How to Compute Your Salary in the Philippines

If you’re new to the workforce in the Philippines, you may be wondering how your salary is computed. In this blog post, we’ll walk you through the basics of salary computation in the Philippines so that you can be sure you’re getting paid what you’re owed.

The first step in computing your salary is to determine your daily rate. To do this, simply divide your monthly salary by 30. For example, if you make a monthly salary of PHP 15,000, your daily rate would be PHP 500 (15,000/30 = 500).

Once you have your daily rate, compute your hourly rate by dividing your daily rate by 8. This is because the standard work day in the Philippines is 8 hours. So, using our earlier example, if your daily rate is PHP 500, your hourly rate would be PHP 62.50 (500/8 = 62.50).

Now that you know your hourly rate, you can compute how much you should be paid for working overtime. Overtime in the Philippines is defined as work done beyond 8 hours in a day or 40 hours in a week. For work done on a regular weekday (Monday-Friday), overtime pay should be 1.5 times your hourly rate. So, using our earlier example, if you worked 9 hours in a day, you would be entitled to PHP 93.75 for that day’s work (9 hours x 62.50 x 1.5 = 937.50).

For work done on a holiday or rest day, overtime pay should be 2 times your hourly rate. So, if you worked 9 hours on a holiday, you would be entitled to PHP 125 for that day’s work (9 hours x 62.50 x 2 = 125).

Conclusion:
Computing your salary may seem like a daunting task but it’s actually quite simple once you know the steps involved. Just remember to determine your daily rate by dividing your monthly salary by 30 and then compute your hourly rate by dividing your daily rate by 8. From there, computing overtime pay is just a matter of multiplying your hourly rate by 1.5 or 2 (depending on whether it’s a regular weekday or holiday/rest day), and then multiplying that number by the number of overtime hours worked.