Computation of wages Sample computation of Overtime Pay per

The Department of Labor and Employment Hour

(DOLE) has set out the following rules in Let us assume a regular daily wage rate of Php
computing overtime pay, pay for work done on 404.00, what is the overtime rate per hour?
holidays, premium on nightshift and 13th
month pay: On Ordinary days:

Computing Overtime: First, lets compute for the hourly wage rate
as follows:
On Ordinary Days
Plus 25% of the hourly rate multiplied by the Regular hourly rate = Daily wage rate / 8 hours
number of hours. = P404/8
On a rest day, special day or regular holiday = P50.5 per hour
Plus 30% of the hourly rate on said days
multiplied by the number of hours. Then, lets compute for the overtime rate per
hour as follows:
Computing pay for work done on: Overtime rate = hourly rate + 25% of hourly
rate
A special day (130% x basic pay) = P50.5 + (.25 x 50.5)
A special day, which is also a scheduled rest =P50.5 + 12.65
day (150% x basic pay) =P63.125 per hour
A regular holiday (200% x basic pay)
A regular holiday, which is also a scheduled On a rest day and special day
rest day (260% x basic pay)
Computation of hourly wage rate:
Computing Night Shift Premium Where Night
Shift is a Regular Work: Hourly rate = 130% of Regular Hourly Rate
= P50.5 x 1.3
On Ordinary day (110% x basic hourly rate) = P65.65 per hour

On a rest day, special day, regular holiday Computation of overtime rate:

(110% of regular hourly rate for a rest day,
special day, regular holiday) Overtime rate = Hourly rate + 30% of Hourly
rate
Computing Overtime on Night Shift: = P65.65 + (30% of P65.65)
= P65.65 + P19.695
On ordinary day (110% x overtime hourly = P85.345 per hour
rate)
On a rest day which falls on a special day
On rest day, special day or regular holiday
(110% x overtime hourly rate for rest days, Computation of hourly wage rate:
special days, regular holidays) Hourly rate = 150% of Regular hourly rate
=P50.5 x 1.5
Computing 13th Month Pay: =P75.75 per hour

Total basic salary earned for the year exclusive Computation of overtime rate:
of allowances, overtime, holiday, and night Overtime rate = Hourly rate + 30% of Hourly
shift differential pay divided by 12 months = rate
13th month pay. = P75.75 + (30% of P75.75)
= P75.75 + 22.725
= P98.475
On a regular holiday

Computation of hourly wage rate:

Hourly rate = 200% of Regular hourly rate
=P50.5 x 2
=P101 per hour

Computation of overtime rate:

Overtime rate = Hourly rate + 30% of Hourly
rate
=P 101 + (30% of P101)
=P101 + 30.3
=P131.3 per hour

On a rest day which falls on regular holiday

Computation of hourly wage rate:

Hourly rate = 260% of Regular hourly rate
=P50.5 x 2.6
=P131.3 per hour

Computation of overtime rate:

Overtime rate = Hourly rate + 30% of Hourly
rate
=P 131.3 + (30% of P131.3)
=P131.3 + 39.39
=P170.69 per hour

What is the computation for overtime pay on a

regular work day?
Here's a sample computation based on the given
values (monthly rate: Php18,000; factor rate: 258;
246 total regular days + 12 regular holidays):
Daily rate: 18,000 x 12 / 258= Php837.21
Hourly rate (8 hours): 837.21 / 8= Php 104.65
Number of hours in excess of 8 hours (125% x
hourly rate x number of hours rendered)
Overtime hourly rate: 1.25 x 104.65= Php
130.81/hour
What is the computation for overtime pay on a
rest day?
*same values used in the computation
first 8 hours = 130%; beyond 8 hours = 169%
/hour
First 8 hours: ((18,000 x 12) / 258) x 1.3 =
Php1,088.37
Beyond 8 hours: [((18,000 x 12) / 258) x 1.69]/8 =
Php176.86/hour
What is the computation for overtime pay on a
special day?
*same monthly rate applied in the computation
special day: (130% x basic pay)
18,000 x 1.3 = Php23,400
Special day premium pay: (i.e., 20 working
days/month): 23,400/20=Php 1,170/day
special day that coincided with a scheduled rest
day: (150% x basic pay)
18,000 x 1.5 = Php 27,000
Special and rest day premium pay (i.e., 20 working
days/month): 27,000/20= Php 1,350/day
What is the computation for overtime pay on a
regular holiday?
*same monthly rate applied in the computation
regular holiday: (200% x basic pay)
18,000 x 2 = Php36,000
Holiday pay (i.e., 20 working days/month):
36,000/20 = Php1,800/day
regular holiday that coincided on a scheduled
rest day: (260% x basic pay)
18,000 x 2.6 = Php46,800
Premium pay (i.e., 20 working days/month):
46,800/20= Php 2,340/day
What is the overtime pay computation for
employees working on a night shift during a
regular workday?
Monthly rate: Php10,000
Daily rate (20 working days/month): 10,000/20=
Php500
Hourly rate (8 hours): 500/8= Php 62.50
110% x number of hours in excess of 8 hours
(130% x hourly rate)
Night shift overtime hourly rate: 1.1 x (1.30 x
112.5)= Php 89.375/hour
What is the overtime pay computation for
employees working on a night shift during a rest
day?
110% x number of hours in excess of 8 hours
(130% x hourly rate)
Monthly rate: Php10,000
Daily rate (20 working days/month): 10,000/20=
Php500
Hourly rate (8 hours): 500/8= Php 62.50
110% x number of hours in excess of 8 hours
(130% x hourly rate)
Night shift overtime hourly rate: 1.1 x (1.30 x
112.5)= Php 89.375/hour
What is the overtime pay computation for
employees working on a night shift during a
special day?
*same monthly rate applied in the computation
special day: 110% x (130% x basic pay)
10,000 x 1.3 = Php 13,000
Special day premium pay, night shift: (i.e., 20
working days/month): 1.1 x (13,000/20)= Php
715/day
Special day that coincided on a scheduled rest
day: 110% x (150% x basic pay) 10,000 x 1.5 =
Php 15,000
Special and rest day premium pay (i.e., 20 working
days/a month): 1.1 x (15,000/20)= Php 825/day
What is the overtime pay computation for
employees working on a night shift during a
regular holiday?
*same monthly rate applied in the computation
regular holiday (200% x basic pay)
10,000 x 2 = Php 20,000
Holiday pay (i.e., 20 working days/month): 1.1 x
(20,000/20) = Php 1,100/day
regular holiday that coincided on a scheduled
rest day (260% x basic pay)
10,000 x 2.6 = Php 26,000
Premium pay (i.e., 20 working days/a month): 1.1 x
(26,000/20) = Php 1,430/day
How to Compute Overtime Pay
All employees required to work beyond the
normal 8 hours are entitled to overtime.
Overtime pay rates depend upon the the day
the work is performed, whether it is ordinary
working day, special day, regular holiday or
rest day.

Ordinary day Overtime
On an ordinary day, the overtime rate per hour
is determined as follows:
Let say the employee hourly rate is Php
57.00/hour, then the overtime rate is Php 71.25
Php 71.56 = (Php 57.00 X 1.25%)
On Rest day Overtime
Let say the employee hourly rate is Php
57.00/hour To determine the overtime rate per
hour:
Overtime rate/hour = (hourly rate on rest day
and special holiday X 169%)
Php 96.33 = (Php 57.00 X 1.69%)
Let say the employee hourly rate is Ph
57.00/hour To determine the overtime rate per
hour:
Overtime rate/hour = (hourly rate o n rest day
and special holiday X 390%)
Php 222.30 = (Php 57.00 X 3.90%)
On Double Holiday and at the same time Rest
day Overtime
Let say the employee hourly rate is Php
57.00/hour To determine the overtime rate per
hour:
Overtime rate/hour = (hourly rate o n rest day
and special holiday X 507%)
Php 288.99 = (Php 57.00 X 5.07%)

On Special Holiday Overtime

Let say the employee hourly rate is Php
57.00/hour To determine the overtime rate per
hour:
Overtime rate/hour= (hourly rate o n rest day
and special holiday X 169%)
Php 96.33 = (Php 57.00 X 1.69%)

On Special Holiday and at the same time rest

day overtime
Let say the employee hourly rate is Php
57.00/hour To determine the overtime rate per
hour:
Overtime rate/hour = (hourly rate o n rest day
and special holiday X 195%)
Php 111.15 = (Php 57.00 X 1.95%)

On Regular Holiday Overtime

Let say the employee hourly rate is Php
57.00/hour To determine the overtime rate per
hour:
Overtime rate/hour = (hourly rate o n rest day
and special holiday X 260%)
Php 148.20 = (Php 57.00 X 2.60%)
On Regular Holiday and at the same time Rest
day Overtime
Let say the employee hourly rate is Php
57.00/hour To determine the overtime rate per
hour:
Overtime rate/hour = (hourly rate o n rest day
and special holiday X 338%)
Php 192.66 = (Php 57.00 X 3.38%)

On Double Holiday Overtime