Philippines Overtime Pay Calculator
Calculate your accurate overtime pay based on your daily rate and the type of day worked, compliant with the Labor Code of the Philippines.
How to Calculate Overtime Rate Per Hour in the Philippines
Understanding how to calculate your overtime pay is crucial for every Filipino employee. The Labor Code of the Philippines mandates specific premiums for work performed beyond the standard 8-hour shift. The calculation depends entirely on your Daily Rate and the Type of Day you are working.
1. Determine Your Regular Hourly Rate
Before calculating overtime, you must identify your standard hourly wage. In the Philippines, the standard work day is 8 hours.
Example: If your daily rate is ₱610 (NCR Minimum Wage), your hourly rate is ₱76.25.
2. Apply the Correct Overtime Premium
The Department of Labor and Employment (DOLE) sets different percentage increases based on when the overtime work occurs:
A. Ordinary Working Day
For overtime work on a regular day, you are entitled to an additional 25% of your hourly rate.
- Formula: Hourly Rate × 1.25
- Example: ₱76.25 × 1.25 = ₱95.31 per OT hour.
B. Rest Day or Special Non-Working Holiday
If you work overtime on your scheduled rest day or a declared Special Non-Working Holiday, the computation is higher. Note that the first 8 hours are already paid at a premium (130%). Overtime (hours in excess of 8) is calculated as 130% × 130%.
- Formula: Hourly Rate × 1.69
- Example: ₱76.25 × 1.69 = ₱128.86 per OT hour.
C. Regular Holiday
Work on a Regular Holiday (like Christmas or New Year) is paid at Double Pay (200%) for the first 8 hours. Overtime beyond 8 hours is calculated as 200% × 130%.
- Formula: Hourly Rate × 2.60
- Example: ₱76.25 × 2.60 = ₱198.25 per OT hour.
Frequently Asked Questions
Is lunch break included in overtime?
No. The standard one-hour meal break is not compensated and is not counted as hours worked.
How is Night Shift Differential (NSD) calculated with overtime?
If your overtime falls between 10:00 PM and 6:00 AM, you are entitled to an additional 10% on top of your overtime rate for those specific hours.