Sean is paid a regular rate of 95.00 pesos per hour. In one week he works 8 regular hours on Monday, Tuesday and Wednesday, and 11 hours on each of Thursday and Friday (8 regular hours plus 3 overtime hours per day). Regular weekday overtime pays 125% of the regular rate. Find his gross pay for the week.

Step-by-step solution

1. 1

   Separate the hours into regular and overtime. The two rates apply to different hour counts, so they must be totalled separately rather than mixed. Every one of the five days contains $8$ regular hours; only Thursday and Friday add overtime:

   Regular hours: $5\times 8=40$ hours

   Overtime hours: $2\times 3=6$ hours

2. 2

   Pay the regular hours at the plain rate.

   $40\times ₱95.00=₱3{,}800.00$

   A common slip here is to count only the three "regular" days and forget that Thursday and Friday each still contain $8$ regular hours before overtime begins.

3. 3

   Find the overtime hourly rate. A $25\%$ premium means $125\%$ of the regular rate:

   $₱95.00\times 1.25=₱118.75\ \text{per overtime hour}$

   Note the premium multiplies the rate, not the number of hours.

4. 4

   Pay the overtime hours.

   $6\times ₱118.75=₱712.50$

5. 5

   Add the two components.

   $₱3{,}800.00+₱712.50=₱4{,}512.50$

   $\boxed{₱4{,}512.50}$

6. 6

   Check day by day. Monday to Wednesday: $3\times(8\times 95)=3\times 760=₱2{,}280.00$. Thursday and Friday: each $8\times 95+3\times 118.75=760+356.25=₱1{,}116.25$, so $2\times 1{,}116.25=₱2{,}232.50$. The total is $2{,}280.00+2{,}232.50=₱4{,}512.50$ ✓ — the two routes agree.

7. 7

   Note the size of the overtime premium. Without the premium the $6$ extra hours would have earned $6\times 95=₱570.00$; the $25\%$ uplift adds $₱142.50$, which is exactly $0.25\times 570$. Checking the premium separately like this is a quick way to confirm the multiplier was applied to the rate and not to the total.