1. What is Overtime Pay in the Philippines?

In the Philippines, overtime pay is additional compensation for work performed beyond the regular eight hours. According to labor laws, overtime work is paid at 125% of the regular hourly rate.

2. How Does the Calculator Work?

The calculator uses the overtime pay formula:

Where:

• \( Hourly\ Rate \) — Regular hourly wage in Philippine Pesos
• \( 1.25 \) — Overtime multiplier (125% of regular rate)
• \( OT\ Hours \) — Number of overtime hours worked

Explanation: The formula calculates the additional compensation for hours worked beyond the regular work schedule as mandated by Philippine labor laws.

3. Importance of Overtime Pay Calculation

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

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: Is overtime pay mandatory in the Philippines?
A: Yes, according to the Labor Code of the Philippines, employees who work beyond 8 hours are entitled to overtime pay.

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

Q3: Is there a limit to overtime hours?
A: The Labor Code allows a maximum of 12 hours of overtime work per day, including the regular 8 hours.

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 as per Department of Labor and Employment guidelines.

Q5: How is the hourly rate calculated for monthly-paid employees?
A: For monthly-paid employees, the hourly rate is typically calculated as (Monthly Basic Pay × 12) ÷ (52 weeks × 40 hours).