Understanding how to compute overtime pay in the Philippines is essential for both employees and employers. This quick guide simplifies the process, ensuring compliance with labor laws.
- Regular Overtime: To compute, multiply the hourly rate by 1.25.
- Rest Day Overtime: Multiply the hourly rate by 1.30 for work done on rest days or special holidays.
- Regular Holiday Overtime: Multiply the hourly rate by 2, then by 1.30 for overtime work on regular holidays.
- Night Shift Differential (10 PM – 6 AM): Add an extra 10% to your regular or overtime pay.
| Description | Multiplier |
|---|---|
| Regular Overtime | 1.25 |
| Rest Day Overtime | 1.30 |
| Regular Holiday Overtime | 2 x 1.30 |
| Night Shift Differential | +10% |