Business Math
Quarter 2 – Module 5:
Overtime Pay
Business Math – Grade 11
Alternative Delivery Mode
Quarter 2 – Module 5: Overtime Pay
First Edition, 2020
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Published by the Department of Education
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Undersecretary: Diosdado M. San Antonio
SENIOR HS MODULE DEVELOPMENT TEAM
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Office Address: Provincial Capitol Compound, Balanga City, Bataan
Telefax: (047) 237-2102
E-mail Address:
[email protected] Business Math
Quarter 2 – Module 5:
Overtime Pay
Introductory Message
For the facilitator:
Welcome to the Business Math – Grade 11 Alternative Delivery Mode (ADM)
Module on Overtime Pay!
This module was collaboratively designed, developed and reviewed by
educators both from public and private institutions to assist you, the teacher or
facilitator in helping the learners meet the standards set by the K to 12 Curriculum
while overcoming their personal, social, and economic constraints in schooling.
This learning resource hopes to engage the learners into guided and
independent learning activities at their own pace and time. Furthermore, this also
aims to help learners acquire the needed 21st century skills while taking into
consideration their needs and circumstances.
In addition to the material in the main text, you will also see this box in the
body of the module:
Notes to the Teacher
This contains helpful tips or strategies that
will help you in guiding the learners.
As a facilitator you are expected to orient the learners on how to use this
module. You also need to keep track of the learners' progress while allowing them to
manage their own learning. Furthermore, you are expected to encourage and assist
the learners as they do the tasks included in the module.
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For the learner:
Welcome to the Business Math – Grade 11 Alternative Delivery Mode (ADM)
Module on Overtime Pay!
Business Math is a mathematical tool intended to deliver an utmost
understanding about money and information needed to make good financial
decisions It does not only concentrate on the essentials of business finances, such
as owning or operating a business, but it also provides an avenue where people in
every walk of life learn the significance of managing their personal finances. Getting
familiar with the concepts of Business Math leads to making a better decision with
your money!
This module was designed to provide you with fun and meaningful
opportunities for guided and independent learning at your own pace and time. You
will be enabled to process the contents of the learning resource while being an active
learner.
This module has the following parts and corresponding icons:
What I Need to Know This will give you an idea of the skills or
competencies you are expected to learn in the
module.
What I Know This part includes an activity that aims to
check what you already know about the
lesson to take. If you get all the answers
correct (100%), you may decide to skip this
module.
What’s In This is a brief drill or review to help you link
the current lesson with the previous one.
What’s New In this portion, the new lesson will be
introduced to you in various ways such as a
story, a song, a poem, a problem opener, an
activity or a situation.
What is It This section provides a brief discussion of the
lesson. This aims to help you discover and
understand new concepts and skills.
What’s More This comprises activities for independent
practice to solidify your understanding and
skills of the topic. You may check the
answers to the exercises using the Answer
Key at the end of the module.
What I Have Learned This includes questions or blank
sentence/paragraph to be filled into process
what you learned from the lesson.
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What I Can Do This section provides an activity which will
help you transfer your new knowledge or skill
into real life situations or concerns.
Assessment This is a task which aims to evaluate your
level of mastery in achieving the learning
competency.
Additional Activities In this portion, another activity will be given
to you to enrich your knowledge or skill of the
lesson learned. This also tends retention of
learned concepts.
Answer Key This contains answers to all activities in the
module.
At the end of this module you will also find:
References This is a list of all sources used in developing
this module.
The following are some reminders in using this module:
1. Use the module with care. Do not put unnecessary mark/s on any part of the
module. Use a separate sheet of paper in answering the exercises.
2. Don’t forget to answer What I Know before moving on to the other activities
included in the module.
3. Read the instruction carefully before doing each task.
4. Observe honesty and integrity in doing the tasks and checking your answers.
5. Finish the task at hand before proceeding to the next.
6. Return this module to your teacher/facilitator once you are through with it.
If you encounter any difficulty in answering the tasks in this module, do not
hesitate to consult your teacher or facilitator. Always bear in mind that you are
not alone.
We hope that through this material, you will experience meaningful learning and
gain deep understanding of the relevant competencies. You can do it!
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What I Need to Know
This module is made to help you have a better understanding about overtime
pay and its importance in the business. It will also help you in familiarizing yourself
with the formula and be able to use this as an analytical tool in creating profit in the
business or to be able to compute your appropriate salary when you are already
working as an employee or when you have your own business.
Our goal in this module is for you to be able to apply appropriate tool in
computing overtime pay. Together, we will study the meaning of overtime pay, how
to compute it and the rules to follow in proper computation of Salaries and Wages.
At the end of this module, you are expected to identify the variables needed in
the computation of overtime as well as the ability to compute for the overtime pay
(ABM_BM11BS-IIe-8 and ABM_BM11BS-IIe-9).
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What I Know
DIRECTIONS: On a separate sheet of paper, write only the letter corresponding to
your final answer. Please do not write anything on the module.
1. Mrs. Alonzo earns Php25,000 per month. If she works 8 hours a day for a 20-day
work month, how much does she get per day?
a. 850
b. 1,000
c. 1,050
d. 1,250
2. A working student accepted a tutorial job where she will be paid Php50 per hour.
How much will she earn for a 20-hour week work?
a. 500
b. 1,000
c. 1,050
d. 1,200
3. Mc Bee pays their staff with an average wage of Php75 per hour, how much do
their staff get if they work for 7 hours and 6 days a week for 4 weeks?
a. 12,600
b. 13,000
c. 13,500
d. 13,575
4. Police Patrol Gonzales has a basic salary of Php30,000 per month, a living
allowance of Php2,000 per month and a hazard pay of Php15,000 per year. What
is his gross annual income?
a. 384,000
b. 399,000
c. 528,000
d. 560,000
5. During pandemic, the President of the Philippines approved a law that gives a
hazard pay of Php500.00 daily to all the health care worker in the Philippines. If
Nurse Sheila has a salary of Php30,000 per month and work in the hospital for
21 days how much will be her total Gross Income?
a. 40,500
b. 45,000
c. 45,500
d. 46,000
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6. Laizza is paid Php55.40 pesos for each hour she works. What will be her gross
pay for a week if she works for 45 hours?
a. 3,000
b. 2,943
c. 2,493
d. 2,400
7. Arlaine is paid a salary of Php15,600 a month. What are her total annual
earnings?
a. 187,200
b. 202,800
c. 204,200
d. 218,400
8. Ashley is paid Php8 for each design she embroiders on the cloth facemask that
was approved by the inspector. What will be her pay if she embroidered 50 pieces
of facemasks, in which 3 were rejected?
a. 400
b. 386
c. 376
d. 350
9. Angie received her pay slip for the month of July 2020 and the following are
written: Salary: Php25,000; Production Bonus: Php1,200; Sick leave: Php1,500;
Income tax: Php1,800; Which of the following is NOT a type of compensation?
a. Salary
b. Sick Leave
c. Income tax
d. Production Bonus
10. Tina is a part-time waitress at a local restaurant. She is paid Php45.50 per hour.
What is Tina’s wages in a week during which she works 22 hours?
a. 1,001
b. 1,010
c. 1,100
d. 1,110
11. The payment that is given to the employee in exchange for the time he/she worked
for the company/employer.
a. Wages
b. Salaries
c. Variable Pay
d. Base Pay
12. All of the given are usually deducted to the gross pay of the employee EXCEPT
one. Which is it?
a. Income tax
b. Philhealth
c. Pag-Ibig
d. Sick leave
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13. Rose has different jobs in the year 2020. From January 2 to June 31 she earned
a weekly wage of Php2,500 for 26 weeks; her next job paid her Php2,800 per week
for the remainder of the year. What is her total income in that year? There are 52
weeks in a year.
a. 127,800
b. 130,500
c. 137,800
d. 138,000
14. Christina’s hourly pay rate decreases from Php55 to Php49 due to the company’s
recession. What is the decrease as a percentage of her original rate?
a. 10.91%
b. 9.91%
c. 8.81%
d. 6.00%
15. Aidan earns Php600 a week. How many weeks does it take before he earns
Php21,600?
a. 36
b. 38
c. 40
d. 42
Good job on our pre-assessment!
This is just a preview of our lesson. More interesting
ideas will be introduced in this module.
Keep going!
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What’s In
Arrange the letters to reveal the terms that we will use in this lesson. On the
right side are the icons that will serve as your clue. Write the correct answer in a
separate sheet of paper.
1. VROTMIEE AYP
2. AIDOHLY
3. BALOR OCDE
4. TRES ADY
5. AGWE ARTE
What’s New
DIRECTIONS: On a separate sheet of paper, write your answers to the questions
below. Please do not write anything on the module.
Regine works in a company at AFAB Mariveles, Bataan. She earns Php440.00
per day and she was always required to work overtime for two hours every day. Her
employer wants to transfer her to their company branch in Manila where she will have
a minimum wage of Php537.00 per day. However, she was told that they don’t require
much overtime in that branch because they have enough manpower. What should be
her answer if she will base her decision on her earnings? Which branch will she earn
more?
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What is It
DIRECTIONS: Write on the blank the percentage rate that is needed to compute for
the overtime needed.
Rate for the Rate after
Date of Overtime
first 8 hours 8 hours
Overtime on Ordinary days 1) _____ 125%
Overtime on Sunday/Restday 130% 2) _____
Overtime on Ramadan/ Restday 3) _____ 4) _____
Overtime on December 25 and
200% x 130% 5) _____
Sunday/Restday
Lesson
Overtime Pay
1
The Philippine Labor Code Art. 83 states that the normal hours of work where
an employee is required to do his/her work or to be in a prescribed workplace is eight
(8) hours a day. However, the Labor Code does not apply to government employees,
managerial employees, field personnel, employer’s family members, domestic
helpers, and personal service providers. Also, a child below 15 years of age cannot
work for more than 4 hours and those that are 15 to 18 years cannot work for more
than 8 hours a day and 5 days a week. The household helpers are required to work
for 10 hours a day excluded an hour of break time for their meals every day.
There are times that the employee will be required to work for more than their
prescribed hours; (1) first if the country is at war or under a national or local
emergency like the Covid-19 Pandemic; (2) second if overtime work can help save
lives; (3) third if there is urgent work to be performed on machines, installation or
equipment; (4) fourth to avoid damage or loss to the perishable good or if the work
requires a certain weather condition to finish it; and (5) lastly the overtime work will
avoid company losses. In these cases, the company is required to pay the overtime
pay as stipulated in the law.
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OVERTIME PAY is the additional compensation given to the employee who
rendered an overtime work. The following are different kinds of overtime work and
ways to compute its payment:
I. OVERTIME PAY ON REGULAR WORKDAY
The employer must provide six continuous working day and one rest day. The
overtime pay during this working days shall be computed as:
Overtime Pay = OT hours x 125% of normal hourly wage rate.
Example: An employee was required to work additional 3 hours overtime to meet the
deadline for their output. The daily wage rate is Php440.00. Compute for
the overtime pay.
Computation: OT Pay = 3(H) x 440 x 125%
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= 55 x 1.25
= Php68.75
Note: To get the hourly rate divide the daily wage to 8 hours.
II. OVERTIME PAY ON SCHEDULED REST DAY
Usually Sunday is the scheduled rest day of various companies, but it may
vary depending on the kind of business. Others call it Sunday rate.
a. First 8 Hours = Daily wage rate x 130%
Example: Renato a technician had to work on Sunday/Rest Day to repair the
conveyor equipment. How much will he be paid if his rate is Php600
daily.
Computation: Sunday/Rest Day Pay = 600 x 1.30
= Php780
b. Sunday Overtime Pay = OT hours x 169% x hourly rate
Example: Renato wasn’t able to finish his repair job for 8 hours so he worked for
another 3 hours. What will be his total compensation?
Computation: Sunday/Rest Day OT Pay = 3(H) x 1.69 x 600.00
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= Php380.25
Thus, Renato earned Php1,160.25 that Sunday.
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III. OVERTIME PAY ON HOLIDAY
The list of regular holidays on 2020 are January 1, April 9, April 10, May 1,
June 12, August 31, November 30, December 25, December 30, Eid al Fitr (Feast
of Breaking the Fast)) and Eid al Adha (Festival of Sacrifice). On these dates the
first 8 hours will be paid double or 200% and 260% in excess of 8 hours.
a. Holiday First 8 hours = Daily Wage Rate X 200%
Example: Arnold a guard was required to work on December 25. His daily rate
is Php500.00. What will be his earnings for the first eight hours?
Computation: Special Day First 8 hours = 500 x 2.0
= Php1,000.00
b. Regular Holiday Overtime Pay = Hours of Overtime x 260% x hourly rate
Example: Arnold’s reliever didn’t come on time. He had to work for another 4
hours that day. Compute for his total earnings that day.
Computation: Special Day Overtime = 4 (H) x 2.6 x 500
8
= Php650.00
Thus, Arnold earned Php1,650.00 that day.
IV. OVERTIME PAY FOR HOLIDAY THAT FALLS ON RESTDAY
Other employees like health care workers, police, soldiers, guards, and other
vital employees of a company are always required to work even during holidays and
sometimes it falls on their rest day as well.
a. First 8 hours = Daily rate x 260 %
Example: Roland, a guard was required to work on November 1, a holiday and
Sunday, which is also his rest day. His daily wage is Php570.00.
Compute for his compensation that day.
Computation: Sunday Holiday Pay = 570 x 2.6
= Php1,482.00
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b. Regular Holiday/Rest Day OT Pay = Hours of OT x 260% x 130% x hourly
rate
Example: There was a thief incident that day that he has to stay for another 3
hours as overtime work. What will be his overtime pay after 8 hours
on Holiday and Sunday?
Computation: Sunday Holiday OT Pay = 3 (H) x 2.6 x 1.3 x 570
8
= Php722.48
Thus, his total earning for that day is Php2,204.75
V. OVERTIME PAY FOR SPECIAL (NON-WORKING HOLIDAY) THAT FALLS ON
RESTDAY
The overtime rate is 195% of the normal hourly wage rate if the overtime work
is done on a special day which falls on a scheduled rest day (100 (assumed normal
hourly wage) * 130% * 150%).
a. First 8 hours = Daily rate x 150 %
Example: Andy worked for 10 hours on February 25, a special non-working
holiday and also his rest day. What will be his total income for the
day if his daily wage is Php520.00?
Computation: Special NWH Rest day Pay = 520 x 1.5
= Php780.00 (for the first 8 hours)
b. SPNW Holiday/Rest Day OT Pay = Hours of OT X 130% x 150% x hourly
rate
Special NWH Rest day OT Pay = 2(H) x 1.3 x 1.5 x 65
= Php 253.50 (for the 2 hours OT)
Thus, his total earning for that day is Php1,033.50
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VI. NIGHT SHIFT DIFFERENTIAL
This refers to the 10% added amount to the hourly rate if the employee works
from 10:00 PM to 6:00 AM.
Example: Mr. Deinla worked from 8:30 AM to 11:30 PM, if his daily rate is Php500.00
what will be his total earning for the day?
Computation: Total Income = 500 + [6(H) x 62.50 x 1.25] + [1.5(H) x .10 x 62.5]
= 500 + 468.75 + 9.38
= Php978.12
Night Differential
Thus, his total earnings for the day is Php978.12
What’s More
DIRECTIONS: On a separate sheet of paper, complete the table below by computing
for the total compensation of each worker.
FIRST 8 TOTAL
DATE OF DAILY OT
NAME OT RATE HOURS OT PAY COMPENSA
OVERTIME RATE HOURS
PAY TION
Monday
Risa (Regular Php450 3 125% 450.00 210.93 (1)
Working Day)
Sunday 130%
Allan Php420 1 546.00 88.73 (2)
(Overtime) x 130%
Richard November 1 200%
(3) 2 800.00 260.00 1,060.00
(Holiday) x 130%
Dec. 25
Innah (Rest Day, Php480 3 (4) 1,248.00 608.40 1,856.40
Holiday)
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What I Have Learned
1. Normal hours of work should not be more than ____ hours a day.
2. The overtime rate is ______ percent of the normal hourly wage rate if overtime work
is performed on an ordinary working day.
3. The overtime rate in excess of 8 hours is _______ percent of the normal hourly wage
rate if the overtime work is performed on a regular holiday.
4. The overtime rate is ______ percent of the normal hourly wage rate if the overtime
work is performed on a special day or scheduled rest day.
5. The overtime rate in excess of 8 hours is _______ percent of the normal hourly wage
rate if overtime work is performed on a regular holiday which falls on a
scheduled rest day.
6. _____ is the additional compensation given to the employee who rendered his/her
services for more than eight hours.
7. The employee should be paid _____ if he works during regular holiday.
8. _____ states that the normal hours of work where an employee is required to be
on duty or to be in a prescribed workplace is eight (8) hours a day.
9. Sunday or rest day should be paid at _________ percent rate.
10. On special non-working holiday that falls on rest day the overtime rate is _____
percent.
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What I Can Do
Graciela worked for the following time periods. Her daily rate is Php425. Compute
for the breakdown her salary.
Time Time Hours of
Date Total Wages
In Out work
Sept. 1 7:25 5:40
Sept. 2 7:20 4:30
Sept. 3 7:22 4:46
Sept. 5 7:27 7:35
Sept. 6/Sunday 7:28 6:37
Gross Total Compensation for the week Php2,794.37
Assessment
DIRECTION: Write the letter of the correct answer on a separate sheet of paper.
1. Aiza works on holiday for 12 hours. How much is her income for that day if her
regular daily rate is Php480?
a. 960
b. 1,440
c. 1,584
d. 1,872
2. Mr. David works on regular days from 7:00 AM to 7:00 PM with a daily rate of
Php675. How much did he earn that day?
a. 1,096.80
b. 1,275.20
c. 1,346.70
d. 1,410.20
3. What is the daily wage rate of Michael if his total compensation for the day is
Php660.94 including the 3 hours regular overtime pay?
a. 450
b. 440
c. 430
d. 420
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4. Andrew works for 46 hours including the 6 hours overtime. His regular wage rate
per hour is Php56.25. How much is his income?
a. 2,250.00
b. 2,450.00
c. 2,688.75
d. 2,708.25
5. Belinda works for 53 hours from Monday to Saturday. Her daily rate is
Php 485.00. How much will be her gross income for the week?
a. 3188.91
b. 3288.91
c. 3298.91
d. 3388.91
6. Ms. Salgado works in a known fast food restaurant. She works from 6:00 AM to
6:00 PM without any holidays. How much will she receive if her daily rate is
Php650 and has two rest-day work for 15 days?
a. 9,750.00
b. 14,734.69
c. 14,900.94
d. 15,000.00
7. Rodel works as a machine operator with a daily rate of Php460. If he works for
24 days a month plus two rest-day work and regular overtime of 15 hours, how
much is his monthly income?
a. 13,314.25
b. 12,118.25
c. 11,960.00
d. 11,040.00
8. Liza usually earns Php18,000 a month when she works for 26 days. How many
hours of regular overtime does she need in order for her to earn Php23,408.65?
a. 40 hours
b. 46 hours
c. 50 hours
d. 53 hours
9. If you get your wages weekly and you work for 57 hours, how many hours is your
overtime?
a. 6 hours
b. 7 hours
c. 8 hours
d. 9 hours
10. William worked on December 25, Sunday from 6:00 AM to 9:00 PM. His daily
rate is Php600. What will be his total earnings for the day?
a. 3,081
b. 2,400
c. 2,281
d. 1,200
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11. If Mr. Lorenzo needs an employee to work on November 2, a special non-working
holiday that falls on Sunday, how much is he going to pay for the employee whose
daily wage is Php480 and 2 hours of overtime?
a. 720
b. 1,008
c. 1,109
d. 1,200
12. Danny worked last Sunday from 7:00 AM to 7:00 PM. How much will be his total
earnings if his daily rate is Php625?
a. 812
b. 822
c. 960
d. 944
13. Alex was asked to work on January 1 because of a machine repair. He worked
from 8:00 AM to 8:00 PM. What is his total earnings if his daily rate is Php550?
a. 1,636.25
b. 1,300.50
c. 1,275.25
d. 1,100.00
14. Audrey, a factory worker works from 6:00 PM to 6:00 AM. Her daily rate is
Php475. How much will she earn for the day?
a. 829.67
b. 819.38
c. 809.29
d. 808.58
15. If Cedric works for 11 hours and earns Php624.22, how much is his daily rate?
a. 450
b. 435
c. 425
d. 41
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Additional Activities
DIRECTIONS: Supply the missing words in the paragraph. Write them on your
answer sheet.
PHILIPPINE HOLIDAY PAY RULES
For the employee who works during regular (1) ______________ he/she shall be
paid 200% of his/her regular pay, while work done in excess of eight hours shall be
paid (2) _________________. If the said holiday falls on the (3) _________________ of the
employee then he/she shall be paid 200% x 130%, and (4) _________________________
in excess of eight hours.
On the other hand the pay rules for special (non-working) holiday is daily rate
x 130%, and (5) ___________________________ in excess of its eight hours. If the
special (non-working) holiday falls on the rest day of the employee, he/she shall be
paid (6) _________________________ for the first 8 hours and 150% x 130% in excess
of the eight hours.
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Answer Key
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References
Lopez, B., Martin-Lundag, L. and Dagal, K., 2016. Business Math (Teacher's
Manual). Quezon City: Vibal Group, Inc.
Lopez, B., Martin-Lundag, L. and Dagal, K., 2016. Business Math (Textbook).
Quezon City: Vibal Group, Inc.
Mariano, Norma D., 2016. Business Mathematics (Textbook). Sampaloc Manila : Rex
Book Store, Inc.
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For inquiries or feedback, please write or call:
Department of Education – Region III,
Schools Division of Bataan - Curriculum Implementation Division
Learning Resources Management and Development Section (LRMDS)
Provincial Capitol Compound, Balanga City, Bataan
Telefax: (047) 237-2102
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