1. What is OT Pay Calculation?

OT Pay calculation determines the additional compensation employees receive for working beyond their regular hours. In the Philippines, overtime is typically paid at 125% of the regular hourly rate.

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 (125% of regular rate)
• \( OT\ Hours \) — Number of overtime hours worked

Explanation: The calculation multiplies the regular hourly rate by 1.25 (representing 125% pay) and then multiplies by the number of overtime hours worked.

3. Importance of OT Pay Calculation

Details: Accurate OT pay calculation ensures employees receive proper compensation for extra hours worked and helps employers comply with Philippine labor laws regarding overtime pay.

4. Using the Calculator

Tips: Enter the 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 in a day.

Q2: Are there different overtime rates for holidays or rest days?
A: Yes, work on rest days, special days, or regular holidays typically has higher overtime rates (130% to 200% of regular rate).

Q3: Is night shift differential included in overtime calculation?
A: Night shift differential (additional 10% of hourly rate) is separate from overtime pay and should be calculated additionally if applicable.

Q4: How are overtime hours typically recorded?
A: Overtime hours should be properly documented through time records, overtime authorization forms, or company timekeeping systems.

Q5: 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 as per Philippine labor laws.