Monday, February 23, 2015

How to Compute for Overtime Pay

e-pinoyguide / 5:12 AM / 0
The COLA shall not be included in the computation of overtime pay. The minimum overtime pay rates vary according to the day the overtime work is performed.

 Overtime is calculated using below formula
Overtime Pay = Overtime Rate x number of hours OT work  
The computation for Overtime Rate is as follows:

Ordinary day Overtime 

Overtime Rate = Hourly Rate x 125%
Illustration: An employee's hourly rate is P 103.45. His ordinary day overtime rate is

 Overtime Rate = P 103.45 x 1.25
Overtime Rate = P 129.31

 Overtime Pay = P 129.31 x 4 hours OT
Overtime Pay = P 517.25

Rest Day (Sunday) and Special Holiday Overtime

Overtime Rate = Hourly Rate x 169%
Illustration: An employee's hourly rate is P 103.45. His rest day overtime rate is

 Overtime Rate = P 103.45 x 1.69
Overtime Rate = P 174.83

 Overtime Pay = P 103.45 x 4 hours OT
Overtime Pay  = P 699.32

Special Holiday and at the same time Rest Day Overtime

Overtime Rate = Hourly Rate x 195%
Illustration: An employee's hourly rate is P 103.45. His overtime rate is

 Overtime Rate = P 103.45 x 1.95
Overtime Rate = P 201.73

 Overtime Pay = P 201.73 x 4 hours OT
Overtime Pay = P 806.91

Regular Holiday Overtime

Overtime Rate = Hourly Rate x 260%
Illustration: An employee's hourly rate is P 103.45. His overtime rate is

 Overtime Rate = P 103.45 x 2.60
Overtime Rate = P 268.97

 Overtime Pay = P 268.97 x 4 hours OT
Overtime Pay = P 1,075.88

Regular Holiday and at the same time Rest Day Overtime

Overtime Rate = Hourly Rate x 338%
Illustration: An employee's hourly rate is P 103.45. His overtime rate is

 Overtime Rate = P 103.45 x 3.38
Overtime Rate = P 349.66

 Overtime Pay = P 349.66 x 4 hours OT
Overtime Pay = P 1,398.64

Regular Holiday and at the same time Rest Day Overtime

Overtime Rate = Hourly Rate x 338%
Illustration: An employee's hourly rate is P 103.45. His overtime rate is

 Overtime Rate = P 103.45 x 3.38
Overtime Rate = P 349.66

 Overtime Pay = P 349.66 x 4 hours OT
Overtime Pay = P 1,398.64

Did you find this post useful? Share your thoughts on this post in the comment box!

e-pinoyguide


Lorem ipsum dolor sit amet, consectetuer adipiscing elit. Ut odio. Nam sed est. Nam a risus et est iaculis adipiscing. Vestibulum ante ipsum faucibus luctus et ultrices.
Follow me @Bloggertheme9

0 comments :

Recent Articles

Loading...

Recent Comments

Loading...

About Us

e-pinoyguide is a privately maintained blog intended to share some tips, guides and provide information that Filipinos need to know. e-pinoyguide is not in any way associated to any government agencies. The dissemination of information are based from the authors experiences, understanding and research. The author make no guarantees about the accuracy of the information posted in this blog, though every effort is exerted to ensure the correctness and accuracy of all explanations and procedures described in the posts. Thank you very much for visiting this blog!