How Is My Overtime Pay Computed in the Philippines?

Overtime pay in the Philippines is computed at 125% of your regular hourly rate for work performed beyond 8 hours on an ordinary working day. This means you receive your regular hourly pay plus an additional 25% premium for every overtime hour. The rate increases on rest days, special non-working holidays, and regular holidays. The legal basis is Article 87 of the Labor Code of the Philippines.

The Basic Formula

Overtime Pay = Hourly Rate x Overtime Hours x Applicable Multiplier

Your hourly rate is derived from your daily rate:

Hourly Rate = Daily Rate / 8 hours

If you are a monthly-paid employee, your daily rate depends on the number of working days used by your employer. A common formula is:

Daily Rate = Monthly Basic Salary / Number of Working Days per Month

Most companies use either 22 days (for 5-day work weeks) or 26 days (for 6-day work weeks). Check your employment contract or company policy for the applicable divisor.

Overtime Multiplier Table

The Labor Code and the DOLE Handbook on Workers' Statutory Monetary Benefits prescribe these overtime premium rates:

Day Type	Base Daily Rate	OT Multiplier (per hour)
Ordinary working day	100%	125%
Rest day or special non-working holiday	130%	130% of 130% = 169%
Regular holiday	200%	130% of 200% = 260%
Regular holiday falling on rest day	260%	130% of 260% = 338%
Double holiday	300%	130% of 300% = 390%

How to read this table: The "OT Multiplier" is the percentage of your regular hourly rate that you receive for each overtime hour on that type of day. For example, 169% means you receive 1.69 times your regular hourly rate.

Worked Example: Ordinary Day Overtime

Employee profile:

• Monthly basic salary: ₱25,000
• Working days per month: 22 (5-day work week)
• Overtime hours worked: 3 hours on an ordinary Tuesday

Step 1 — Compute the daily rate:

Item	Computation	Amount
Daily rate	₱25,000 / 22	₱1,136.36

Step 2 — Compute the hourly rate:

Item	Computation	Amount
Hourly rate	₱1,136.36 / 8	₱142.05

Step 3 — Compute overtime pay:

Item	Computation	Amount
OT rate (125%)	₱142.05 x 1.25	₱177.56
OT pay (3 hours)	₱177.56 x 3	₱532.67

The employee earns ₱532.67 in overtime pay for 3 hours of overtime on an ordinary day.

Worked Example: Rest Day Overtime

Using the same employee (₱25,000/month, 22-day divisor), working 2 hours of overtime on a Sunday (rest day):

Step 1 — Rest day base rate for the first 8 hours:

Item	Computation	Amount
Rest day hourly rate	₱142.05 x 1.30	₱184.67

Step 2 — Rest day overtime rate:

Item	Computation	Amount
Rest day OT rate	₱184.67 x 1.30 (additional 30%)	₱240.07
OT pay (2 hours)	₱240.07 x 2	₱480.13

Equivalently: ₱142.05 x 1.69 x 2 = ₱480.13

Worked Example: Regular Holiday Overtime

Same employee, working 2 hours of overtime on a regular holiday (e.g., Rizal Day):

Step 1 — Holiday base rate for the first 8 hours:

Item	Computation	Amount
Holiday hourly rate	₱142.05 x 2.00	₱284.09

Step 2 — Holiday overtime rate:

Item	Computation	Amount
Holiday OT rate	₱284.09 x 1.30	₱369.32
OT pay (2 hours)	₱369.32 x 2	₱738.64

Equivalently: ₱142.05 x 2.60 x 2 = ₱738.64

Who Is Entitled to Overtime Pay?

Under Article 82 of the Labor Code, the following employees are not covered by overtime pay provisions:

• Managerial employees — Those who set and execute management policies, hire/fire employees
• Officers or members of a managerial staff — Those who regularly exercise discretion and judgment, assist managerial employees, and are not subject to strict time-keeping
• Field personnel — Non-agricultural employees who regularly perform their duties away from the office and whose hours of work cannot be determined with reasonable certainty
• Domestic workers — Covered separately by RA 10361
• Workers paid by results — Those paid on piecework, "takay," or task basis (unless their working time is controlled)

All other rank-and-file employees are entitled to overtime pay when they work beyond 8 hours in a day.

Night Shift Differential and Overtime

Work performed between 10:00 PM and 6:00 AM carries an additional night shift differential (NSD) of 10% of the regular wage under Article 86 of the Labor Code. NSD stacks on top of overtime:

Night OT rate = Overtime Rate + 10% of regular hourly rate

For example, on an ordinary day: ₱142.05 x 1.25 x 1.10 = ₱195.31 per hour for overtime hours that fall between 10 PM and 6 AM.

Related Guides

• Overtime Pay Calculator — Instantly compute overtime pay for any scenario
• Overtime and Night Differential Computation — Comprehensive guide with all day-type combinations
• Holiday Pay Computation (Philippines) — How holiday pay and holiday overtime interact
• What Deductions Are Taken From My Salary? — Deductions that may apply to your overtime earnings

Legal References

• Labor Code of the Philippines (PD 442, as amended)
  • Article 82 — Coverage (employees entitled to overtime pay)
  • Article 86 — Night Shift Differential (10% premium for 10 PM - 6 AM work)
  • Article 87 — Overtime Work (25% additional compensation beyond 8 hours)
  • Article 93 — Compensation for Rest Day, Sunday, or Holiday Work
• DOLE Handbook on Workers' Statutory Monetary Benefits — Official multiplier tables for all day types

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This guide is for informational purposes only and does not constitute legal, tax, or financial advice. While we strive for accuracy by citing official Philippine laws and government circulars, regulations change. Consult a qualified professional or the relevant government agency for advice specific to your situation.