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Wednesday, November 11, 2009

Wage Includes Sales Commissions

"Salary," the etymology of which is the Latin word "salarium," is often used interchangeably with "wage," the etymology of which is the Middle English word "wagen."   


Both words generally refer to one and the same meaning, that is, a reward or recompense for services performed.  Likewise, "pay" is the synonym of "wages" and "salary."  


Inasmuch as the words "wage," "pay" and "salary" have the same meaning, and commission is included in the definition of "wage," the logical conclusion is, in the computation of the separation pay, the salary base should include also the earned sales commissions.  (Songco, et al. vs. National Labor Relations Commission, G.R. Nos. 50999-51000, March 23, 1990)


In another case, certain workers received compensation on a percentage commission based on the gross sale of the fish-catch, i.e., 13% of the proceeds of the sale if the total proceeds exceed the cost of the crude oil consumed during the fishing trip, otherwise, only 10% of the proceeds of the sale.  Such compensation falls within the scope and meaning of the term "wage" as defined under Article 97(f) of the Labor Code.  (Ruga, et al. vs. National Labor Relations Commission, G.R. Nos. 72654-61, Jan. 22, 1990)

1 comment:

sales commissions said...

Interesting, but how do you feel about non-cash incentives? I have seen similar programs involving such which have had an interesting effect on performance.

-Patti

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