overtime pay calculator

Everything about Overtime Pay Calculation in Philippines

What is Overtime Pay?

Overtime pay refers to the additional compensation for work performed beyond eight (8) hours a day.


How to Calculate Overtime Pay?

As per the NWPC’s released data on wages, salary and wage computation is to be done taking the following into account:


What is a regular day’s pay (also called basic daily rate)?

It includes: (Monthly wage rate x 12 months)/ working days in a year


What is a special day’s pay?

It is 1.3 times the basic daily rate (or a regular day’s pay)


What is a special day’s pay when the said day falls on a scheduled Rest Day?

It is 1.5 times the basic daily rate (or a regular day’s pay)


What is a regular holiday pay?

It is twice (two times) the basic daily rate (or a regular day’s pay)


What is a regular holiday pay when the said day falls on a scheduled Rest Day?

It is 2.6 times the basic daily rate (or a regular day’s pay)


How does one calculate wages for night shifts?

  • For night shifts on regular nights? It is 1.1 times the basic hourly rate
  • For night shifts that fall on rest days, special days or days of declared holidays? It is 1.1 times the regular hourly rate

How does one calculate wages for overtime work?

  • For overtime on regular days? Hours in excess of 8 hours multiplied by 1.25 times hourly rates
  • For overtime on rest days and special days? Hours in excess of 8 hours multiplied by 1.3 times hourly rates

How does one calculate wages for night shifts?

  • For nightshifts on regular days? It is 1.1 times the basic hourly rate
  • For nightshifts on rest days, special days and regular holidays? It is 1.1 times the overtime hourly rate

How does one calculate the 13th month’s pay?

  • Add the basic salary for the entire year- not taking into account overtime pay, holiday pay and night shift pay
  • Divide the above by 12 months. The resulting would constitute the 13th month’s pay.

Want HR Software having an Overtime Calculation feature? Click Here


1 comment
  1. Rahul Mishra
    Rahul Mishra
    June 16, 2020 at 5:59 am

    You made “Overtime Pay Calculation” so easy!!! Thanks.

    Reply
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