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HOW TO COMPUTE THE WAGE OF AN EMPLOYEE FOR A DAY

Tips and Suggestions
Atty. Ronic Treptor

This is only a suggestion on how to process questions involving mathematical

computations regarding wages. This method might or might not work for you. I still
suggest you figure out your own way on how to deal with these kinds of problems.

Table 1
RATE OT

Regular Day x1 x 1.25

Rest Day x 1.3 x 1.3

Special Day x 1.3 x 1.3

Rest Day + Special Day x 1.5 x 1.3

Regular Holiday x2 x 1.3

Rest Day + Regular x 2.6 x 1.3

Holiday

Double Regular Holiday x3 x 1.3

Note: all days are deemed worked. If the employee did not work, then apply the no-work
no-pay principle. (but he is entitled to a holiday pay of 100% of his wage. If it is a double
regular holiday, then he is entitled to 200%)

Note: Night Shift Differential = x 1.1 [time: 10pm to 6am]

Steps to determine wage:

1. Determine the per hour rate. (if not given in the problem)

2. Separate the hours worked depending on the modifiers absent or present.

(existence of OT and NSD)

3. Multiply the hours worked with the proper rates indicated in table 1.

4. Total the results in step 3.

Problem I.

X worked from 5pm to 3am. He was given a meal break from 10pm to 11pm. His wage
is 100 per hour. Determine his wage for said day.

Step 1: determine per hour rate

100 – given in the problem.

Step 2: Separate the hours

HOW TO COMPUTE THE WAGE OF AN EMPLOYEE FOR A DAY
Tips and Suggestions
Atty. Ronic Treptor
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1. 5pm to 10pm = regular hours. No modifiers. [no OT because not beyond 8-hour
workday; no NSD because outside of the time of NSD]

2. 10pm to 11pm = meal break. Not compensable.

3. 11pm to 2am = working hours with NSD. [No OT yet, still not beyond the 8-hour
period]

4. 2am to 3am = working hours with NSD and OT

Step 3: Multiply the hours worked with the proper rates indicated in table 1.

1. 5pm to 10pm = 5 (hours) x 100 (wage per hour) = 500

• Note that there are no modifiers in this case, as stated in step 2 number 1.

2. 10pm to 11pm = 0 hours = 0

3. 11pm to 2am = 3 (hours) x 100 (wage per hour) x 1.1 (NSD) = 330

4. 2am to 3am = 1 (hours) x 100 x 1.1 (NSD) x 1.25 (OT) = 137.5

Step 4: total the results

1. 500
2. 0
3. 330
4. 137.5

TOTAL = 967.5

Answer: (sample essay answer. Note that this can still be shortened.)

X’s wage for said day is 967.5.

Under the law on Labor Standards, an employee who works beyond the 8-hour
period in a workday is entitled to an overtime pay at the rate of 25% of his pay per hour
of overtime work. Under the same law, an employee who works during the hours of
10pm to 6am is entitled to a night shift differential pay of 10% of his rate during those
hours.

As provided by the same law, meal breaks in the duration of a complete hour is
not compensable.

Here, because X’s per hour rate is 100, he is entitled to 500 for his work from
5pm to 10pm, or for five hours.

His meal break is for a complete hour from 10pm to 11pm and thus not
compensable.

His work from 11pm to 2am, or for three hours, is compensable in the amount of
330, for his regular 100 per hour wage is entitled to 10% additional pay in the form of a
night shift differential pay.
HOW TO COMPUTE THE WAGE OF AN EMPLOYEE FOR A DAY
Tips and Suggestions
Atty. Ronic Treptor
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And lastly, his work from 2am to 3am, or for one hour, is compensable in the
amount of 137.5 because his 100 per hour is entitled to a 25% overtime pay, because
his work for that hour is already beyond the 8-hour workday, and to another 10% over
the rate for night shift differential.

Thus, in total, X’s wage for said day is 967.5

Problem II.

Same facts, but X started work on a regular holiday.

Step 1: determine per hour rate

100 – given in the problem.

Step 2: Separate the hours

1. 5pm to 10pm = regular hours. No modifiers. [no OT because not beyond 8-hour
workday; no NSD because outside of the time of NSD]

2. 10pm to 11pm = meal break. Not compensable.

3. 11pm to 2am = working hours with NSD. [No OT yet, still not beyond the 8-hour
period]

4. 2am to 3am = working hours with NSD and OT

Step 3: Multiply the hours worked with the proper rates indicated in table 1.

5. 5pm to 10pm = 5 (hours) x 100 (wage per hour) x 2 (regular holiday) = 1000
• Note that there are no modifiers in this case, as stated in step 2 number 1.

6. 10pm to 11pm = 0 hours = 0

7. 11pm to 2am = 3 (hours) x 100 (wage per hour) x 1.1 (NSD) x 2 (holiday) = 660

8. 2am to 3am = 1 (hours) x 100 x 1.1 (NSD) x 1.3 (OT) x 2 (holiday) = 286

• Note the change in the rate of the OT. (refer to table 1 if you are confused)

Step 4: total the results

5. 1000
6. 0
7. 660
8. 286

TOTAL = 1,946

HOW TO COMPUTE THE WAGE OF AN EMPLOYEE FOR A DAY

Tips and Suggestions
Atty. Ronic Treptor