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 |
