Quick answer
Overtime rates in the Philippines
Overtime is work beyond 8 hours in a day. Each overtime hour is paid at your hourly rate times the percentage for that kind of day.
| Kind of day | First 8 hours | Overtime per hour | Overtime at night | On ₱700 a day |
|---|---|---|---|---|
| Ordinary workday | 100% | 125% | 137.5% | ₱109.38 an hour |
| Rest day | 130% | 169% | 185.9% | ₱147.88 an hour |
| Special non-working day | 130% | 169% | 185.9% | ₱147.88 an hour |
| Special day that is also your rest day | 150% | 195% | 214.5% | ₱170.63 an hour |
| Regular holiday | 200% | 260% | 286% | ₱227.50 an hour |
| Regular holiday that is also your rest day | 260% | 338% | 371.8% | ₱295.75 an hour |
| Double holiday | 300% | 390% | 429% | ₱341.25 an hour |
| Double holiday that is also your rest day | 390% | 507% | 557.7% | ₱443.63 an hour |
Overtime on an ordinary workday adds 25%. On a rest day, special day or holiday, overtime adds 30% on top of that day's rate. Night overtime adds another 10%.
Is your overtime pay on your payslip right?
You stayed 2 extra hours to finish a report, and you worked a few hours on your rest day. Your payslip shows one overtime amount, and you want to know if it adds up. To check it, you need your hourly rate and the right percentage for each kind of day.
This calculator does that for every overtime entry you add, then totals them. It shows the rate it used for each one, so you can match it against your payslip line by line.
How to use the calculator
Step 1
Enter your pay
Choose Monthly salary, Daily rate or Hourly rate and enter your basic pay, without allowances. For a monthly salary, pick the paid days in a year your payroll uses.
Step 2
Enter each overtime
Pick the kind of day and enter the overtime hours and minutes. Tick Rendered between 10 PM and 6 AM if the overtime was at night. Use Add another overtime for other days in your cutoff.
Step 3
Read the total
The result shows the overtime pay for each entry, the total, and the math under How it was computed.
Only enter the hours after your first 8 hours of work that day. The first 8 hours on a rest day or holiday are not overtime. They're paid at the day's rate, which you can check with the Holiday Pay Rate Calculator.
How overtime pay is computed
Daily rate = monthly salary × 12 ÷ paid days in a year
Hourly rate = daily rate ÷ 8
Overtime pay = overtime hours × hourly rate × overtime rate for that day
The overtime rate builds on the day's rate. A regular holiday pays 200% for the first 8 hours, so overtime is 200% × 130% = 260%. A rest day pays 130%, so overtime is 130% × 130% = 169%. Night overtime multiplies that by 110%.
The factor 261 usually fits a Monday-to-Friday schedule, 313 a Monday-to-Saturday schedule, and 365 employees paid for every day. Ask payroll which one they use, because a different factor changes every peso figure.
Example: overtime on ₱20,000 a month
Let's say you earn ₱20,000 a month on a Monday-to-Friday schedule. This cutoff, you rendered 2 hours of overtime on a Wednesday and 3 hours of overtime on your Saturday rest day.
Hourly rate = ₱20,000 × 12 ÷ 261 ÷ 8 = ₱114.94
Ordinary day: 2 × ₱114.94 × 125% = ₱287.36
Rest day: 3 × ₱114.94 × 169% = ₱582.76
Total overtime pay = ₱870.11
If you're paid ₱700 a day instead, your hourly rate is ₱87.50, and 2 hours of ordinary overtime is ₱218.75. If those 2 hours were from 10 PM to midnight, they'd be ₱240.63.
The calculator keeps the hourly rate unrounded and rounds only the peso results, so your hand math may differ by a centavo.
Who gets overtime pay?
Article 87 of the Labor Code requires overtime pay for work beyond 8 hours a day. It covers most rank-and-file employees in the private sector. It doesn't cover managerial employees, officers and members of the managerial staff, field personnel whose hours can't be checked, domestic workers and workers paid by results, so check your contract if you're in one of these groups.
Overtime usually needs your supervisor's approval. If your company has an overtime request form, file it, because unapproved extra time is often left off the payroll.
Overtime on one day can't cancel undertime on another day. Article 88 says undertime is still deducted and overtime is still paid with its premium. To value the short days, use the Undertime Deduction Calculator.
Overtime on a compressed workweek
If your company runs a compressed workweek, such as four 10-hour days, your normal day is longer than 8 hours. DOLE allows this without overtime pay for the hours inside the schedule, as long as the workday is not more than 12 hours and the week is not more than 48 hours. The arrangement has to be agreed with the employees and reported to DOLE.
So on a 10-hour compressed day, hours 9 and 10 are not overtime. Hours worked after your 10 scheduled hours are. When you use this calculator, enter only the time beyond your compressed schedule.
Can your employer require overtime?
Usually, overtime is voluntary. Article 89 of the Labor Code lists the cases where your employer can require it, such as an emergency, a threat to life or property, urgent repairs to machines or equipment to avoid serious loss, work needed to keep perishable goods from spoiling, and work that must be finished to avoid serious harm to the business.
Either way, required or voluntary, overtime is paid at the same rates.
Before you question your overtime pay
- Count the overtime from your DTR or biometric report, after unpaid breaks.
- Check which days were rest days, special days or regular holidays in your cutoff.
- Ask payroll which factor (261, 313 or 365) they use for your hourly rate.
- Check whether night overtime included the 10% night differential.
- Check whether your company rounds overtime to 15- or 30-minute blocks.
If you only have time in and time out, the Night Differential Calculator splits one shift into regular, overtime and night hours for you.
Questions about overtime pay
How do I compute overtime pay in the Philippines?
Multiply your overtime hours by your hourly rate and by the overtime rate for that day. On an ordinary workday, the overtime rate is 125%. Your hourly rate is your daily rate ÷ 8.
What is the overtime rate on a rest day?
169% of your hourly rate. The first 8 hours on a rest day are paid at 130%, and overtime adds 30% on top of that: 130% × 130% = 169%.
What is the overtime rate on a regular holiday?
260% of your hourly rate, because the holiday rate of 200% is multiplied by 130%. If the regular holiday is also your rest day, it is 338%.
What is the overtime rate on a special non-working day?
169% of your hourly rate, the same as a rest day. If the special day is also your rest day, it is 195%.
How much is 1 hour of overtime on ₱20,000 a month?
About ₱143.68 on an ordinary workday, using factor 261. Your hourly rate is ₱20,000 × 12 ÷ 261 ÷ 8 = ₱114.94, and 125% of that is ₱143.68.
Is overtime at night paid more?
Yes. Overtime from 10 PM to 6 AM also gets the 10% night differential, so ordinary-day overtime at night is 125% × 110% = 137.5% of your hourly rate.
Can overtime cancel my undertime?
No. Article 88 of the Labor Code says undertime on one day shall not be offset by overtime on another day. Both are counted separately.
Are managers entitled to overtime pay?
Not under the Labor Code. Managerial employees, officers and members of the managerial staff, and field personnel whose hours cannot be checked are not covered. Your contract or company policy may still give it.
Related calculators
- Night Differential Calculator
Night hours and pay for one shift, from time in and time out.
- Holiday Pay Rate Calculator
Pay for a regular holiday or special day, worked or not.
- Overtime Calculator
Count overtime hours without a pay rate.
- DTR Calculator
Hours, late and undertime straight from your time in and time out.
Sources
- Labor Code of the Philippines, Book Three: Articles 82, 86, 87, 88, 89, 93 and 94
- DOLE Department Advisory No. 02, series of 2004: compressed workweek
- DOLE Bureau of Working Conditions, Handbook on Workers' Statutory Monetary Benefits: overtime, premium and holiday pay rates, and factors 365, 313 and 261