Number and Algebra

Wages and payroll: from daily rate to net pay

Matematikang pampinansyal

Sahod at payroll: mula arawang sahod hanggang net pay

Follow a minimum-wage earner's payslip: daily rate, overtime, commission and piecework, then mandatory deductions and income tax brackets.

Where it fits

Earning Money and Percentages · Term 1 · Weeks 1–2
Piecewise Functions · Term 2 · Week 1

Competencies

gm11.t1.w1.c1 Calculate weekly or monthly wages from an annual salary, wages from an hourly rate, including situations involving overtime and other allowances, and earnings based on commission or piecework.
gm11.t1.w2.c1 Solve problems involving salaries, wages, benefits, and deductions (tax computations, overtime pay, and gross and net incomes) using appropriate technology.
gm11.t2.w1.c1 Illustrate a piecewise function in practical contexts (i.e., fare rates, purchasing, and income tax).

The data

Daily minimum wage by region (non-agriculture)
Region	Daily minimum wage	Monthly (26 days)	Hourly (8 h)
NCR	₱645	₱16,770	₱80.63
Region IV-A (CALABARZON, high)	₱560	₱14,560	₱70.00
Region III (Central Luzon)	₱500	₱13,000	₱62.50
Region VII (Central Visayas)	₱501	₱13,026	₱62.63
Region XI (Davao)	₱481	₱12,506	₱60.13
BARMM	₱361	₱9,386	₱45.13

Daily minimum wage by Region

Source: Representative 2026 figures for classroom use; check current official rates before using for real decisions. Based on the structure of NWPC wage orders; regions update rates at different times.

Scenario and worked example

Three cousins, three ways to be paid

Engage

Jun earns the NCR daily minimum at a warehouse with frequent overtime. Mae sells appliances on ₱12,000 basic plus 3% commission. Rhea sews uniforms at ₱35 each. Who earns the most in a typical month, and whose income is most uncertain?

Worked example: Jun's month

Explain

\text{Basic} = 645 \times 26 = 16{,}770

\text{OT rate} = \frac{645}{8}\times 1.25 = 100.78

\text{12 h OT} = 12 \times 100.78 \approx 1{,}209

\text{Gross} \approx 17{,}979

From gross to net

Elaborate

Mandatory contributions (SSS 5%, PhilHealth 2.5%, Pag-IBIG ₱200 max) come off first. Income tax applies only when annual taxable income exceeds ₱250,000, and then by brackets, which is a piecewise function of income.

T(x) = \begin{cases} 0 & x \le 250{,}000 \\ 0.15(x-250{,}000) & 250{,}000 < x \le 400{,}000 \\ 22{,}500 + 0.20(x-400{,}000) & 400{,}000 < x \le 800{,}000 \end{cases}

Check your payslip

Evaluate

Gross = basic + overtime + allowances + commission.
Net = gross − SSS − PhilHealth − Pag-IBIG − tax.
13th-month pay is 1/12 of basic salary earned in the year.

Discuss in class

Rhea's income depends on how fast she sews. What daily output matches the minimum wage?
Why is the first ₱250,000 of annual income tax-free? Who benefits most?
Is a 3% commission with a ₱12,000 basic better than a ₱16,770 fixed salary? For what sales level are they equal?

Problems

6 problems · check your answer, then open the solution

Problem 1 Basic

The daily minimum wage in a region is ₱645. A worker is paid for 26 days in a month. Find the monthly gross pay.

Your answer (₱)
Show step-by-step solution
1. $645 \times 26 = 16{,}770$ pesos.
Answer: 16770 ₱
Problem 2 Standard

A worker earns ₱645 for an 8-hour day. Overtime is paid at 125% of the hourly rate. How much is earned for 3 hours of overtime? Round to the nearest centavo.

Your answer (₱)
Show step-by-step solution
1. Hourly rate: $645 \div 8 = 80.625$ .
2. Overtime rate: $80.625 \times 1.25 = 100.78125$ .
3. 3 hours: $100.78125 \times 3 \approx 302.34$ pesos.
Answer: 302.34 ₱
Problem 3 Standard

Gross monthly pay is ₱20,000. Deductions: SSS ₱1,000, PhilHealth ₱500, Pag-IBIG ₱200. Annual income is below ₱250,000 so no withholding tax applies. Find the net pay.

Your answer (₱)
Show step-by-step solution
1. Total deductions: $1{,}000 + 500 + 200 = 1{,}700$ .
2. Net pay: $20{,}000 - 1{,}700 = 18{,}300$ pesos.
Answer: 18300 ₱
Problem 4 Challenge

Under the TRAIN tax table, annual taxable income over ₱400,000 up to ₱800,000 is taxed ₱22,500 plus 20% of the excess over ₱400,000. Find the annual income tax on a taxable income of ₱450,000.

Your answer (₱)
Show step-by-step solution
1. Excess over ₱400,000: $450{,}000 - 400{,}000 = 50{,}000$ .
2. $20\%$ of excess: $0.20 \times 50{,}000 = 10{,}000$ .
3. Tax: $22{,}500 + 10{,}000 = 32{,}500$ pesos.
Answer: 32500 ₱
Problem 5 Standard

A sales agent receives a basic salary of ₱12,000 plus 3% commission on sales. In a month with ₱180,000 in sales, find the total earnings.

Your answer (₱)
Show step-by-step solution
1. Commission: $0.03 \times 180{,}000 = 5{,}400$ .
2. Total: $12{,}000 + 5{,}400 = 17{,}400$ pesos.
Answer: 17400 ₱
Problem 6 Standard

A seamstress is paid ₱35 per school uniform (piecework). How many uniforms must she finish in a 26-day month to match the ₱16,770 monthly minimum wage? Round up to a whole number.

Your answer (uniforms)
Show step-by-step solution
1. $16{,}770 \div 35 = 479.14\ldots$
2. She cannot finish a fraction of a uniform, so she needs 480 uniforms, about 18.5 a day.
Answer: 480 uniforms

Payroll and interest calculator More practice: Earning Money and Percentages More practice: Piecewise Functions