Activity 3B - Salary and Wages

1.
Differentiate between Salary and Wages
SALARY WAGES
It is a fixed pay that an It is a variable pay that an individual
individual draw for the work draw on the basis of hours spent in
done by him on an annual completing the certain amount of
basis. work.
Skills Skilled personnel Semi-skilled or unskilled personnel
Type of Cost Fixed Variable
Rate of Fixed rate Wage rate
Payment
Payment Monthly Daily
Cycle
Basis of Performance basis Hourly basis
Payment
Paid to Employees Labor
whom
Nature of Administrative-office work Manufacturing-process work
Work

2. Salary structure and wages in the Philippines.
Salary Computation
Computing Pay for Work Done on
 A Regular Day (basic daily rate = monthly rate x number of months in a year
(12) / total working days in a year)
 A Special Day (130% x basic daily rate)
 A Special Day, which is also a scheduled Rest Day (150% x basic daily rate)
 A Regular Holiday (200% x basic daily rate)
 A Regular Holiday, which is also a scheduled Rest Day (260% x basic daily rate)
Computing Night Shift
 Ordinary Day (110% x basic hourly rate)
 Rest Day and Special Day (143% x hourly rate)
 Regular Holiday (220% x hourly rate)
Computing Overtime
 On Ordinary Days
o Number of hours in excess of 8 hours (125% x hourly rate)
 On a Rest Day or Special Day
o On a Rest day and Special Day (130% x hourly rate)
o Number of hours in excess of 8 hours (169% x hourly rate)
Computing 13th Month Pay

 Total basic salary earned for the year exclusive of overtime, holiday, and night
shift differential pay divided by 12 = 13thmonth pay
WAGE RATES FOR 2018
DAILY MINIMUM WAGE PH RATES IN 2021
The Philippines has daily minimum wage rates that vary from region to region. The
Philippine national minimum wage in 2021 was 537 pesos a day, it has not changed
since 2019. In the long term, the Philippine minimum daily wage will be around 537
pesos a day in 2022 and 547 pesos a day in 2023. Because of the pandemic, the
minimum hourly wage in the Philippines did not increase, but remained the same. This
information was in the top news-2021 for Filipinos.

3. Updated regional minimum wage rate in the Philippines.
For 2021, the new minimum wage notification sets PHP 433.76 as the minimum daily
wage for a non-agricultural laborer in the NCR region. But for the same occupation in
other areas such as CARAGA, the minimum wage is only PHP 249.80.
According to research and analytics company Picodi, an average increase of 3.4% from
its 2020 levels is visible in the various provincial minimum wage in 2021 across the
Philippines. The average wage in the Philippines in 2021 is about 44,600 pesos per
month. This is the average monthly wage, including housing, transportation, and other
benefits.
4. How to compute overtime in the Philippine setting.
Computation of wages
The Department of Labor and Employment (DOLE) has set out the following rules in
computing overtime pay, pay for work done on holidays, premium on night shift and
13th month pay:
Computing Overtime:
On Ordinary Days
Plus 25% of the hourly rate multiplied by the number of hours.
On a rest day, special day or regular holiday
Plus 30% of the hourly rate on said days multiplied by the number of hours.
Computing pay for work done on:
A special day (130% x basic pay)
A special day, which is also a scheduled rest day (150% x basic pay)
A regular holiday (200% x basic pay)
A regular holiday, which is also a scheduled rest day (260% x basic pay)
Computing Night Shift Premium Where Night Shift is a Regular Work:
On Ordinary day (110% x basic hourly rate)
On a rest day, special day, regular holiday (110% of regular hourly rate for a rest day,
special day, regular holiday)

Computing Overtime on Night Shift:
On ordinary day (110% x overtime hourly rate)
On rest day, special day or regular holiday (110% x overtime hourly rate for rest days,
special days, regular holidays)
Computing 13th Month Pay:
Total basic salary earned for the year exclusive of allowances, overtime, holiday, and
night shift differential pay divided by 12 months = 13th month pay.

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1.

Differentiate between Salary and Wages

It is a fixed pay that an It is a variable pay that an individual

done by him on an annual completing the certain amount of

Skills Skilled personnel Semi-skilled or unskilled personnel

Type of Cost Fixed Variable

Rate of Fixed rate Wage rate

Payment Monthly Daily

Basis of Performance basis Hourly basis

Paid to Employees Labor

Nature of Administrative-office work Manufacturing-process work

Computing Pay for Work Done on

(12) / total working days in a year)

 A Special Day (130% x basic daily rate)

 A Regular Holiday (200% x basic daily rate)

Computing Night Shift

 Ordinary Day (110% x basic hourly rate)

 Rest Day and Special Day (143% x hourly rate)

 Regular Holiday (220% x hourly rate)

o Number of hours in excess of 8 hours (125% x hourly rate)

 On a Rest Day or Special Day

o On a Rest day and Special Day (130% x hourly rate)

o Number of hours in excess of 8 hours (169% x hourly rate)

Computing 13th Month Pay

shift differential pay divided by 12 = 13thmonth pay

WAGE RATES FOR 2018

DAILY MINIMUM WAGE PH RATES IN 2021

information was in the top news-2021 for Filipinos.

3. Updated regional minimum wage rate in the Philippines.

13th month pay:

Plus 25% of the hourly rate multiplied by the number of hours.

On a rest day, special day or regular holiday

Computing pay for work done on:

A special day (130% x basic pay)

A regular holiday (200% x basic pay)

Computing Night Shift Premium Where Night Shift is a Regular Work:

On Ordinary day (110% x basic hourly rate)

special day, regular holiday)

On ordinary day (110% x overtime hourly rate)

special days, regular holidays)

Computing 13th Month Pay:

night shift differential pay divided by 12 months = 13th month pay.

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