APPENDIX C

SAMPLE COMPUTATION
FOR NON A GRICULTURAL WORKERS
IN METRO MANILA UNDER R.A. 6727

OVERTIME PAY

Overtime Pay - refers to the additional compensation required by law for work
performed in excess of eight (8) hours a day. A day for the
purpose of determining whether overtime pay is due shall mean a
workday of 24 consecutive hours beginning at the same time each
calendar day. The minimum overtime pay rates vary according to
the day the overtime work was performed as follows:

a.) Overtime pay for work on ordinary day

Equivalent to 25% of the hourly rate of 100% or total of 125% per hour.

Ex. P89.00/day 8 = P11.125/hour 25% thereof (P2.78125) or

P11.125/hour x 125% = P13.90625 O.T./Hr.

b.) Overtime pay for work on rest days or non working special holidays

Equivalent to 30% of the hourly rate of 130% or a total of 169% per hour.

Ex. P89.00/day 30% thereof (26.70)

= P115.70/day 8 = P14.4625/hr.
P14.4625/hr. 30% thereof (P4.33875)
or P89.00/day 8 = P11.125/hr. x
169% (1.69) = P18.80125 O.T./Hr.

c.) Overtime pay for work on rest days which is also non working special holidays

Equivalent to 30% of the Hourly rate of 150% or a total of 195% per hour.

Ex. P89.00/day 50% thereof (P44.50 = P133.50/day

8 = P16.6875/hr.
P16.6875/hr 30% thereof (P5.00)
Pr P89.00/day 8 = P11.125/hr. x
195% (1.95) = P21.69375 O.T./Hr.

d.) Overtime pay for work on legal (Regular) holidays

Equivalent to 30% of the hourly rate of 200% or a total of 260% per hour.
 Ex. P89.00/day 100% thereof (P89.00) = P178.00 +
8 = P22.25/hr. = 30% thereof (P6.675)
Or P89.00/day 8 = P11.125/hr. x
260% (2.60) = P28.925 O.T.R./Hr.

e.) Overtime pay for work on legal (Regular) holidays falling on employees rest day

Equivalent to 30% of the hourly rate of 260% or a total of 338% per hour.

Ex. P89.00/day 100% thereof (P89.00) = P178.00 +

30% thereof (P53.40) = P231.40/day
P231.40/day 8 = P28.925/hr. 30% thereof (P8.6775)
or P89.00/day 8 = P11.125/hr. x
338% (3.38) = P37.6025 O.T.H./hr.

Stipulated Overtime Rates - Generally, the premium pay for work performed on
the employees rest days or on special non working
holidays or legal (Regular) holidays days are included as
part of the regular rate of the employee in the computation
of overtime pay for any overtime work rendered on said
days, especially if the employer pays only the minimum
overtime rates prescribed by law. The employees and the
employer, however, may stipulate in their individual or
collective agreement the payment of overtime rates higher
that those provided by law and exclude the premium
payments in the computation of overtime pay. Such
agreement may be considered valid only if stipulated
overtime pay rates will yield to the employees not less than
the premium prescribed by law.

Prepared by:
BUREAU OF WORKING CONDITIONS
DOLE, Manila