1. What Is The OT Pay Calculation?

The OT Pay calculation determines the additional compensation for overtime work in the Philippines, following the national standard rate of 1.25 times the regular hourly rate for overtime hours.

2. How Does The Calculator Work?

The calculator uses the OT Pay formula:

Where:

• \( Hourly\ Rate \) — Regular hourly wage in PHP
• \( 1.25 \) — Overtime multiplier as per Philippine labor laws
• \( OT\ Hours \) — Number of overtime hours worked

Explanation: This calculation follows the Philippine Labor Code which mandates that overtime work should be paid at 125% of the regular hourly rate.

3. Importance Of OT Pay Calculation

Details: Accurate OT pay calculation ensures compliance with Philippine labor laws, protects workers' rights, and helps employers properly compensate employees for extra work hours.

4. Using The Calculator

Tips: Enter your regular hourly rate in PHP and the number of overtime hours worked. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the standard overtime rate in the Philippines?
A: The standard overtime rate is 125% of the regular hourly rate for work performed beyond 8 hours a day.

Q2: Are there different overtime rates for holidays or rest days?
A: Yes, work on rest days, special days, or regular holidays has different premium rates as specified in the Labor Code.

Q3: Is night shift differential included in overtime calculation?
A: Night shift differential (additional 10% of hourly rate) is separate and should be added to the overtime calculation for work between 10PM-6AM.

Q4: Are all employees entitled to overtime pay?
A: Most rank-and-file employees are entitled to overtime pay, but some managerial employees may be exempt under certain conditions.

Q5: How is overtime calculated for monthly-paid employees?
A: For monthly-paid employees, the hourly rate is derived by dividing the monthly rate by the factor 21.67 (average working days) then by 8 (hours per day).