All doubts in the implementation of the Labor Code,
including its rules and regulations, shall be resolved in favor of
the employer. True or False?
According to the four-fold test for an employer-employee
relationship to arise, which of the following elements is NOT
included?
 Selection and engagement of the employee
 A lengthy training period
 Payment of wages
 Power of dismissal over the employee
 Power to control the employee's conduct
Minimum wage exemption does NOT include:





Distressed establishments
New business enterprises
Establishments affected by natural calamity
Retail and service businesses with less than 10
employees
Retail and service businesses with less than 5
employees
How much is the prescribed night shift differential pay?




Not less than 50% of the basic pay
Not less than 25% of the basic pay
Not less than 10% of the basic pay
At least 20% of the basic pay
When is the 13th-month pay due?
 Exactly December 25th
 No later than December 24th
 Before January 1st
 On the first payout of December

According to PD 442, how many days of service incentive
leave are awarded to employees who have rendered at least
one year of service?




5 days
10 days
12 days
3 days
RA 9710, Section 18, entitles women who have rendered 6
months of service in the last 12 months to how many months
of paid leave following surgery due to gynecological
disorders?



5 months
9 months
6 months

2 months
RA 8972, Solo Parents Welfare Act, Section 8, awards how
many days of parental leave to solo parents?




7 days
14 days
30 days
45 days
What benefits are awarded to employees that qualify for
RA 8187, Paternity Leave Act of 1996, Section 2?




One-month paid leave for the birth of all his children,
both legitimate and illegitimate
7 days paid leave for the first four deliveries of his
legitimate spouse
15 days paid leave
15 days unpaid leave for the birth of all his children
RA 11210, Expanded Maternity Leave, entitles women to
how many days of paid leave for every live birth?




20 days
45 days
90 days
105 days
RA 11210, Expanded Maternity Leave, grants a female
employee a 7-day leave credit that is transferable to the
father of her child. True or False?
RA 11210, Expanded Maternity Leave, grants how many
additional days of unpaid leave to female employees?




105 days
30 days
120 days
45 days
RA 11210, Expanded Maternity Leave, entitles a female
employee who has had a miscarriage or an abortion to how
many days of paid leave?




105 days
60 days
30 days
120 days
Establishments are no longer required to give separation
pay to employees given what conditions?



Business is closed due to serious financial losses and
can no longer recover
There are less than 10 employees
Business earns less than 250,000 pesos per year
Which of the following regular holidays does NOT have a
movable date?





Eid al-Fitr
Araw ng Kagitingan
Ninoy Aquino Day
Eid al-Adha
Labor Day
How is the holiday pay rate computed?




150% of the daily wage
200% of the daily wage
120% of the daily wage
50% of the daily wage
It refers to the additional compensation for work
performed within 8 hours on rest days and special days.




Holiday pay
Rest day pay
Separation pay
Premium pay
The following are special non-working days EXCEPT:






EDSA People Power Anniversary
Black Saturday
Ninoy Aquino Day
Feast of the Immaculate Conception of Mary
Last day of the year
Christmas Day
It refers to the additional compensation for work
performed beyond 8 hours a day.




Premium pay
Extension pay
Overtime pay
Holiday pay
Which of the following is a condition for entitlement of
paternity leave?



Employee must be cohabiting with his spouse at the
time of childbirth or miscarriage
Employee must be 35 years old
Employee must not be probationary or project basis
article 44 it is the portion of the nation's population which
has actual or potential capabilities to contribute directly to
the production of goods and services



labor
Manpower
human resource
article 44 refers to training for self-employment or assisting
individual or small Industries



entrepreneurship
bookkeeping
management
article 45 National Manpower and youth council's ex-officio
chair




secretary of economic planning
Secretary of education
Secretary of Labor
Secretary of trade and Industry
The President appoints the following to the National
Manpower and youth Council accept




two representatives of national organizations of
employers
two representatives of national organizations of
employees
one representative of national family and youth
organizations
10 representatives of labor unions
What hours are covered by the night shift differential
compensation?




Between 5:00 PM and 5:00 AM
Between 10:00 PM and 6:00 AM
Between 9:00 PM and 9:00 AM
Between 6:00 PM and 6:00 AM
Is paternity leave convertible to cash?


It is not convertible to cash
Yes, in some instances
article 53 the council Secretariat is headed by a director
General he shall have Rank and emoluments of an under
secretary how long shall a director General serve




10 years
5 years
3 years
15 years
article 45 the following are the qualifications for the
position of director General except





a natural-born citizen
B between 30 and 50 years of age
C with master's degree or equivalent
D experience in National planning
10 years of service in the council
article 58 refers to practical training on the job
supplemented by related theoretical instruction




internship
apprenticeship
human resource development
on the job training
article 58 this refers to a worker who is covered by a written
apprenticeship agreement with an individual employer




Apprentice
trainee
intern
job order
article 58 it refers to any trade form of employment or
occupation which requires more than 3 months of practical
training on the jobs supplemented by related theoretical
instruction




entrepreneurship
on the job training
Apprentice occupation
employment
article 50 . 8 it refers to an employment contract or the
employer binds himself to train the apprentice and The
Apprentice in turn accepts the terms of training




memorandum of agreement
apprenticeship agreement
terms of service
Employment contract
article 59 to qualify as an apprentice the following are
required except




be at least 14 years old
possess vocational aptitude
ability to comprehend and follow instructions
have earned a high school diploma
article 61 what is the duration of the period of
apprenticeship




it shall not exceed 6 months
12 to 24 months
at least 120 days
8 weeks
article 61 what is the legal wage rate provided for
apprentices




the minimum wage rate
at least 75% of the minimum wage rate
p420 per day .
p50 per hour worked
article 62 who signs on behalf of a minor when he or she
enters an apprenticeship agreement




the Minor's parent or Guardian
an authorized representative of the Dole
either a or b
d only the minor can sign to enter an apprenticeship
article 72 hiring of apprentices without compensation is
allowed provided that training on the job is required by the
school or training program curriculum or is requisite for
graduation or board examination


a true
B false.
art 73 these are persons hired as trainees in semiskilled
and other industrial occupations which are non- apprentice
and which may be learned through practical training on the
job in a relatively short period of time x



trainees
apprentices
Learners
article 75 . how long is the learnership period




minimum of 6 months
not exceeding 3 months
no specific time frame
at least 30 days
article 75 how much is the salary rate of Learner




minimum wage
at least 75% of the minimum wage
not more than 50% of the minimum wage
twice the minimum wage
article 78 these are employees whose earning capacity is
impaired by age or physical or mental deficiency or injury




differently abled employees
handicapped workers
special skill labor
senior workers
article 80 how much is the salary rate of handicapped
workers




and not less than 75% of the minimum wage
the same rate as regular employees
twice the salary of regular employees
at least 50% of the minimum wage
It is the policy of the state to regulate the employment of
aliens.
 True
 False
This term means any member of the labor force, whether
employed or unemployed.
 Manpower
 Labor
 Worker
 Employee
This refers to any act of canvassing, enlisting, contracting,
transporting, utilizing, or procuring workers and includes
referrals, contract services, promising or advertising for
employment locally or abroad, whether for profit or not.
 Recruitment and placement
 Job order
 Human Resource Management
If an entity offers employment for a fee to one person, shall
the said entity be deemed engaged in recruitment and
placement?
 Yes
 No ( offer must be 2 or more person)
This term means any person or entity engaged in
recruitment and placement of workers for a fee which is
charged from the workers or employers or both.
 Private fee-charging Employment Agency
 Placement agency
 OWWA
This term refers to a document issued by the Department
of Labor authorizing a person or entity to operate a private
employment agency.
 Visa
 License
 Permit
This term refers to any person or association engaged in the
recruitment and placement of workers locally or overseas
without charging directly or indirectly any fee from the
workers or employers.
 Private recruitment entity
 OWWA
 Placement agency
This term refers to a document issued by the Department
of Labor authorizing a person or association to engage in
recruitment and placement activities as a private recruitment
entity.
 License
 Permit
 Authority
This refers to any person employed in a vessel engaged in
maritime navigation.
 Navy
 Seaman
 CW
This refers to any person, worker, or otherwise who
immigrates to a foreign country by virtue of an immigrant visa
or resident permit or its equivalent in the country of
destination.
 Emigrant
 Overseas Filipino Worker
 Expat
This body shall be primarily responsible for developing and
monitoring a comprehensive employment program.
 OWWA
 DOLE
 Bureau of Employment Services
The ban on direct hiring excludes members of the
diplomatic core, international organizations, and such other
employers as may be allowed by the Secretary of Labor.
 True
 False
It shall be mandatory for all Filipino workers abroad to
remit a portion of their foreign exchange earnings to their
families, dependents, and/or beneficiaries in the country.
 True
 False
Are travel agencies allowed to engage in recruitment?
 Yes
 No
How much of the capital stock should be owned by Filipinos
for the entity to be permitted to participate in the
recruitment and placement of workers?
 100%
 At least 50%
 75%
 No more than 80%
When is it acceptable for a recruitment agency to induce a
worker already employed to quit his employment in order to
offer him to another employer?
 It is never acceptable.
 When the transfer is designed to liberate the worker
from oppressive terms and conditions of
employment.
When is illegal recruitment deemed committed in large
scale?
 When it is committed against three or more persons.
 When it involves well-known syndicates.
 When it has victimized 10 or more persons.
The following are the penalties for illegal recruitment
except:
 Life imprisonment
 100,000 peso fine
 Closure of recruitment agency
 1 million peso fine
 Vacation of license
In what condition are non-resident aliens permitted to be
employed in the Philippines?
 A non-availability of a person in the Philippines who
is competent, able, and willing to perform the
services for which the alien desires to be employed.
 Non-resident aliens are not allowed to seek
employment in the Philippines.
What document do non-resident aliens need to secure to
be able to engage in employment in the Philippines?
 Working visa
 Employment permit
 Labor license
This refers to those whose primary duty consists of the
management of the establishment in which they are
employed or of a department or subdivision thereof, and to
other officers or members of the managerial staff.



managerial employees
supervisory staff
level executives
Art. 82: This refers to non-agricultural employees who
regularly perform their duties away from the principal place
of business or branch office of the employer 1 and whose
actual hours of work in the field cannot be determined with
reasonable certainty.



Homebased employees
Field personnel
Work from home employee
Art. 83: How many hours are "normal hours of work"?




at least 8 hours
not exceeding 8 hours
9 hours
7 hours plus meal time allotment
Art. 85: How long is the prescribed meal time?




not exceeding 1 hour
at least 60 minutes
exactly 1 hour 30 minutes
45 minutes
Art. 86: How much is the prescribed night differential per
hour?




30% of the regular wage
10% of the regular wage
25% of the regular wage
50% of the regular wage
Art. 86: Between what hours are covered by night shift
differential?




10 PM and 6 AM
6 AM and 10 PM
5 PM and 5 AM
6 PM and 6 AM
Art. 87: How much is the compensation for overtime work?



regular wage + 25%
twice the regular wage
1.5x regular wage
. Art. 87: How much is the compensation for overtime work
performed on a holiday or rest day?



regular wage + 30%
twice the regular wage
1.5x regular wage
Art. 88: Can undertime work on any particular day be offset
by overtime work on any other day?


Yes
No
Art. 89: Emergency overtime work is required in the following
except:




when the country is at war
when it is necessary to prevent loss of life
when work is necessary to prevent damage to
perishable goods
when there are customers to be served past the
closing hours
Art. 91: How often are employers required to provide 24
hours of rest day?




every 6 consecutive work days
once a month
biweekly
every other week
Art. 93: How much is the additional compensation for work
on a scheduled rest day?




30% of the regular wage
100% of the regular wage
50% of the regular wage
25% of the regular wage
Art. 93: How much is the additional compensation for work
on a scheduled rest day if it falls on a holiday?




30% of the regular wage
100% of the regular wage
50% of the regular wage
25% of the regular wage
Art. 94: What condition exempts a business from paying its
employees holiday pay?



employment of less than 10 employees
yearly income of less than P500,000
if an establishment is owned by a foreign national
Art. 105: When an employee dies, what happens to his wages
for his remaining unpaid work?



Art. 132: Are employers required to provide separate
restrooms from male and female employees?
 yes
 no
Art. 137: Employers are prohibited from discharging women
from work on account of pregnancy.


50% employee, 50% management
85% employee, 15% management
15% employee, 85% management
Art. 102: Employers are allowed to pay employees with
promissory notes, vouchers, coupons, tokens, tickets when
requested by the employee.


True
False
True
False
Art. 142: How long is the period covered by a Contract of
Domestic Service?




1 year
2 years
3 years
4 years
Art. 145: If a house helper is assigned by his employer to work
at a commercial enterprise, how much is his employer
required to pay him for his service?



his usual wage as a house helper
the same wage as a regular employee
his usual wage as a house helper + 50%
Art. 146: If a house helper is below 18 years old, the employer
is expected to give him/her an opportunity for at least high
school education.


Art. 96: How are Service Charges divided between employer
and employee?



it is confiscated by the state
the employer is no longer required to pay wages
the employer is required to pay the employee’s heirs
True
False, Art. 146 stipulates at least elementary
education
Art. 149: If a house helper is unjustly dismissed, how much is
the required compensation?



regular wage as a house helper
regular wage as a house helper + 15 days wage
equivalent of 60 days minimum wage
Art. 149: If a house helper leaves without justifiable reason,
what happens to his unpaid wages?



an equivalent of 15 days wages is forfeited
the employer is required to pay it in full
50% is forfeited
Article 156: Are employers expected to train a sufficient
number of employees in first aid treatment?


True
False, first aid training is optional
Article 157: In case the workplace is not considered
hazardous, what professional can an employer hire in place of
a registered nurse?




a medical doctor
b. a physical therapist
c. a graduate first-aider
d. a medical professional is not needed
Article 157: When the number of employees exceeds 200
but not more than 300, what medical benefits is the employer
required to provide in the workplace?





a full-time registered nurse
b. a part-time physician
c. a part-time dentist
d. a clinic
e. all of the above
Article 157: When the number of employees exceeds 300,
are employers required to provide the service of a full-time
physician?


Yes
No, full-time physicians are never required no matter
the number of employees
Article 157: In cases of hazardous workplaces, how long are
full-time physicians required to stay in the establishment?



at least 8 hours
no more than 8 hours
12 hour shifts
Article 159: What is the task that is NOT part of an
establishment's full-time physician's responsibilities?




attend to medical emergencies
provide basic medical services
implement a comprehensive occupational health
program
perform elective surgery
Article 165: Which government agency is responsible for
developing criteria for medical personnel to ensure they are
properly trained in Industrial Medicine?



Department of Health
Department of Labor & Employment
Department of Interior and Local Government
Article 167: Who is NOT considered a dependent?





legally adopted child
a married child
a mentally incapacitated child who is over 21
a legitimate spouse
financially dependent parents
Article 167: Who are the primary beneficiaries? Except;



dependent spouse
dependent children
dependent parents
Article 167: What term refers to any harmful change in the
human organism from any accident arising out of and in the
course of employment?




bodily harm
injury
emergency
accident
Article 167: Art. 167: A quarter is a period of 3 consecutive
months, ending on the last days of March, June,
September, and December. What is a semester?



5 consecutive months
2 consecutive quarters
12 months
Article 167 is the sum of twenty percent and the quotient
obtained by dividing three hundred by the sum of three
hundred forty and the average monthly salary credit.



Salary credit
Semester payout
Replacement ratio
Art. 167: It is the amount equivalent to one hundred fifteen
percent of the sum of the average monthly salary credit
multiplied by the replacement ratio, and one and a half
percent of the average monthly salary credit for each credited
year of service in excess of ten years.



Credited years of service
Monthly income benefit
Average daily salary credit
Article 168: Until what age is the coverage in the State
Insurance Fund compulsory?




65
60
70
55
Article 172: In what conditions is the State Insurance Fund
NOT liable for compensation to the employee or their
dependents in case of the employee's death?




suicide
death due to intoxication
notorious negligence
all of the above
Article 183: When a covered employee dies, becomes
disabled, or separates from employment, what happens to
the employer's obligation to pay the monthly contribution
arising from that employment?


The employer will continue paying the employee's
contribution for the benefit of his dependents
The employer's obligation shall cease at the end of
the month of contingency
Article 189: How much is the income benefit paid by the
system in cases of temporary total disability?




100% of his daily wage
200% of his daily wage
90% of his average daily salary credit
50% of his average daily salary credit
Article 192: In cases of permanent total disability, for how
long does the system pay the employee a monthly income
benefit?
 5 years
 10 years
 the same number of his employment years
 until his death
Article 192: What condition suspends the monthly income
benefit for permanent total disability?




when the employee recovers
when the employee becomes employed
fails to present himself for examination at least once
a year
all of the above
Article 192: Which of the following disabilities is NOT
considered total and permanent?






temporary disability that lasts more than 120 days
complete loss of sight for both eyes
Loss of two limbs at or above the ankle or wrist
Permanent complete paralysis of two limbs
Brain injury resulting in incurable imbecility or
insanity
all are considered Permanent Total Disabilities
Article 193: How many months is an employee paid a
permanent partial disability benefit for losing a thumb?




10 years
5 years
10 months
5 months
Article 193: How many months is an employee paid a
permanent partial disability benefit for losing an arm? .




10 years
5 years
50 months
10 months
Article 193: How many months is an employee paid a
permanent partial disability benefit for losing sight in one
eye?




10 years
5 years
50 months
25 months
Article 202: In case of the death of an employee, what
happens to the death benefit if the money is payable to a
minor or incompetent?



it is forfeited
only 50% is given to the beneficiary
the System decides who is best qualified to take care
and dispose of the minor's or incompetent's
property for his benefit
Article 206: Employees or their dependents are required to
give notice of sickness, injury, or death to the employer within
what period?



5 days within occurrence
within the year of sickness, injury or death
no specific timeframe
Article 207: What is the penalty for any person who
commits fraud, falsification, or collusion to claim a benefit?



Return of the claimed benefit plus 25%
P100,000 regardless of the claimed amount
imprisonment of 6 months to 1 year
Art. 212: This refers to an employee who is vested with the
powers or prerogatives to lay down and execute management
policies and/or to hire, transfer, suspend, lay-off, recall,
discharge, assign or discipline employees.



managerial employee
supervisory employee
rank-and-file employee
This refers to an employee who, in the interest of the
employer, effectively recommends managerial actions if the
exercise of such authority is not merely routinary 1or clerical
in nature but requires the use of independent judgment



managerial employee
supervisory employee
rank-and-file employee
This refers to any temporary stoppage of work by the
concerted action of employees as a result of an industrial or
labor dispute.



Lockout
Dispute
Strike
Art. 212: This refers to any temporary refusal of an employer
to furnish work as a result of an industrial or labor dispute.



Lockout
Dispute
Strike
Art. 212: This refers to any person who obstructs, impedes, or
interferes with by force, violence, coercion, threats, or
intimidation any peaceful picketing affecting wages, hours 1 or
conditions of work or in the exercise of the right of selforganization or collective bargaining.



Union Organizer
Strike-breaker
Labor Enforcer
Art. 212: the establishment, warehouses, depots, plants or
offices, including the sites or premises used as runaway
shops, of the employer struck against, as well as the
immediate vicinity actually used by picketing strikers in
moving to and fro before all points of entrance to and exit
from said establishment.



Union Platform
Strike Area
Workplace
**How many days can parties appeal decisions of the labor
arbiter?**




30 days
10 calendar days
10 working days
5 days
**How many days does the Bureau of Labor Relations have
to act on labor cases?**




15 working days
15 calendar days
30 days
5 days
**What is the fee for obtaining a certificate of registration for
labor organizations?**




A) 50,000 pesos
B) 5,000 pesos
C) 500 pesos
D) 50 pesos
**What are the qualifications for Labor Union Officers?**


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A) At least 35 years old
B) College graduate
C) Employed for at least 5 years
D) All of the above
E) No requirement other than being in good standing
**Is a person convicted of a crime eligible for election as a
union officer?**


Yes
No
**Are managerial employees eligible to join labor
organizations?**


A) Yes
B) No
**Can supervisory employees join rank-and-file labor
organizations?**
- A) True
- B) False
**What happens if an employer unlawfully tetminates an
employee due to a lockout?**
- A) Pay the employee 100,000 pesos
- B) Reinstatement with full back wages
- C) Early retirement benefits
**What happens to a union officer who participates in an
illegal strike?**
- A) Faces imprisonment of one year
- B) Automatic termination of employment
- C) Salary deduction
This type of employment does not exceed 6 months unless
covered by an apprenticeship agreement stipulating a longer
period.
A) casual employment
B) regular employment
C) probationary employment
D) seasonal worker
**Are employers allowed to use strike breakers?**
- A) Yes
- B) No
**When can union members or organizers be arrested?**
- A) In case of crime commission
- B) Grounds of national security and public peace
- C) Both A and B
The following are legal grounds for termination except:
A) serious misconduct
B) gross and habitual neglect of duties
C) fraud
D) willful disobedience
E) crime or offense against his employer
F) failure to pay personal debts
In case of termination of an employee due to the installation
of labor-saving devices resulting in redundancy, what is the
prescribed period for serving a notice of termination?
- D) When the strike lasts more than 24 hours
**Are foreign workers allowed to join union activities?**
- A) Never allowed
- B) Allowed with permits if their country permits it
**What penalty awaits a foreign worker violating labor union
provisions?**
- A) 100,000 peso fine
- B) Imprisonment of 6 months
- C) Immediate deportation
- D) All of the above
This term refers to the protection of a regular employee from
unjust termination.
A) Security of tenure
B) unjust termination
C) unionization
D) collective bargaining
This is the type of employment where the employee has been
engaged to perform activities which are usually necessary or
desirable in the usual business or trade of the employer.
A) casual employment
B) regular employment
C) probationary employment
D) seasonal worker
A) exactly 10 days before termination
B) the day of the termination
C) 6 months before termination
D) at least 1 month before termination
How much is the separation pay for employees who are
terminated due to the installation of labor-saving devices?
A) equivalent to six months wages
B) at least one month pay or one month pay for every year of
service, whichever is higher
C) they are not entitled to any separation pay
How much is the separation pay for employees who are
retrenched due to closure or cessation of operations?
A) equivalent to six months wages
B) at least one month pay or half month pay for every year of
service, whichever is higher
C) they are not entitled to any separation pay
When computing for separation pay, what counts as one full
year of service?
A) exactly 12 months
B) at least 6 months
C) at least 1 month
Is it legal to terminate an employee due to a disease?
A) no, it is discriminatory
B) yes, provided that his employment is prejudicial to his
health as well as to the health of his co-employees
An employee has to serve a written notice of resignation 1
month before the occurrence; which of the following does not
exempt an employee from serving a resignation letter?
The following are the 3 basic types of compensation, except:
A) serious insult by the employer
B) inhuman and unbearable treatment
C) commission of crime against the employee
D) immediate transfer to another employer with better
compensation offer
What is the compulsory retirement age?
A) 60
B) 65
C) 70
D) 55
How much is the retirement pay for employees who have
served at least 5 years in the same establishment?
A) monthly salary times the number of years in service B) half
monthly salary multiplied by the number of years in service
C) minimum wage multiplied by number of months in service
13. Are service incentive leaves a factor when computing for
retirement pay?
A) yes
B) no
What types of establishments are exempted from granting
retirement pay to their employees?
A) none; all businesses are required to give their employees
a retirement package
B) retail, service, and agricultural establishments or
operations employing not more than 10 employees
Money claims are to be filed within how many years of the
disputed act between employer and employee?
A) 3 years
B) 5 years
C) 10 years
D) 15 years
When and where was the labor code enacted?
A) Manila Labor Day in 1974
B) Baguio January 1st, 1950
C) Quezon City February 25th, 1988
D) Manila December 23rd, 1965
The means of giving a monetary value equivalent to any work
performed by an employee.
a. Salary
b. Wage
c. Benefits
d. Compensation
a. Base pay
b. Variable pay
c. Invariable pay
d. Benefits
It is the pay given to the employee for the actual work
rendered, usually in the form of salary or wage.
a. Base pay
b. Variable pay
c. Benefits
The indirect rewards which may either be governmentmandated or voluntarily given by the employer.
a. Base pay
b. Variable pay
c. Benefits
The following are objectives of compensation, except:
a. to retain high performing employees
b. to achieve high productivity
c. to satisfy pay requirements in accordance with the law
d. to reduce employee turnover
e. all of the above
What are the two classifications of compensation?
a. direct compensation
b. indirect compensation
c. variable compensation
d. invariable compensation
e. a and b
f. c and d
g. none of the above
Classification of compensation defined as an actual monetary
value paid to an employee. It can be in the form of salary or
wage. It also includes bonuses, incentives, commissions, and
other performance-based pay.
a. direct compensation
b. indirect compensation
c. variable compensation
This refers to nonmonetary aspects of compensation. This
includes benefits packages such as hospitalization and life
insurance plans, sickness and vacation leaves, car plans, and
educational grants.
a. indirect compensation
b. direct compensation
c. variable compensation
The following are policies that affect compensation, except:
a. Internal Alignment
b. External Competitiveness
c. Employee Contribution
d. Management of the Pay System
e. Social and Political Issues
This policy addresses possible pay comparison among
employees with related or similar tasks. The goal is to ensure
that employees are paid according to their contribution to the
organization.
a. Management of Pay System
b. Employee Contribution
c. External Competitiveness
d. Internal Alignment
This policy ensures that the organization's compensation
package is at par with those of their competitors. This
prevents employees from transferring to a competing
organization.
a. Management of Pay System
b. Employee Contribution
c. External Competitiveness
d. Internal Alignment
It is defined as the process of determining all the information
specific to a particular job.
a. Job Analysis
b. Job Description
c. Job Evaluation
According to the Subsistence Theory, if actual wages fall
below the subsistence level, the population will decrease
which will eventually lead to a lower labor supply and an
increase in wages. 1 This leads to famine, starvation, and
disease.
a. True
b. False, wages falling below subsistence level will actually
lead to an increase in population.
It is the tendency of wages to remain fixed at a subsistence or
minimum level. It is coined by Ferdinand Lasalle. According to
this, wages cannot fall below the minimum because workers
will not be able to work.
a. Iron Law of Wages
b. Subsistence Theory
c. Just Price Theory
A British economist who used the terms "natural price" and
"market price of labor" to explain the Iron Law of Wages.
a. Thomas Malthus
b. David Ricardo
c. John Stuart Mill
This theory emphasizes that employees would like to
maintain equity between inputs and outputs. Employees with
high positions have high wages.
a. Iron Law of Wages
b. Subsistence Theory
c. Just Price Theory
The written summary of all the duties and responsibilities of a
particular job position.
Adam Smith developed this theory to mean that workers are
paid based on a fund that is already there in the first place.
This fund is also called the wage fund.
a. Job Analysis
b. Job Description
c. Job Evaluation
a. Residual Claimant Theory
b. Standard of Living Theory
c. Wage Fund Theory
It is the process of determining the worth of a job.
It suggests that residual claims will only increase if
productivity will increase. Wages are called residuals because
there are other factors of production, such as land, capital,
and entrepreneur, are paid first.
a. Job Analysis
b. Job Description
c. Job Evaluation
The most popular economic theory on wages. The basis for
the Minimum Wage Concept. According to this theory, an
increase in wages will only lead to an increase in population
at a faster rate.
a. Iron Law of Wages
b. Subsistence Theory
c. Just Price Theory
a. Residual Claimant Theory
b. Standard of Living Theory
c. Wage Fund Theory
The level or quality of life that a particular worker enjoys in a
particular location or area. It includes the basic necessities of
life, education, and recreation which he/she has become
accustomed with.
a. Residual Claimant
b. Standard of Living
c. Just Price
John Davidson developed this theory to highlight the
bargaining power of workers in negotiating their wages.
Wages are high if they are stronger than the employer.
a. Residual Claimant Theory
b. Standard of Living Theory
c. Bargaining Theory
The first step in the conventional way of conducting job
analysis.
a. interview
b. preliminary review of old job descriptions and reports
c. evaluation of survey questionnaires
The most popular method of job evaluation.
a. job ranking
b. factor comparison
c. job classification
d. point factor
Information collected during job analysis that refers to the
person's thoughts, behaviors, and attitudes which are
characterized as consistent and stable.
When are salaries and wages paid?
a. Salaries are paid semi-monthly or on a fixed period such as
15th and 30th.
b. Wages are paid daily, weekly, or more often than semimonthly.
c. Both are paid once a month.
d. Both a and b are correct.
The Labor Market is static.
a. true
b. false, it is dynamic
Employers use this as the baseline for all other qualifications.
It is a key factor in determining pay rates. It is more important
than experience and skills.
a. Educational attainment
b. Parentage
c. Racial background
d. Political leanings
The following are the three main concepts that should be
considered to effectively manage compensation decisions,
except:
a. job analysis
b. company culture
c. job evaluation
d. market rate analysis
Which is not part of the four dimensions in conducting job
analysis?
a. level of analysis
b. sources of information
c. information to be collected
d. methods of collecting information
e. educational background of employee
a. knowledge
b. skills and abilities
c. qualifications
d. personality traits
The systematic process of obtaining relevant information on a
specific job.
a. job evaluation
b. job description
c. job analysis
d. job interview
The collection of tasks grouped together for a common
purpose.
a. duty
b. responsibility
c. skill
d. knowledge attribute
The scope of a job in terms of how work can be done
adequately.
a. duty
b. responsibility
c. skill
d. knowledge attribute
The lowest level of job analysis. It is the knowledge, skills,
abilities, and personality characteristics needed to perform
the job.
a. duty
b. responsibility
c. skill
d. knowledge attribute
All the concepts, facts, and procedures needed in performing
a particular task. It can be divided into declarative (what) and
procedural (how) specific to a job.
The Equal Pay Act of 1963 requires jobs to be compared
on which 3 aspects?
a. knowledge
b. skills
c. ability
d. task
a. skill, effort, responsibility
b. education, experience, position
c. personality traits, ability, years in service
d. difficulty, duration, salary
Unlike skills, this is a more lasting capacity to perform a range
of tasks. These can be verbal or quantitative (cognitive),
dexterity (psychomotor), and strength (physical).
The grouping of jobs with similar content. Examples are
Engineering, Marketing, Human Resources, and
Production
a. personality characteristics
b. ability
c. element
d. responsibilities
a. job
b. job family
c. occupations
d. title
The smallest division of work. It consists of a singular motion
which is used in time and motion studies conducted by
industrial engineers.
The following are methods of collecting information, except:
a. activity
b. element
c. task
d. position
The collection of related elements performed close to each
other to complete a work assignment.
a. activity
b. element
c. task
d. position
a. observation
b. interview
c. survey questionnaire
d. job analysis
The first step in conducting a job analysis.
a. review existing documents such as an old job description
b. visit the work area
c. conduct an interview
d. validate job description
The end product of job analysis.
The accumulation of tasks to indicate one's employment. It
also indicates the salary that an employee should receive
from the organization.
a. job evaluation
b. job description
c. job specifications
d. recruitment
a. activity
b. element
c. task
d. position
This summarizes the basic requirements of the job in terms of
educational background, skills, experience, and personality
traits and behaviors to successfully perform the job.
The grouping of positions that are identical in their
major tasks. The positions are alike and can be covered
by a single analysis.
a. job evaluation
b. job description
c. job specifications
d. recruitment
a. job
b. job family
c. occupations
d. title
Job Evaluation supports which principles:
a. equal pay for equal work
b. more pay for more important work
c. no work no pay
d. a and b
e. b and c
It refers to the actual work performed and how it is done.
a. job evaluation
b. job value
c. job content
d. job description
The following are steps in the Job Evaluation Process, except:
a. job analysis
b. determining compensable factors
c. developing the method
d. establishing the job structure
e. evaluating the hiring process
The two main schemes for internal job evaluation.
a. analytical and nonanalytical
b. conditional and nonconditional
c. observable and unobservable
d. quantity and quality
The magnitude of an error made in terms of resources and
the impact on organizational performance.
a. complexity of duties
b. consequences of error
c. working conditions
d. confidential data
The most common job evaluation factor. The four
considerations are: compensable factors, assigning points,
weights assignment, job categories.
a. job classification
b. job ranking
c. factor comparison
d. point factor
The least complicated job evaluation method because it ranks
jobs from highest to lowest based on the importance of the
job to the organization.
The last step in the job evaluation process. It is the grouping
of work which is in accordance with the alignment of jobs of
the organization.
a. job analysis
b. job structure
c. job description
d. job evaluation
The process of obtaining the current pays of employers for
different jobs which are eventually used to establish pay rates
for an organization.
a. pay policy
b. market rate analysis
c. job matching
d. wage survey
The following are the three dimensions of a wage survey,
except:
a. job matching
b. sample frame
c. timing
d. questionnaire
The following are sources of market rate data, except:
a. online data
b. national and local surveys
c. management or consultant databases
d. recruitment firms
e. job incumbents
Which government agencies release yearly reports on average
salaries on various positions across sectors and industries?
a. Department of Labor and Employment
b. Philippine Statistics Authority
c. Department of Interior and Local Government
d. b and c
e. a and b
What is the first step in Market Rate Analysis?
a. job classification
b. job ranking
c. factor comparison
d. point factor
This job evaluation method uses grades or levels for each job.
A particular position has sub-levels depending on educational
attainment, experience, and skills.
a. job classification
b. job ranking
c. factor comparison
d. point factor
a. determine the purpose of the analysis
b. determine which jobs will use the market data
c. select the sources of market data
d. analyze the data gathered
e. present the analysis and recommend a plan of action
What is the last step in Market Rate Analysis?
a. determine the purpose of the analysis
b. determine which jobs will use the market data
c. select the sources of market data
d. analyze the data gathered
e. present the analysis and recommend a plan of action
The least possible amount of compensation that an
organization or employer is required to pay its employees for
work performed for a particular period.
a. Salary Ceiling
b. Salary Floor
c. Minimum Wage
Which government agencies are tasked to implement the
provisions of the Labor Code of the Philippines on labor laws?
a. Department of Labor and Employment
b. National Wages and Productivity Commission
c. both a & b
d. none of the above
Which government agency monitors the economic activities
of each region and recommends adjustments based on the
region’s growth and unemployment rate?
a. Department of Labor and Employment
b. National Wages and Productivity Commission
c. Regional Tripartite Wages and Productivity Board
d. National Economic and Development Authority
2TWS or Two-tiered wage system maintains the mandatory
minimum wage under RA 6727 as the first tier. It is
supplemented by ________ as the second tier.
a. productivity-based pay scheme
b. education-based pay scheme
c. accomplishment-based pay scheme
d. certification-based pay scheme
One of the factors that affect salary structures. It measures
the employee’s contribution to the organization.
a. Labor Supply and Demand
b. Organization’s Ability to Pay
c. Productivity
d. Prevailing Market Rate
It is an organization's capability to provide competitive
salaries and benefits by giving utmost attention to job grades,
competencies, employee performance, and positions.
a. Return on Investment
b. Competitiveness
c. Meritocracy
d. Internal Equity
One of the three strategies in increasing salary
competitiveness where the organization pays its employees
above the market rate.
a. Lag the Market
b. Lead-lag the Market
c. Lead the Market
d. none of the above
A group of jobs which have been determined by any of the
job evaluation methods and approximate the group’s level of
difficulty and importance.
a. Salary Range
b. Pay Grade
c. Pay Structure
d. Wage System
The hierarchy of jobs with corresponding salary ranges. It has
a series of midranges to give more opportunities to pay for
salary increases.
The interval between the minimum and maximum salary base
for each job or group of jobs.
a. Wage Matrix
b. Salary Structure
c. Wage System
d. Salary Hierarchy
a. Salary Range
b. Pay Grade
c. Pay Structure
d. Wage System
One of the factors that affect salary structures. This reflects
the ability of the employee to provide for their personal and
family's needs.
True or false: The Salary Range is largest for top management
or executive level positions because the organization should
exercise certain flexibility for these positions.
a. Labor Supply and Demand
b. Organization's Ability to Pay
c. Living Wage
d. Prevailing Market Rate
a. True
b. False
It consists of a sequence of job grades with corresponding
ranges of 20% to 40% for narrow-graded, and 40% to 50% for
broad-graded.
a. Graded Pay Structure
b. Broadband
c. Job Family Structure
d. none of the above
It is similar to a graded structure but with a few bands of five
to six and a wide pay range of 50% to 80%. It collapses the
pay grades into fewer bands. 1
Performance Per Unit Scheme where the employee is paid for
every unit produced and the wage is determined by
multiplying the number of units by the rate per unit.
a. Graded Pay Structure
b. Broadband
c. Job Family Structure
d. none of the above
a. Piece rate
b. Standard hour plan
c. Output Standard
d. Production rate
In this pay structure, there is a separate pay grade for each
job family. This salary structure can cause conflict among
employees because of the perceived division of jobs and
salaries.
A holistic approach to determine pay. It looks at all aspects of
performance and how they contribute to organizational
objectives.
a. Graded Pay Structure
b. Broadband
c. Job Family Structure
d. none of the above
a. Competency-based pay
b. Skill-based pay
c. Contribution-based pay
This philosophy enables employees to receive salary increase
every year regardless of performance.
It is based on the overall performance of the team. This
encourages cooperation and teamwork as members of the
team perceive the team’s performance as a product of their
collective efforts.
a. Performance Philosophy
b. Entitlement Philosophy
c. Contingent Pay
d. Compensation Philosophy
a. Organization-wide Contingent Pay
b. Team Contingent Pay
c. Individual Contingent Pay
d. Competence Contingent Pay
This philosophy reflects pay increases given to deserving
employees based on their performance.
They are employees who take advantage of the performance
and efforts of other members of the team. They do not
contribute and their presence reduce the motivation of other
members.
a. Performance Philosophy
b. Entitlement Philosophy
c. Contingent Pay
d. Compensation Philosophy
The pay added to the base pay. It is usually dependent on
individual, team, and organization-wide performance.
a. Performance Philosophy
b. Entitlement Philosophy
c. Contingent Pay
d. Compensation Philosophy
Contingent Pay that is associated with individual
performance, contribution, competency, or skill. Performance
is measured vis-à-vis existing performance standards.
a. Organization-wide Contingent Pay
b. Team Contingent Pay
c. Individual Contingent Pay
d. Competence Contingent Pay
Similar to a Piece Rate plan, except that there is a standard
time set to complete a task.
a. Piece rate
b. Standard hour plan
c. Output Standard
a. Team leaders
b. Ghost employees
c. Free riders
d. Model employees
Employees are rewarded not only as individual performers or
team players, but also as stakeholders.
a. Organization-wide Contingent Pay
b. Team Contingent Pay
c. Individual Contingent Pay
d. Competence Contingent Pay
An organization-wide pay scheme where employees share in
the financial gains or savings obtained from productivity
improvements, savings in expenditures, quality control
measures, and excellent customer service.
a. Gainsharing
b. Profit sharing
c. Employee stock
Pay scheme where employees are given special amounts or
bonuses based on the profits of the organization.
a. Gainsharing
b. Profit sharing
c. Employee stock
These are usually given in the form of stocks or shares of
stock. Executives are awarded for the successful
accomplishment of strategic objectives.
Compensation for Salespeople: Commissions are paid equally
for each sales representative depending on the total sales
achieved in their particular territory. Often used by
pharmaceutical employers.
a. Territory volume
b. Profit margin
c. Capped commission
Compensation for Salespeople: There is usually a higher basic
salary to offset the negative effect of the cap on commissions.
a. Salary
b. Commission
c. Profit Margin
d. Long-term incentives
a. Territory volume
b. Profit margin
c. Capped commission
Compensation for Salespeople: This scheme is used to
products with fluctuating demand. Sales personnel are given
basic salary but do not receive a commission for every unit
sold.
Compensation for Salespeople: This scheme has many
opportunities for aggressive and hardworking sales
representatives. The more sales they make, the higher the
commission percentage they get.
a. Straight salary
b. Salary plus commission
c. Commission only
d. Draw against commission
a. Set rate
b. Performance gate
Compensation for Salespeople: There is a guaranteed basic
salary and a commission is given for every sale.
a. Straight salary
b. Salary plus commission
c. Commission only
d. Draw against commission
Compensation for Salespeople: The allotted commission is
already given in advance. Each time a sale is made, the
commission is deducted from the amount given in advance.
a. Straight Salary
b. Salary plus Commission
c. Commission only
d. Draw against commission
Compensation for Salespeople: Sales personnel do not receive
a basic salary and they are paid only when they make a sale.
a. Straight Salary
b. Salary plus Commission
c. Commission only
d. Draw against commission
Compensation for Salespeople: Commissions are based on
the performance of the organization. There is no definite rate
or amount which salespeople can rely on, as commissions can
fluctuate based on organizational performance.
a. Territory volume
b. Profit margin
Compensation for Salespeople: There is a specific amount for
each sale of a particular product or service made.
a. Set rate
b. Performance gate