How to compute your Over time pay in the Philippines

Basically, in the Philippines a person employed is only required to work only for Eight(8) Hours and beyond that is already subject to additional compensation. The very reason for the compensation is that the employees hours that is supposed to be used in their recreational, spiritual and family activities are now being used for the benefit of the employer. Futhermore, because of the additional compensation the employer is now being pushed to add more employees in order to meet the companies demands and therefore ease employment problems. So in this article I will be teaching you on how to compute your overtime pay in 3 easy steps.

First all you need to do is determine the Daily wage per hour.

Scenario: Juan is working everyday from 8:00 AM to 5:00 PM and was ordered to have an overtime for 5 hours which is from 5:00 PM to 10:00 PM. So how much will he earn from working overtime?

For example, an employee is being paid for an amount of 800 PHP per day so in order to determine the daily wage per hour you need to Divide 800 by 8.

800  ÷ 8 =  100

So 100 is your daily wage per hour.

2nd: After you have determined what is the daily wage per hour all you need to do is multiply the daily wage per hour which is 100 to 20%.

Note: In order to multiply 100 to a percent you first need to convert 20% into a decimal. And to get that you need to divide 20 to 100, and the answer to this is your decimal which you will need in order to get the additional overtime pay.

100 × 0.25 = 25 

25 is what you will add to your daily wage per hour in order to get the overtime wage per hour which is in this case is 125

100+25 = 125

3rd: This is the Final and the last easy step. All you need to do is multiply your Overtime wage per hour to the number of hours that you have worked.

125 X 5 = 625

625 PHP  is the additional compensation you should get after working overtime plus your daily wage for the day which is 800 pesos for a total amount of 1,425 PHP.

Summary: 

1. 800  ÷ 8 = 100
2. 100 x 0.25 = 25
     100+ 25 = 125
3. 125 x 5 = 625