r = rate per day

rh = rate per hour

ro = overtime rate per hour
O = overtime pay
n = no. Of hours work in excess of 8 working hours
Y = gross earnings wages/salary

WAGES SALARY
r = rate per day Daily rate 𝒔𝒂𝒍𝒂𝒓𝒚
r=
𝟐𝟔
Rh = rate per hour 𝒅𝒂𝒊𝒍𝒚 𝒓𝒂𝒕𝒆 𝒅𝒂𝒊𝒍𝒚 𝒓𝒂𝒕𝒆
rh = rh =
𝟖 𝟖
ro = overtime rate per hour ro = rh x (25% x r) ro = rh x (25% x r)
(ordinary day) ro = rh x 1.25 ro = rh x 1.25
ro = overtime rate per hour ro = rh x (30% x r) ro = rh x (30% x r)
(rest day) ro = rh x 1.30 ro = rh x 1.30
O = overtime pay O = ro + n O = ro + n
Y = groess earnings Y = (r x 26) + O Y = salary + O
Yr= compensation on rest day Yr= r + (30% x r) Yr= r + (30% x r)
Yr= r x 1.30 Yr= r x 1.30

Table for payment of wages COLA

Holiday No work Work Overtime Work on rest OT on rest day

day
Regular (r + cola) x r + cola x 200 rh x 200 x 1.30 (r + cola)2 + rh x 2 x 1.3 x
Holiday 100% xn 0.30(rx2) 1.3 x n
No pay unless
Special non- there is a
(r x 1.30) + (r x 1.50) +
working favourable rh x 1.3x1.3xn rh x 1.5x1.3xn
cola cola
holiday company
policy
s.p. ord.
Shall be paid Set in s. non-
Special workdays For school
according to working
holiday excepts for employees
the rules holiday
school
Example. WAGE EARNER

1. A paralegal assistant of a law firm earns a daily wage rate of 600 Php. His supervisor
requested him to work overtime to finish the documents needed for the next day’s court
hearing. The paralegal worked 2 hours more. Assume that it was an ordinary day.

a. Find the overtime rate.

b. Find the overtime pay.

Note: we cannot obtain the overtime rate w/out first finding the hourly rate of the paralegal
assistant. Since his daily wage rate is 600 php his hourly rate is

𝒅𝒂𝒊𝒍𝒚 𝒓𝒂𝒕𝒆 𝟔𝟎𝟎

a. rh = rh = = 𝟕𝟓 𝒑𝒉𝒑
𝟖 𝟖

the overtime rate is ro = rh x 1.25

ro = 75 x 1.25 = 93.75 php

b. Since the paralegal worked for two hours more, then O = ro + n

O = 93.75 x 2 = 187.50 php His overtime pay

2. Allan Furto is a pipe fitter who earns a daily wage of 680 Php at an oil refinery in Batangas
City. In one particular month, he incurred an overtime of 6 hours. Assume that he worked
for 26 ordinary workdays for that month

a. Find his overtime rate

b. Find his total overtime pay for the month
c. Find his gross earnings

𝒅𝒂𝒊𝒍𝒚 𝒓𝒂𝒕𝒆 𝟔𝟖𝟎

a. First compute the hourly rate rh = rh = = 85 php
𝟖 𝟖

The overtime rate is ro = rh x 1.25 ro = 85 x 1.25 = 106.25 php

b. Total overtime rate for the month O = ro + n

O = 106.25 x 6 = 637.50 php

c. Gross earnings for the month Y = (r x 26) + O

Y = (680 x 26) + 637.5 = 18,317.50 php

SALARY
3. Randy Celis is the administrative assistant of a private school. He earns a salary of 17,000
Php a month. In one particular month, he was requested to work overtime to prepare the
school for the opening classes. He incurred a total of 10 hours overtime. Assume that he
worked for 26 ordinary workdays for that month.

a. Find his overtime pay

b. Find his gross earnings for that month

𝒔𝒂𝒍𝒂𝒓𝒚
a. First, compute the daily rate r=
𝟐𝟔
𝟏𝟕,𝟎𝟎𝟎
r= = 653.85 php
𝟐𝟔

𝒅𝒂𝒊𝒍𝒚 𝒓𝒂𝒕𝒆 𝟔𝟓𝟑.𝟖𝟓

Hourly rate rh = rh = = 81.73 php
𝟖 𝟖

Overtime pay O = ro + n (81.73x1.25) x 10 = 1,021.63 php

b. Gross earnings Y = (Salary x 26) + O

Y= 17,000 + 1,021.63 = 18,021.63 php

4. Noel Silans works as head teacher of a private school. He earns a salary of 30,000 Php a
month. In one particular month, he incurred 5 overtime hours during ordinary workdays.
He also reported to work on two rest days. Assume that the month has 26 ordinary
workdays.

a. Find his overtime pay

b. Find the compensation he received for working on two rest days
c. Find his gross earnings for the month

𝒔𝒂𝒍𝒂𝒓𝒚 𝒅𝒂𝒊𝒍𝒚 𝒓𝒂𝒕𝒆

a. compute the daily rate r= and hourly rate rh =
𝟐𝟔 𝟖

𝟑𝟎,𝟎𝟎𝟎 𝒅𝒂𝒊𝒍𝒚 𝒓𝒂𝒕𝒆 𝟏,𝟏𝟓𝟑.𝟖𝟓

r= = 1,153.85 php rh = rh = = 144.23 php
𝟐𝟔 𝟖 𝟖

Find the overtime rate ro = rh x 1.25

ro = 144.23 x 1.25 = 180.29 php

Overtime pay O = ro + n

O = 180.29 x 5 = 901.45 php

b. Compensation for working on a rest day Yr= r x 1.30

Yr= 1,153.85 x 1.30 = 1,500.005 php

Compensation for working on two rest day

2 x 1,500.005 = 3,000.01 php

c. his gross earnings for the month is Y = salary + O

Y = 30,000 + 901.45 + 3,000.01 = 33,901.01 php

Mr. Silan’s earnings for the month is 33,901.01 php