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APPENDIX “C” SAMPLE COMPUTATION FOR NON –A GRICULTURAL WORKERS IN METRO MANILA UNDER R.A. 6727 OVERTIME PAY Overtime Pay -

refers to the additional compensation required by law for work performed in excess of eight (8) hours a day. A “day” for the purpose of determining whether overtime pay is due shall mean a workday of 24 consecutive hours beginning at the same time each calendar day. The minimum overtime pay rates vary according to the day the overtime work was performed as follows:

a.) Overtime pay for work on ordinary day Equivalent to 25% of the hourly rate of 100% or total of 125% per hour. Ex. P89.00/day ÷ 8 = P11.125/hour ÷ 25% thereof (P2.78125) or P11.125/hour x 125% = P13.90625 O.T./Hr. b.) Overtime pay for work on rest days or non – working special holidays Equivalent to 30% of the hourly rate of 130% or a total of 169% per hour. Ex.

P89.00/day ÷ 30% thereof (26.70) = P115.70/day ÷ 8 = P14.4625/hr. P14.4625/hr. ÷ 30% thereof (P4.33875) or P89.00/day ÷ 8 = P11.125/hr. x 169% (1.69) = P18.80125 O.T./Hr.

c.) Overtime pay for work on rest days which is also non – working special holidays Equivalent to 30% of the Hourly rate of 150% or a total of 195% per hour. Ex.

P89.00/day ÷ 50% thereof (P44.50 = P133.50/day ÷ 8 = P16.6875/hr. P16.6875/hr ÷ 30% thereof (P5.00) Pr P89.00/day ÷ 8 = P11.125/hr. x 195% (1.95) = P21.69375 O.T./Hr.

d.) Overtime pay for work on legal (Regular) holidays Equivalent to 30% of the hourly rate of 200% or a total of 260% per hour.


Ex.

P89.00/day ÷ 100% thereof (P89.00) = P178.00 + 8 = P22.25/hr. = 30% thereof (P6.675) Or P89.00/day ÷ 8 = P11.125/hr. x 260% (2.60) = P28.925 O.T.R./Hr.

e.) Overtime pay for work on legal (Regular) holidays falling on employee’s rest day Equivalent to 30% of the hourly rate of 260% or a total of 338% per hour. Ex.

P89.00/day ÷ 100% thereof (P89.00) = P178.00 + 30% thereof (P53.40) = P231.40/day P231.40/day ÷ 8 = P28.925/hr. ÷ 30% thereof (P8.6775) or P89.00/day ÷ 8 = P11.125/hr. x 338% (3.38) = P37.6025 O.T.H./hr.

Stipulated Overtime Rates Generally, the premium pay for work performed on the employee’s rest days or on special non – working holidays or legal (Regular) holidays days are included as part of the regular rate of the employee in the computation of overtime pay for any overtime work rendered on said days, especially if the employer pays only the minimum overtime rates prescribed by law. The employees and the employer, however, may stipulate in their individual or collective agreement the payment of overtime rates higher that those provided by law and exclude the premium payments in the computation of overtime pay. Such agreement may be considered valid only if stipulated overtime pay rates will yield to the employees not less than the premium prescribed by law. Prepared by: BUREAU OF WORKING CONDITIONS DOLE, Manila


Formula for Overtime Pay Computation in the Philippines