How to Compute Overtime Pay

Overtime is worked rendered beyond the normal or regular working hours. All employees who rendered overtime are entitled to overtime premium. Overtime rates shall depend on the day the employee worked. Let's take a closer look at the nitty gritty of this matter below.

 

For Example: An employee with (basic wage:502 + ecola:10= daily rate: Php512)

Ordinary day Overtime

The employee hourly rate is Php 62.75/hour, then the overtime rate is Php 78.44

Php 78.44 = (Php 62.75 X 1.25%)

 

On Rest day Overtime

The employee hourly rate is Php 62.75/hour, then the rest day rate is Php 106.05

Overtime rate/hour = (hourly rate on rest day and special holiday X 169%)

Php 106.05 = (Php62.75 X 1.69%)

 

On Special Holiday Overtime

The employee hourly rate is Php 62.75/hour, then the special holiday rate is Php 106.05

Overtime rate/hour= (hourly rate on rest day and special holiday X 169%)

Php 106.05 = (Php62.75 X 1.69%)

 

On Special Holiday and at the same time rest day overtime

The employee hourly rate is Php 62.75/hour, then the rest day & special rate is Php 122.36

Overtime rate/hour = (hourly rate on rest day and special holiday X 195%)

Php 122.36= (Php62.75 X 1.95%)

 

On Regular Holiday Overtime

The employee hourly rate is Php 62.75/hour, then the regular holiday rate is Php 163.15

Overtime rate/hour = (hourly rate on rest day and special holiday X 260%)

Php 163.15 = (Php62.75 X 2.60%)

 

On Regular Holiday and at the same time Rest day Overtime

Let say the employee hourly rate is Php 62.75/hour, then the regular & rest day holiday rate is Php 212.10

Overtime rate/hour = (hourly rate on rest day and special holiday X 338%)

Php 212.10 = (Php62.75 X 3.38%)

 

On Double Holiday Overtime

The employee hourly rate is Php 62.75/hour, then double holiday rate is Php 244.73

Overtime rate/hour = (hourly rate on rest day and special holiday X 390%)

Php 244.73 = (Php 62.75X 3.90%)

 

On Double Holiday and at the same time Rest day Overtime

The employee hourly rate is Php 62.75/hour, then double holiday and rest day rate is Php 318.14

Overtime rate/hour = (hourly rate on rest day and special holiday X 507%)

Php 318.14= (Php 62.75X 5.07%)

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Please take note that the computation above pertains to first 8 hours only. You may refer to overtime table below for other overtime rates.