PREMIUM PAY

Overtime pay Regular days- 25% X excess hour Rest day or holiday- 30% X excess hour Holiday pay Special holiday (130% X basic pay) Special holiday that falls on a rest day (150% X basic pay) Regular holiday (200% X basic pay) Regular holiday that falls on a rest day (260% X basic pay) Computation of Overtime Pay Assuming that the mininum wage rate is P250, how much is the overtime rate per hour? On ordinary day On an ordinary day, the overtime rate per hour is determined as follows: First, compute the hourly rate of the employee: Regular hourly rate = Minumum wage rate 8 hours = P250 8 hours = P31.25 per hour Now to determine overtime rate per hour: Overtime rate = Regular hourly rate + 25% of Regular hourly rate Overtime rate = P31.25 + (25% of P31.25) = P31.25 x 1.25 = P39.06 per hour On rest day and special day Compute the hour rate of the employee on a rest day or special day: Hourly rate = 130% of Regular hourly rate = P31.25 x 1.30 = P40.625 per hour (Note: The hourly rate on rest day and special day is 130% of the regular rate.) To determine overtime rate per hour: Overtime rate = Hourly rate on rest day + 30% Hourly rate on rest day = P40.625 + (30% of P40.625) = P40.625 x 1.30 = P52.81 per hour

On rest day which falls on a special day Compute the hourly rate of the employee on a rest day which falls on a special day: Hourly rate = 150% of Regular hourly rate = P31.25 x 1.50 = P46.875 per hour To determine overtime rate per hour: Overtime rate = Hourly rate + 30% of Hourly rate = P46.875 + (30% of P46.875) = P46.875 x 1.30 = P60.94 per hour On a regular holiday Compute the hourly rate on regular holiday: Hourly rate = 200% of Regular hourly rate = P31.25 x 2 = P62.5 per hour To determine overtime rate per hour: Overtime rate = Hourly rate + 30% of Hourly rate = P62.50 + (30% of P62.50) = P62.50 x 1.30 = P81.25 per hour On a rest day which falls on a regular holiday Compute the hourly rate: Hourly rate = 260% of Regular hourly rate = P31.25 x 2.60 = P81.25 per hour To determine overtime rate per hour: Overtime rate = Hourly rate + 30% of Hourly rate = P81.25 + (30% of P81.25) = P81.25 x 1.30 = P105.625 per hour

Night Shift Differential -not less than 10% of regular wage for each hour of work between 10pm to 6am.