Computation of Premium Pay

1. Computation

These are the steps on how to compute for the premium pay.

The following are the assumptions:

1) The employee’s daily rate is Php1,000.00.

2) The employee works for 8 hours.

a. Work on a rest day or special non-working day

If there is work performed on a rest day or special non-working day, a covered employee is entitled to a premium pay of 30% of his basic wage or a total of 130%.

Formula:
day’s wage x 130% = day’s wage with premium pay
Sample computation:
Php1,000.00 x 130% = Php1,300.00

b. Work on a rest day falling on a special non-working day (or vice-versa)

If there is work performed on a rest day which is also a special non-working day (or vice-versa), a covered employee is entitled to a premium pay of 30% of his basic wage or a total of 150%.

Formula:
day’s wage x 150% = day’s wage with premium pay
Sample computation:
Php1,000.00 x 150% = Php1,500.00

c. Work on a regular holiday falling on a rest day or special non-working day

If there is work performed on a regular holiday which is also a rest day or a special non-working day, a covered employee is entitled to a premium pay of 30% of the regular holiday rate of 200% based on his/her daily basic wage or a total of 260%.

Formula:
day’s wage x 260% = day’s wage with premium pay
Sample computation:
Php1,000.00 x 260% = Php2,600.00

Related

Premium pay

FAQ: Premium pay

Cases: Premium pay

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