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 × hoursQuestions 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.