Overtime Pay Calculator Philippines
Computation Result
Overtime Calculator by Individual Day and Hour
| Overtime Type | Hours | Computed Pay |
|---|
Total Overtime Pay
Related Calculators:
It is still common for many employees to work an eight-hour day, even if they work from home.
Some people find themselves struggling to balance work-life balance despite the distractions at home in this new landscape, extending their work hours.
Overtime (OT) pay is included in the list of benefits that employees receive on top of their basic salaries whenever they surpass their regular working hours.
If you're interested in learning more about overtime pay, please take a look at our comprehensive guide below.
Overtime Pay: What is it?
Additional pay is given to employees who work longer than eight hours per day.
According to the Labor Code of the Philippines, OT pays 25% of the worker's regular hourly rate, but companies can set a more generous rate through a collective bargaining contract.
Employees working overtime on holidays or rest days will receive 30% of their hourly rate from their employers.
The Telecommuting Law's Implementing Rules and Regulations (IRR) now require employers to pay their employees adequate overtime even when they use work-from-home arrangements.
Calculate overtime by day and hour using the Overtime Calculator
As opposed to a single calculation, this calculator allows you to add and calculate different types of overtime separately based on the specific days you worked.
Step 1: Enter Your Monthly Salary
Start by entering your monthly salary in the first field. This is the only information you need to enter for the entire calculation. The calculator uses this to determine your hourly rate, which is the basis for all overtime payments in the Philippines.
Step 2: Add and Fill Out Overtime Entries
Click the "Add Overtime Entry" button to create a new row in the table. For each row, you will see a dropdown menu and an input field for hours.
- Select Overtime Type: Choose the type of day you worked overtime from the dropdown menu. This is crucial because each type has a different multiplier as mandated by the Philippine Labor Code.
- Enter Hours: Input the number of overtime hours you worked for that specific day.
You can add as many rows as you need to account for all your overtime work in a pay period.
Step 3: Calculate Your Overtime Pay
After you have added all your entries, click the "Calculate Total" button. The calculator will automatically:
- Compute the "Computed Pay" for each individual row using the correct multiplier for the selected overtime type.
- Sum up the individual computed pays to show your "Total Overtime Pay".
This method gives you a clear and transparent view of how your total overtime earnings were calculated.
Example Calculation
Let's say your monthly salary is ₱20,000 and you have a total of 10 overtime hours, split across different days:
- 2 hours on a Regular Day: The calculator applies a 1.25x multiplier.
- 3 hours on a Rest Day/Special Holiday: The calculator applies a 1.69x multiplier.
- 5 hours on a Regular Holiday: The calculator applies a 2.60x multiplier.
The calculator would compute each row individually and then add the totals together for a final result, allowing you to see exactly how much you earned from each type of overtime.
Getting to Know Philippine Overtime Basics
Overtime in local work settings
The Labor Code defines overtime as work performed beyond eight hours a day. This law protects workers' rights, especially those who are otherwise pressured to work long hours without being paid fairly.
In cities like Quezon City or Cebu, employees often volunteer to work overtime, especially in retail or logistics. However, it's important to keep in mind that OT must be authorized by the employer, so even if someone stays late willingly, it doesn't guarantee OT pay.
There are some exceptions to this rule. Managers, field personnel, and freelancers are typically not entitled to overtime, unless their contracts specifically stipulate otherwise. A company can be sued for skipping overtime pay if it fails to pay rank-and-file workers, clerical workers, and contracted workers.
It is also important to understand that breaks, such as lunches, do not count towards the eight-hour workday. So, working 9 AM to 6 PM with a one-hour break means no overtime until the workday goes beyond 6 PM.
Overtime Pay Rates by Locality (2025 Edition)
There are specific multipliers set out by the Department of Labor and Employment (DOLE) for different situations. Understanding them is crucial to getting payroll done correctly.
| Scenario of work | Multiplier | The description |
| Working overtime during the week (past 6 p.m.) | 1.25× | Overtime rate for work over 8 hours |
| Holidays that aren't working (e.g., Ninoy Aquino Day) | 1.69× | Pay special attention to holidays |
| Taking the day off on a regular holiday (such as Bonifacio Day) | 2.60× | Rate of regular holiday pay |
| Take a regular holiday that's also a rest day | 3.38× | Holidays and rest days overlapping have the highest multiplier |
Suppose your BGC-based team works two hours past 6 PM on a normal weekday, and its hourly rate is 1.25x that of the regular rate. But if they work on Ninoy Aquino Day, their hourly rate is 1.69x that of the regular rate. The hourly pay of someone who works on a regular holiday like Bonifacio Day is 2.6x. And the hourly pay of someone who works on their rest day is 3.38x.
It's a win-win situation for the employee and for the employer. These multipliers aren't just guidelines, they're non-negotiable.
Who Doesn't Qualify for OT Pay?
In accordance with the Labor Code, companies must pay employees for overtime work done beyond their eight-hour work days. However, some workers are exempt from overtime pay.
- Employed by the government, including workers at companies owned by the government
- A manager or employee who:
- Manage a department or branch of the company they work for.
- Managing more than one employee.
- Employees can be hired or fired, or their employment status can be changed.
- Personnel with the following responsibilities:
- Manage their employer's policies and procedures.
- Judgments are used to make decisions.
- Provide assistance to the business owner or manager in managing the company or a particular department.
- Performing tasks requiring special training, knowledge, or experience.
- They spend less than 20% of their working hours on activities other than the above duties.
- Individuals who work for someone else, including domestic helpers
- Workers who receive piece, takay, pakyaw, or task-based pay, as well as employees who do not work a full-time schedule, should be covered by applicable regulations.
- Employees who do not have regular working hours and work outside of their companies' locations
Do employers have the right to require OT work?
Overtime may be required by employers under Article 89 of the Labor Code:
- If there is a war or an emergency at home or abroad
- A calamity such as fire, flood, typhoon, or earthquake will cause life-threatening situations
- When employees need to conduct emergency repairs to prevent serious losses or damage to machines, installations, or equipment
- Whenever perishable goods are at risk of loss or damage
- Whenever employees need to prevent business interruptions
Workers must receive the additional compensation stipulated in the Labor Code in all of these cases.
What are the methods companies use to calculate overtime pay?
The following is a guide to calculating overtime pay for a worker if your company pays overtime.
Days of regular work
For each hour worked, calculate the employee's hourly pay. You can use this formula to calculate the employee's hourly pay:
Daily rate ÷ 8 hours = Hourly rate
You should be able to compute the hourly rate like this if the employee receives $800 per day:
₱800 ÷ 8 = ₱100
Calculate the hourly overtime rate using the following formula after you have the employee's hourly pay:
Hourly rate x 125% = Overtime hourly rate
To calculate the employee's hourly rate, multiply it by 100. You should have the following computation:
₱100 x 125% = ₱125 (₱100 x 1.25 = ₱125)
Calculate the overtime hourly rate using the following formula:
Overtime hourly rate x number of extra hours worked = pay with overtime pay
Our example overtime hourly rate is $99, so if Employee A works for three hours with an overtime rate of $99, we calculate their overtime pay as follows:
₱125 x 3 = ₱375
This formula can be used to calculate the total wage of the worker on a daily basis:
Pay with overtime pay + pay for ordinary hours = total daily wage
To calculate Employee A's regular pay, we add the ₱375 in overtime pay to the regular pay they currently receive:
₱375 + ₱800 = ₱1,175
A day of rest or a holiday that is not a working day
You've already heard that employees get 30% of their fixed hourly rate for working overtime on rest days and nonworking holidays. Use the formula below to calculate their OT pay during these times:
Hourly rate x 130% (1.3) x 130% (1.3) x number of hours worked
When Employee B works ₱100 hours a day, their OT pay would be calculated like this if they worked for two hours more on a non-working holiday:
₱100 x 130% x 130% x 2 = ₱338 (₱100 x 1.3 x 1.3 x 2 = ₱338)
Rest days that fall on non-working holidays should earn the employee 30% more than their hourly rate.
Therefore, overtime pay is calculated as follows:
Hourly rate x 150% (1.5) x 130% (1.3) x number of hours worked
A worker's hourly pay is increased by 50% by 150% in the formula above.
For our calculation, let's use our sample hourly rate and number of hours worked. The formula looks like this:
₱100 x 150% x 130% x 2 = ₱390 (₱100 x 1.5 x 1.3 x 2 = ₱390)
Holidays of regular duration
It is also common for companies to require some employees to work on regular holidays.
For regular holidays, overtime pay is 30% more than the employee's existing hourly rate. You can calculate overtime pay using the formula below:
Hourly rate x 200% (2) x 130% (1.3) x number of hours worked
The above overtime pay formula includes a 200% value that is added to the employee's regular holiday pay.
Here's another example to illustrate how the calculation works.
Based on the formula above, employee C earns ₱300 per hour worked on a regular holiday. When they work on a regular holiday, they render three hours of overtime.
₱300 x 200% x 130% x 3 = ₱2,340 (₱300 x 2 x 1.3 x 3 = ₱2,340)
The employee, however, gets 30% more of their hourly rate if they work overtime on a regular holiday that falls on their rest day. OT payments are calculated using the following formula:
Hourly rate x 200% (2) x 130% (1.3) x 130% (1.3) x number of hours worked
This is how your calculation should look:
₱300 x 200% x 130% x 130% x 3 = ₱3,042 (₱300 x 2 x 1.3 x 1.3 x 3 = ₱3,042)
Frequently Asked Questions About Overtime Pay
When calculating overtime pay, do I need to include the cost of living allowance?
Despite what the Bureau of Working Conditions states in its Handbook on Workers' Statutory Monetary Benefits, overtime pay computations do not include COLAs or additional expenses.
For employees who work night shifts, how do I compute overtime pay?
These rates are provided in the BWC's Handbook on Workers' Statutory Monetary Benefits:
- As a percentage of OT rendered on regular days during the night shift, 137.5% is paid
- The OT rate for night shifts on weekends and special non-working holidays is 185.9%
- Overtime rendered during regular holidays is 286%
Are employees allowed to work OT hours?
In several Philippine industries, workers are allowed only a certain number of hours per day.
There is no limit to the amount of time an employee can work (four to eight hours of overtime) depending on their tasks. However, companies that allow these working hours must ensure that the turn-around time is no longer than 12 hours.
Are overtime requirements part of Philippine labor laws?
Law doesn't require overtime work. However, companies may force their workers to work overtime during wartime, emergency situations, or life-threatening circumstances.
It is also possible for employees to work over eight hours to achieve favorable weather, especially if they work in an environment that is dependent on the weather.
Overtime is permissible for employees?
The general rule is that employees shouldn't request overtime if their employer doesn't assign them additional duties or certain circumstances don't require it.