How to Compute Overtime Pay in the Philippines
Labor Code Art. 87 & 93 + the DOLE Handbook on Workers' Statutory Monetary Benefits, translated into numbers you can check against your payslip.
Standards: This guide explains statutory formulas using published government tables (DOLE Handbook; Labor Code Arts. 87 & 93). It is general information, not legal or payroll advice. Your payslip, HR computation, or DOLE assessment always wins over any number here. Last updated: .
Overtime in the Philippines is not one rate — it is five, depending on which kind of day you worked the extra hours. Once you know the day type, every figure falls out of two numbers: your hourly rate and the multiplier.
Step 1 — Find your hourly rate
Hourly rate = daily basic salary ÷ 8. If you only know your monthly rate, divide by 22 working days first (that's the convention most payroll systems use). At the current NCR non-agricultural minimum of ₱755/day (Wage Order NCR-27, effective 25 July 2026), the hourly rate is ₱94.375. We'll use that number for every example below so you can compare day types directly.
Step 2 — Know your day type
| Day type | First 8 hours | Each OT hour beyond 8 |
|---|---|---|
| Ordinary working day | 100% | 125% |
| Rest day or special non-working day (worked) | 130% | 169% |
| Regular holiday (worked) | 200% | 260% |
| Regular holiday falling on rest day | 260% | 338% |
The odd-looking percentages are just multiplication. The DOLE Handbook prices an OT hour as "+30% of the hourly rate on said day" — so a rest-day OT hour is 130% × 130% = 169%, and a regular-holiday OT hour is 200% × 130% = 260%. On an ordinary day Art. 87 sets the OT hour at "not less than 25%" over the regular wage, i.e., 125%.
Step 3 — Worked examples (₱94.375/hour, 2 hours OT)
- Ordinary Tuesday: base 8 × ₱94.375 = ₱755.00, plus 2 × 125% × ₱94.375 = ₱235.94 → ₱990.94 for the day.
- Sunday (rest day): base 8 × 130% = ₱981.50, plus 2 × 169% × ₱94.375 = ₱318.99 → ₱1,300.49.
- Regular holiday, worked: base 8 × 200% = ₱1,510.00, plus 2 × 260% × ₱94.375 = ₱490.75 → ₱2,000.75. (And if unworked, you still receive the 200% — ₱1,510.)
- Regular holiday on your rest day: base 8 × 260% = ₱1,963.00, plus 2 × 338% × ₱94.375 = ₱637.98 → ₱2,600.97.
Every one of these figures reproduces exactly in our overtime & night differential calculator — pick the day type, enter your rate and hours.
Night differential (10 PM – 6 AM)
Art. 86 grants a night shift differential of 10% for hours worked between 10 PM and 6 AM. Two things trip people up:
- The premium sits on top of whatever that hour earns. A regular night hour on an ordinary day adds 10% × ₱94.375 = ₱9.44; two such hours add ₱18.88 to the day.
- OT hours at night earn ND too. Payroll practice commonly computes the 10% on the full premium-inclusive OT rate — e.g., a rest-day OT hour at 169% earns ND of 10% × 169% × ₱94.375 = ₱15.95 for that hour. That is the method our calculator uses; some employers compute ND on basic rate only. If your payslip disagrees with the higher figure, ask HR which convention they applied — both appear in practice.
The mistakes we see on real payslips
- Paying holiday OT at flat +30% of basic. On a regular holiday that underpays each OT hour by a full 60 percentage points (130% instead of 260%).
- Paying rest-day work at plain 100% for the first 8 hours. The 30% applies to all hours worked that day, not just hours past eight.
- Treating special non-working days like regular holidays (they're cheaper: 130%, and unpaid if not worked), or forgetting EDSA anniversary Feb 25 is a special working day — no premium at all.
- Pro-rating OT from monthly salary ÷ 30. Use daily ÷ 8; dividing monthly by 30 understates the hourly rate.
What this guide does not cover
Collective bargaining agreements and company policy may grant more generous terms than these statutory minimums — if your CBA says 200% for Saturday work, the CBA wins. Compressed work weeks, flexi-time and telework arrangements change which hours count as OT. And where a company's ND convention differs (basic-rate vs premium-inclusive), both readings exist in practice; this site uses the worker-favorable one and labels it as such. For disputes, the reference is always DOLE's Handbook and, ultimately, a DOLE assessment.
Update log
2026-08-22 — Published. Multipliers per DOLE Handbook; examples match the calculator's test suite exactly.