powerpoint presentation for business math subject

1. Overtime Pay
QTR 4- WEEK 4

2. OBJECTIVES:
• The learners...
• identify the variables needed in the computation of
the overtime and
• compute overtime pays.

3. OVERTIME PAYS
• Employees can render up to eight (8) hours of overtime
work.
• The employee cannot urge or oblige the employer to let
him or her to render overtime work if it is not required
by the circumstance or there is no extra work to be
done.

4. SALARY
• Salary is a fixed amount of money that is given to
employees on a monthly basis in exchange for services
rendered by them. Salary is regular and is given either
weekly, monthly, semi-monthly or 24 times a year, or every
other week which works out to 26 times a year. Salaries are
paid even during vacations or holidays. A person who
receives a salary is paid to do a job, regardless of the number
of hours worked.

7. • The Department of Labor and Employment (DOLE) has rules for monthly-paid employees regarding
pay, holidays, and minimum wage.
Pay
• Monthly-paid employees are paid a fixed salary each month, regardless of the number of working days.
• The monthly salary must be at least the regional minimum wage for each day worked.
• To calculate a daily rate, divide the monthly rate by the number of working days in the month.
Holidays
• Employees who are not required to work on a regular holiday are entitled to their regular daily wage.
• Employees who are required to work on a regular holiday are entitled to double their daily rate.
• If a regular holiday falls on a non-working day, employees are entitled to 100% of their basic wage.
Minimum wage
• Employers must ensure that salaries do not fall below the regional minimum wage for each day worked.

11. 26 days

12. 26 days

13. 27 days

15. •The next example shows how to compute
for a worker’s based on the given values:
•Monthly rate: Php18,000;
•Factor rate: 258; 246 total regular days + 12
regular holidays

16. Example No. 1: Find the Overtime Pay
on a Regular Working Day
•Solution:
•Daily rate: 18,000 x 12 / 258= Php837.21
•Hourly rate (8 hours): 837.21 / 8= Php 104.65
•Overtime hourly rate: 1.25 x 104.65= Php
130.81/hour

17. •Daily rate: 18,000 /26= Php692.31
•Hourly rate (8 hours): 692.31 / 8= Php 86.54
•Overtime hourly rate: 1.25 x 86.54= Php
108.18/hour
Example No. 1: Find the Overtime Pay
on a Regular Working Day

18. •For every hour in excess of 8 hours in a day,
the hourly overtime rate is equivalent to at
least
•125% of the regular hourly rate, as shown in
the following formula:

19. Example No. 2: Calculating Overtime
Pay on a Rest Day
• *same values used in the computation,130% is the monthly rate applied
• Solution:
• First 8 hours = 130%; beyond 8 hours = 169% /hour
• First 8 hours: ((18,000 x 12) / 258) x 1.3 = Php1,088.37
• Beyond 8 hours: [((18,000 x 12) / 258) x 1.69]/8 =
Php176.86/hour

20. •Daily rate: 18,000 /26= Php692.31
•Hourly rate (8 hours): 692.31 / 8= Php
86.54
•Overtime hourly rate: 1.30 x 86.54= Php
112.50/hour

21. Example No. 3: Calculating
Overtime Pay on a Special Day
• *same monthly rate applied in the computation, that is 130%
• Solution:
• 18,000 x 1.3 = Php23,400
• Special day premium pay: (i.e., 20 working
days/month):
• 23,400/20=Php 1,170/day

23. WORD PROBLEMS INVOLVING
OVERTIME PAYS
1. Mr. Santos daily rate is P580.00. He
works on a regular day from 7:00 am to
7:00 pm. How much was his income
that day?

24. 2. Mr. Castro earns P950 after
working for 10 hours in a regular
day. How much is his daily rate and
overtime pay?