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How To Compute Overtime Pay

An employee is entitled to overtime pay of at least 30% of their hourly rate for work done beyond 8 hours on a working day, and at least 30% for the first 8 hours of work on a rest day or holiday. Night differential pay of at least 10% of the regular hourly wage is due for any hours worked between 10pm and 6am. The document provides examples of computing overtime pay and night differential for an employee with an hourly wage of 57 Philippine pesos.

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0% found this document useful (0 votes)
511 views

How To Compute Overtime Pay

An employee is entitled to overtime pay of at least 30% of their hourly rate for work done beyond 8 hours on a working day, and at least 30% for the first 8 hours of work on a rest day or holiday. Night differential pay of at least 10% of the regular hourly wage is due for any hours worked between 10pm and 6am. The document provides examples of computing overtime pay and night differential for an employee with an hourly wage of 57 Philippine pesos.

Uploaded by

trishamae
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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How to Compute Overtime Pay?

When an employee is required to work beyond the normal 8 hours, they are
entitled to receive Overtime Pay. (Source: DOLE)
The Overtime pay rates depend upon the day the work is performed, based on the
government guidelines it is as follows:

Lets say that your employees hourly rate is Php 57.00, heres how to compute for their
overtime pay:

How to Compute for Night Differential?


Every employee is entitled to a Night Differential or Night shift pay of not less than
10% of his regular wage for each hour of work performed between 10pm and
6am. (Source: DOLE)
The computation will depend on what kind of day they reported for work:

Lets say that your employees hourly rate is Php 57.00 and they report for work during
the hours covered by the Night Differential premium. Heres how to compute it:

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