Judy Anne T.

Salucop
BSM22
1. How is the separation pay of laid off employees computed? How about those who
retired from work?
Separation pay of laid off employees is computed by the equivalent of one month pay or
one-half month pay, whichever is higher, for every year of service. While for those who
retired from work, their retirement benefits is equivalent to at least one-half month salary
for every year of service, whichever is higher, a fraction of at least 6 months being
considered as one whole year. It shall include 15 days salary based on the latest salary
rate, cash equivalent of 5 days service incentive leave and one-twelfth of thirteen month
pay.
2. How do service contracting differ from labor contracting?
Service contracting happens when employer enters an agreement with a contractor or
subcontractor for the latter to perform a job, while the labor contracting refers to a
situation where the principal employer concludes an agreement with a manpower
agency for a supply of manpower.
3. When do we say that the employee is a regular employee? Part time employee?
We can say that someone is a regular employee when he/she has been engaged to
perform activities which are usually desirable in the usual business. While we can
identify that someone is a part time employee when he/she render work just for a period
less than the normal eight hour working day or those who work less than the normal six
working days a week.
4. When does casual employment and contractual employment apply?
Casual employment happens when employees are hired as temporary replacements of
on leave regular employee or are hired during peak seasons while the contractual
employment happens when workers are employed at any time but for a definite period
not exceeding 6 months.

5. What is the ruling of the BIR regarding the computation of benefits for the employer?
BIR ruled that employers could deduct the costs of benefits as a business expense and
the employees do not need to include the value of health benefits in their taxable
income.
6. Why do employers give benefits over and above the basic compensation?
To serve as employees rewards for belonging to an organization. And this will also help
improve the quality of work and the personal lives of employees.
7. Cite examples of benefits that may be given voluntarily by employers, benefits
required by government legislation.
Examples are the Christmas Bonus, Midyear Bonus, Cost of Living Allowances, Paid
Holiday and Vacation Leaves, Sick Leave, Emergency Leave, Birthday Leave,
Healthcare Coverage, Group Life Insurance and Pension Plans.
8. What are the limits set by the BIR on the following De Minimis benefits given to
employees? a) unused vacation leave credits

b) rice subsidy

c)annual medical

benefits d) gift certificate for awards

Unused vacation leave credits of employees not exceeding 10 days during the year and
the monetized value of leave credits paid to government employees. Rice subsidy of
P1,500.00 or one sack of rice. Medical cash allowance not exceeding P750 per
employee per semester. Gift not exceeding P5,000 per annum.
9. Specify the benefits enjoyed by GSIS members but not enjoyed by SSS members.
It is the life insurance and the Survivorship benefit which the one qualified for
survivorship pension are entitled to fifty percent of the basic monthly pensioner.
10. Why do some employers give allowances to their employees?
Because they wanted to give benefits to employees for maximizing their enjoyment. And
for the betterment of their lives.

11. What is the difference between paternity leave and maternity leave?
Maternity leave is a female member who was unable to work due to child birth or
miscarriage while a paternity leave is granting every married male employee seven
working days of leave after his legitimate wifes child birth or miscarriage.
12. How does the provident savings system of the following government agencies help
their respective members? a) SSS

b) GSIS

c) Pag-ibig Fund

The SSS was created to provide the private employees and their families with protection
against disability, sickness, old age and death. The GSIS is just like the SSS but this
one if for the benefits of government employees. The PagIbig Fund provides housing
loans to all employees who elect to join the fund.
13. Compute: How much did Juan de la Cruz receive for his 13th month benefit if he
receives a monthly salary of Php20,000, but have worked for 10 months only for
calendar year 2014?
His 13th month pay will be computed as: P20,000.00 12 x 10 = P16,666.67. Therefore,
he will receive P16,666.67 as his 13th month pay.
14. Compute: Sharon converted her un-availed service incentive leave to its cash
equivalent. How much did she receive at the end of calendar year 2014 if she receives
a daily pay of Php750?
Sharon will be receiving P3,750.00 at year end as cash equivalent of her un-availed
service incentive leave.
15. When does the premium pay for regular employees apply?
It is applied for work hours rendered exceeding the maximum number of working hours
which is normally 8 hours per day.
16. What is the advantage of the Midyear bonus benefit to those employees who are
sending their children to school?

The advantage of midyear bonus is to assist employees in school enrollment fees for
their children.
17. What executive compensation package do top managers enjoy with regard to their
position?
They enjoy the cash compensation which is the sum of all standard cash salary, they
also have the Long-term incentive plans that encompass all compensations that are tied
to performance, they also have the Retirement packages and lastly the Executive perks.
18. What is the difference between intrinsic and extrinsic values?
Intrinsic values rewards inherent in the work itself. These are the rewards that come
from the act of performing. While the extrinsic values prospects the development and
growth.