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Name:
Grade/Section:
Date: _______________ Total Score:

Overtime Pay
Learning Competencies:
• Identify the variables needed in the computation of the overtime.
• Compute overtime pay

Overtime pay is the amount of time a person works for more than the
required number of hours of work per day. The computation of the overtime
pay depends if the overtime work happened on a regular work day, holiday,
rest day or at night (between 10 PM to 6 AM). Usually, time spent in
overtime is reflected on time cards.

Article 83 of the Labor Code states that the normal hours of work of
any employee shall not exceed eight (8) hours a day, exclusive of at least one
(1) hour of lunch break.

Article 87 of the labor code provides that an employee can work

beyond 8 hours provided that he/she will be compensated for the extra
hours by 25% of the hourly rate and 30% for non-regular workdays.

List of Nationwide Holidays in the Philippines based on Proclamation

No. 1107, s. 2021
Grade 12 REGULAR HOLIDAYS

Activity Sheets
EVENT DATE
New Year’s Day

Quarter 2 Week 4
January 1
Araw ng Kagitingan April 9
Maunday Thusrsday Varies per year (Gregorian Calendar)
Good Friday Varies per year (Gregorian Calendar)
Labor Day May 1
Eid ul-Fitr (Feast of Ramadhan) Varies per year (Islamic Calendar)

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 Independence Day June 12
Eid’l Adha (Feast of Sacrifice) Varies per year (Islamic Calendar)
National Heros Day Last Monday of August
Bonifacio Day November 30
Christmas Day December 25
Rizal Day December 30
SPECIAL (Non-Working )HOLIDAYS
Congress can enact them or declare them by the President.

Chinese New Year February 12

EDSA People power Revolution February 25
Black Saturday April 3
Ninoy Aquino Day August 21
All Saints’ Day November 1
Feast of the Immaculate Conception of December 8
Mary
SPECIAL (Working )HOLIDAYS

All Souls’ Day November 2

Christmas Eve December 24
Last Day of the Year December 31

Source: Proclamation No. 1107, s. 2021

https://www.officialgazette.gov.ph/downloads/2021/02feb/20210226-
PROC-1107-RRD.pdf

OVERTIME PAY COMPUTATION TABLE

Type of Workday Hourly Overtime Rate %
Rate %
Regular Day 100% 125% Hourly rate plus 25% of

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 the hourly rate

Special Holiday or Rest 130% 169%

day
Hourly rate plus 30%
Rest day on a Special 150 % 195% of the hourly rate
Day

Regular Holiday 200% 260%

Rest Day on a Regular 260% 338%

Holiday

STEPS ON HOW TO COMPUTE FOR THE OVERTIME PAY

Identify the regular hourly

rate
Step Compute for the Daily rate =
1 Regular hourly rate (RHR) = Daily wage
Daily Wage Rate 8
8

Compute for the hourly rate Identify the Type of Workday then

Step Hourly rate =(Regular hourly or Compute for the Hourly rate =
2 rate) times (hourly rate % of (Daily rate) times (Hourly rate
the type of workday) percentage of the type of workday)

Step Compute for the overtime rate Compute for the Overtime rate =
3 (Daily rate) times (overtime rate
Overtime rate = Hourly rate
percentage)
plus (Hourly rate x 0.3)

Step Compute for the overtime pay Compute for the overtime pay
4
Overtime Pay= (overtime rate) Overtime Pay = (overtime rate )
times (number of hours times (number of hours rendered
rendered overtime) overtime)

Examples:

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1. Arthur earns Php 600 a day. He worked overtime for 12 hours on a
particular pay period. Assuming the overtime took place on ordinary days,
how much is Arthur’s overtime pay?

Solution:

Arthur worked on Ordinary or

Regular hourly rate = ( Daily
Wage Rate) / 8
= Php 600.00 ÷ 8
= Php 75.00
Overtime rate = Reg. Hourly
Rate + 25% of Regular Hourly
Rate
= 75.00 + (75.00 x 0.25)
= 75.00 + 18.75 = Php 93.75
Overtime Pay = (Overtime rate) x
(Number of Overtime hours)
= (Php 93.75)(12)
= Php 1,125.00
Regular Day
The hourly rate percentage is 100% and
Overtime rate percentage is 125% which
is equal to 1.25
Daily rate = = 75.00
Overtime rate = Daily rate x overtime
rate percentage
= 75.00 x 1.25 = Php 93.75
Overtime Pay = Php 93.75 x 12
= Php 1,125.00

2. Cecille worked on her rest. If her daily rate is Php 490, how much is her
overtime pay if she worked overtime for 6 hours?

Solution:
Cecille worked on Rest Day

The hourly rate percentage is 130%

Regular hourly rate = ( Daily Wage and Overtime rate percentage is 169%
Rate) / 8
which is equal to 1.69
= Php 490 ÷ 8
= Php 61.25
Hourly rate = 61.25 x 1.3 = 79.63 Daily rate = = 61.25

Overtime rate = Reg. Hourly Rate Hourly rate = Daily rate x Hourly rate
+ 30% of Regular Hourly Rate percentage
= 79.63 + (79.63 x 0.30) = 61.25 x 1.3 = 79.63
= 79.63 + 23.89 = Php 103.52
Overtime rate =Daily rate x overtime
Overtime Pay = (Overtime rate percentage
rate)educational purposes which are exclusively
Learning Materials are for nonprofit = 61.25 x 1.69 =used Phpfor the
103.51
(Number of Overtime hours)
Schools Division of Digos City only. Copies are not for sale.
= (Php103.52)(6)
= Php 621.11 Php 621.10 Overtime Pay = (103.513)(6)
6
= Php 621.07 Php 621.10
3. Gerry worked on his rest day which fell on November 1. If he earns P
550 a day, how much will his overtime pay be if he worked overtime for 3
hours?

Solution:
Type of Workday Hourly rate % Overtime rate %

Rest Day on a Special non- 150% = 1.5 195% = 1.95

working holiday

Daily wage rate 550

Step 1: Regular hourly rate = = = 68.75
8 8

Step 2: Hourly rate = Regular hourly rate x Hourly rate percentage

= 68.75 x 1.5 = 103.125

Step 3: Overtime rate = Regular hourly rate x overtime rate percentage

= 68.75 x 1.95 = Php 134.06

Step 4: Overtime pay = Overtime Rate x Number of Overtime Hours

= (Php 134.06)(3)
= Php 402.19 ≈ Php 402.20
4. Ely worked on New Year’s Day and he worked 4 hours extra on that day.
If his daily rate is
Php 525, how much overtime pay will he earn on this day?

Solution:
Type of Workday Hourly rate % Overtime rate %
Regular holiday 200% = 2 260% = 2.6

Daily wage rate 525

Step 1: Regular hourly rate = = = 65.625
8 8

Step 2: Hourly rate = Regular hourly rate x Hourly rate percentage

= 65.625 x 2 = 131.25

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 Step 3: Overtime rate = Regular hourly rate x overtime rate percentage
= 65.625 x 2.6 = Php170.625

Step 4: Overtime pay = Overtime Rate x Number of Overtime Hours

= (Php170.625)(4)

5. Carol worked 2 hours extra on May 1 which is her rest day. How much is
her overtime pay on this day if her daily rate is Php 700?

Solution:
Type of Workday Hourly rate % Overtime rate %

Regular holiday 260% = 2.6 338% = 3.38

Daily wage rate 700

Step 1: Regular hourly rate = = = 87.50
8 8

Step 2: Hourly rate = Regular hourly rate x Hourly rate percentage

= 87.50 X 2.6 = 227.5

Step 3: Overtime rate = Regular hourly rate x overtime rate percentage

= 87.50 x 3.38 = 295.75
Step 4: Overtime pay = Overtime Rate x Number of Overtime Hours
= ( 295.75 )(2)
= Php 591.50

6. Mr. Rony Garces earns Php 780 daily as a plumber in a certain company.
He went to work on November 30, which happens to be his scheduled rest
1
day and rendered 9 hours. Compute his overtime pay and gross earnings.
2
Solution:
Type of Workday Hourly rate % Overtime rate %
Rest Day on a Regular 260% 338%
Holiday

780
Step 1: Regular hourly rate = = 97.50
8
Step 2: Hourly rate = 97.50 x 260% = 97.50 x 2.6 = 253.50
Step 3: Overtime rate = 97.50 x 338% = 97.50 x 3.38 = 329.55
1
Step 4: Overtime pay = Php329.55 x 1 = Php 494.325
2

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 1 1
(note: 9 – 8 = 1 no. of hours worked overtime)
2 2
Step 5: Regular pay: 253.50 x 8 = Php2,028 (8 hours, normal work
hours in a day)
Step 6: Gross earning = Php2,028 + Php494.325 = Php2,522.33 ≈
Php2,522.35

Therefore, Php494.325 and Php2,522.35 are Mr. Garces' overtime

pay and total earnings respectively.

NIGHT SHIFT DIFFERENTIAL

A night shift differential is an additional pay given to an employee if

work is done between
10 PM to 6 AM. The rate is additional 10% to the regular wage per hour of
work rendered

Example

Marcus works a night shift at a warehouse. He starts at 7:00 P.M. and ends
at 5:00 A.M. If his hourly rate is P100.00, then how much will he earn monthly if
he works 20 days every month?
Solution:
Let T be the total earning for a month
Given: No. of days worked = 20,
No. of hours worked overtime = 7 (from 10PM – 5AM) and 3 hours
(from 7 PM to 10PM) rendered is excluded in claiming overtime.

T = 20 x [(3 + (7)(1.1)] (100) 100 + 100(0.10) = 100(1.1)

= 20 x [( 3 + 7.7 )100]
= 20(10.7)(100)
= 20 (1,070)
= P21, 400
Therefore, Marcus will earn P21,400 monthly.

Activity A. Identify if the statement is True or False

_____ 1. Night shift Differential percent rate can be greater than overtime
pay percent rate.
_____ 2. Overtime pay rates for holidays and regular days are always
different.
_____ 3. If an employee works for 12 hours, then he surely have an overtime
pay.

______ 4. It is possible that overtime pay can be given to an employee even if

the employee works less than 8 hours.

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_____ 5. Overtime pay is only given to those who work at night.

_____ 6. All employees are required to work overtime.

_____ 7. Daily rate is always equal to the hourly rate.

_____ 8. If the hourly rate of employee A is equal to the daily rate of employee
B, employee A earns more than employee B on a daily basis.

_____ 9. If an employee worked for 6 hours yesterday and work 10 hours

today, he will receive an equivalent to a 2-day daily rate.

_____ 10. If an employee works on his rest day, then he will automatically
earn an overtime pay.

B. Complete the table below:

NUMBE
R OF
DAILY TYPE HOURLY OVERTIME OVERTIME
RATE RATE HOURS
RATE PAY
Php 550 Regular 11. 12. 3.5 13.
Holiday

Php 690 Rest Day 14. 15. 5 16.

Php Special 17. 18. 3 19.

1050 Holiday

Php 930 Rest Day & 20. 21. 4 22.

Regular
Holiday
Php 800 Ordinary 23. 24. 10.5 25.
Day

C. Solve the following problems and show your solution.

1. Owel’s work as a call center agent starts at 8:00 P.M. and ends at
6:00 A.M. If his hourly rate is P80, then how much is his total earning for a
month if he works 20 days every month.

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 2. Ms. Lenny Rosales earns Php 650.00 daily as a sales assistant. She
3
reported for work 8 hours on April 9 which happened to be her scheduled
4
rest day. Compute her overtime pay and gross earnings.

References:
https://www.youtube.com/watch?v=hm-6Dk51ddw

Lopez, Lundag,Dagal (2016) Business Math, Vibal Group Inc., Araneta

Avenue, Quezon City

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Durwin C. Santos, Karl Bryan Sta. Maria, (2015).Math Activated: Engage
yourself and our world. Salessianabooks, DonBosco Press, Inc.,Chino Roces
Avenue,Makati City

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Writer Illustrator Layout Artist

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 Answer Key

For teachers use only (Separate sheets)

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SHS - Ruparan Insert School Here Insert School Here

Para sa mga katanungan o puna, sumulat o tumawag sa:

Department of Education - Bureau of Learning Resources (DepEd-BLR)

Ground Floor, Bonifacio Bldg., DepEd Complex

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