Monday, January 7, 2013

Minimum Wage Rates in Region 2 & Computation on Overtime pay, Who work 12 hours a day in Private Sector

Wage Order No. Rtwpb-II-15
Region II - Rates
RTWPB-II-15
Effective May 16, 2012, all minimum wage workers and employees in the private sector in Region 02 shall be granted an increase of Ten Pesos (P10.00) per day plus the integration of the fifteen peso (P15.00) per day cost of living allowance (COLA) under Wage Order No. RTWPB-II-10. 
  .
The minimum wage rates shall be as follows:
Industry / Sector / Province
New Minimum Wage Rates
Isabela
   1.  Non-Agriculture
255.00
   2.  Agriculture243.00
   3.  Retail / Service
        Employing more than 10247.00
        Employing not more than 10220.00
Cagayan
   1.  Non-Agriculture252.00
   2.  Agriculture240.00
   3.  Retail / Service
        Employing more than 10244.00
        Employing not more than 10217.00
Nueva Vizcaya
   1.  Non-Agriculture248.00
   2.  Agriculture236.00
   3.  Retail / Service
        Employing more than 10240.00
        Employing not more than 10213.00
Quirino / Batanes
   1.  Non-Agriculture247.00
   2.  Agriculture235.00
   3.  Retail / Service
        Employing more than 10239.00
        Employing not more than 10


Download wage order no.  RTWPB-II-15 here.



Computation of Overtime Pay

Assuming that the mininum wage rate is P255, how much is the overtime rate per hour if you are working 12 hours a day in a Hospital? ---- Wake up Nurses
On ordinary day
On an ordinary day, the overtime rate per hour is determined as follows:
First, compute the hourly rate of the employee:
Regular hourly rate = Minumum wage rate ÷ 8 hours 
= P255 ÷ 8 hours 
= P31.875
per hour
Now to determine overtime rate per hour:
Overtime rate = Regular hourly rate + 25% of Regular hourly rate 
Overtime rate = P31.875 + (25% of P31.25) 
= P31.875 x 1.25 
= P39.84375
per hour
On rest day and special day
Compute the hour rate of the employee on a rest day or special day:
Hourly rate = 130% of Regular hourly rate 
= P31.875 x 1.30 
= P41.4375
per hour (Note: The hourly rate on rest day and special day is 130% of the regular rate.)
To determine overtime rate per hour:
Overtime rate = Hourly rate on rest day + 30% Hourly rate on rest day 
= P41.4375 + (30% of P41.4375) 
= P41.4375 x 1.30 
= P53.86875 
per hour
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:
Hourly rate = 150% of Regular hourly rate
= P31.875 x 1.50
= P47.8125 per hour
To determine overtime rate per hour:
Overtime rate = Hourly rate + 30% of Hourly rate 
= P47.8125 + (30% of P47.8125) 
= P47.8125 x 1.30 
= P62.15625
per hour
On a regular holiday
Compute the hourly rate on regular holiday:
Hourly rate = 200% of Regular hourly rate 
= P31.875 x 2 
= P63.75
per hour
To determine overtime rate per hour:
Overtime rate = Hourly rate + 30% of Hourly rate
= P63.75 + (30% of P63.75)
= P63.75 x 1.30
= P82.875 per hour
On a rest day which falls on a regular holiday
Compute the hourly rate:
Hourly rate = 260% of Regular hourly rate
= P31.875 x 2.60
= P82.875 per hour
To determine overtime rate per hour:
Overtime rate = Hourly rate + 30% of Hourly rate
= P82.875 + (30% of P82.875)
= P82.875 x 1.30
= P107.7375 per hour
Source: DOLE - General Labour Standard