% of ₱110.50)
= ₱110.50 + ₱33.15
= ₱143.65
Regular Holiday
● New Year’s Day
● Maundy Thursday
● Good Friday
● Araw ng Kagitungan
● Eia Al-Fitr
● Labor day
● Independence Day
● Eia al-Adha
● National Heroes Day
● Bonifacio Day
● Christmas Day
● Rizal Day

Special Non-Working Day

● Ninoy Aquino Day
● All Saint’s Day
● Feast of Innovative Conception of Mary
● Last day of the year

Additional Special Non-Working Day

● Chinese New Year
● Black Saturday
● All soul’s day

WEEK 11: PRESENTATION OF DATA

Presentation of data
- This refers to the organization of data into tables, graphs or charts, so that logical
and statistical conclusions can be derived from the collected measurements. Data
may be presented in three methods o Textual o Tabular o Graphical

TEXTUAL PRESENTATION
- The data gathered are presented in paragraph forms. The data are written and read
and it is a combination of texts and figures.

TABULAR PRESENTATION
- Methods of presenting data using the statistical table. A systematic organization of
data in columns and rows.

GRAPHICAL PRESENTATION
- Presentation using graphs.
- Kinds of graphs: Bar Graph, Pie or Circle Graph, Linegraph, and Pictograph.
PARTS OF A TABLE
- A statistical table has atleast four major parts and some other minor parts.

1. The title
- Is the main heading written in capital shown at the top of the table. It must
explain the contents of the table and throw light on the table as whole.
2. The Box Head and The Column Captions
- The vertical heading and subheading of the column are called column
captions. The spaces where these column headings are written are called box
head. Only the first letter of the box head is in capital letter and the remaining
words must be written in small letters.

3. The Stub and Row Captions

- The horizontal headings and subheading of the row are called row captions
and the space where these rows headings are written is called stub.
4. The Body
- The main part of the table which contains the numerical information classified
with respect to row and column captions is called the body.
5. Prefatory Notes
- A statement given below the title and is enclosed in brackets which usually
describes the units of measurement is called prefatory notes.
6. Footnotes
- Footnotes appear immediately below the body of the table providing further
additional explanation.
7. Source Note
- The source note is given at the end of the table indicating the source from
where information has been taken. It includes the information about compiling
agency, publication, etc.
TALLY CHART
- Is a table used to record values for a variable in a data set. One tally mark is used for
each occurrence of a value. Tally marks are usually grouped in sets of five, to aid the
counting of frequency for each value.

PICTOGRAMS
- Is a form of graphical presentation where repetition of a picture are used to represent
frequencies or other value of the feature.

GRAPHS
- It is an alternative way to present data.
- It involves a lot of communication power.
- In businesses, it is used to help them convey information and to make sense of data.
- It always describes something about business.
MOST COMMONLY USED KINDS OF GRAPHS

Bar Charts
- is a method of data presentation in which data are represented by bars of equal width
and the height/length of the bars corresponds to the value of the data. Axes of this
graph should be labeled and there should be a scale to indicate the magnitude of
data.

Pie charts
- is a chart which is used to show pictorially the relative size of component elements of
a total. Always based on percentage values. A complete pie is equal to 360 degrees
which equal to 100%. Half the pie which is 180 degrees is equal to 50%. Using
shading and colors distinguishes the difference between segments to the other parts.

Line Graph
- is series of data points connected by straight line segments. It is useful in showing
the trends or in determining relationships between two variables.

Histogram
- is a graphical representation of the frequency distribution. It is a representation of
tabulated frequencies (Y-axis) using adjacent erected rectangles with their
corresponding class intervals (X-axis).

Measures of Central Tendency

• A single number that can represent the entire number or set values.
• A single figure which is the representative or summary of the characteristics of given set of
data

Most Commonly Used Measures of Central Tendency

• Mean- is defined as the sum of all items or terms divided by the total number of items or
terms.
• Median- is the middlemost number/term that divides an arranged (either ascending or
descending order) distribution into two equal parts.
• Mode- is the number that occurs most frequently more than any other number in a given
set of data. Three Types Of Modes: 1mode=Unimodal; 2 modes=Bimodal; 3 or more
modes=Multimodal
Measures of Variation
• Is a value that is used to describe the spread of a set of data.
• If a measure of central tendency gets the typical value, the measures of variation determine
the discrepancy difference between the data.
• Range– It is the difference between the highest and lowest entries.
• Quartiles are points which divide the set of data into four equal parts.

Week 12: PRESENTATION OF DATA (PART II)

Excel functions/application
1. Graphical Presentation in Excel
- Graphs, Data Visuals

2. Descriptive Statistics from Excel

- statistics of measures of central tendency and measures of variation