APPENDIX C

SAMPLE COMPUTATION
FOR NON AGRICULTURAL WORKERS
IN METRO MANILA UNDER R.A. 6727
OVERTIME PAY
Overtime Pay - refers to the additional compensation required by law
for work performed in excess of eight (8) hours a day. A day for the
purpose of determining whether overtime pay is due shall mean a
workday of 24 consecutive hours beginning at the same time each
calendar day. The minimum overtime pay rates vary according to the
day the overtime work was performed as follows:
a.) Overtime pay for work on ordinary day
Equivalent to 25% of the hourly rate of 100%, or a total of 125% per
hour.
Ex. P89.00/day 8 = P11.125/hour 25% thereof (P2.78125) or
P11.125/hour x 125% = P13.90625 O.T./Hr.
b.) Overtime pay for work on rest days or non working special
holidays
Equivalent to 30% of the hourly rate of 130%, or a total of 169% per
hour.
Ex. P89.00/day 30% thereof (26.70)

= P115.70/day 8 = P14.4625/hr.
P14.4625/hr. 30% thereof (P4.33875)
or P89.00/day 8 = P11.125/hr. x
169% (1.69) = P18.80125 O.T./Hr.
c.) Overtime pay for work on rest days, which is also non working
special holidays
Equivalent to 30% of the Hourly rate of 150% or, a total of 195% per
hour.
Ex. P89.00/day 50% thereof (P44.50 = P133.50/day
8 = P16.6875/hr.
P16.6875/hr 30% thereof (P5.00)
Pr P89.00/day 8 = P11.125/hr. x
195% (1.95) = P21.69375 O.T./Hr.
d.) Overtime pay for work on legal (Regular) holidays
Equivalent to 30% of the hourly rate of 200% or, a total of 260% per
hour.
Ex. P89.00/day 100% thereof (P89.00) = P178.00 +
8 = P22.25/hr. = 30% thereof (P6.675)
Or P89.00/day 8 = P11.125/hr. x
260% (2.60) = P28.925 O.T.R./Hr.
e.) Overtime pay for work on legal (Regular) holidays falling on

employees rest day

Equivalent to 30% of the hourly rate of 260% or, a total of 338% per
hour.
Ex. P89.00/day 100% thereof (P89.00) = P178.00 +
30% thereof (P53.40) = P231.40/day
P231.40/day 8 = P28.925/hr. 30% thereof (P8.6775)
or P89.00/day 8 = P11.125/hr. x
338% (3.38) = P37.6025 O.T.H./hr.
Stipulated Overtime Rates - Generally, the premium pay for work
performed on the employees rest days or on special non working
holidays or legal (Regular) holidays days are included as part of the
regular rate of the employee in the computation of overtime pay for
any overtime work rendered on said days, especially if the employer
pays only the minimum overtime rates prescribed by law. The
employees and the employer, however, may stipulate in their
individual or collective agreement the payment of overtime rates
higher that those provided by law and exclude the premium payments
in the computation of overtime pay. Such agreement may be
considered valid only if stipulated overtime pay rates will yield to the
employees not less than the premium prescribed by law.

Prepared by:
Adrian Paul P. Santos
AB Legal Management University of Santo Tomas

EXERCISE:
1. How much is the hourly rate of X a rank and file employee in the
private sector who is receiving Php 700.00 per day and who is
directed to render service during his rest day
2. How much is the hourly rate of an account manager (servicing
bank clients) in the private sector receiving Php 550.00 per day and

who is required to render service during his rest day which is likewise
declared a non working special holiday because of a strike entitled to
receive? 3. How much hourly rate should a field reporter regularly
directed to report to and fro in his employers principal place of
business and receiving Php 900.00 per day and is allowed to render
service on the 4th of July entitled to receive.4. How much hourly rate
should a laundry woman employed by a manufacturing company
receiving Php 400.00 per day and is allowed to render service during
her rest day on May 1, 2010 entitled to receive.5. How much should
Y, a rank and file employee receiving Php 600.00 per day and is
allowed to render service on May 1, 2011 which likewise falls on his
rest day entitled to receive if he renders 8 hours service for such day.
6. Z, a rank and file employee at the World Health Organization and
receiving Php 2,000.00 rendered service on December 25, 2010
which day was also his rest day. He rendered ten (10) hours service
during said occasion. How much is he entitled to receive under
Philippine laws?7. How much hourly rate should a supervisor in a
department store directing five (5) employees and receiving Php
1,200.00 per day and is allowed to render service on February 25,
2011 entitled to receive? 8. How much hourly rate should B, a cook
employed by a hospital receiving Php 850.00 per day and is allowed

to render service during her rest day on February 25, 2010 entitled to
receive.9. X, a sales clerk who receives Php 450.00 per day rendered
service for six (6) hours on Valentines Day, February 14, 2011 which
day was also her rest day. How much is she entitled to receive? 10.
A, a professor at the University of Santo Tomas conducted classes on
September 26, 2009 upon instructions of the dean and despite
subsequent declaration that classes are suspended because of the
typhoon Ondoy. He lectured for 3 hours. How much additional pay, if
any is he entitled to receive?