How to Compute Overtime Pay?

When an employee is required to work beyond the normal 8 hours, they are entitled to receive Overtime Pay. (Source: DOLE)

The Overtime pay rates depend upon the day the work is performed, based on the government guidelines it is as follows:

ot-formula

Let’s say that your employee’s hourly rate is Php 57.00, here’s how to compute for their overtime pay:

ot-sample

“With PayrollHero, your employee’s overtime pay is automatically computed for you! These rates are set up by default for your account, but you can adjust them if desired via the Rates page. To learn more about this view How to Set up Rates?