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Overtime

Who is entitled?

In accordance with the Employment Act, the following employees are entitled to overtime pay.

1. Workmen earning not more than $4,500 basic monthly salaries; and


2. Other employees (other than workmen) covered under the Employment Act earning not more than $2,500 basic monthly salaries.

Overtime allowance is payable only if the employee is required to work more than an average of 44 hours a week over any continuous period of three weeks.

 

Overtime Computation

• For a monthly-rated employee, his hourly basic rate of pay is computed as follows:

OT 1

 

• For a daily-rated employee, his hourly basic rate of pay is computed as follows:

OT 2

 

• For a piece-rated employee, his hourly basic rate of pay is computed as follows:

OT 3

Based on the hourly basic rate of pay, the overtime pay for the 3 categories of employees is to be calculated as follows:

Hourly Basic Rate of Pay x 1.5 x Number of Hours of Overtime WorkedOT 4

Rest Day Work

The rest day can be on a Sunday or any other day. The employer must inform the employee before the beginning of each month.

It is not a paid day.

The longest allowable interval between two rest days is 12 days. How is payment for work done on a rest day calculated?


1. Work done at employer’s request:

• One day’s salary when the employee works up to half the normal daily working hours

• Two days’ salary when the employee works more than half the normal daily working hours

 

2. Work done at employee’s request:

• Half day’s salary when the employee works up to half the normal daily working hours

• One day’s salary when the employee works more than half the normal daily working hours

 

 If an employee works beyond the normal daily working hours on a rest day, he/she should be paid at least 1.5 times the hourly basic rate of pay.

OT 5