Republic of the Philippines

Department of Education
Region IVA- CALABARZON
SCHOOLS DIVISION OFFICE OF LAGUNA
District of Los Bańos
BN Calara Integrated National High School
Brgy. Anos Los Bańos, Laguna

Grade Level: GRADE 11 Subject: Business Math Quarter 2, Week 5&6

Name: Teacher: Garry D. Punzalan Score:

INTRODUCTION
This activity sheet was written for you to accomplish at home. It was carefully
designed so that you can work at your own pace and allow self-discovery of the concept
through activities that you will perform. Activities were also selected to allow
independent learning which also aims to develop student’s reading comprehension skills
through understanding written texts.

1. Identify the variables needed in the computation of the overtime (ABM_BM11SW-

IIe -8)
2. Compute overtime pay (ABM_BM11SW- IIe -9)
3. Use E- spread sheet in the computation of salary and overtime pay
(ABM_BM11SW- IIf -10)
4. Present graphical representation of the details or particulars of the salary
(ABM_BM11SW- IIf -13)

Overtime Pay

Other than the regular salaries, wages and other benefits received by employees, they are
also entitled to an overtime. Some employees take this on their advantage to complete their daily
necessities. Sometimes, their earnings for 8 hours a day do not meet the needs of their families.
Others do this for savings. Whatever reason they have, employees are mandated to receive
overtime pay for their overtime.

A Simple Gift for Mom

It’s been her mom’s dream of having a brand-new refrigerator which costs Php45,000. To
fulfill this wish, Luz decided to save her week-long income and work 2-hour overtime per day on
regular days to supplement her Php40,000 savings. Luz is paid Php 800/day. If she will be given
25% increase for every extra hour she works, can she complete Php5,000 in a week (weekdays)?
Let us see part of her computation.

Solution:

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From the previous word problem, an employee (Luz) who works for more than the required eight
(8) hours of is entitled to an overtime pay.
An overtime pay is a payment for a work done beyond working hours. The normal hours
of work of any employee shall not exceed eight (8) hours a day. (Art. 83). Premium Pay is the
additional payment for work within rest days/special days.

Overtime pay in a regular day is 125% of employee’s hourly rate times the number of
overtime hours. Thus, Luz’ total overtime is:
125% x Php 100 x 2 hours = Php 250.
Computation of overtime pay varies on when overtime work is done. Below are articles of
the Labor Code of the Philippines concerning overtime.

- an additional of not less than ten

Article 86 night shift differential percent (10%) of employees’ regular
wage for each hour
Overtime work -an additional compensation equivalent
to his regular wage plus at least twenty-
five percent (25%) thereof
Article 87
Holiday/Rest Day - 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.
Scheduled Rest Day -an additional compensation of at least
thirty percent (30%) of his regular wage

Article 93 Special Holiday - an additional compensation of at least

thirty percent (30%) of the regular wage

Holiday + Rest Day - an additional compensation of at least

fifty per cent (50%) of his regular wage.
Holiday (regular) - a compensation equivalent to twice his
regular rate/200% of regular hourly rate
Article 94 - an additional of 50% of regular hourly
Special Day + Rest Day rate
- 260% of regular hourly rate
Regular Holiday + Rest Day

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Illustrative Example.

Suppose your father works for 10 hours and his daily regular wage is Php 400. Compute
for his overtime pay and total earnings on a:

a.) regular day;

b.) rest days /special day;
c.) special Day which falls on a rest day (special day + rest day);
d.) regular holiday; and
e.) regular holiday which falls on a rest day (regular holiday + rest day).

We can solve this real life word problem in different ways.

A. Hourly Rate Method
STEP 4

If it Hourly Rate Hourly rate Overtime Total Earnings

happens (regular) (Holiday/ Rate (Per day)
on... Rest day) (per Hour)
Regular Hreg = 400 ÷ 8 O = Hreg + T=400 + (2 x 62.50)
Day = Php 50 N/A 25% of Hreg = Php 400 + P125
= 50 + = Php 525
.25(50)
=50 + 12.5
= Php 62.5

Or

O = 125%
of Hreg
= 1.25(50)
= Php 62.5
On Rest Hreg = 400 ÷ 8 Hrest = 130% O = 130% T= [(8 x 65) + (2 x84.50)]
Day/ = Php 50 of Hreg of Hrest = 520 + 169
Special
=1.3 (50) = 1.3(65) = 689
Holiday
= Php 65 = Php 84.50
On Rest Hreg = 400 ÷ 8 Hrest/hol O=130% of T=[(8 x 75) + (2 x 97.5)]
Day = Php 50 = 150% of Hrest/hol = 600 + 195
which
falls on a Hreg = 1.3 x 75 = Php 795
Special = 1.5 (50) = Php 97.50
Day = Php 75

On a Hreg = 400 ÷ 8 Hreghol = 200% O=130% of T=[(8 x 100) + (2 x 130)]

Regular = Php 50 of Hreg Hregho = 800 + 260
Holiday
= 2 (50) = 1.3 x 100 = Php 1,060
= Php 100 = Php 130
On a Rest Hreg = 400 ÷ 8 Hrest/reg O=130% of T= [(8 x 130) + (2 x 169)]
Day = Php 50 = 260% of H reg Hrest/reg = 1,040 + 338
which
falls on a =2.6 (50) = 1.3 x 130 = Php 1,378
Regular =Php 130 = Php 169
Holiday

Alternatively, the following steps can be done on special days. Let us try it on a regular
holiday.

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B. Daily Rate Method

STEP 1. Find the regular daily wage Php 400

STEP 2. Total pay for the 1st 8 hrs

400 x 2 = 800

STEP 3. Hourly Rate on Special Day

800 ÷ 8 = 100

STEP 4. Overtime Rate perHour

100 x 1.3 = 130

STEP 5. Total Overtime Rate/hr

130 x 2 = 260

STEP 6. Total Earnings in a day

800 + 260 = Php 1,060

On a Regular 200% x 400 260% x 50 x 2 T= 800 + 260

Holiday =800 = 260 = Php 1,060

On a Rest Day 260% x 400 338% x 50 x 2 T=1,040 + 338

which falls on a =1,040 = 338 = Php 1,378
Regular
Holiday

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Spreadsheet for Computation and Presentation

You will use excel (this time) in answering the previous problem. But before that,
familiarize yourself with the spreadsheet. To begin with, open your spreadsheet (excel).
Below is a sample.

Next, search on the internet how a “cell” is identified and how “dragging” is done. This
will be the starting point of using the excel. Likewise, be reminded of the following:

• Formula starts with “=”. If 1 + 1 = 2, in excel it is written as =1+1(no spaces)

• Press “enter” after typing the formula
• To add, simply type “=sum(1st cell to be added:last cell to be added)” or =Cell to be
added+anothercell to be added + another cell to be added)
• The symbol used for multipication is the asterisk “*”
• Use “/” for division.
• Spreadsheet is used to solve at once a number of computation of the same problem.
• Only some functions will be intoduced. Searching more on it will be on your part.
• Presentation will only focus on pie graph. Next modules will discuss more on the
presentation.
• Lastly, you are the “master mind” of the computations and presentations in any
spreadsheet. It only follows your command. So, be wise and careful.

You are now ready to solve the previous problem. Type in the given data on the previous
problem. (Color is for emphasis only.)

➢ To compute for the gross compensation:

simply add the basic salary (F4) and allowance
(F5). In cell F6, type in the formula “=sum
(F4:F5). Then press enter.

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 ➢ To solve for the total deduction, click the cell for
it (F12), then add the deductions from SSS Premium
to BIR Tax. Type “=sum (highlight the value from
SSS Premium to BIR Tax). Enter.

➢ For Net Pay, click the cell E13, then type in

=. Click on the cell corresponding to the gross
compensation (F6) then the minus symbol (-)
and click the cell that corresponds with the total
deductions (F12). Press Enter.

2. It is very important to identify the percentage corresponding to the different deductions.

For discussion purposes, let us take GSIS- 9%, Philhealth-1.5%, PagIbig-2%. To solve each of
these, simply type in the corresponding cell, “=”, then cell that corresponds to basic salary
time (*) the percentage. Press enter. In the example, simply type the ones shown on the last
column (see figure below).

➢ For the standard deductions, there are specified contribution tables to be followed as
discussed in the previous modules. Another function, the “vlookup” is used. Search more on
it in the internet. Try it in solving for the tax.

More examples:
1. Compute for Tita Pau’s monthly, semi-monthly, weekly and bi-weekly salary using
spreadsheet.
Hint: It is easier to solve this problem if you have the annual salary.
Enter the formula starting with B2 up to F2 (as shown below).

2. In EY EL PI Company, employees are paid 125% of their hourly regular payment in excess
of 8-hour work. Compute for the employees’ total income for the week. See the table below.

6
For the Total Hours:

In H2, type “=sum(“, then click on C2 to G2 or type “=sum(C2:G2)”

For Regular Hours:

Since there should be 8 hours in 5 days, type =8*5, then enter

For Overtime hours:

Subtract regular hours from the total hours. Thus, in J2, type =H2-I2, enter.
For the Regular Pay (in a week)

Multiply the hourly rate by the regular hours. Thus, in K2, type =B2*I2,enter.
For the Overtime Pay:
Multiply the hourly rate by the overtime hours by 125%. Thus, in L2, type =B2*J2*1.25,
then enter.
For the Total Income:

Add the regular pay and overtime pay. Thus, in M2, type =K2+L2, then enter, or
=sum(K2:L2) then enter.

DO NOT forget to drag down to compute the rest of employees’ data and get this:

3. Aleyah and Ayelah works in a factory. They receive hourly rates of Php 50 and Php 60,
respectively for regular days (Monday to Friday). If the factory follows the mandates on the
Labor Code, compute for their gross earnings last week given that they both worked on the
following days except that Ayelah was absent on Thursday.
Monday – 8 hours Wednesday – 10 hours Friday – 12hours
Tuesday – 12 hours Thursday – 7 hours

Solution:
a. First, you need to create pay head and indicate the given data like this:

7
b. Then enter the formula for:

overtime rates = 125% of hourly rates  In cell C2, type =1.25*B2,enter,drag down

total hours = sum from Monday to Friday In cell I2,type =sum(D2:H2),enter, drag down

c. Continue the payhead and enter the formula for:

Hourly Overtime Total Regular Overtime Regular Overtime Gross

Name
rates Rates Hours Hours hours Pay Pay Pay

Aleyah ₱50.00 ₱62.50 49 40 9 ₱2,000.00 ₱562.50 ₱2,562.50

Ayelah ₱60.00 ₱75.00 42 40 2 ₱2,400.00 ₱150.00 ₱2,550.00

Regular hours- Cells under this should be the minimum hours per week (8 hours x 5 days
)or less. Since both exceed 40hours, one option is to enter 40 on J2 and drag down. Another
is to use “if function”. On cell J2, enter “=IF(I2<=40,I2,40)” and drag down.

Overtime hours = Total Hours – Regular hours. What are you going to type on K2?

Regular Pay = Hourly Rates x Regular hours. Thus type =B2*J2 on L2 then drag.

Overtime Pay = Overtime rates x Overtime hours. Thus type =C2*K2 on M2 then drag.

Gross pay = Regular Pay + Overtime Pay. Thus, type =L2+M2, then drag.

Thus, Aleyah’s gross earnings is Php 2,562.50 while Ayelah’s is Php 2,550.00

ON PRESENTATION…
Other than computing salaries and overtime, you can also present them graphically using
the spreadsheet. Usually, the pie graph is used to represent salaries and overtime. It simply
shows the division of the salary and the percentage allocated to each division. To do this:

1. Enter the data as shown on the left.

2. Highlight the entire data

3. On the ribbon, click the insert function.

4. Look for the insert pie. For this, click the first 2-D pie. Then press Enter.

5. This should appear. You can also choose from the ribbons the design of your pie graph.

8
6. Click the Chart Title and change to desired title.

7. You may also choose from the options on the design of your pie graph.