Labor Pay
Overtime pay in the Philippines, explained with examples
Overtime is not one universal multiplier. The correct estimate depends on the worker’s coverage, hourly base, day classification, and whether the hours also fall at night.
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Published September 3, 2026 · Updated September 3, 2026 · Sources checked September 3, 2026
Overtime begins after normal working hours for covered workers
For a covered employee, work beyond eight hours in a day generally earns an additional overtime premium. The rate depends on the kind of day. Ordinary-day overtime uses a different multiplier from overtime on a rest day, special day, or regular holiday.
Coverage must be checked before arithmetic. Managerial employees, certain field personnel, government employees, and other categories may be governed differently or excluded from particular Labor Code provisions. A job title alone may not answer the legal classification.
Find the hourly base before applying a multiplier
If the employer states an hourly rate, confirm which pay components it includes. If starting from a monthly salary, the daily or hourly equivalent depends on the valid divisor for the work arrangement. An incorrect divisor will affect ordinary overtime, holiday pay, and night differential at the same time.
Kasyafi lets the user supply salary and schedule context, but it cannot determine the legally or contractually correct divisor from a public form. Compare the assumed rate with the employer’s written computation.
- Confirm the employee is covered by the overtime rule.
- Confirm the regular workday and the hours beyond it.
- Use the correct daily or hourly rate and divisor.
- Classify the calendar day before choosing the multiplier.
Day type changes the overtime multiplier
The table below shows common statutory multipliers reflected in the current Kasyafi engine. It is a calculation guide, not a substitute for checking the current DOLE advisory and the worker’s exact circumstances.
| Day type | First 8 hours if worked | Overtime-hour multiplier |
|---|---|---|
| Ordinary workday | 100% | 125% of ordinary hourly rate |
| Rest day or special non-working day | 130% | 169% (130% × 130%) |
| Special day on rest day | 150% | 195% (150% × 130%) |
| Regular holiday | 200% | 260% (200% × 130%) |
| Regular holiday on rest day | 260% | 338% (260% × 130%) |
Ordinary-day worked example
Assume a covered employee’s verified ordinary hourly rate is ₱150 and two hours are worked beyond eight on an ordinary day. Estimated overtime pay is ₱150 × 125% × 2 = ₱375. This is the compensation for the overtime hours, not merely a 25% add-on detached from the base pay for those hours.
If payroll instead shows ₱300, ask whether it paid only the ordinary hourly component elsewhere or used a different verified base. Reconcile all earning lines before declaring the ₱75 premium missing.
Rest-day and holiday overtime compounds the day premium
On a rest day or special non-working day, the overtime rate builds on the premium rate for the first eight hours. The common 169% figure is 130% multiplied by the additional 130% overtime factor. A regular-holiday overtime rate similarly builds on the 200% holiday rate.
Do not add percentage labels casually. Multiplying the correct factors and applying them to the same hourly base prevents the frequent mistake of adding 30 percentage points where the rule applies 30% to an already premium-adjusted rate.
Night work can overlap overtime
Overtime hours that fall between 10 p.m. and 6 a.m. can also earn a night differential for a covered employee. The night premium is applied to the applicable effective rate for the day and overtime context, so it should not be estimated as 10% of an unrelated ordinary-day amount.
Record exact start, end, and break times. If only part of an overtime block is inside the night window, only that part receives the night differential.
What to check on a payslip
Match approved time records to the payroll cutoff, then reconcile hourly base, day type, overtime hours, multiplier, and any overlapping night premium. Company policy or a collective agreement may pay more than the statutory floor, so use the more favorable valid term when it applies.
- Covered employee classification
- Approved hours beyond the normal workday
- Correct ordinary/rest/special/regular-holiday classification
- Verified hourly base and divisor
- Separate night-window hours and breaks
Last verified September 3, 2026. Rules and program details can change; confirm the current terms with the listed official source.
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Questions people ask next
Is all overtime paid at 125%?
No. The 125% ordinary-day rate is only one scenario. Rest days, special days, and regular holidays use different premium bases and overtime multipliers.
Can overtime also receive night differential?
Covered overtime hours inside the 10 p.m. to 6 a.m. window can also receive the applicable night premium. Use exact times and the effective day/overtime rate.
Does monthly salary automatically determine the hourly rate?
An hourly equivalent requires the correct work schedule and divisor. Confirm the employer’s valid divisor and covered pay components before comparing results.
Official sources and further reading
Use the primary source when a rate, eligibility rule, deadline, or provider-specific calculation affects your decision.
Related guides
Night differential pay in the Philippines, explained
Night differential applies to covered work inside a defined night window. Exact timestamps, breaks, day type, and overtime status matter more than the shift label.
Holiday pay in the Philippines, explained
“Holiday pay” is not one rate. First identify the official day type, whether it is also a rest day, whether work was performed, and whether the employee is covered.
How to read a Philippine payslip, line by line
A payslip is a reconciliation, not just a net-pay number. Trace earnings, statutory deductions, tax, and employer-specific items in an order that makes errors easier to spot.
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