Term 1 · Weeks 1–2 · Earning Money and Percentages

Standard problem

Standard

Pag-IBIG contributions are 2% from the employee and 2% from the employer, but only on the first ₱10,000 of monthly salary. For an employee earning ₱18,000, how much is deducted from pay?

Show step-by-step solution

Answer: 200 ₱

The salary base is capped at ₱10,000.
Employee share: $0.02 \times 10{,}000 = 200$ pesos.

Common errors to watch for

Using the full ₱18,000 as the base gives ₱360.

Budget of Work competencies

gm11.t1.w2.c1
Solve problems involving salaries, wages, benefits, and deductions (tax computations, overtime pay, and gross and net incomes) using appropriate technology.