Find the hourly rate and identify the day
| Overtime worked on | Multiplier on ordinary hourly basic rate |
|---|---|
| Ordinary workday | 1.25 |
| Rest day or special non-working day | 1.30 × 1.30 = 1.69 |
| Special non-working day that is also a rest day | 1.50 × 1.30 = 1.95 |
| Regular holiday | 2.00 × 1.30 = 2.60 |
| Regular holiday that is also a rest day | 2.00 × 1.30 × 1.30 = 3.38 |
Use the payroll hourly basic rate as the starting point. If you have a daily basic wage for an eight-hour day, divide that daily wage by eight. A monthly salary needs the employer's applicable payroll divisor first. Dividing every monthly salary by 26 would give the wrong answer for some arrangements.
Example: two extra hours after an eight-hour shift
Two overtime hours at a ₱100 basic hourly rate
Two ordinary-day overtime hours are paid at ₱125 per hour. This is the payment for those two overtime hours, including their basic-hour component.
₱100 × 1.25 × 2 = ₱250
On a rest day, the same two overtime hours would be ₱100 × 1.30 × 1.30 × 2 = ₱338. Add the separately calculated first eight hours when checking the full day's pay. Do not add the overtime hours' basic pay again.
Check whether the overtime rules cover your role
The Labor Code's hours-of-work provisions exclude categories including managerial employees and qualifying field personnel. The legal tests concern actual duties and supervision. A title such as "supervisor" does not resolve the question on its own.
Record your duties, who sets your hours and how attendance is monitored. If payroll says you are exempt, request the specific basis. Domestic work and government employment require their own rules.
Compare the timesheet with the payslip
Keep overtime approvals and attendance records together. A shift crossing midnight may span two kinds of day, so a single multiplier for the whole shift can conceal an error.
- Separate ordinary days, rest days, special non-working days and regular holidays.
- Check actual compensable hours and the employer's record of overtime worked.
- Separate hours inside the 10 p.m. to 6 a.m. night-differential window.
- Match the payslip's hourly rate and multiplier to each group of hours.
Can undertime cancel overtime?
The Labor Code prohibits offsetting undertime on one day against overtime on another day. Check whether payroll has reduced recorded overtime because you arrived late or worked fewer hours on a different date.
Valid compressed-workweek arrangements raise a different question about scheduled hours. Ask for the arrangement and applicable guidance before assuming every ninth scheduled hour is overtime.
Sources
- DOLE: Book III, Conditions of EmploymentArticles 82, 86 to 88 and 95
- DOLE: Labor Day 2026 pay rules under Labor Advisory 12-25Release dated 29 April 2026 applying Labor Advisory 12-25 and Proclamation 1006 (2026 holidays): regular holiday, rest day and overtime computations
- DOLE Handbook on Workers' Statutory Monetary Benefits, 2024Coverage chart, guide computations table and chapters on holiday, premium, overtime, night shift, service charge, leave, 13th-month, separation and retirement pay; 2024 edition
General educational information. Eligibility, company agreements and the facts of a dispute can change the answer. This guide has not been reviewed by a Philippine labor lawyer. Ask DOLE or a qualified professional about a contested entitlement.