MODULE 7

OVERTIME PAY
OVERTIME WORK
• Work done by an employee in excess of their
normal working hours (eight hours a day)
• Additional compensation paid for the work beyond
eight hours a day.
 PAYMENT FOR OVERTIME
Day When Overtime is Performed
Regular, beyond normal working hours (plus 25% of hourly
rate)
Regular night shift, between 10PM and 6AM (plus 10%)
Rest day (plus 30%)
Rest day, beyond 8 hours (plus 30%)
Rest day night shift, between 10PM and 6AM (plus 10%)
Special holiday (plus 30%)
Special holiday, beyond 8 hours (plus 30%)
Special holiday night shift, between 10PM and 6AM (plus
10%)
Special holiday and rest day (plus 50%)
Special holiday and rest day, beyond 8 hours (plus 50%)
Overtime Pay
Hourly rate x 1.25 x number of hours
Hourly rate x 1.25 x 1.10= Hourly rate x 1.375 x number of
hours
Hourly rate x 1.30=Hourly rate x 1.30 x number of hours
Hourly rate x 1.30 x 1.30= Hourly rate x 1.69 x number of
hours
Hourly rate x 1.30 x 1.30= hourly rate x 1.69 x number of
hours
Hourly rate x 1.30= hourly rate x 1.30 x number of hours
Hourly rate x 1.30 x 1.30= Hourly rate x 1.69 x number of
hours
Hourly rate x 1.30 x 1.30 x 1.10= Hourly rate x 1.859 x
number of hours
Hourly rate x 1.50= Hourly rate x 1.50 x number of hours
Hourly rate x 1.50 x 1.30= Hourly rate x 1.95 x number of
hours
 Day When Overtime is Performed Overtime Pay
Special holiday and rest day, night shift (plus 10%) Hourly rate x 1.50 x 1.30 x 1.10= Hourly rate x 2.145 x
number of hours
Legal holiday, beyond 8 hours (200% plus 30%) Hourly rate x 2.00 x 1.30= Hourly rate x 2.60 x number of
hours
Legal holiday, night shift (plus 10%) Hourly rate x 2.00 x 1.30 x 1.10=Hourly rate x 2.86 x
number of hours
Legal holiday and rest day (plus 30%) Hourly rate x 2.00 x 1.30= Hourly rate x 2.60 x number of
hours
Legal holiday and rest day, beyond 8 hours (plus 30%) Hourly rate x 2.00 x 1.30 x 1.30= Hourly rate x 3.38 x
number of hours
Legal holiday and rest day, night shift (plus 10%) Hourly rate x 2.00 x 1.30 x 1.30 x 1.10= Hourly rate x
3.718 x number of hours
USING MICROSOFT EXCEL
IN COMPUTING SALARY
AND OVERTIME PAY
 EXAMPLE 1
• Compute the salary for one week of the following employees using MS
Excel. Refer to the given time sheet.

EMPLOYEE HOURLY MON TUE WED THU FRI

RATE

Sam Bueno P 150 8 9 8 10 12

Dan Cruz P 145 10 8 12 7 10

Ezra Tan P 130 8 8 10 8 10

Aira Valdez P 120 7.5 8 9 7 12

EXAMPLE 2
Gross Earnings
Basic Salary P 21 333.33
Overtime Pay P 6 982.64
Transport Allowance P 1 750.00
Rice Allowance (NT) P 1 500.00
TOTAL EARNINGS P 31 565.97

Deductions
Employee Pag-IBIG ( 100.00)
Employee PhilHealth ( 262.50)
Employee SSS ( 581.30)
Withholding Tax ( 5 686.46)
TOTAL DEDUCTIONS ( 6 630.26)

Net Earnings P 24 935.71

 GROUP ACTIVITY / GROUP 1, 6
• Compute Frank’s salary if he is paid on an hourly basis of P286. The nature
of his job requires no official time in and no overtime pay beyond his
normal working hours of 8 hours per day. His time sheet for the week shows
the following:
DATE DAY TIME IN TIME OUT
20-July Monday 7:04 am 4:30 pm

21-July Tuesday 8:15 am 5:00 pm

22-July Wednesday 7:25 am 6:00 pm

23-July Thursday 8:00 am 4:00 pm

24-July Friday 7:50 am 6:00 pm

25-July Saturday 8:02 am 4:00 pm

 GROUP ACTIVITY / GROUP 2, 5, 3
• Using Excel, compute Ruth’s overtime pay if she is paid an hourly rate of P350 and her
time record shows the following (Official Time in 7:30AM and Time out 4:30 PM )

DATE DAY TIME IN TIME OUT

3- Aug Monday 7:30 am 5:30 pm

4 –Aug Tuesday 7:20 am 6:00 pm

5 –Aug Wednesday 7:10 am 5:00 pm

6 – Aug Thursday 7:05 am 4:00 pm

7 –Aug Friday 7:00 am 11:30 pm

 GROUP ACTIVITY / GROUP 4, 7
• Using MS Excel , present a graphical representation of the following details
or particulars of the salary of an employee

GROSS EARNINGS DEDUCTIONS

Basic Salary P 10,666.66 Pag-Ibig P 100.00
Overtime Pay P 6,829.38 PhilHealth P 125.00
Transport Allowance P 875.00 SSS P 381.50
Rice Allowance P 750.00 Withholding Tax P 3,844.64
Total Earnings P 19,121.04 Total Deductions P 4,451.14

Net Earnings P 14,699.90