OVERTIME COMPUTATION FORMULA On Ordinary days: First, let’s compute for the hourly wage rate as follows: Regular hourly rate = Daily wage rate / 8 hours = P350/8 = P43.75 per hour Then, let’s compute for the overtime rate per hour as follows: Overtime rate = hourly rate + 25% of hourly rate = P43.75 + (.25 x 43.75) = P43.75 + 10.94 =P54.7 per hour On a rest day and special day Computation of hourly wage rate: Hourly rate = 130% of Regular Hourly Rate = P43.75 x 1.3 = P56.87 per hour Computation of overtime rate: Overtime rate = Hourly rate + 30% of Hourly rate = P56.87 + (30% of P56.87) = P56.87 + P17.061 = P73.93 per hour On a rest day which falls on a special day Computation of hourly wage rate: Hourly rate = 150% of Regular hourly rate =P43.75 x 1.5 =P65.62 per hour Computation of overtime rate:
Overtime rate = Hourly rate + 30% of Hourly rate = P65.62 + (30% of P65.62) = P65.62 + 19.69 = P85.31 per hour
Please be guided accordingly.
On a regular holiday Computation of hourly wage rate: Hourly rate = 200% of Regular hourly rate =P43.75 x 2 =P87.5 per hour Computation of overtime rate: Overtime rate = Hourly rate + 30% of Hourly rate =P 87.5 + (30% of P87.5) =P87.5 + 26.25 =P113.75 per hour On a rest day which falls on regular holiday Computation of hourly wage rate: Hourly rate = 260% of Regular hourly rate =P43.75 x 2.6 =P113.75 per hour Computation of overtime rate: Overtime rate = Hourly rate + 30% of Hourly rate =P113.75 + (30% of P113.75) = P113.75 + 34.13 =P143.88 per hour Source: Department of Labor and Employment (DOLE) Philippines
Disclaimer: New and subsequent issuances, rulings, or laws may cause the whole or part of the article inaccurate or obsolete. It is advised to make inquiries with the Department of Labor and Employment for more information. Computing 13th Month Pay: Total basic salary earned for the year exclusive of allowances, overtime, holiday, and night shift differential pay divided by 12 months = 13th month pay.