What Counts as Overtime?
Under the Labor Code of the Philippines, overtime work is work performed beyond eight (8) hours in a day, unless your contract or a valid compressed workweek arrangement defines hours differently (still subject to rules and DOLE advisories).
Employers must pay at least the overtime rates summarized below for covered employees. Actual pay rules depend on your contract, CBA, and company policy — always compare with your payslip and HR.
Core Premium Rates (Typical Framework)
For each hour of overtime on an ordinary day, the law commonly cited premium is 125% of the hourly rate (often expressed as hourly × 1.25). Rates increase on rest days, special holidays, and regular holidays — combinations can stack to higher multipliers.
Your hourly rate is usually derived from daily rate ÷ 8, or monthly ÷ (days × 8), depending on how payroll defines “daily” or “monthly” equivalents.
Rest Days, Holidays, and “OT on Top”
When you work on a rest day or holiday, you may be entitled to a higher daily rate first, plus overtime if you exceed 8 hours. That is why payslips show different codes for “RD,” “SH,” “LH,” and “OT.”
| Situation | You’ll often see… |
|---|---|
| Ordinary day, beyond 8h | OT at 125% (typical) |
| Rest day / special holiday | Higher base + OT rules per table |
| Regular holiday | Higher base + OT rules per table |
Exact factors vary; use your employer’s DOLE-compliant pay matrix as the source of truth.
Night Shift Differential
If you work between 10:00 p.m. and 6:00 a.m., many setups apply night differential (often 10% of the hourly rate for those hours — verify with DOLE issuances and your policy). It is separate from overtime but can apply on the same hours if conditions are met.
Checklist Before You Dispute a Payslip
1. Confirm your classification (monthly, daily, hourly) and how HR derives the hourly rate.
2. Match date and day type (ordinary vs rest vs holiday) to the correct multiplier.
3. Check whether meal breaks and rounding rules are applied consistently.
4. Ask HR for the payroll policy or CBA article that defines premiums.
Use Our Overtime Calculator
Model scenarios quickly with the Overtime Pay Calculator. Pair it with the Salary Calculator if you need net pay after contributions and tax.
Disclaimer
Labor rules, regional orders, and CBAs change. This article is general education, not legal advice. For disputes, contact DOLE or a qualified labor lawyer.