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Overtime Computation Formula

The document outlines the formula for computing overtime rates on regular days, holidays, rest days, and special days based on an employee's regular hourly wage rate of P43.75 per hour. Overtime rates are calculated by adding either 25%, 30%, or other percentages to the hourly wage rate or overtime hourly rate depending on the type of day worked. The source is noted as the Department of Labor and Employment of the Philippines.

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Charie G
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223 views2 pages

Overtime Computation Formula

The document outlines the formula for computing overtime rates on regular days, holidays, rest days, and special days based on an employee's regular hourly wage rate of P43.75 per hour. Overtime rates are calculated by adding either 25%, 30%, or other percentages to the hourly wage rate or overtime hourly rate depending on the type of day worked. The source is noted as the Department of Labor and Employment of the Philippines.

Uploaded by

Charie G
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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OVERTIME COMPUTATION FORMULA

Overtime rate = Hourly rate + 30% of 
Hourly rate
On Ordinary days:
= P65.62 + (30% of P65.62)
First, let’s compute for the hourly wage rate  = P65.62 + 19.69
as follows: = P85.31 per hour
Regular hourly rate = Daily wage rate / 8 
hours
= P350/8 Please be guided accordingly.
= P43.75 per hour

Then, let’s compute for the overtime rate per
hour as follows:
On a regular holiday
Overtime rate = hourly rate + 25% of hourly
Computation of hourly wage rate:
rate
Hourly rate = 200% of Regular hourly rate
= P43.75 + (.25 x 43.75)
=P43.75 x 2
= P43.75 + 10.94
=P87.5 per hour
=P54.7 per hour
Computation of overtime rate:
On a rest day and special day
Overtime rate = Hourly rate + 30% of 
Computation of hourly wage rate:
Hourly rate
Hourly rate = 130% of Regular Hourly Rate =P 87.5 + (30% of P87.5)
= P43.75 x 1.3
=P87.5 + 26.25
= P56.87 per hour =P113.75 per hour
Computation of overtime rate:
On a rest day which falls on regular 
Overtime rate = Hourly rate + 30% of  holiday
Hourly rate
Computation of hourly wage rate:
= P56.87 + (30% of P56.87)
Hourly rate = 260% of Regular hourly rate
= P56.87 + P17.061
=P43.75 x 2.6
= P73.93 per hour
=P113.75 per hour
On a rest day which falls on a special day
Computation of overtime rate:
Computation of hourly wage rate: Overtime rate = Hourly rate + 30% of 
Hourly rate = 150% of Regular hourly rate Hourly rate
=P43.75 x 1.5 =P113.75 + (30% of P113.75)
=P65.62 per hour = P113.75 + 34.13
=P143.88 per hour
Computation of overtime rate:
Source: Department of Labor and 
Employment (DOLE) Philippines
Disclaimer: New and subsequent issuances, 
rulings, or laws may cause the whole or 
part of the article inaccurate or obsolete. It 
is advised to make inquiries with the 
Department of Labor and Employment for 
more information.

Computing 13th Month Pay:

Total basic salary earned for the year 
exclusive of allowances, overtime, holiday, 
and night shift differential pay divided by 12
months = 13th month pay.

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