Department of Education

Region III
DIVISION OF MABALACAT CITY

Name:_________________________________Grade & Strand: ________________

School:____________________________________________Date: _______________

LEARNING ACTIVITY SHEET

ABM 11 Business Mathematics (Q2-WK5)
Overtime Pay

I. Introduction

Most of the wage earner wanted to earn more than their basic salary,
so if they were given the opportunity to work beyond their working hours,
they will do. Overtime is the amount of time a person who works beyond
working hours. It is important to know how to compute your additional
pay not only your overtime but also during regular holiday, special holiday,
and working during rest days. In this activity sheet, you will learn to solve
overtime pay in a regular day, regular holiday, special holiday and working
during rest days.

II. Learning Competency

1. Identify the variables needed in the computation of the overtime.

ABM_BM11SW- IIe -8
2. Compute overtime pay. ABM_BM11SW- IIe -9

III. Objectives

At the end of this learning activity sheet, you are expected to:
1. Identify the variables needed in the computation of the overtime pay;
and
2. compute overtime pay.
IV. Discussion

According to Labor Code of the Philippines in Book III -Conditions of

Employment, Title I: Working Conditions and Rest Periods, Chapter I:
Hours of Work, the following articles should be given the emphasis.

Art. 83. Normal hours of work. The normal hours of work of any employee
shall not exceed eight (8) hours a day.

Health personnel in cities and municipalities with a population of at least

one million (1,000,000) or in hospitals and clinics with a bed capacity of at
least one hundred (100) shall hold regular office hours for eight (8) hours
a day, for five (5) days a week, exclusive of time for meals, except where
the exigencies of the service require that such personnel work for six (6)
days or forty-eight (48) hours, in which case, they shall be entitled to an
additional compensation of at least thirty percent (30%) of their regular
wage for work on the sixth day. For purposes of this Article, “health
personnel” shall include resident physicians, nurses, nutritionists,
dietitians, pharmacists, social workers, laboratory technicians,
paramedical technicians, psychologists, midwives, attendants and all
other hospital or clinic personnel.

Art. 86. Night shift differential. Every employee shall be paid a night
shift differential of not less than ten percent (10%) of his regular wage for
each hour of work performed between ten o’clock in the evening and six
o’clock in the morning.

Art. 87. Overtime work. Work may be performed beyond eight (8) hours
a day provided that the employee is paid for the overtime work, an
additional compensation equivalent to his regular wage plus at least
twenty-five percent (25%) thereof. Work performed beyond eight hours on
a holiday or rest day shall be paid an additional compensation equivalent
to the rate of the first eight hours on a holiday or rest day plus at least
thirty percent (30%) thereof.

Art. 88. Undertime not offset by overtime. Undertime work on any

particular day shall not be offset by overtime work on any other day.
Permission given to the employee to go on leave on some other day of the
week shall not exempt the employer from paying the additional
compensation required in this Chapter.

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The Following Are Important Terminologies.

Overtime Pay is the additional compensation or payment to employee for

additional services or work done beyond the normal eight hours of work. It
is computed by multiplying the overtime rate with the number of hours
more than the regular eight hours.

Overtime work is an any work performed beyond the normal 8 hours of

work in one workday.

Workday is the consecutive 24-hour period which commences form the

time the employee starts to work and ends at the same time the following
day. Example, if an employee works from 8am to 8am of the following day.
It is not necessarily corresponds to calendar days.

Computation of Overtime Pay

Rules in computing overtime pay, pay for work done on holidays, premium
on nightshift and 13th month pay.

Let T be the total earnings, R be the daily rate (equivalent to 8 hours), H be

the number of worked hours, r be the overtime rate; h be the value of hourly
𝑅
rate ( 8 );

1. Overtime:
On ordinary days: Plus 25% of the hourly rate multiplied by the
number of hours.
Formula: (h+0.25h) × H or r =1.25h×H

On a rest say, special day or regular holiday: Plus 30% of the hourly rate
on said days multiplied by the number of hours.
Formula: (h+0.30h) ×H or r = 1.3h×H

2. Pay for work done on:

A special day:130% × basic pay
A special holiday, which is also a scheduled rest day: 150% × basic
pay
A regular holiday: 200% × basic pay
A regular holiday, which is also a scheduled rest day: 260%× basic
pay

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3. Night Shift Premium where Night Shift is a Regular work:
On ordinary day: 110% × h
On a rest day, special day, regular holiday: 110% of regular hourly
rate for a rest day, special day, regular holiday.

4. Overtime on Night Shift:

On ordinary day: 110% × overtime hourly rate
On rest day, special holiday or regular holiday: 110% overtime
hourly rate for rest days, special holidays and regular holidays.

To find the daily total earnings T in a regular day, use the formula
𝟏.𝟐𝟓𝑯−𝟐
T= × 𝑹
𝟖

Problem Solving
Example 1. Camela’s daily rate is ₱550. What is her hourly rate and her
overtime pay if she works additional 4 hours if she works on a regular day?

Solution: Given: R = ₱550 r=? h=?

H = 4 hours since we are asked how much her overtime rate
only.

𝑅 ₱550
Step 1: Solve for the hourly rate first. h= = = ₱68.75
8 8
Step 2: Solve for r by using the formula: r = (h+0.25h) × H or r
=1.25h×H
We will use r = (h+0.25h) × H
r = [₱68.75+ (0.25×₱68.75)] × 4
r = [₱68.75+₱17.1875] × 4
r = ₱85.9375 × 4 = ₱343.75
Thus, her hourly rate is ₱68.75 and her overtime pay is ₱343.75.

Example 2. Mr. Mejia’s daily rate is ₱780.00. He works on a regular day

from 8:00am to 8:00pm. How much is his hourly rate? How much is his
overtime pay? How much did he earn that day?

Solution: Given: R = ₱780 h=? r=? H = 3 hours

Note: H is 3 hours because there is 1-hour lunch break from 8am-
5pm.

𝑅 ₱780
Step1: Solve for h: h = = = ₱97.5
8 8
Step 2: Solve for r by using the formula: r = (h+0.25h) × H or r
=1.25h×H
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 We will use r =1.25h×H
r =1.25(₱97.5) × 3 = 121.875×3 = ₱365.63

Step 3: Solve for total earnings by adding daily rate R and overtime
pay r
₱780 + ₱365.63 = ₱1,145.625

Other solution in finding the total earnings is by using the formula:

𝟏.𝟐𝟓𝑯−𝟐
T= × 𝑹
𝟖
Note: H = 11 since we are looking for the total earnings of Mr. Mejia
in one day (8am-8pm). 1-hour break is not included in the total
worked hours.

Substitute the values:

1.25(11)−2 13.75−2 11.75
T = × ₱780 = × ₱780 = × ₱780 = 1.46875 ×
8 8 8
₱780
T = ₱1,145.625
 We have the same result which is ₱1,145.625.

Thus, Mr. Mejia’s hourly rate is ₱97.5, his overtime pay is ₱365.63
and his total earnings in one day is ₱1,145.625.

Example 3: Mrs. Santos earns ₱790 when she works for 10 hours in a
regular day. How much is his daily rate?

Solution: Given: T = ₱790 H = 10 R=?

We are going to find the value of R in the equation
𝟏.𝟐𝟓𝑯−𝟐
T= × 𝑹
𝟖
(𝟏.𝟐𝟓𝑯−𝟐)𝑹 𝟖𝑻
We have T= (1.2H-2)R = 8T R=
𝟖 𝟏.𝟐𝑯−𝟐

8(₱790) ₱6,320
Substitute the values: R = = = ₱632
1.2(10)−2 10
Thus, the daily rate of Mrs. Santos is ₱632.

Example 4: Joanne worked in a company with a daily rate of ₱650.

a. Supposed she worked in a regular holiday with 3 hours of

overtime, how much will she earn that day?

Solution:
Step 1: Compute for the regular hourly rate h.

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 𝑅 ₱650
h= = = ₱81.25
8 8
Step 2: Solve for overtime rate for regular holiday.
Hourly rate = 200% of regular hourly rate = 2(₱81.25) =
₱162.5
Step 3: Solve for the overtime pay during regular holiday
r = 1.3h×H = (1.3×₱162.5) ×3 = ₱211.25×3 = ₱633.75
Step 4: Since t is regular holiday, then the payment for work done is
200% × basic pay = 2×₱650 = ₱1,300
Step 5: Add the overtime pay (Step 3) and the payment for work done
(Step 4) to solve her earnings on that day.

T = ₱633.75+₱1,300 = ₱1,933.75

 Thus, Joanne’s earning is ₱1,933.75 if she worked in a regular

holiday with 3 hours of overtime.

b. If she worked in a special non-working holiday with 3 hours of

overtime, how much will she earn that day?

Solution: The regular hourly rate is already computed which is ₱81.25

Step 1: Solve for overtime rate during special holiday.

Hourly rate = 130% of special holiday rate
= 1.3(₱81.25) = ₱105.625
Step 2: Solve for the overtime pay during special holiday.
r = 1.3h×H = (1.3×₱105.625) × 3 = ₱411.94
Step 3: Solve for the payment of the work done for special day.
Special day:130% × basic pay = 130% × ₱650.
=1.3 × ₱650 = ₱845
Step 4: Add the overtime pay (Step 2) and the payment for work done
(Step 3) to solve her earnings on that day.
T = ₱411.94+₱845 = ₱1,256.94
 Thus, Joanne’s earning is ₱1,256.94 is she worked in a special
holiday with 3 hours of overtime.

Example 5: Mr. Carlos worked for some hours yesterday (a regular day).
His daily rate is ₱1,598.50. His total earnings yesterday was ₱2,000 and
he started at 7:00 AM. How many hours did he worked yesterday?

Solution: Given: R = ₱1,598.50 T = ₱2,000 H=?

𝟏.𝟐𝟓𝑯−𝟐
We solve H in the formula: T = × 𝑹
𝟖

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 1.25𝐻−2 𝑇 8𝑇 8𝑇+2𝑅
We have: = 1.25H-2 = +2 H=
8 𝑅 𝑅 1.25𝑅
Substitute the values of R and T.

8(₱2,000)+2(₱1,598.50)
H= = 𝟗. 𝟔
1.25(₱1,598.50)

Thus, Mr. Carlos worked for about 9hours and 30 minutes.

Example 6: Arnold worked 8:00pm and ends at 6:00am. 12midnight to

1:00am is his break time. If his hourly rate is ₱90, how much is his total
earnings for a month if he works 20 days every month?

Solution: 10:00pm-6:00am is considered as night shift differential.

Therefore, the 7(1 hr. break is excluded) hours of Arnold will earn 110% of
the basic hourly rate. Let T be Arnold’s total earnings for a month.

Given: 10pm-6am = 7 hours (night shift differential)

8:00pm-10pm = 2 hrs.
20 days

Step 1: Solve for hourly rate for night differential.

Hourly rate = 110% of special holiday rate
= 110%×90 = 1.1×90 = ₱99
Step 2: Multiply the hourly rate to 7 hours to get the night differential
payment
= ₱99×7 = ₱693
Step 3: Solve the amount paid from 8:00pm to 10pm (2hrs.)
= hourly rate ×2 = ₱90×2 = ₱180
Step 4: To get the earning of Mr. Carlos in one day, add the result in
step 2 and step 3.
= ₱693+₱180 = ₱873
Step 5: To get his total earnings for 20 days, multiply the result of
step 4 to 20 days.
= ₱873×20 = ₱17,460
Thus, Mr. Carlos has monthly earnings of ₱17,460.

Another solution: T = 20×[2(₱90)+7(1.1)(₱90)]

T = 20×[₱180+₱693]
T = 20×₱873
T = ₱17,460

Note: The formula for the computation of overtime pay varies

depending on the day overtime work was rendered.

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V. Activities

It is now your turn to answer different activities to enhance your knowledge

about the lesson.

A. Write TRUE if the statement is true otherwise write FALSE.

1. Night shift differential rate can be greater than overtime pay rate.
2. Overtime pay rate for holidays and regular days are always different.
3. If an employee works for 12 hours, then he surely has an overtime
pay.
4. It is possible that overtime pay can be given to an employee who
works less than 8 hours.
5. Overtime pay is only given to those who works at night.

B. Complete the entries of the table below.

Daily rate Type Regular Overtime No. of Overtime
Hourly Rate Hours Pay
Rate
₱500 Regular 3
Holiday
₱550 Rest day 4
₱635 Special 2
Holiday
₱745 Ordinary 3
days

C. Problem Solving. Solve the following problems. Show your solutions.

Kristina is working as call center and has a daily rate of ₱ 640.

1. Suppose she work in a regular holiday from 8:00am-5:00pm and has

an overtime for 4 hours, how much is her overtime pay and total
earnings?

2. Assuming she started working from 6:00pm-6am in ordinary day,

how much is her total earnings?

VI. Assessment

Direction: Use separate sheet of paper for your answer and solution.
A. Write TRUE if the statement is true otherwise write FALSE.
1. All employees are required to work overtime.
2. Daily rate is sometimes equal to hourly rate.

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 3. If the hourly rate of employee A is equal to the daily rate of employee
B, then employee A earns more than the employee B daily.
4. If an employee worked for 6 hours yesterday and work 10 hours
today, then he will receive an equivalent to 2-day daily rate.
5. If an employee works on his rest day, then he will automatically earn
an overtime pay.
B. Read each question carefully then write the letter of the best answer
from the given choices.
1. It is a working day where there is additional 25% of the hourly rate
multiplied by the number of hours.
A. Regular holiday C. Ordinary day
B. Special Holiday D. Rest day
2. What is the additional compensation payable to employee for
services or work rendered beyond the normal eight hours of work?
A. Overtime pay C. Night differential pay
B. Overtime work D. Workday
3. What is the day where your pay of work done is doubled?
A. Rest day and overtime C. Regular Holiday
B. Special holiday D.Special holiday and rest day
4. What is the consecutive 24-hour period which commences from the
time the employee starts to work and ends at the same time the
following day?
A. Regular holiday and Rest Day C. Night differential
B. Overtime work D. Workday
5. If your daily rate is ₱590, how much is your regular hourly rate?
A. ₱73.75 C. ₱115.23
B. ₱92.19 D. ₱144.04
For items 6-11. Glenn works for a BPO company at the Bonifacio Global
City in Taguig. His daily wage rate is ₱1,200. Suppose yesterday was a
special (non- working) holiday in NCR.
6. What is his hourly rate?
A. ₱150 C. ₱195
B. ₱170 D. ₱200
7. How much was his salary if he did not show up to work?
A. ₱150 C. ₱195
B. ₱170 D. none

8. How much did he earn if he worked yesterday (special non-working

holiday)?
A. ₱1,200 C. ₱1,490
B. ₱1,350 D. ₱1,560

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 9. How much did he earn if he worked 10 hours’ yesterday?
A. ₱2,067 C. ₱1,752
B. ₱1,860 D. ₱1,710

10. How much did he earn if he worked yesterday and it was also his
rest day?
A. ₱1,590 C. ₱1,800
B. ₱1,750 D. ₱2,340

`
VII. Reflection
Answer the Three W’s pertaining to the lesson.
Three W’s
1. What did you learn from this activity sheet?
2. So What? (relevance, importance, usefulness) You may give examples
to justify your answers.
3. Now What? (How does this fit into what you are learning? Does it affect
your thinking?)

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VIII. References
Dagal, Keneth Adrian P.,Lopez, Brian Roy C.,Martin-Lundag, & Leah
C.(2016a). Business Math Teacher’s Manual. Department of
Education. Quezon City. Vibal Group, Inc.
Dagal, Keneth Adrian P.,Lopez, Brian Roy C.,Martin-Lundag, & Leah
C.(2016b). Business Math Learner’s Material. Department of
Education. Quezon City. Vibal Group, Inc.
Santos, Durwan C. & Sta. Maria, Karl Bryan V. (2015). MATH ACTIVATED:
Engaged Yourself and Our World. Business Math. Salesiana Books
by Don Bosco Press Inc.
Department of Labor and Employment. Book III – Conditions of
Employment. Retrieved from
https://blr.dole.gov.ph/2014/12/11/book-iii-conditions-of-
employment

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 12
A. 1. FALSE 1. C 6. C
2. FALSE 2. A 7. D
3. TRUE 3. C 8. D
4. FALSE 4. D 9. A
5. FALSE 5. A 10. C
Assessment
C. 1. Overtime -832;
T = 2,112
2. ₱944
Daily Type Regular Overtime No. of Overtime
rate Hourly Rate Hours Pay
Rate A. 1. TRUE
₱500 Regular 62.5 162.5 3 487.5
Holiday
2. TRUE
₱550 Rest day 68.75 116.19 4 464.75 3. TRUE
₱635 Special 79.38 134.14 2 268.29
Holiday 4. FALSE
₱745 Ordinary 93.13 116.41 3 349.22
days 5. FALSE
B. Activities
IX. Answer Key
IX. Development Team

Development Team of the Learning Activity Sheets

Writer: Aurora T. Sarmiento

Editor: Anthony Rayley M. Cabigting, DEM
Reviewer:
Layout Artist:
Management Team: Engr. Edgard C. Domingo, PhD, CESO V
Leandro C. Canlas, PhD, CESE
Elizabeth O. Latorilla, PhD
Sonny N. De Guzman, EdD
Elizabeth C. Miguel, EdD

For inquiries or feedback, please write or call:

Department of Education – Division of Mabalacat

P. Burgos St., Poblacion, Mabalacat City, Pampanga

Telefax: (045) 331-8143

E-mail Address: mabalacatcity@deped.gov.ph

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