Overtime Pay

5 Categories of Overtime Pay

Overtime Work on a Regular Day

Overtime Work During Rest Day or Special Public

Holiday Day

Overtime Work on Special Public Holiday Falling on the

Employee's Rest Day

Overtime on a Regular Holiday

Overtime on a Regular Holiday Falling on Employee's

Rest Day
For every category it has variables involved.
Such as the percentage, hourly rate and number
of overtime hours. These variables are part of
the formula in each category.
Overtime Work on a Regular Day
Overtime Pay = 125% x Hourly Rate x Number of Overtime Hours

Example

An employee earns ₱ 250.00 per day. If he works an additional 2

hours how much is his overtime pay?

Compute:

Regular Hourly Rate = Minimum wage ÷ 8hours

Overtime Rate = Hourly Rate + 25% of hourly rate

Overtime Pay = Overtime rate x overtime hours

 Overtime During Rest Day or
Special Public Holiday
A. For the First 8 hours

Overtime Pay = 130% x Hourly Rate x Number

of Overtime

Hourly Rate = 130% of the Regular Hourly Rate

= ₱ 31.25 x 1.30

= ₱ 40.625
Overtime Rate = Hourly Rate on rest day or
holiday + 30% of Hourly Rate

= ₱40.625 + (.30 x 40.625)

= ₱40.625 + 12.1875

= ₱ 52.81

Overtime Pay = ₱ 52.81 x 8hours

= ₱ 422.48
B. In Excess of the First 8 Hours

Overtime Pay = 169% x Hourly Rate x Number of

Overtime

Compute:

Hourly Rate = 169% of the Regular Hourly Rate

Overtime Rate = Hourly Rate x 30% of Hourly Rate

Overtime Pay = Overtime Rate x No. of Excess

Hours
1.) Mr. Santiago works from Monday to
Friday. His hourly rate is ₱ 40.00. If he
has an overtime for 5 hours on a regular
day, how much is the overtime pay?

2.) Mr. Yu receives a regular hourly rate

of ₱38.00. He is asked to work during his
rest day for 8hours. How much is his
overtime pay?