How to Compute for Overtime Pay

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

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