Philippine Bar review · Question

Practice question: Wage vs. Salary

Multiple Choice Medium

Practice question

A company pays a clerk a fixed monthly salary for agreed employment services. It claims this cannot be a wage under Article 97(f) because it uses the word salary. Which response is correct?
  1. The label conclusively excludes the payment
  2. The definition may cover the remuneration notwithstanding the salary label and monthly computation
  3. The clerk must first become a manual laborer
  4. The payment is necessarily a loan
  5. The company may decide the statutory definition by changing payroll software

Legal references

  • https://lawphil.net/statutes/presdecs/pd1974/pd_442_1974.html — Labor Code, Article 97(f), definition of wage.
  • https://lawphil.net/judjuris/juri2006/jun2006/gr_164772_2006.html — Equitable Banking Corporation v. Sadac, GR 164772, June 8, 2006, main decision; contextual wage/salary distinction.

Answer this question in flashcards to review your response and continue practicing.