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Additional information is given as follows:
(a) The management of MISW usually expects a worker to work 40 hours in a week.
(b) There were no absentees during the month.

(c) All employees are employed on permanent basis.
Required: Compute the overtime amount for each employee.
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Solution 3.2
Overtime calculations:
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Basic pay
Overtime payment = # Facto r # Overtime hours worked
Hours per period (172 hours )
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For: Riziki Kibo
, 1 720 000
,
Overtime payment = ## 8 = TZS 58 ,636 .36
2
176
For: Zawadi Almasi
860 ,00
2
Overtime payment = ## 8 = TZS 78 ,181 .82
176
Example 3.3
Mr. Mlay is an employee of Faraja Enterprise Ltd. On the last week of the month
ended 31st October 2023 he worked in a total of 48 hours. His hourly rate is TZS
30,000 per hour. Assuming the overtime was worked on weekdays, and standard
working hours per day are 8 hours. You are required to calculate Mr. Mlay’s:
(a) Basic pay,
(b) Overtime payment,
(c) Gross pay.

Solution 3.3
(a) Basic pay
Basic pay = Rate per hour #Normal working hours worked
= TZS 30,000 per hour # 40 hours
= TZS 1,200,000

(b) Overtime payment
Overtime payment = Normal hours’ rate # Factor x Overtime hours worked
= TZS 30,000 per hour # 1.5 # 8 hours
= TZS 360,000

Student’s Book Form Five
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