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Premium Pay

The document outlines premium pay rates for overtime work in the Philippines. It discusses overtime rates on regular days (25% above regular hourly rate), rest days and holidays (30% above hourly rate). Holiday pay is 130-150% of the basic pay depending on if it falls on a rest day. Regular holidays pay 200% of the basic hourly rate and 260% if it falls on a rest day. Night shift workers receive a 10% differential for each hour worked between 10pm-6am on top of their regular wage. Overtime rates are calculated based on the increased hourly rates for rest days, holidays, and nights.

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David Garth Torres
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95 views1 page

Premium Pay

The document outlines premium pay rates for overtime work in the Philippines. It discusses overtime rates on regular days (25% above regular hourly rate), rest days and holidays (30% above hourly rate). Holiday pay is 130-150% of the basic pay depending on if it falls on a rest day. Regular holidays pay 200% of the basic hourly rate and 260% if it falls on a rest day. Night shift workers receive a 10% differential for each hour worked between 10pm-6am on top of their regular wage. Overtime rates are calculated based on the increased hourly rates for rest days, holidays, and nights.

Uploaded by

David Garth Torres
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

PREMIUM PAY

Overtime pay Regular days- 25% X excess hour Rest day or holiday- 30% X excess hour Holiday pay Special holiday (130% X basic pay) Special holiday that falls on a rest day (150% X basic pay) Regular holiday (200% X basic pay) Regular holiday that falls on a rest day (260% X basic pay) Computation of Overtime Pay Assuming that the mininum wage rate is P250, how much is the overtime rate per hour? On ordinary day On an ordinary day, the overtime rate per hour is determined as follows: First, compute the hourly rate of the employee: Regular hourly rate = Minumum wage rate 8 hours = P250 8 hours = P31.25 per hour Now to determine overtime rate per hour: Overtime rate = Regular hourly rate + 25% of Regular hourly rate Overtime rate = P31.25 + (25% of P31.25) = P31.25 x 1.25 = P39.06 per hour On rest day and special day Compute the hour rate of the employee on a rest day or special day: Hourly rate = 130% of Regular hourly rate = P31.25 x 1.30 = P40.625 per hour (Note: The hourly rate on rest day and special day is 130% of the regular rate.) To determine overtime rate per hour: Overtime rate = Hourly rate on rest day + 30% Hourly rate on rest day = P40.625 + (30% of P40.625) = P40.625 x 1.30 = P52.81 per hour

On rest day which falls on a special day Compute the hourly rate of the employee on a rest day which falls on a special day: Hourly rate = 150% of Regular hourly rate = P31.25 x 1.50 = P46.875 per hour To determine overtime rate per hour: Overtime rate = Hourly rate + 30% of Hourly rate = P46.875 + (30% of P46.875) = P46.875 x 1.30 = P60.94 per hour On a regular holiday Compute the hourly rate on regular holiday: Hourly rate = 200% of Regular hourly rate = P31.25 x 2 = P62.5 per hour To determine overtime rate per hour: Overtime rate = Hourly rate + 30% of Hourly rate = P62.50 + (30% of P62.50) = P62.50 x 1.30 = P81.25 per hour On a rest day which falls on a regular holiday Compute the hourly rate: Hourly rate = 260% of Regular hourly rate = P31.25 x 2.60 = P81.25 per hour To determine overtime rate per hour: Overtime rate = Hourly rate + 30% of Hourly rate = P81.25 + (30% of P81.25) = P81.25 x 1.30 = P105.625 per hour

Night Shift Differential -not less than 10% of regular wage for each hour of work between 10pm to 6am.

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