The document discusses the policies and procedures for overtime pay. It addresses the following key points: - Overtime is only permitted when necessary and unavoidable, and regular overtime is discouraged. Prior approval from supervisors is required. - Eligible employees may receive overtime pay for working more than 8 hours in a day. The overtime rate is the regular hourly wage plus an additional 25% for regular days and 30% for holidays and rest days. - Overtime rates are calculated based on the employee's regular hourly wage and whether the overtime was worked on a regular, holiday or rest day. Formulas are provided for sample calculations.

1. Overtime pay

2. Purpose

The objectives of pay review are to
reward employees in accordance with
their responsibilities and performance
throughout the year, and to review
their remuneration against the market
so that they are rewarded equitably
internally and competitively with the
market.

3. Eligibility

It is not mandatory for THE COMPANY
to conduct pay review for individual
employees. Generally, employees who
have successfully completed the
probationary period after 6 months or
less may be considered for pay review.
Employees who are not entitled to pay
review or have submitted their
resignation letters prior to the formal
notification of the pay adjustment will not
be granted any increase.

4. PAY REVIEW

The pay review will normally be
conducted on 1 January each year.
Justification should be made for any
exceptional pay increase or
promotion. As recommendations for
pay review and promotion are subject
to final approval of the Chief Executive
and the Executive Committee,
administrative officers should not
make any premature commitment or
disclosure to employees.

5. Common practice

It is the management's responsibility to
ensure that overtime work is only performed
when necessary and unavoidable. Regular or
perpetual overtime is discouraged and
considered inappropriate. Management
should review the circumstances leading to
regular overtime and should look for other
means to alleviate the situation.
Consideration should be given to "shift" or
staggered working hours. Prior approval from
supervisors is required for performance of
overtime work with compensation. Overtime
work should be compensated by
compensation leave whenever situation
permits.

6. Overtime Payment
Eligible employees may be compensated by
overtime payment whenever compensation leave
cannot be granted. Eligible employees may apply
for overtime payment provided that they work for
at least one hour beyond the normal working
hours. After the first hour of overtime, the
payment is calculated on a half-hourly basis. It is
computed by multiplying the overtime rate with
the number of hours in excess of the regular
eight hours of work. Any work performed beyond
the normal 8 hours of work in one workday is
considered as overtime work.
 All employees required to work beyond eight
hours in one workday is entitled to overtime pay.
The basis of overtime pay is found in Article 87 of
the Labor Code.


7. Overtime Work

Work may be performed beyond eight
hours a day provided that the employee
is paid for the overtime work an
additional compensation equivalent to
his regular wage plus at least twenty-five
percent thereof. Work performed beyond
eight hours on a holiday or rest day shall
be paid an additional compensation
equivalent to the rate for the first eight
hours on a holiday or rest day plus at
least 30 percent thereof.

8. Overtime Pay rates



Overtime pay rates depend upon the day
the work is performed, whether it is
ordinary working day, special
day, holiday or rest day.
For ordinary working day, an additional
compensation equivalent to his regular
hourly rate plus at least 25% thereof.
For holiday, special day and rest day, an
additional compensation equivalent to
the rate for the first eight hours on a
holiday or rest day plus at least 30%
thereof.

9. Computation





On an ordinary day, the overtime rate per
hour is determined as follows:
First, compute the hourly rate of the
employee:
Regular hourly rate = Minimum wage rate ÷ 8
hours
= P267 ÷ 8 hours
= P33.375 per hour
Now to determine overtime rate per hour:
Overtime rate = Regular hourly rate + 25% of
Regular hourly rate
Overtime rate = P33.375 + (25% of P33.375)
= P33.375 + 8.34
= P41.72 per hour

10. On a Rest day, the overtime rate per
hour is determined as follows:
 Hourly rate = 130% of Regular hourly
rate (P33.375 x 1.30)
= P33.375 + 43.3875
= P76.76 per hour
(Note: The hourly rate on rest day and
special day is 130% of the regular
rate.)


11. On a Regular Holiday, the overtime rate
per hour is determined as follows:
 Hourly rate = 200% of Regular hourly
rate
= P33.375 x 2
= P66.75 per hour
 To determine overtime rate per hour:
 Overtime rate = Hourly rate + 30% of
Hourly rate
= P66.375 + (30% of P66.375)
= P66.375 + 19.9125
= P86.28 per hour


12. Self-check
Compute the overtime pay of a worker
with a daily rate of P365 at a Regular
holiday.
 Compute the overtime pay of a worker
with a daily rate of P250 who worked 4
hours overtime.
