How to Compute Overtime Pay All employees required to work beyond the normal 8 hours are entitled to overtime. 22009 Guidelines on the Adoption of Flexible Work Arrangements Part III, point 1. Night shift overtime hourly rate: 1.1 x (1.30 x 112.5)= Php 89.375/hour. 110% x number of hours in excess of 8 hours (130% x hourly rate) Monthly rate: Php10,000 Daily rate (20 working days/month): 10,000/20= Php500 Hourly rate (8 hours): 500/8= Php 62.50 One of the reasons is the night shift differential pay. 4 Simple Charts to explain Philippines Premium Pay Rate FIND OUT THE OVERTIME PAY RATE, NIGHT SHIFT DIFFERENTIAL PAY RATE, REST DAY PAY RATE AND HOLIDAY PAY RATE. Source: §91-94 of the Labour Code, as amended, Living and Working during the Coronavirus Pandemic - Link me to the Covid 19 Survey and Daily Updates, Cite this page © WageIndicator 2021 - Mywage.org/Philippines -, Living and Working during the Coronavirus Pandemic, Survey on Living and Working in Philippines during Coronavirus, Coronavirus Work & Life in Maps and Graphs - updated daily, Daily updated Maps on Living and Working during Coronavirus, Daily updated Graphs on Living and Working during Coronavirus. Working hours in the Philippines cannot exceed eight hours in a day, not including the mandatory one-hour lunch break. This website does not show any ads or advertising materials for an ad-free reading experience of the readers. Night Shift Differential in the Philippines WHAT IS NIGHT SHIFT DIFFERENTIAL Article 86 of our labor provides that every employee shall be paid a night shift differential of not less than ten percent (10%) of his regular wage for each hour of work performed between ten o’clock in … Notably, the MWE’s earnings from overtime, night shift differential, and hazard pay are not anymore exempt. Let say the employee hourly rate is Php 57.00/hour and working from 10pm to 6am; To determine the employee Night Differential pay: Special Holiday Rest day Night Differential = (Hourly … Night shiftdifferential. For example, the employee is paid $10.00 per hour plus a $2.00 per hour shift differential for the night shift. Overtime work. Take note that it can fall into more than one category: it can be both a rest day and a regular holiday, for example. The personal and additional exemptions of employees previously available under R.A. 9504 were also removed. ..- - When the schedule of working hours fall; partly within 6:00 PM to 6:00 AM, the night-shift differential pay shall be paid only for the hours within 6:00 PM to 6:00 AM of the following day.- Regular holidays, such as Labor Day and Independence Day, tend to have fixed dates and are present ye… Art. Employers must also take note of the night shift differential rate. When working overtime, RNs are paid time-and-one-half of their basic hourly rate of $22. Is this in compliance with the FLSA overtime standard? The working hours for kasambhay (domestic helpers) are 10 hours a day, exclusive of one hour breaks for each regular meal of the day. Moreover, under time work on a day cannot be offset by overtime work on another day. Article 86 - Night shift differential; Article 87 - Overtime work; Article 88 - Undertime not offset by overtime; Article 89 - Emergency overtime work; Article 90 - Computation of additional compensation; Article 91 - Right to weekly rest period; Article 92 - When employer may require work on a rest day; The overtime rate is 125% of the normal hourly wage rate if overtime work is performed on an ordinary working day (100 (assumed normal hourly wage)*125%); The overtime rate is 169% of the normal hourly wage rate if the overtime work is performed on a special day or scheduled rest day (100 (assumed normal hourly wage)*130%*130%); The overtime rate is 195% of the normal hourly wage rate if the overtime work is performed on a special day which falls on a scheduled rest day (100 (assumed normal hourly wage)*130%*150%); The overtime rate is 260% of the normal hourly wage rate if the overtime work is performed on a regular holiday (100 (assumed normal hourly wage)*130%*200%); The overtime rate is 338% of the normal hourly wage rate if overtime work is performed on a regular holiday which falls on a scheduled rest day (100 (assumed normal hourly wage)*130%*260%); In case of actual or impending emergencies caused by serious accident, fire, flood, typhoon, earthquake, epidemic or other disaster or calamity to prevent loss of life and property, or imminent danger to public safety;, In cases of urgent work to be performed on the machinery, equipment, or installation, to avoid serious loss which the employer would otherwise suffer;, In the event of abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be expected to resort to other measures;, To prevent loss or damage to perishable goods;, Where the nature of the work requires continuous operations and the stoppage of work may result in irreparable injury or loss to the employer; and. Agricultural 3. Employees are required by law to have at least one day (a full 24 hours) off every week. The Labour Code provides that work may be performed beyond 8 hours a day provided that the employee is paid for the overtime work as prescribed. Knowing the level of compensation your employees should receive if they work the extra hours on regular workdays and holidays helps you establish a reputable image for your business. What is the computation for overtime pay on a regular work day?Here's a sample computation based on the given values (monthly rate: Php18,000; factor rate: 258; 246 total regular days + 12 regular holidays): Daily rate: 18,000 x 12 / 258= Php837.21Hourly rate (8 hours): 837.21 / 8= Php 104.65, Number of hours in excess of 8 hours (125% x hourly rate x number of hours rendered)Overtime hourly rate: 1.25 x 104.65= Php 130.81/hour, What is the computation for overtime pay on a rest day? Employees extending their work hours during in the night shift will be given an additional 25% as his overtime rate with their regular hourly rate, plus ten percent 10% for every hour of working between the covered period. If you are running a business in the Philippines, you must know the policies regarding overtime pay computation, or shift differentials. Knowing the level of compensation your employees should receive if they work the extra hours on regular workdays and, helps you establish a reputable image for your business. An employer may only require an employee to work on a rest day against his will: In any other circumstance, the employee must volunteer to work on his scheduled rest days and provide written expression of his desire to work on scheduled rest days. From night work is performed on a night shift differential the other hand, is pay. The normal hours of work or rendered service in … overtime pay night! 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