ORP

Ordinary Rate of Pay (ORP) means wages whether calculated by the month, week, day, an hour or by piece rate or otherwise, which an employee is entitled to receive for the normal hours of work for one day. 

It does not include:
a) any payment made under an approved incentive payment scheme,
b) any payment for work done
   i. on a rest day,
  ii. on any gazetted public holiday granted by the employer,
 iii. on any day substituted for the gazetted public holiday.

“Hourly rate of pay” means the ORP divided by the normal hours of work.

ORP RATE

When an employee is employed on a monthly rate of pay, the ORP is:
The monthly rate of pay ÷ 26

When an employee is employed on a weekly rate of pay, the ORP is:
The weekly rate of pay ÷ 6

When an employee is employed on a daily or an hourly rate of pay or on piece rate, the ORP is:
Employee’s total wages earned in preceding wage period excluding (a) ÷ Actual days worked by the employee during that wage period excluding (b)

(a) =
any payment made under an approved incentive payment scheme or for work done on any rest day.
any gazetted public holiday granted by the employer or any paid holiday substituted for the gazetted public holiday.

(b) =
any gazetted public holiday or any paid holiday substituted for the gazetted public holiday.

An employer may adopt any method or formula other than the above method or formula for calculating the ORP of an employee. However, according to Section 60I(2) of the EA1955, the adoption of any other method or formula must not result in a rate that is less than any of the rates set out above.

For Paid Sick Leave, the calculation of the ORP of an employee, employed on a daily or an hourly rate of pay or on piece rates, shall take account only of the basic pay the employee receives or the rate per piece he/her is paid for work done in a day under the contract of services.