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 13^th month’s pay.

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