COMPUTING WAGES made easy by Tugs de Guzman

Problem 1: (ORDINARY DAYS)

Mars works from 8 am till 5 pm with a one-hour meal break.
What is his hourly rate if his daily wage is Php320?

Answer:
Daily wage = Php 320
Hours worked = 8 hours

Php 320
Hourly rate = _________ = Php 40 / hr

8 hours

Problem 2: (ORDINARY DAYS)

If Mars worked from 8 am till 3:30pm, how much did he earn on that day?

Answer:
Daily wage = Php 320
Hours worked = 6.5 hours (or 6 1/2 hours)

Php 320
Hourly rate = _________ = Php 40 / hr

8 hours

Wage earned = Php 40 / hr x 6.5 hrs = Php 260

Mars earned Php 260 on that day.

NIGHT DIFFERENTIAL (10%) 10pm to 6am
Problem 3: (ORDINARY DAYS)
Martin, a web surfer who has no college degree, works from 10 pm till 6 am. Because
of the heavy workload, he has short meal breaks which he does in front of his
computer, while singing “Bakit ako mahihiya?” His daily wage is Php 240.
How much does he earn after two days of work?

Answer:
Daily wage = Php 240
Hours worked = 16 hours (for two days)

Php 240
Hourly rate = _________ = Php 30 / hr x (110%) = Php 33 / hr

8 hours
NB: 110% = 110/100 = 1.1

Wage earned = Php 33 / hr x 16 hrs = Php 528

Martin earns Php 528 in two days.

Alternative Solution:
Daily wage = Php 240
Daily wage (with night diff) = Php 240 x (110%) = Php 264 / day

Wage earned = Php 264/day x 2 days = Php 528

(This alternative is easier in a way, since you get away from decimal points which
you get from dividing it by the number of hours.)

Problem 4: (ORDINARY DAYS)

Martin, a computer analyst, works from 7pm to 4 am, with a one-hour rest/meal break
from 11pm to 12mn. His daily wage is Php 640. How much does he earn on a day?

Answer:
Daily wage = Php 640
Hours worked = 3 hours (ordinary) plus 5 hours (with night differential)

Php 640
Hourly rate (ordinary) = _________ = Php 80 / hr

8 hours

Php 640
Hourly rate (night diff) = _________ x (110%) = Php 88 / hr

8 hours

Wage earned = Php 80/hr x 3 hrs plus Php 88/hr x 5 hrs

Wage earned = Php 240 plus Php 440 = Php 680

Martin earns Php 680 on a day’s work.

OVER TIME PAY (125%)
Problem 5: (ORDINARY DAYS)
Mars’ daily rate is Php 320. One day, he worked from 8 am till 8 pm with permit for
overtime. How much did Mars earn on that day?

Answer:
Daily wage = Php 320
Hours worked = 8 hours (ordinary) plus 3 hours (overtime)

Php 320
Hourly rate = _________ = Php 40 / hr

8 hours

Overtime Rate = Php 40 /hr x (125%) = Php 50 / OT hr

Wage earned = Php 40/hr x 8 hrs plus Php 50/hr x 3 hours = Php 470

Mars earned Php 470 on that day.

Problem 5: (ORDINARY DAYS)

Mars’ daily rate is Php 320. Suppose that after working regularly from 8am to 5pm, he
was asked to work overtime on the same day from 7pm to 12mn, how much wage
would Mars take home for that day?

Answer:
Daily wage = Php 320
Hours worked = 8 hours (ordinary) plus 3 hours (overtime) plus
2 hours (overtime with night differential)

Php 320
Hourly rate = _________ = Php 40 / hr

8 hours

Overtime Rate = Php 40 /hr x (125%) = Php 50 / OT hr

OT Rate (with night diff) = Php 40 /hr x (125%) x (110%) = Php 55 / hr

Wage earned = Php 40/hr x 8 hrs plus Php 50/hr x 3 hours

plus Php 55/hr x 2 hrs

Wage earned = Php 320 plus Php 150 plus Php 110 = Php 580

Mars earned Php 580 on that day.

Nota Bene 1:
For RESTDAYS, HOLIDAYS, SPECIAL HOLIDAYS, the first thing to do is to
compute the basic wage as affected by those days, then proceed to the same
computations above using that adjusted wage as the basic rate.

Suppose, Mars is earning Php 400 for his basic wage, the adjustments due to these special days
are as follows:

Mars’ adjusted daily rate on

SPECIAL factor adjustment adjusted

DAY computation basic wage

Special Holidays OR 130% Php 400 x (130%) Php 520

Rest Days

Special Holiday falling on 150% Php 400 x (150%) Php 600

a Rest Day

Holidays (12 in a year) 200% Php 400 x (200%) Php 800

Holiday falling on 260% Php 400 x (260%) Php 1,040

a Rest Day

Double Holiday 300% Php 400 x (300%) Php 1,200

(e.g., April 9 on a Good
Friday)

Double Holiday 390% Php 400 x (390%) Php 1,560

on a Rest Day

Nota Bene 2:
For all the days above, OT pay is additional 30% of the adjusted basic wage.

Problem 6:
Mars’ daily rate is Php 400. On April 9, a Good Friday, he worked from 8 am till 8 pm
with permit for overtime. How much did Mars earn on that day?

Answer:
Daily wage = Php 400

Adjusted wage for double holiday = Php 400 x (300%) = Php 1,200

Hours worked = 8 hours (regular) plus 3 hours (overtime)

Php 1,200
Hourly rate = __________ = Php 150 / hr

8 hours

Overtime Rate = Php 150 /hr x (130%) = Php 195 / OT hr

Wage earned = Php 150/hr x 8 hrs plus Php 195/hr x 3 hours = Php 1,785

Mars earned Php 1,785 on that day.

Problem 7:
Mars’ daily rate is Php 400. Suppose that on his rest day which also happened to be
a special holiday, he reported to work. After working regularly from 8am to 5pm, he
was asked to work overtime on the same day from 7pm to 12mn, how much wage
would Mars take home for that day?

Answer:
Daily wage = Php 400

Adjusted Daily Rate = Php 400 x 150% = Php 600 (Special holiday on rest day)

Hours worked = 8 hours (ordinary) plus 3 hours (overtime) plus

2 hours (overtime with night differential)

Php 600
Hourly rate = _________ = Php 75 / hr

8 hours

Overtime Rate = Php 75 /hr x (130%) = Php 97.5 / OT hr

OT Rate (with night diff) = Php 75 /hr x (130%) x (110%) = Php 107.25 / hr

Wage earned = Php 75/hr x 8 hrs plus Php 97.5/hr x 3 hours

plus Php 107.25/hr x 2 hrs

Wage earned = Php 600 plus Php 292.5 plus Php 214.5 = Php 1,107

Mars earned Php 1,107 on that day.