Overtime pay in the Philippines is your hourly rate (daily rate ÷ 8) times 1.25 on an ordinary day, 1.69 on a rest day, or 2.60 on a regular holiday, per Labor Code Article 87.
By the Orkids payroll engineering team · Reviewed against Labor Code Articles 86, 87, 93 & 94 (PD 442), the DOLE Handbook on Workers' Statutory Monetary Benefits (2024 ed.) and DOLE Labor Advisory No. 12-25 · Updated June 2026
Your overtime pay
₱0.00
= hourly rate (₱0.00, your daily rate ÷ 8) × 1.25 (hourly × 1.25) × 2 hours.
The hourly rate is your daily rate divided by 8 ordinary working hours. On a rest day or special non-working day, the hourly is first raised by 30% before the 30% overtime premium applies; on a regular holiday it is doubled first. Night-shift differential, if any, is added on top. Estimate only — confirm with DOLE.
How is overtime pay computed?
Overtime pay is your hourly rate multiplied by an overtime factor, multiplied by the hours worked beyond eight. Your hourly rate is your daily rate divided by 8.
Labor Code Article 87 sets the overtime premium at an additional 25% of the hourly rate on an ordinary working day, and an additional 30% on a rest day, special non-working day, or holiday. The premium stacks on top of the day's base hourly rate, which is itself higher on rest days and holidays.
| Day type | OT factor | Hourly (₱800/day) | 2 OT hours |
|---|---|---|---|
| Ordinary working day | × 1.25 | ₱100 | ₱250 |
| Rest day / special day | × 1.69 | ₱100 | ₱338 |
| Regular holiday | × 2.60 | ₱100 | ₱520 |
What is the overtime rate on a rest day or special day?
On a rest day or special non-working day, overtime is paid at 1.69 times your ordinary hourly rate.
The day's base hourly rate is first raised by 30% (×1.30) because the whole day is premium-paid. The 30% overtime premium then applies to that higher hourly rate (×1.30 again), so the combined overtime factor is 1.30 × 1.30 = 1.69 of your ordinary hourly rate.
What is the overtime rate on a regular holiday?
On a regular holiday, overtime is paid at 2.60 times your ordinary hourly rate.
A regular holiday is double-pay, so the day's base hourly rate is first doubled (×2.00). The 30% overtime premium then applies on top (×1.30), giving an overtime factor of 2.00 × 1.30 = 2.60 of your ordinary hourly rate.
Who is entitled to overtime pay?
Rank-and-file employees who work beyond eight hours in a day are entitled to overtime pay under Labor Code Article 87.
Labor Code Article 82 exempts managerial employees, field personnel, members of the employer's family who depend on the employer for support, domestic helpers, and workers paid by results. The Department of Labor and Employment (DOLE) administers these provisions through its regional offices.
The full DOLE overtime and premium-pay matrix
The page already covers ordinary days, plain rest days, and plain regular holidays. This is the complete Department of Labor and Employment (DOLE) matrix, including the rest-day combinations and double holidays that catch most payroll runs. The first-8-hours column is the rate you owe even before overtime; the OT-hour column already includes the +30% overtime premium on the day's enhanced hourly rate. All figures are a percentage of the ordinary hourly rate (daily rate ÷ 8).
| Day type worked | First 8 hours | Each OT hour | OT factor (×) |
|---|---|---|---|
| Ordinary working day | 100% | 125% | 1.25 |
| Rest day OR special non-working day | 130% | 169% | 1.69 |
| Special non-working day that is also a rest day | 150% | 195% | 1.95 |
| Regular holiday | 200% | 260% | 2.60 |
| Regular holiday that is also a rest day | 260% | 338% | 3.38 |
| Double regular holiday (two regular holidays on one date) | 300% | 390% | 3.90 |
| Double regular holiday that is also a rest day | 390% | 507% | 5.07 |
Each OT hour = the first-8-hours rate × 130% (the Article 87 overtime premium for a rest day or holiday is +30%, not +25%). Night-shift differential of +10% (Article 86) is added on top of whichever figure applies for hours worked between 10 p.m. and 6 a.m. — multiply the relevant OT factor by 1.10. Sources: Labor Code Arts. 87, 93, 94; DOLE Handbook on Workers' Statutory Monetary Benefits (2024 ed.); DOLE Labor Advisory No. 12-25.
Overtime pay — frequently asked questions
- How is overtime pay computed in the Philippines?
- Overtime pay is your hourly rate times an overtime multiplier, times the hours worked beyond eight. The hourly rate is your daily rate divided by 8. On an ordinary working day the multiplier is 1.25.
- What is the overtime rate on a rest day or special non-working day?
- On a rest day or special non-working day the hourly rate is first increased by 30%, then the 30% overtime premium applies. The combined factor is 1.30 × 1.30 = 1.69 times the ordinary hourly rate.
- What is the overtime rate on a regular holiday?
- On a regular holiday the hourly rate is first doubled (×2.00), then the 30% overtime premium applies. The overtime factor is 2.00 × 1.30 = 2.60 times the ordinary hourly rate.
- When does overtime start under the Labor Code?
- Overtime is work rendered beyond eight hours in a workday. Labor Code Article 87 entitles the employee to an additional 25% of the hourly rate on an ordinary day, and 30% on a rest day, special day, or holiday.
- How do I find my hourly rate from a daily rate?
- Divide your daily rate by 8, the normal hours of work in a day. A worker paid ₱800 per day has an hourly rate of ₱100. Overtime is then computed on that ₱100 hourly rate.
- Are managers entitled to overtime pay?
- Managerial employees and other workers exempt under Labor Code Article 82 — such as field personnel and members of the employer's family — are not entitled to overtime pay under the Labor Code.
- Is night-shift differential included in overtime pay?
- No. Night-shift differential (10% of the hourly rate for work between 10 p.m. and 6 a.m.) is a separate premium under Article 86. If overtime falls within those hours, both are added on top of each other.
- How do overtime and night-shift differential combine on a regular holiday?
- Apply each premium in turn to the ordinary hourly rate: regular holiday (×2.00), then the overtime premium (×1.30), then the night-shift differential (×1.10). The combined factor is 2.00 × 1.30 × 1.10 = 2.86 of the ordinary hourly rate for each overtime hour worked between 10 p.m. and 6 a.m.
- What is the overtime rate when a regular holiday also falls on the employee's rest day?
- The first eight hours are paid at 260% (200% holiday plus a 30% rest-day premium on that 200%). Overtime then adds the 30% overtime premium, so each overtime hour is 260% × 1.30 = 338% of the ordinary hourly rate, per Labor Code Arts. 87, 93 and 94.
Key terms
- Premium pay.
- The additional compensation under Labor Code Arts. 93–94 for work on a rest day, special non-working day, or holiday — paid even within the first eight hours, separate from overtime.
- Overtime pay.
- Compensation under Labor Code Art. 87 for work beyond eight hours: +25% of the hourly rate on an ordinary day, +30% on a rest day, special day, or holiday.
- Night-shift differential (NSD).
- An extra 10% of the hourly rate under Labor Code Art. 86 for each hour worked between 10:00 p.m. and 6:00 a.m. It stacks on top of overtime and holiday rates.
- Regular holiday.
- A nationwide holiday under the Administrative Code (e.g. New Year's Day, Independence Day) paid at 100% even if unworked and 200% if worked — the 'double pay' days.
- Special non-working day.
- A 'no work, no pay' day (e.g. Ninoy Aquino Day, All Saints' Day): nothing is owed if unworked, but work earns a +30% premium for the first eight hours.
- Double holiday.
- Two regular holidays falling on one calendar date (e.g. Araw ng Kagitingan coinciding with Maundy Thursday): 200% if unworked, 300% if worked for the first eight hours.
- Rest day.
- The employee's scheduled day of rest (at least 24 consecutive hours per week under Art. 91); work on it earns a +30% premium under Art. 93.
Sources
- Labor Code of the Philippines (Presidential Decree No. 442), Article 87 — Overtime Work.
- Labor Code, Article 82 — Coverage and exemptions (managerial employees, field personnel).
- Labor Code, Article 83 — Normal hours of work (eight hours).
- Department of Labor and Employment (DOLE) — Handbook on Workers' Statutory Monetary Benefits.
- Estimates are for guidance only. Confirm your computation with DOLE.
Last reviewed: June 2026
Computing overtime by hand every payroll run?
Orkids builds custom payroll systems that compute overtime, night-shift differential, holiday pay, SSS, PhilHealth, Pag-IBIG, and BIR 2316 automatically — owned by your company, with no per-employee subscription.
See custom payroll →