How to Compute Salary in Daily Basis

All employees required to work a regular 8 hours daily from Monday to Saturday and entitled to work overtime if needed. Overtime pay rates depend on the day they work, whether it is ordinary working day, special day, regular holiday or rest day.

Every employee is entitled to a Night Differential of Night shift pay for each hour of work performed between 10pm and 6am computed as follows:

  • Regular Day Night Differential = (Hourly Rate x 110% x Work Hours)
  • Rest Day Night Differential = (Hourly Rate x 143% % x Work Hours)
  • Special Holiday Night Differential = (Hourly Rate x 143% x Work Hours)
  • Regular Holiday Night Differential = (Hourly Rate x 220% % x Work Hours)

Overtime plus Night Shift Differential Computation:

  • Regular Day = (Hourly Rate x 143% x Work Hours)
  • Rest Day = (Hourly Rate x 185.90% x Work Hours)
  • Special Day = (Hourly Rate x 185.90% x Work Hours)
  • Regular Day = (Hourly Rate x 286.00% x Work Hours)

Payroll Computation Rates

CODE DESCRIPTION REGULAR DAY REST DAY (%) SPECIAL HOLIDAY (%) REGULAR HOLIDAY (%)
NW No Work 0.00 0.00 0.00 100.00
RD Regular Day 100.00 130.00 130.00 200.00
OT Overtime (OT) 125.00 169.00 169.00 260.00
ND Night Shift Differential (NSD) 110.00 143.00 143.00 220.00
OTND OT + NSD 143.00 185.90 185.90 286.00

Regular Day Overtime Pay Computation

Ordinary day overtime rate per hour is computed as follows:
If the employee basic daily rate is Php 600.00 the hourly rate is Php 75.00/hour, then the overtime rate is Php 93.75.

  • (Hourly Rate x 125%) = Overtime rate/hour
  • (php 75.00 x .0125 x 100) = Php 93.75

Rest Day or Special Holiday Overtime Pay Computation

If employee hourly rate is Php 75.00/hour the overtime rate per Php 126.75.

  • (Hourly Rate x 169%) = Overtime rate/hour
  • (Php 75.00 x .0169 x 100) = Php 126.75

Regular Holiday Overtime Pay Computation

If employee hourly rate is Php 75.00/hour the overtime rate per hour is Php 195.00.

  • Hourly Rate x 260%) = Overtime rate/hour
  • (Php 75.00 x .0260 x 100) = Php 195.00