Undertime Deduction Calculator

Your payslip says ₱86.21 for undertime. Is that right?

You left 45 minutes early one afternoon, and the next payslip shows an undertime deduction. To check it, you need two numbers: how many minutes you were short, and what one minute of your time is worth. Payroll gets the second number from your salary, the number of paid days in your year, and your paid hours per day.

This calculator does both steps. It compares the time you worked, after unpaid breaks, with the hours required, then multiplies the missing minutes by your rate per minute. It shows each step, so you can see exactly where a payslip figure comes from. It does not decide whether a deduction is allowed. Paid leave, approved time and your company's policy may change what the record means.

How to use the calculator

Open Requirement and time format if the required hours are not 8 a day, or if your record uses decimal hours. Calculate checks the fields and moves you to the first one that needs fixing. Reset restores the example: ₱20,000 a month, factor 261, and one day of 7 hours 45 minutes.

How undertime deduction is computed

Everything comes down to your rate per minute. For a monthly-paid employee, payroll first finds the daily rate, then the hourly rate, then divides by 60.

The paid days in a year, often called the factor, depends on which days your salary covers:

These factors come from DOLE's handbook on statutory monetary benefits. Your company chooses the one that fits your schedule, and it should use the same factor for deductions as it used to set your salary. A different factor changes every peso figure, which is the most common reason a hand computation does not match a payslip.

Example: 15 minutes short on a ₱20,000 salary

Let's say you earn ₱20,000 a month on a Monday-to-Friday schedule, and your attendance record shows 7 hours 45 minutes worked after lunch. The requirement is 8 hours, or 480 minutes. You worked 465 minutes, so you are 15 minutes short.

The estimated deduction is ₱28.74. If you had left 45 minutes early instead, it would be 45 × ₱1.9157 = ₱86.21. If you are paid ₱700 a day, the rate per minute is ₱700 ÷ 8 ÷ 60 = ₱1.4583, and 45 minutes comes to about ₱65.63.

The calculator keeps the rates unrounded and rounds only the final peso amount, so its results can differ from hand math by a centavo.

Why a longer day does not cancel a shorter one

In the default daily mode, each day is checked against its own requirement. A 7:45 day is 15 minutes short of 8 hours, and an 8:15 day is not short. Entering both gives 15 minutes of undertime, even though the two days add up to 16 hours.

That matches Philippine law. Article 88 of the Labor Code says undertime work on any particular day shall not be offset by overtime work on any other day. Your undertime on Monday stays undertime, and approved overtime on Tuesday is still paid as overtime with its premium.

The weekly mode exists for arrangements built on a weekly hours requirement, such as some compressed workweeks or contracts with a fixed weekly total. It combines all entered days and compares them once. For example, four 8-hour days and one 7:30 day against 40 hours is 30 minutes short, or ₱57.47 at the example rate. Do not use it to net overtime against undertime on an ordinary daily schedule, and do not mix days from different weeks.

Durations, decimals and paid hours

Each entry is a duration, not a time of day. A decimal entry of 7.75 means 7 hours 45 minutes, because 0.75 × 60 is 45. A decimal entry of 7.45 means 7 hours 27 minutes, not 7 hours 45 minutes. Decimal durations are rounded to the nearest whole minute before the comparison. The calculator does not round to 5-, 10- or 15-minute blocks; if your company rounds undertime, apply that to the minutes first.

Work beyond the requirement never creates a negative undertime or a credit here. It also does not become overtime pay automatically; use the Overtime Pay Calculator for that.

If your paid day is not 8 hours, for example a 7.5-hour schedule, change Paid hours per day. The hourly rate then becomes the daily rate ÷ 7.5, which makes each minute worth slightly more.

If you only have time in and time out

This calculator needs hours worked. If your record shows clock times, such as 8:00 AM to 4:15 PM with a 12:00 lunch, use the DTR Calculator. It works out late and undertime minutes from your schedule, leaves the unpaid lunch out of half days, and gives the peso deduction for a whole cutoff.

Before you question a deduction

• Use the hours on your signed DTR or biometric report, after unpaid breaks.
• Ask payroll which factor (261, 313 or 365) and how many paid hours per day they use.
• Check whether the minutes were covered by approved leave or an approved pass slip.
• Check whether your company rounds undertime minutes, and in which direction.
• Make sure overtime on another day was not used to cancel the undertime, or the other way around.

Wage deductions in the Philippines are limited to those allowed by law, regulations or your written authorization. If a deduction looks wrong and payroll cannot explain it, DOLE's regional offices handle wage concerns.

Questions about undertime deductions

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