Overtime Pay: The Rates, and How They Compound
Department of Labor and Employment · benefits
Quick answer
Overtime on an ordinary day is your hourly rate plus at least 25%. On a rest day or holiday it is the rate for the first 8 hours on that day plus at least 30% of that rate, so the premiums multiply. Night work adds at least 10%.
Every figure on this page is from Official Gazette's own published documents.
Last verified 1 source, listed below
Presidential Decree No. 442, Labor Code of the Philippines1. PHGuides is independent and not affiliated with DOLE.
The Labor Code says “at least” in front of every percentage on this page. These are floors, not targets.
The rate for the first eight hours
Before overtime enters, the day type already sets a multiplier on your wage.
| Day | Multiplier on the daily wage | On ₱800.00 a day | Hourly |
|---|---|---|---|
| Ordinary day | 1.0 | ₱800.00 | ₱100.00 |
| Rest day, Article 93(a) | 1.3 | ₱1,040.00 | ₱130.00 |
| Special holiday, Article 93(c) | 1.3 | ₱1,040.00 | ₱130.00 |
| Special holiday on a rest day | 1.5 | ₱1,200.00 | ₱150.00 |
| Regular holiday, Article 94(b) | 2.0 | ₱1,600.00 | ₱200.00 |
A regular holiday is the only one that pays you for not working. Article 94(a) gives every worker the regular daily wage during regular holidays, except in retail and service establishments regularly employing fewer than 10 workers.
Overtime multiplies, it does not add
Article 87 is the provision people misread. Beyond 8 hours on an ordinary day, overtime is the regular wage plus at least 25%. On a holiday or rest day, it is the rate for the first eight hours on that day plus at least 30% of that rate.
The words “on a holiday or rest day” are what compound it. The 30% attaches to the premium rate, not to your ordinary one.
At a ₱800.00 daily wage, so ₱100.00 an hour, working 10 hours:
| Day | Overtime hourly | 2 hours of overtime | Day total |
|---|---|---|---|
| Ordinary day | ₱125.00 | ₱250.00 | ₱1,050.00 |
| Rest day | ₱169.00 | ₱338.00 | ₱1,378.00 |
| Special holiday | ₱169.00 | ₱338.00 | ₱1,378.00 |
| Special holiday on a rest day | ₱195.00 | ₱390.00 | ₱1,590.00 |
| Regular holiday | ₱260.00 | ₱520.00 | ₱2,120.00 |
Every figure is the output of the overtime pay calculator on the statutory minimum rates.
₱169.00 is 1.3 multiplied by 1.3, not 1.3 plus 0.25. Reading Article 87 as a flat 25% understates rest day overtime by ₱44.00 an hour, which across 2 hours is ₱88.00 a day.
The regular holiday case is the widest gap: ₱260.00 against the ₱125.00 an ordinary day would pay for the same hour, more than double.
Night work adds a third layer
Article 86 requires a night shift differential of not less than 10% of the regular wage for each hour worked between 10 PM and 6 AM.
It attaches to whatever that hour already earns, so it compounds with both the day premium and overtime. On an ordinary day at ₱800.00, working 10 hours with 4 night hours in regular time and 2 in overtime:
| Component | Amount |
|---|---|
| First 8 hours | ₱800.00 |
| 2 hours overtime at ₱125.00 | ₱250.00 |
| Night differential, 4 hours at 10% of ₱100.00 | ₱40.00 |
| Night differential, 2 hours at 10% of ₱125.00 | ₱25.00 |
| Total | ₱1,115.00 |
The two night figures differ because the overtime hours are already worth more. A night hour inside overtime earns ₱12.50 of differential where a night hour in regular time earns ₱10.00.
Undertime cannot be offset against overtime
Article 88 is one sentence and it settles a common payroll practice: undertime work on any particular day shall not be offset by overtime work on any other day.
The reason is arithmetic. An hour of undertime costs you ₱100.00 while an hour of overtime is worth ₱125.00, so trading one for the other at par quietly takes ₱25.00 off every exchange.
Sunday is not automatically a rest day
Article 93(a) entitles you to the additional compensation for Sunday work only when Sunday is your established rest day. Where the nature of the work allows no regular workdays or rest days, Article 93(b) gives the 30% for Sundays and holidays regardless.
What this page does not cover
It does not cover who is excluded. Article 82 removes government employees, managerial employees, field personnel, family members dependent on the employer, domestic helpers, persons in the personal service of another, and workers paid by results from this part of the Code entirely. The same exclusions are set out in the service incentive leave guide.
Overtime and these premiums are also excluded from the basic salary that 13th month pay is computed on, unless your contract or company practice folds them in. Anything still unpaid when you leave belongs in your final pay.
Where this goes wrong
Applying 25% to rest day overtime. The rate is at least 30%, and it is charged on the rest day rate, so ₱169.00 rather than ₱125.00.
Adding the premiums instead of multiplying them. A special holiday on a rest day is 1.5, not 1.3 plus 0.3 applied to the base.
Treating the night differential as a flat 10% of the ordinary wage. It is 10% of what that hour already earns, so it is larger during overtime.
Offsetting undertime against overtime. Article 88 prohibits it outright.
Assuming Sunday carries a premium. It does only where Sunday is your established rest day.
Reading the percentages as ceilings. Every one of them is prefaced with “at least” in the statute.
Related
The minimum wage guide carries the regional daily rate the hourly rate is derived from, and the 13th month pay guide covers the other statutory payment computed from basic salary.
Frequently asked questions
- How much is overtime pay?
- Article 87 sets it at your regular wage plus at least 25% for work beyond 8 hours on an ordinary day. On a holiday or rest day it is the rate for the first 8 hours on that day plus at least 30% of that rate, which is a higher figure in two ways at once.
- Why is rest day overtime so much higher than 25%?
- Because the 30% is charged on the already-premium rate, not on your ordinary rate. A ₱100.00 hourly wage becomes ₱130.00 on a rest day, and overtime on that day is ₱130.00 plus 30%, so ₱169.00. The premiums multiply rather than add.
- What is night shift differential?
- Article 86 requires at least 10% of your regular wage for each hour worked between 10 o'clock in the evening and 6 o'clock in the morning. It is separate from overtime and both can apply to the same hour.
- Can my employer offset my undertime against my overtime?
- No. Article 88 states that undertime work on any particular day shall not be offset by overtime work on any other day. The two are computed at different rates, so offsetting them would quietly reduce what you are owed.
- What do I get for working on a regular holiday?
- Twice your regular rate for the first 8 hours, under Article 94(b). On a ₱800.00 daily wage that is ₱1,600.00. Overtime beyond 8 hours on that day is that doubled rate plus at least 30%, so ₱260.00 an hour against an ordinary ₱125.00.
- What is the difference between a regular and a special holiday?
- A regular holiday pays your regular daily wage even if you do not work, and twice the rate if you do. A special holiday carries an additional 30% for work performed, rising to 50% where it falls on your scheduled rest day. Article 94(c) lists the regular holidays.
- Do these rates apply to everyone?
- No. Article 82 removes several categories from this part of the Labor Code, including government employees, managerial employees, field personnel, and workers paid by results. The same exclusions that limit service incentive leave limit these premiums.
- Are these rates a maximum?
- They are minimums. The Labor Code says 'at least' throughout, so a contract, company practice or collective agreement may pay more but never less.