Overtime Pay Rules & Computation in the Philippines
Learn how overtime is computed, what premium rates apply, and who qualifies under the Labor Code.
What Is Overtime Pay?
Overtime pay is the additional compensation an employee receives for work performed beyond the normal 8-hour workday. Under Article 87 of the Labor Code, employees who render overtime work are entitled to their regular wage plus at least 25% thereof for work on regular days, and at least 30% for work on rest days, special days, and regular holidays.
OT Pay (Regular Day) = Hourly Rate × 1.25 × OT Hours
Legal basis: Labor Code of the Philippines, Article 87 (Overtime Work), Article 83 (Normal Hours of Work), Article 90 (Computation of Additional Compensation)
Overtime Premium Rates
The overtime multiplier varies depending on the type of day:
| Day Type | Base Rate (First 8 hrs) | OT Rate (Beyond 8 hrs) |
|---|---|---|
| Regular Day | 100% | 125% (+25%) |
| Rest Day / Special Day | 130% | 169% (+30% of 130%) |
| Special Day + Rest Day | 150% | 195% (+30% of 150%) |
| Regular Holiday | 200% | 260% (+30% of 200%) |
| Regular Holiday + Rest Day | 260% | 338% (+30% of 260%) |
| Double Holiday | 300% | 390% (+30% of 300%) |
| Double Holiday + Rest Day | 390% | 507% (+30% of 390%) |
Regular Wage for OT Computation
Under Article 90 of the Labor Code, overtime and other additional compensation must be based on the "regular wage" — which means the cash wage only. The fair and reasonable value of board, lodging, or other facilities customarily provided by the employer is not included in computing overtime pay.
Hourly Rate = Daily Rate ÷ 8 hours
Who Is Exempt from Overtime Pay?
The following employees are generally exempt from receiving overtime pay:
- Managerial employees — those whose primary duty is to manage the establishment or a department thereof
- Officers or members of a managerial staff — those who regularly exercise discretion and independent judgment
- Field personnel — employees who regularly perform their duties away from the principal place of business and whose actual hours of work cannot be determined with reasonable certainty
- Domestic workers (kasambahay) — covered by RA 10361
- Workers paid by results — those paid on a piece-rate, takay, or task basis
When Can Employers Require Overtime?
Under Article 89 of the Labor Code, an employer may require overtime work in the following cases:
- When the country is at war or when a state of national or local emergency has been declared
- When it is necessary to prevent loss of life or property, or in cases of imminent danger to public safety
- When there is urgent work to be performed on machines, installations, or equipment to prevent serious loss or damage to the employer
- When the work is necessary to prevent loss of perishable goods
- When the completion of the work started before the 8th hour is necessary to prevent serious obstruction or prejudice to the business
- When overtime is necessary to avail of favorable weather or environmental conditions
Compute Your Overtime Pay
Use our free calculator to instantly compute your overtime, rest day, and holiday pay.
Open Overtime & Holiday Pay Calculator →Frequently Asked Questions
What is the overtime pay rate on a regular working day?
On a regular working day, overtime work (beyond 8 hours) is compensated at an additional 25% of the employee's hourly rate. For example, if your hourly rate is PHP 100, your OT rate is PHP 125 per hour.
Is overtime pay different on holidays and rest days?
Yes. Overtime on rest days and special holidays earns an additional 30% on top of the applicable day rate (instead of 25%). For regular holidays, the OT premium is also 30% on top of the 200% base rate. This can result in rates as high as 390% of the regular daily rate for overtime on a double holiday.
Who is exempt from overtime pay in the Philippines?
Managerial employees, officers or members of a managerial staff, field personnel (those who perform work away from the office and whose hours cannot reasonably be determined), domestic workers (kasambahay), and workers paid by results are generally exempt from overtime pay requirements.
Can an employer force an employee to work overtime?
Generally, no employee may be compelled to work overtime. However, the Labor Code (Article 89) allows employers to require overtime in cases of emergency, urgent work to prevent loss or damage, and when necessary to avail of favorable weather or prevent loss of perishable goods.