Overtime pay questions, answered

On an ordinary working day, overtime pay is at least 125% of the basic hourly rate. With a ₱1,000 daily basic rate the hourly rate is ₱125, so each overtime hour is at least ₱156.25. How much overtime pay per hour in the Philippines depends on the day type: a rest-day overtime hour is 169% (₱211.25), and a regular-holiday overtime hour is 260% (₱325). Night differential adds another 10% for work between 10 p.m. and 6 a.m.

Divide the basic daily rate by eight to get the basic hourly rate, then multiply it by the overtime multiplier for the day. For a ₱1,000 daily rate: ₱1,000 ÷ 8 = ₱125, and ₱125 × 125% = ₱156.25 per overtime hour on an ordinary day. Use the applicable basic or regular wage under your contract, CBA, and payroll rules. Leave out unrelated reimbursements and non-wage benefits; some allowances may already be integrated into the wage base. The overtime rate per hour changes on rest days and holidays.

Overtime pay = basic hourly rate × overtime multiplier × overtime hours. The multiplier is 125% on an ordinary day, 169% on a rest day or special non-working day, 195% when a special day falls on a rest day, 260% on a regular holiday, and 338% when a regular holiday falls on a rest day. The calculator applies this overtime pay formula to every segment of the shift, then adds night differential.

On an ordinary working day, overtime is at least 125% of the hourly rate. On a rest day, special non-working day, or regular holiday, the overtime premium is at least 30% on top of the rate payable for the first eight hours. For example, overtime on a rest day is 130% × 130% = 169%.

On a scheduled rest day, the first eight hours are paid at 130% of the basic rate. Overtime on a rest day adds another 30% on top of that rest-day rate, so every overtime hour is 169%. With a ₱1,000 daily rate the rest-day overtime rate per hour is ₱125 × 169% = ₱211.25. If a special non-working day falls on a rest day, the rates are 150% and 195%.

The first eight hours on a regular holiday are paid at 200% of the basic rate. Holiday pay overtime adds 30% of that holiday rate, so every overtime hour is 260%. If the holiday also falls on the employee's rest day, the first eight hours are 260% and overtime is 338%. A double regular holiday reaches 300% for the first eight hours and 390% for overtime.

Count the paid hours above eight, then apply the multiplier for the day. A 10-hour ordinary shift has two overtime hours: the first eight hours are paid at 100%, and the two overtime hours at 125%. On a rest day, the first eight hours are 130% and the two overtime hours 169%. On a regular holiday, they are 200% and 260%. A paid break does not count toward the eight hours.

Night differential is an additional 10% for each hour worked between 10 p.m. and 6 a.m. It is based on the applicable rate for that hour, so it stacks with overtime and holiday premiums. Ordinary overtime at night, for example, is 125% × 110% = 137.5%.

Yes. It shows the total value of the worked day and the additional amount on top of the monthly salary. The default conversion uses the DOLE handbook's 365-day monthly-paid factor; change the divisor if your employer uses a different one. A monthly salary already covers the first eight hours of a normal day, so an ordinary eight-hour shift produces no extra pay; a rest day adds the 30% premium, and a regular holiday adds the 100% holiday premium.

Generally, no. Article 89 of the Labor Code identifies emergency and exceptional cases in which an employer may require overtime, such as urgent work on machinery, perishable goods, or a calamity. Outside those cases, overtime is generally voluntary. Whether declining overtime can lead to discipline depends on your contract, CBA, company rules, and the facts of the work, so treat this as a general guide rather than a rule for every workplace. Overtime that is worked is still paid at the statutory rate.

Overtime pay is part of your compensation, so it can be subject to income tax and withholding. The exact treatment depends on your tax status, your total income, and whether you are a minimum wage earner, so check the current BIR rules or ask your payroll team. This calculator shows gross statutory overtime pay only and does not compute tax, SSS, PhilHealth, or Pag-IBIG contributions.

As a noun or adjective for extra hours, the word is one word: overtime pay, overtime rate per hour, overtime computation. Over time is two words when it means gradually or across a period, as in pay improving over time. Payslips and DOLE issuances use overtime.

We did not identify an official DOLE overtime calculator in the sources reviewed. DOLE publishes formulas and guide computations in its Bureau of Working Conditions handbook and advisories instead. This free overtime calculator applies the same DOLE overtime computation: 125% on an ordinary day, 169% on a rest day, 195% when a special day falls on a rest day, 200% for the first eight hours of a regular holiday, and 260% for holiday overtime. The overtime pay computation DOLE publishes in its handbook uses these multipliers, applied to the basic rate.

No. The rest day is the day designated by the employer, which is often Sunday but not always. The 30% rest-day premium applies only when the employee works on their scheduled rest day.

Generally, no. The Labor Code's hours-of-work rules exclude managerial employees, field personnel whose time and performance are unsupervised, government employees, kasambahay, and certain other groups. Coverage is fact-specific, so this calculator is limited to rank-and-file private-sector employees.

No. It estimates pay for hours actually worked. Unworked regular holiday pay, special non-working day rules, absences, 13th month pay, and payroll deductions are outside its scope.