How overtime pay is built
Four things decide your overtime pay. Here is each one, and how it adds up.
Your monthly salary divided by the working days in the month, then by the hours in a day. The overtime pay is built on this.
salary ÷ hoursA rest day, special day, or holiday raises the rate for the first 8 hours before overtime is added. An ordinary day has no day premium.
×1.0 to ×2.6At least 25 percent is added for each hour beyond 8 on an ordinary day. The premium is 30 percent on rest days and holidays.
25% or 30%The overtime hourly rate times all your overtime hours. This is the full pay for those hours, on top of your usual pay, before tax.
rate × hoursBeyond the eighth hour
the extra hoursOvertime is work rendered beyond eight hours in a day. Under Article 87 of the Labor Code, those extra hours pay your regular hourly rate plus a premium of at least 25 percent on an ordinary day. The premium rises to 30 percent when the overtime falls on a rest day, a special non-working day, or a regular holiday. It all builds on your hourly rate, which a ₱35,200 monthly salary over 22 days and 8 hours puts at ₱200.
On an ordinary day the overtime hourly rate is your rate times 1.25, so at ₱200 each overtime hour pays ₱250, and ten hours adds ₱2,500 on top of your usual pay. On premium days the day rate is applied first. A rest day pays 1.3 times your rate for the first eight hours, so rest day overtime is 1.3 times 1.3, or 1.69. A regular holiday pays double, making holiday overtime 2.0 times 1.3, or 2.6.
When overtime runs between 10 PM and 6 AM, it also earns the night shift differential of at least 10 percent, added on top of the overtime premium. Set the hours to the night option and the calculator folds it in. For the night premium on its own, without overtime, the night differential calculator handles it, and the hourly rate calculator shows how the base rate is found.
Questions people ask
answered in plain wordsOvertime is work rendered beyond eight hours in a day. Under Article 87 of the Labor Code, those extra hours are paid your regular hourly rate plus a premium of at least 25 percent on an ordinary day. The premium rises to 30 percent when the overtime falls on a rest day, a special non-working day, or a regular holiday.
Find your hourly rate, apply any day premium, then add the overtime premium. On an ordinary day the overtime hourly rate is your rate times 1.25. For example, at a ₱200 hourly rate, each overtime hour pays ₱250. Work 10 overtime hours and that is ₱2,500 on top of your usual pay.
The day premium is applied first, then a 30 percent overtime premium on top. A rest day pays 1.3 times your hourly rate for the first 8 hours, so rest day overtime is your rate times 1.3 times 1.3, or 1.69. A regular holiday pays double, so holiday overtime is your rate times 2.0 times 1.3, or 2.6. Choose the day type and the calculator stacks the DOLE premiums for you.
Divide your monthly basic salary by your working days in the month, then by your paid hours per day. A common basis is 22 days and 8 hours, so a ₱35,200 salary is ₱200 an hour. You can change the days and hours in the options, or enter your hourly rate directly if you know it.
Overtime worked between 10 PM and 6 AM also earns the night shift differential, at least 10 percent, on top of the overtime premium. Set the overtime hours to the night option and the calculator adds the differential to the rate. For only the night premium, without overtime, use the night differential calculator instead.
No. Every calculation runs privately on your device. Nothing you type is stored, tracked, or sent to a server.
Where these numbers come from
straight from the sourceThe rates and rules on this page follow the official issuances below. When an agency updates a schedule, this is where to confirm the current figure against your own situation.