SHS

Business Mathematics
Quarter 2: Module 4
Business Mathematics
Grade 11: Quarter 2: Module 4
First Edition, 2020

Copyright © 2020
La Union Schools Division
Region I

All rights reserved. No part of this module may be reproduced in any form without
written permission from the copyright owners.

Development Team of the Module

Author: May Ann D. de Guzman, SST-I

Editor: SDO La Union, Learning Resource Quality Assurance Team

Illustrator: Ernesto F. Ramos Jr., P II

Management Team:

Atty. Donato D. Balderas, Jr.

Schools Division Superintendent

Vivian Luz S. Pagatpatan, Ph.D

Assistant Schools Division Superintendent

German E. Flora, Ph.D, CID Chief

Virgilio C. Boado, Ph.D, EPS in Charge of LRMS

Lorna O. Gaspar, EPS in Charge of ABM

Michael Jason D. Morales, PDO II

Claire P. Toluyen, Librarian II

 Business
Mathematics
Quarter 2: Module 4

3
 Target

Target

Now that you know about salary, wages, income, and benefits, let us study
overtime pay. Employee compensation refers to the remuneration or reward that an
employee gets from his or her employer for the service he or she gives the latter. An
employee, be it of a profit-making entity (business) or non-profit organization, is paid
something in return for his or her services.

This module will provide you with information and activities that will help you
understand more about overtime pay.

After going through this learning material, you are expected to:

Identify the variables needed in the computation of overtime

pay.(ABM_BM11SW-IIe-8); and
compute overtime pay (ABM_BM11SW-IIe-9).

Learning Objectives:

1. Know the different overtime rates in different situations;

2. Identify the variables needed in the computation of overtime pay;
3. Compute for overtime pay on:
a. Regular day
b. Special day
c. Rest day
d. Regular holiday
e. Rest day which falls on a regular holiday
f. Rest day which falls on a special day.

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 Lesson
OVERTIME PAY
1

Jumpstart
Pre-test

Choose the letter of the best answer. Write your answer on a separate sheet.

1. Which of the following refers to the additional pay for work performed in excess
of 8 hours a day or 40 hours a week for jobs requiring 5 work days at 8 hours
per day?
A. Commission B. Overtime Pay C. Salary D. Wage
2. Which of the following is the rate of pay if you work on a regular holiday?
A. 130% B. 150% C. 200% D. 260%
3. Which of the following is the rate of pay if you work on a special day?
A. 130% B. 150% C. 200% D. 260%
4. Which of the following is the rate of pay if you work on a special day which is
also a scheduled rest day?
A. 130% B. 150% C. 200% D. 260%
5. Which of the following is the rate of pay if you work on a regular holiday which
is also a scheduled rest day?
A. 130% B. 150% C. 200% D. 260%

For items number 6-10 refer to the problem below:

Suppose your regular rate is 150/hr, how much will be your overtime pay on:

6. Ordinary day
A. ₱187.50 B. ₱195.00 C. ₱210.00 D. ₱390.00
7. Special day
A. ₱195.00 B. ₱225.00 C. ₱300.00 D. ₱390.00
8. Regular holiday
A. ₱195.00 B. ₱225.00 C. ₱300.00 D. ₱390.00
9. Special day which is also a scheduled rest day

A. ₱195.00 B. ₱225.00 C. ₱300.00 D. ₱390.00

10. Regular holiday which is also a scheduled rest day

A. ₱195.00 B. ₱225.00 C. ₱300.00 D. ₱390.00

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Solve for the following word problems. Write your answers on the space
provided.
1. Suppose an employee is paid PHP70 per hour in an ordinary day. Then the
following are the overtime pay that he will get for working overtime on:
a. an ordinary day

b. a special holiday

c. a special holiday which is also a scheduled rest day

d. a regular holiday which is also a scheduled rest day

Discover
A. Overtime Pay

Overtime pay refers to the additional pay for work performed in excess of 8
hours a day or 40 hours a week for jobs requiring 5 work days at 8 hours per day.

B. To compute for overtime pay, we need the following:

1. Hourly rate of the wage of the employee

2. Type of workday: ordinary day, special holiday, rest day or regular holiday
3. Number of hours of overtime

C. Overtime Rates

1. One hundred twenty-five percent (125%) of the hourly rate for work
performed in excess of 8 hours on an ordinary day.
2. One hundred thirty percent (130%) of the hourly rate for work performed in
excess of 8 hours on a rest day, special holiday or regular holiday.

Note: Work on a special holiday, a rest day or a regular holiday is paid a different
rate from an ordinary day work. The formulas on how to compute gross pay
for work done on these days are as follows:

a. A special holiday: 130%  basic daily wage

b. A special holiday which is also a scheduled rest day: 150%  basic daily
wage

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 c. A regular holiday: 200%  basic daily wage
d. A regular holiday which is also a scheduled rest day: 260%  basic daily
wage

EXAMPLES:

On Ordinary Day

Myrna earns the regular daily rate of ₱340.00, if she works 10 hours on a
regular day, how much would be her total pay?

On an ordinary day, the overtime rate per hour is determined as follows:

• First, compute the hourly rate of the employee:

Regular hourly rate = Daily wage rate ÷ 8 hours

= ₱340.00 ÷ 8 hours

= ₱42.50 per hour

• Now, to determine overtime rate per hour:

Overtime rate = Regular hourly rate + 25% of Regular hourly rate

Overtime rate = ₱42.50 + (25% of ₱42.50)

= ₱42.50 + ₱10.625

= ₱53.125

• Total pay for the day = Regular pay + Overtime pay

= ₱340.00 + (₱53.125 × 2 hours)

= ₱446.25

On Rest Day and Special Day

Employees generally have their rest days, which may not fall on a Sunday. If
an employee is made to work on a Sunday, his or her rest day could be Monday or
any other day of the week to compensate for the Sunday that he or she worke. If an
employee is made to work on his or her rest day or on a special holiday like Maundy
Thursday or Good Friday, which dates are not fixed, the computation of his or her
pay would be as follows:

• Compute the hourly rate of the employee on a rest day or special day. The hourly
rate on rest day or special day is 130% of the regular rates:

Assuming that the minimum daily wage rate is ₱340.00.

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 Regular hourly rate = Daily wage rate ÷ 8 hours

= ₱340.00 ÷ 8 hours

= ₱42.50 per hour

Hourly rate = 130% of Regular hourly rate

= 130% × ₱42.50

= ₱55.25 per hour

• To determine overtime rate per hour:

Overtime rate = Hourly rate on rest day + 30% Hourly rate on rest day

= ₱55.25 + (30% × ₱55.25)

= ₱55.25 + ₱16.575

= ₱71.825

■ Marites earns regular daily rate of ₱340.00 giving her an hourly rate of ₱42.50. She
was requested by her boss to work on a Saturday, her rest day.

a. She worked 8 hours.

Total pay for the day = 8 hours × (₱42.50 × 130%)

= 8 × (₱55.25)

= ₱442.00

b. She worked for 10 hours.

Total pay for the day = [(8 hours × Hourly rate on rest day) + (2 hours
‘ × Hourly rate on rest day × 130%)]
= [(8 × ₱55.25) + (2 × ₱55.25 × 130%)
= ₱442.00 + (2 × ₱71.825)
= ₱442.00 + ₱143.65
= ₱585.65

On Rest Day which Falls on a Special Day

• Compute the hourly rate of the employee on a rest day which falls on a special day:

Assuming that the minimum daily wage rate is ₱340.00.

Hourly rate = 150% of Regular hourly rate

= 150% × ₱42.50

= ₱63.75

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• To determine the overtime rate per hour:

Overtime rate = Hourly rate on rest day × 130% of Hourly rate on rest day

= ₱63.75 + (30% × ₱63.75)

= ₱63.75 + ₱19.125

= ₱82.875

■ Zenaida earns the regular daily rate of ₱340.00 giving her an hourly rate of ₱42.50.
She was requested by her boss to work on her rest day, which falls on Maundy
Thursday.

a. She worked for 8 hours. Her total pay for the day would be:

Total pay for the day = 8 hours × Regular hourly rate × 150%

=8 × (₱42.50 × 150%)

=8 × ₱63.75

= ₱510.00

b. She worked for 10 hours. Her total pay for the day would be:

Total pay for the day = [8 hours × (₱42.50 × 150%)] + {2 hours × [(₱42.50
‘ × 150%) × 130%]}

= (8 hr. × ₱63.75) + [2 hr. × (₱63.75 × 130%)

= ₱510 + (2 × ₱82.875)

= ₱510 + ₱165.75

= ₱675.75

On a Regular Holiday

• Compute the hourly rate of the employee on regular holiday:

Assuming that the minimum daily wage rate is ₱340.00.

Hourly rate = 200% of regular hourly rate

= 200% × ₱42.50

= ₱85.00 per hour

• To determine overtime rate per hour:

Overtime rate = Hourly rate on regular holiday + 30% of hourly rate on regular
‘ holiday

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 = ₱85.00 + (30% × ₱85.00)

= ₱85.00 + ₱25.50

= ₱110.50

■ Ester earns the regular daily rate of ₱340.00 giving her an hourly rate of ₱42.50.
She was requested by her boss to work on May 1, Labor Day.

a. She worked for 8 hours. Her total pay for the day would be:

Total pay for the day = 8 hours × 200% of regular hourly rate

=8 × (200% × ₱42.50)

=8 × ₱85.00

= ₱680.00

b. She worked for 10 hours. Her total pay for the day would be:

Total pay for the day = [(8 hrs × 200% of regular hourly rate) + {2 hrs ×
(200% of regular hourly rate × 130%)}]

= [(8 × ₱42.50 × 200%) + {2 × (₱42.50 × 200% ×

130%)}]

= (8 × ₱85.00) + (2 × ₱110.50)

= ₱680.00 + ₱221.00

= ₱901.00

On a Rest Day which Falls on a Regular Holiday

• Compute the hourly rate of the employee on a rest day which falls on a regular
holiday:

Assuming that the minimum daily wage rate is ₱340.00.

Hourly rate = 260% of regular hourly rate

= 260% × ₱42.50

= ₱110.50

• To determine overtime rate per hour:

Ovetime rate = Hourly rate on a rest day + 30% of hourly rate which falls on a
‘ regular holiday

= ₱110.50 + (30% × ₱110.50)

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 = ₱110.50 + ₱33.15

= ₱143.65

■ Teresita earns the regular daily rate of ₱340.00 giving her an hourly rate of ₱42.50.
She was requested by her boss to work on December 30, Rizal Day, which is a regular
holiday. However, Rizal Day fell on a Monday, which was Teresita’s rest day.

a. Teresita worked for 8 hours. Her total pay for the day would be:

Total pay for the day = 8 hours × Regular hourly rate × 260%

= 8 × ₱42.50 × 260%

= 8 × ₱110.50

= ₱884

b. She worked for 10 hours. Her total pay for the day would be:

Total ay for the day = [(8 hrs × regular hourly rate × 260%) + (2 hrs ×
‘ {regular hourly rate × 260%} × 130%)]

= (8 × ₱110.50) + (2 × ₱143.65)

= ₱884.00 + ₱287.30

= ₱1,171.30

Explore

A. FILL IN THE BLANKS. Complete the table by solving for the overtime pay.

Regular Overtime Ordinary Rest day Rest Day Regular Rest Day
Rate per Hours Day and falls on Holiday falls on
day Special Special Regular
Day Day Holiday
1. ₱284.00 3 hours
2. ₱145.50 4 hours
3. ₱360.25 1 hour
4. ₱500.00 2 hours
5. ₱290.75 3 hours

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 B. COMPLETING THE TABLE. Complete the needed information in the table.

Regular rate Working Day Regular Overtime Gross

per hour hours Earnings Earnings Earnings
1. ₱28.00 9 hours Special day
2. ₱15.25 12 hours Regular Holiday
3. ₱33.80 10 hours Rest day
4. ₱45.25 8 hours Ordinary day
5. ₱26.13 15 hours Rest day falls on
a Regular holiday

Deepen

Directions: Solve for the following word problems. Write your answers on the space
provided.

1. Christian is paid on an hourly basis. He worked for 12 hours on his rest

day which falls on a regular holiday. His regular rate is ₱15.00 per hour.
How much would be his total pay for the day?

2. A fast food service crew gets paid Php75.00 per hour. For hours of work
above 40 hours in one week he is eligible for overtime pay at the rate of
1.25 times the regular hourly wage.

a. What is the regular weekly pay of this service crew if he works 35 hours
each week?

b. During a very busy week, the service crew was asked to work for 45 hours.
What was his total pay for that week?
b.1 Find the regular pay.

b.2 Find the overtime pay.

b.3 Add to find the total pay.

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 Gauge

Directions: Solve for the following word problems. Write your answers on the space
provided.

1. Suppose an employee works 10 hours on a regular holiday; 8 hours on a

rest day and another 10 hours on an ordinary day, how much will the
employee be paid if his rate is PHP110/hour and he worked for 6 days
during the week and he only worked the required 8 hours for the 3 ordinary
days?

a. Basic pay for the 3 days with no overtime:

b. Basic pay plus overtime pay for the ordinary day with 2 hours overtime:

c. Basic pay on rest day:

d. Basic pay plus 2 hours overtime on a regular holiday:

e. Gross weekly pay

2. Suppose your regular rate is 70/hr, how much will be your overtime pay
if you worked extra 3 hours:
a. on a special holiday

b. rest day which falls on a regular holiday

c. regular holiday
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d. rest day which falls on a special day

e. ordinary day

14
 15
Pre-test Deepen Gauge
1. B 6. A 1. ₱413.40 1.a. ₱2,640.00 2.a. ₱273.00
2. C 7. A 2.a. ₱2,625.00 1.b. ₱1,115.00 2.b. ₱709.8
3. A 8. C 2.b.1. ₱3,000.00 1.c. ₱1,100.00 2.c. ₱546.00
4. B 9. B 2.b.2. ₱468.75 1.d. ₱2,332.00 2.d. ₱409.50
5. D 10.D 2.b.3. ₱3,468.75 1.e. ₱7,187.00 2.e. ₱262.50
Regular Overtime Ordinary Rest day Rest Day Regular Rest Day
Rate per Hours Day or falls on Holiday falls on
day Special Special Regular
Day Day Holiday
1. ₱284.00 3 hours ₱133.13 ₱138.45 ₱207.68 ₱276.90 ₱359.97
2. ₱145.50 4 hours ₱90.94 ₱94.575 ₱141.86 ₱189.15 ₱245.90
3. ₱360.25 1 hour ₱56.29 ₱58.54 ₱87.81 ₱117.08 ₱152.21
4. ₱500.00 2 hours ₱156.25 ₱162.50 ₱243.75 ₱325.00 ₱422.5
5. ₱290.75 3 hours ₱136.29 ₱141.74 ₱212.61 ₱283.48 ₱368.53
Regular rate Working Day Regular Overtime Gross
per hour hours Earnings Earnings Earnings
1. ₱28.00 9 hours Special day ₱291.20 ₱47.32 ₱338.52
2. ₱15.25 12 hours Regular Holiday ₱244.00 ₱158.60 ₱402.60
3. ₱33.80 10 hours Rest day ₱351.52 ₱114.24 ₱465.76
4. ₱45.25 8 hours Ordinary day ₱362.00 ₱362.00
5. ₱26.13 15 hours Rest day falls on ₱543.50 ₱618.24 ₱1,161.74
a Regular holiday
Jumpstart
a. ₱87.50
b. ₱118.30
c. ₱136.50
d. ₱236.60
Key Answer
References
Printed Materials:

Norma D. Lopez-Mariano, P. (2016).Overtime Pay Business Mathematics.pp.187-193

Website:

https://www.hitbullseye.com/Overtime-Pay.php
https://en.m.wikipedia.org/wiki/Income_statement
https://www.investopedia.com/terms/p/plstatement.asp
http://www.laborlaw.usc-law.org/2010/02/23/overtime-pay/
www.businesstips.ph

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