Wages and Salaries
Wages and Salaries are two of the four major classifications of income and are the ones that are on the more stable side of income.
Type Definition Examples Salary A given amount of money every general duration, usually derived or starting at a bimonthlyormonthlysalary wherein the amount of money given stays constant and consistent for the amount of work you do.These are generally given to long-term stable jobs such as engineers, teachers, doctors, and managers. Wage A rate of money given every short amount of time, usually measured in hours ( Hourly Wage). As you can change the amount of hours you will commit each week, the amount of money given can change on a dime.These are usually given to easily replaceable/manual labour jobs such as a bartender, fast food employee, construction worker, and janitors.
There are a few types of salaries and wages.
Type Formula Annual Salary Monthly · 12 Monthly Salary Annual / 12 Weekly Wage Annual / 52 Hourly Wage Weekly Wage / Hours Worked OR Annual / Salary
Overtime
Overtime is defined as the compensation for work beyond regular working hours.
Formula
OT Payment = Overtime Hours · Hourly Wage · Multiplier
Common Multipliers are 125%, 150%, and 200%. These rates are used to change the amount of money someone gets and may vary on the classification of the day.
In the table below, use the following values:
- DR is Daily Rate (without a given is usually Hourly · 8, standard working hours)
- HR is Hourly Rate
- OT is hours spent in overtime
Type of Day Overtime Formula Regular Class DR + 1.25 HR · OT Rest Day OR Special Non-working Holiday 1.3DR + 1.3(1.3HR · OT) Rest Day AND Special Non-working Holiday 1.5DR + 1.3(1.5HR · OT) Regular Holiday 2DR + 1.3(2HR · OT) Rest day AND Regular Holiday 2.6DR + 1.3(2.6HR · OT)
Note that I converted the formula from percentage to decimal formulas. 1.25 = 125%, there’s no difference. Rewrite it if you wish.
Commissions & Piecework
Commissions and Piecework are the third & fourth ways of income, but are the least stable as they rely completely on how well you, or a person, performs at their job. This is different from the previous two as they focus on durations and not the act itself.
Type Definition Examples Commission A given amount of money for a task completed, usually given as a full payment but can also be used in positions with salaries or wages as an incentive. Any commission involving art, building, or one-time menial task that is generally over after its completion. Piecework An amount of money given according to a number of items/same tasks completed, which means the amount of items you handle will net you an amount of money. It is basically a commission for a number of tasks, and can generally be seen related to quotas as well. These are usually given to any worker inside of a mass-producing industry, such as organizing in production plant for items.
Note that Pieceworks can include quotas for the amount of money or people you have to transport daily. An example of this are jeepney drivers.
Formula
Commission = Sales · Commission Rate
Piecework Earnings = Items Produced · Rate per Item
Employee Earnings & Parts of Income
This is defined as the gross income or the net amount they made inside of a given duration. Usually a salary or.. you know, anything with a rate.
Formula:
Total Earnings = Salary + Overtime + Commission + Bonus + Allowance
Yes, the bonus and allowance are included there. That is still income.