Philippines Premium Pay Rate

1. 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.

2. OVERTIME PAY An employee is entitled to overtime pay for each hour of work done beyond normal working hours • The overtime rate on normal day is 25% • The overtime rate on rest day and holiday is 30%. However, the overtime rate is on top of the rest day pay rate and holiday pay rate. For instance, the overtime time pay for rest day is 130% x 130% = 169% •

3. NIGHT SHIFT DIFFERENTIAL An employee is entitled to night shift differential pay for each hour of work performed between 10pm and 6am the next morning. • The night differential rate on any day is 10%. • The night differential rate is on top of the rest day pay rate and holiday pay rate. For instance, the night differential pay for rest day is 110% x 130% = 143% •

4. REST DAY PAY Rest day pay rate is 130% • Overtime rate and night differential rate is on top of the rest day pay. For instance, if an employee works overtime + night shift on a rest day, the corresponding pay rate will be 130% x 110% x 130% = 185.9% •

5. HOLIDAY PAY If no work is done on a special holiday, the general applicable pay rule is ‘No Work, No Pay’, however, if no work is done on a regular holiday, the employee is entitled to 100% of the basic salary + COLA. • An employee who works on a special holiday is entitled to special holiday pay rate of 130%. • An employee who works on a regular holiday is entitled to regular holiday pay rate of 200%. • Overtime rate and night differential rate is on top of the holiday pay rate. •

6. Brought to you by: PayrollGlass.com For more details: http://www.payrollglass.com/hr-practices/payroll/holiday-pay-overtime-and-night-shift-differential/ Follow us at: HR Talks @PayrollGlass Gary – Chief HR Officer