Overtime Pay Formula

Overtime Pay Formula

Overtime at work? Want to know how overtime pay is computed? If yes, then this article is for you. But before anything else, what is overt...


Overtime at work? Want to know how overtime pay is computed? If yes, then this article is for you. But before anything else, what is overtime and overtime pay?

You may also want to read:

Definition of Overtime


Overtime is work performed by an employee in excess of the normal eight (8) hours of work.

Definition of Overtime Pay


Overtime pay is the additional compensation for work rendered in excess of the normal eight (8) hours of work.

Overtime Pay vs Night Differential Pay: What is the Difference?

Overtime Pay is the payment for work beyond regular eight (8) hours while Night Differential Pay is the payment for work done between 10 pm and 6 am.

Note: Payment for overtime shall not prevent the payment for night differential.

Overtime Pay Formula


How much overtime pay should you receive? The answer is: it depends. Now, a better question is on what day did you render overtime work?

If overtime work is performed on a regular workday

  • Additional 25% of the hourly rate

If overtime work is performed on a rest day, special day, or a regular holiday

  • Additional 30% on top of the hourly rate for such day
a. Overtime on an Ordinary Day

Overtime Pay Formula:

Hourly rate + (Hourly rate x 25%)

Illustration:  Using Php63.00 as hourly rate

Php63.00 + (Php63.00 x 25%)

                             = Php63.00  + Php15.75

                             = Php78.75/hour

Use this Overtime Pay Calculator to know what's yours.






b. Overtime on a Rest Day or Special Day

Overtime Pay Formula:

(Hourly rate x 130%) + 30% (Hourly rate x 130%)

Illustration:  Using Php63.00 as hourly rate

(Php63.00 x 130%) + 30% (Php63.00 x 130%)
                             = Php81.90 + 30% (Php81.90)
                             = Php81.90 + Php24.57
                             = Php106.47/hour

Use this Overtime Pay Calculator to know what's yours.





c. Overtime on a Rest Falling on Special Day

Overtime Pay Formula:

(Hourly rate x 150%) + 30% (Hourly rate x 150%)

Illustration:  Using Php63.00 as hourly rate

(Php63.00 x 150%) + 30% (Php63.00 x 150%)
                             = Php94.50 + 30% (Php94.50)
                             = Php94.50 + Php28.35
                             = Php122.85/hour

Use this Overtime Pay Calculator to know what's yours.





d. Overtime on a Regular Holiday

Overtime Pay Formula:

(Hourly rate x 200%) + 30% (Hourly rate x 200%)

Illustration:  Using Php63.00 as hourly rate

(Php63.00 x 200%) + 30% (Php63.00 x 200%)
                             = Php126.00 + 30% (Php126.00)
                             = Php126.00 + 37.80
                             = Php163.80/hour 

Use this Overtime Pay Calculator to know what's yours.





e. Overtime on a Rest Day Falling on a Regular Holiday

Overtime Pay Formula:

(Hourly rate x 260%) + 30% (Hourly rate x 260%)


Illustration:  Using Php63.00 as hourly rate

(Php63.00 x 260%) + 30% (Php63.00 x 260%)
                             = Php163.80 + 30% (Php163.80)
                             = Php163.80 + Php49.14
                             = Php212.94

Use this Overtime Pay Calculator to know what's yours.




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