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    Rates of Additional Compensation A. Night Shift Differential

    Uploaded by

    Judith Alisuag
    The document outlines various rates of additional compensation for night shift differentials, overtime pay, and pay on holidays and rest days for employees in the Philippines. It provides formulas to calculate wages for night shift work between 10pm-6am (10% increase), overtime work beyond 8 hours (25% increase), work on holidays and rest days (30% increase), and double holidays that are also rest days (50% increase). Examples are given to demonstrate how to apply the formulas for an employee earning a daily wage of P800.

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    Rates of Additional Compensation A. Night Shift Differential

    Uploaded by

    Judith Alisuag
    763 views14 pages
    The document outlines various rates of additional compensation for night shift differentials, overtime pay, and pay on holidays and rest days for employees in the Philippines. It provides formulas to calculate wages for night shift work between 10pm-6am (10% increase), overtime work beyond 8 hours (25% increase), work on holidays and rest days (30% increase), and double holidays that are also rest days (50% increase). Examples are given to demonstrate how to apply the formulas for an employee earning a daily wage of P800.

    Original Description:

    Labor Standards Overtime Pay

    Original Title

    Computation OT

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    The document outlines various rates of additional compensation for night shift differentials, overtime pay, and pay on holidays and rest days for employees in the Philippines. It provides formulas to calculate wages for night shift work between 10pm-6am (10% increase), overtime work beyond 8 hours (25% increase), work on holidays and rest days (30% increase), and double holidays that are also rest days (50% increase). Examples are given to demonstrate how to apply the formulas for an employee earning a daily wage of P800.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    763 views14 pages

    Rates of Additional Compensation A. Night Shift Differential

    Uploaded by

    Judith Alisuag
    The document outlines various rates of additional compensation for night shift differentials, overtime pay, and pay on holidays and rest days for employees in the Philippines. It provides formulas to calculate wages for night shift work between 10pm-6am (10% increase), overtime work beyond 8 hours (25% increase), work on holidays and rest days (30% increase), and double holidays that are also rest days (50% increase). Examples are given to demonstrate how to apply the formulas for an employee earning a daily wage of P800.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as XLS, PDF, TXT or read online from Scribd
    Download as xls, pdf, or txt
    of 14

    RATES OF ADDITIONAL COMPENSATION A.

    NIGHT SHIFT DIFFERENTIAL 10% OF REGULAR WAGE PER HOUR FOR WORK PERFORMED BETWEEN 10 PM TO 6 AM Regular wage per hour (REGULAR WAGE / 8 HOURS) x 110% x # of hours between 10pm to 6am Night Shift Differential + regular wage for the other 4 hours) Wage for the day 1. Get hourly rate: NSD = 4 hours P800

    Illustration: Employee "A"

    Daily wage Work Schedule # of hours worked between 10pm to 6am

    P800 6 pm to 2 am

    110 4 100 4

    P100 x 110% per hour x # of hours worked bet. 10pm to 6 am Add: Regular wage of the other 4 hours Total Wage Earned

    NSD with Regular Overtime Employee "A" Daily wage Work Schedule Overtime

    P800 8 am to 5 pm 5pm to 12mn.

    1. Get hourly rate:

    P800

    100 125% 125.00 110% 137.50 2 275.00 125 5 625.00 900.00 800.00 1,700.00

    2. Get overtime rate per hour x 3. Multiply by NSD Rate 110% 4. # of Hours worked for NSD (10pm to 12mn) 5. Add: Regular Overtime Overtime rate/hour x # of hours overtime from 5pm to 10pm Overtime pay with NSD Regular wage for the day TOTAL WAGE EARNED

    B. OVERTIME PAY Regular Work day ADDITIONAL COMPENSATION FOR NUMBER OF HOURS WORKED BEYOND EIGHT HOURS

    25%

    OF REGULAR WAGE PER HOUR FOR HOURS WORKED BEYOND 8 HOURS

    Regular wage per hour x 125% x # of hours worked in excess of 8 hours Overtime pay for regular work day + Regular wage per day Wage for the day 1. Get hourly rate: 2. Overtime rate per hour 3. Multiply by # of OT rendered (5pm to 10pm) 4. Add: Regular wage for the day TOTAL WAGE EARNED P800 100 125% 125

    Illustration: Employee "A"

    Daily wage Work Schedule Overtime

    P800 8 am to 5 pm 5pm to 10pm

    5 625 800 1,425.00

    C. IF EMPLOYEE WORKED ON HOLIDAY OR REST DAY IF THERE IS OT ON THIS DAY (WORKED BEYOND 8 HOURS)

    30%

    OF REGULAR DAILY WAGE

    Regular wage per day X 130% Wage on Rest Day or Holiday Wage on Rest Day or Holiday per hour X 130% X # of hours worked in excess of 8 hours Wage on Rest Day or Holiday including overtime

    30%

    OF WAGE ON REST DAY OR HOLIDAY

    Illustration: Employee "A"

    Daily wage Work Schedule Overtime

    P800 8 am to 5 pm Special Holiday June 24 - Manila Day 5pm to 10pm

    1. Get Wage rate on Holiday x Wage Rate on holiday/restday 2. Divide by 8 hours to get hourly rate Hourly rate for holiday/restday 3. Multiply by rate for overtime Overtime rate per hour on holiday/ restday 4. Multiply by # of hours worked as Overtime 5. Add: Wage rate on Holiday/restday TOTAL WAGE EARNED

    C. IF EMPLOYEE WORKED ON SPECIAL HOLIDAY OR REST DAY And Also happens to be the Restday of Employee IF THERE IS OT ON THIS DAY (WORKED BEYOND 8 HOURS)

    50%

    OF REGULAR DAILY WAGE

    30%

    OF WAGE ON REST DAY OR HOLIDAY

    Illustration: Employee "A"

    Daily wage Work Schedule Overtime

    P800 8 am to 5 pm Special Holiday June 24 - Manila Day 5pm to 10pm Also Restday of the Employee

    1. Get Wage rate on Holiday also restday of employee Wage Rate on holiday/restday 2. Divide by 8 hours to get hourly rate Hourly rate for holiday/restday 3. Multiply by rate for overtime Overtime rate per hour on holiday/ restday 4. Multiply by # of hours worked as Overtime

    5. Add: Wage rate on Holiday/restday TOTAL WAGE EARNED Regular Holidays (Legal Holidays) New Year's day Maundy Thursday Good Friday Eidul Fitr Eidul Adha Aray Ng Kagitingan (April 9) Labor Day (may 1) Independence Day (June 12) National Heroes Days (Last Monday of August) Bonifacio Day (November 30) Christmas Day Rizal Day (December 30) National Special Holidays Ninoy Aquino Day (August 21) All Saints Day (November 1) Last Day of the Year Rule on Legal Holidays: 1. for Regular Holiday:

    a. If it is an employee's regular workday 1. If unworked - he shall be paid 100% of his regular wage 2. If worked =first 8 hours 200% = beyond 8 hours - add 30% of hourly rate for such day Eg. Daily wage 800 Holiday pay will be (800 x 200%) Hourly rate will be (1600/8) x 130% Hourly rate for ot on legal holiday b. If it is an employee's rest day 1. If unworked - he shall be paid 100% of his regular wage 2. If Worked =first 8 hours - he shall be paid 200% of his wage plus 30% thereof Eg. Daily wage 800 Holiday pay will be (800 x 200%) Plus 30% of P1600

    = if he rendered ot in excess of 8 hours add another 30% of rate per hour (that would be 2080/8 hours *130% x # of Overtime hours) c. For declared speciail holidays (special non working day, Special pulbic ho Special National Holiday, and nationwide special days: 1. If unworked - no pay unless there is a favorable company policy, practice granting payment of wages on special days 2. If worked =first 8 hours - 100% of his daily rate plus 30% thereof Eg. Daily wage 800 Holiday pay will be (800 x 100%) Plus 30% of 800 Holiday pay on special day

    = he rendered OT in excess of 8 Hours he shall be entitled to another 30% of hourly rate for that day (1040/8 x 130%) E. EMPLOYEE WORKED ON A LEGAL HOLIDAY HE ALSO RENDERED OVERTIME BEYOND 8 HOURS Illustration: Employee "A"

    Daily wage Work Schedule Overtime

    P800 8 am to 5 pm Legal Holiday Independence day 5pm to 10pm

    1. Get Wage rate on Holiday x Wage Rate on Legal Holiday 2. Divide by 8 hours to get hourly rate Hourly rate for Legal holiday 3. Multiply by rate for overtime Overtime rate per hour on Legal Holiday 4. Multiply by # of hours worked as Overtime 5. Add: Wage rate on Holiday/restday TOTAL WAGE EARNED

    F. EMPLOYEE WORKED ON A LEGAL HOLIDAY ALSO A REST DAY HE ALSO RENDERED OVERTIME BEYOND 8 HOURS Illustration: Employee "A" Daily wage P800 Work Schedule 8 am to 5 pm Overtime Legal Holiday Independence day 5pm to 10pm Also a restday

    1. Get Wage rate on Holiday x Wage Rate on Legal Holiday 2. Add: 30% of the wage rate for legal holiday because this is also his restday Wage Rate on Legal Holiday also restday 3. Divide by 8 hours to get hourly rate Hourly rate for Legal holiday 4. Multiply by rate for overtime Overtime rate per hour on Legal

    Holiday 5. Multiply by # of hours worked as Overtime 5. Add: Wage rate on Holiday/restday TOTAL WAGE EARNED F. EMPLOYEE WORKED ON A DOUBLE HOLIDAY HE ALSO RENDERED OVERTIME BEYOND 8 HOURS DOUBLE HOLIDAY= EG. ARAW NG KAGITINGAN WHICH HAPPENS TO BE GOOD FRIDAY THE WAGE RATE WOULD BE 300% OT RATE WOULD STILL BE 30% Illustration: Employee "A"

    Daily wage Work Schedule Overtime

    P800 8 am to 5 pm Double Holiday Good Friday & Araw ng kagitingan 5pm to 10pm

    1. Get Wage rate on Holiday x Wage Rate on Legal Holiday 2. Divide by 8 hours to get hourly rate Hourly rate for Legal holiday 3. Multiply by rate for overtime Overtime rate per hour on double Holiday 4. Multiply by # of hours worked as Overtime 5. Add: Wage rate on Holiday/restday TOTAL WAGE EARNED

    F. EMPLOYEE WORKED ON A DOUBLE HOLIDAY HE ALSO RENDERED OVERTIME BEYOND 8 HOURS also employee's restday DOUBLE HOLIDAY= EG. ARAW NG KAGITINGAN WHICH HAPPENS TO BE GOOD FRIDAY THE WAGE RATE WOULD BE 300% OT RATE WOULD STILL BE 30% Illustration: Employee "A"

    Daily wage Work Schedule Overtime

    P800 8 am to 5 pm Legal Holiday Good Friday & Araw ng kagitingan 5pm to 10pm

    1. Get Wage rate on Holiday x Wage Rate on Legal Holiday 2. Add: 30% of the wage rate for double holiday because this is also his restday Wage Rate on Legal Holiday also restday 3. Divide by 8 hours to get hourly rate Hourly rate for Legal holiday 4. Multiply by rate for overtime Overtime rate per hour on double Holiday and rest day 5. Multiply by # of hours worked as Overtime 5. Add: Wage rate on Holiday/restday TOTAL WAGE EARNED

    Also a restday

    OURS)

    8 hours

    = P100 per hour

    440 400 840.00

    8 hours

    = P100 per hour

    8 hours

    = P100 per hour

    800 130% 1040 8 130 130% 169 5 845 1040 1,885.00

    130%

    130% 169%

    800 150% 1200 8 150 130% 195 5 975

    1200 2,175.00

    ar wage

    rate for such day 1600 x 200 hourly rate 130% 260

    ar wage

    f his wage

    1600 130% 2080

    260 hourly rate

    130% 338 OT rate king day, Special pulbic holiday days: company policy, practice or CBA

    x by 130%

    lus 30% thereof 800 130% 1040 130 hourly rate

    130% 169 OT rate

    800 200% 1600 8 200 130% 260 5 1300 1600 2,900.00

    800 200% 1600 130% 2080 8 260 130%

    200%

    130% 260%

    338 5 1690 2080 3,770.00

    800 300% 2400 8 300 130% 390 5 1950 2400 4,350.00

    800 300% 2400 130% 3120 8 390 130% 507 5 2535 3120 5,655.00

    300%

    130% 390%

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