Overtime pay in the Philippines is additional pay for work beyond eight hours. The percentage depends on whether those extra hours fell on an ordinary workday, a rest day, a special non-working day, a regular holiday, or a combination of those day types. Night hours inside 10:00 p.m. to 6:00 a.m. add another increment. Payroll cannot apply any of those percentages correctly unless timekeeping has already classified the day and measured the hours.
This article was last reviewed in September 2026 against the Labor Code and the DOLE / BWC / NWPC 2024 Handbook on Workers’ Statutory Monetary Benefits. Handbook editions can change. Use the current official tables for production payroll, and get professional advice for disputes or unusual arrangements.
TimeBoxHR is designed to support configurable payroll rules so overtime, night differential, and holiday premiums can be applied from reviewed daily time records rather than a side workbook.
The sections below walk through ordinary overtime with a peso example, rest-day and holiday overtime using the 2024 handbook equivalents, night-plus-overtime, authorization records, and where overtime tracking usually breaks.
Ordinary overtime on a regular workday
For work beyond eight hours on an ordinary workday, the 2024 handbook lists overtime at 125% of the hourly rate (the regular hourly wage plus 25%).
The hourly rate itself depends on how the employee is paid. Daily-paid and monthly-paid employees use different conversion paths. Common monthly-to-daily factors in practice include 365, 313, 261, 26, and 22. None of those factors is a universally required national divisor. Actual payroll depends on company policy, employee classification, the contract or CBA, the work schedule, and current government rules. See how to compute daily and hourly rates and monthly-paid versus daily-paid employees.
Ordinary overtime assumes:
- The day is a regular workday, not the employee’s rest day
- The day is not a regular holiday or special non-working day
- The hours counted as overtime are hours actually worked beyond eight
Undertime on another day does not automatically offset overtime unless a lawful, documented arrangement applies. Offsetting is a frequent source of disputes. Treat it as a policy and legal question, not as a silent payroll convenience.
Worked example: ordinary overtime
Assume a documented daily rate of ₱800 and an eight-hour workday, so the hourly rate is ₱100.
The employee works two hours beyond eight on an ordinary workday.
| Item | Amount |
|---|---|
| Daily rate | ₱800 |
| Hourly rate (₱800 ÷ 8) | ₱100 |
| Ordinary OT rate (125%) | ₱125 per hour |
| OT hours | 2 |
| Ordinary OT pay | ₱125 × 2 = ₱250 |
Those two hours are not already inside the ₱800 daily wage. The ₱250 is additional earnings for that date.
2024 handbook first-eight-hours and overtime equivalents
The figures below are the first-eight-hours and overtime equivalents published in the DOLE / BWC / NWPC 2024 Handbook on Workers’ Statutory Monetary Benefits. They are handbook rates, not a substitute for the current edition, a proclamation, a CBA, or legal advice. Later editions can change the tables.
| Day type | First 8 hours | Overtime beyond 8 hours |
|---|---|---|
| Ordinary working day | 100% | 125% |
| Rest day | 130% | 169% |
| Special non-working day | 130% | 169% |
| Special non-working day + rest day | 150% | 195% |
| Regular holiday | 200% | 260% |
| Regular holiday + rest day | 260% | 338% |
Night work is a separate multiplier: at least × 1.10 on the applicable hourly rate for hours between 10:00 p.m. and 6:00 a.m. The 2024 handbook states ordinary night overtime at 137.5% (125% × 1.10). Rest-day, special-day, and holiday night overtime use the same 1.10 multiplier on the already-premium overtime rate.
A special working day is typically treated as an ordinary working day for pay unless a proclamation or company policy says otherwise. Do not encode it as a special non-working day.
Rest-day overtime
The first eight hours of work on a rest day are already paid at a premium. The 2024 handbook lists 130% for those eight hours. Hours beyond eight are rest-day overtime at 169% of the hourly rate, not ordinary 125%.
Using the same ₱800 daily / ₱100 hourly figures, an employee who works 10 hours on a rest day:
| Component | Computation | Pay |
|---|---|---|
| First 8 hours (130%) | ₱800 × 130% | ₱1,040 |
| 2 hours rest-day OT (169%) | 2 × ₱100 × 169% | ₱338 |
| Total for the date | ₱1,378 |
If payroll instead paid ₱800 + (2 × ₱125) = ₱1,050, the rest-day first-eight-hours premium and the rest-day OT stack would both be wrong. Operational rules for the first eight hours are in rest-day pay. Overtime is the extra increment after eight hours.
Special non-working days use the same 130% / 169% pair in the 2024 handbook when the day is not also a rest day. Special non-working plus rest day is higher: 150% / 195%.
| Component (special + rest, 10 hours) | Computation | Pay |
|---|---|---|
| First 8 hours (150%) | ₱800 × 150% | ₱1,200 |
| 2 hours OT (195%) | 2 × ₱100 × 195% | ₱390 |
| Total for the date | ₱1,590 |
Holiday overtime and holiday plus rest day
If the employee works on a regular holiday, the 2024 handbook lists 200% for the first eight hours and 260% for overtime beyond eight.
Same ₱800 / ₱100 base, 10 hours on a regular holiday that is not also the employee’s rest day:
| Component | Computation | Pay |
|---|---|---|
| First 8 hours (200%) | ₱800 × 200% | ₱1,600 |
| 2 hours holiday OT (260%) | 2 × ₱100 × 260% | ₱520 |
| Total for the date | ₱2,120 |
When the regular holiday is also the employee’s rest day, the handbook lists 260% for the first eight hours and 338% for overtime.
| Component (regular holiday + rest, 10 hours) | Computation | Pay |
|---|---|---|
| First 8 hours (260%) | ₱800 × 260% | ₱2,080 |
| 2 hours OT (338%) | 2 × ₱100 × 338% | ₱676 |
| Total for the date | ₱2,756 |
A twelve-hour holiday shift is not eight hours at 200% plus four hours at ordinary 125%. Classify the extra hours as holiday overtime and use the handbook stack. Holiday pay covers unworked holidays, special working days, and the preceding-workday condition.
Night hours during overtime
Work between 10:00 p.m. and 6:00 a.m. is subject to night differential of at least 10% of the regular wage (Labor Code Article 86). Overtime that falls inside that window is therefore not only an overtime problem.
On an ordinary workday, the 2024 handbook’s ordinary night OT equivalent is 137.5% of the hourly rate.
Same ₱100 hourly rate, two ordinary night OT hours:
| Item | Computation | Pay |
|---|---|---|
| Ordinary night OT rate | ₱100 × 137.5% | ₱137.50 per hour |
| 2 night OT hours | 2 × ₱137.50 | ₱275 |
If those two hours had been ordinary OT only (125%), pay would have been ₱250. The extra ₱25 is the night increment on the OT hours (2 × ₱100 × 125% × 10%).
Timekeeping must split hours that cross 10:00 p.m. or 6:00 a.m. Payroll must then apply night differential and overtime according to the handbook, not according to whichever premium is easier to encode. See night differential in the Philippines for the window and recordkeeping.
Simplify overtime pay with TimeBoxHR
TimeBoxHR records overtime requests against daily time records captured through DTR scanning or geofenced mobile attendance. Configurable statutory pay can include night differential and holiday premiums once the day type and approved hours are on the same DTR. That is a rules-and-records workflow, not a promise that every exemption or CBA stack is decided for you.
Authorization, policy, and what the DTR must show
The Labor Code framework addresses overtime work and overtime pay. Employers also adopt policies that require prior approval so operations can control cost and safety. Those two layers should not be collapsed into one spreadsheet column labeled OT.
For each overtime instance, the DTR and approval file should show:
- Date and day type
- Scheduled shift
- Time-in and time-out
- Overtime hours claimed
- Whether the work was requested in advance or confirmed after
- Who approved
- Whether any portion was night work
If policy says unauthorized overtime will not be scheduled, supervisors still need a way to record hours that were in fact rendered, because payroll and labor inquiries care about actual work. How unpaid unauthorized overtime is treated is a legal and policy decision. Do not hide the hours to make the register look clean.
A DTR system that only stores extra minutes without a day type will dump everything into ordinary 125%, which underpays rest-day and holiday overtime and over-simplifies ordinary days.
Computation workflow payroll can repeat
- Confirm the employee’s schedule and rest-day assignment for the date.
- Confirm whether the date is a regular holiday, special non-working day, special working day, or ordinary day.
- Compute hours worked from reviewed punches or approved corrections.
- Allocate hours to regular, overtime, night, or combinations.
- Apply the matching handbook rate, or the higher CBA or company rate if that is the documented policy.
- Show the components on the register and payslip.
If step 4 is done by rounding to the nearest hour in Excel without a punch, expect disputes. If step 5 uses a rate the team has always used that no one can source, expect it to be wrong after a handbook update.
How overtime tracking fails in practice
Common breakdowns:
- Employees stay late, but the timeout is missing, so overtime is guessed
- Rest-day work is encoded as ordinary overtime
- Holiday calendars are loaded after payday
- Night OT is paid as ordinary OT only
- Managers approve overtime in chat, and payroll never sees the message
- Monthly-paid staff are assumed to have no overtime because basic pay is monthly
Each of these is a timekeeping failure first. How timekeeping improves payroll is about catching classification before cash is released.
Managerial staff, compressed weeks, and other special cases
Not every employee is paid overtime the same way. The Labor Code and implementing rules address exemptions and special groups. Do not assume a job title such as supervisor automatically removes overtime. Classification depends on actual duties and current rules.
Field staff, compressed workweeks, and telecommuting arrangements can also change how hours are counted. Document the arrangement and verify it against current DOLE guidance before encoding a custom overtime rule.
When a CBA or company policy pays more than statutory 125% for ordinary overtime, store the contracted rate as a policy overlay so you can still tell what the handbook required versus what the company granted.
Rounding, meal breaks, and what beyond eight hours means
Overtime arguments often start before the 25% is applied. They start with how hours were counted.
If the company deducts an unpaid meal break, the DTR should show whether the eight-hour reference excludes that break, according to the written rule—not the encoder’s habit.
Rounding policies should be written. Rounding every timeout down to the scheduled end quietly deletes overtime. Rounding every time-in back to shift start quietly deletes tardiness. If rounding exists, apply it consistently and keep the raw punch available for review.
Work that starts before the scheduled shift is not automatically overtime. It may be early presence, authorized extra hours, or nothing payable. The approval record is what distinguishes those cases. Timekeeping should not convert every early punch into 125% by default, and it should not delete early punches that were requested.
Employees contest overtime lines that appear for the first time on the payslip. Let people see approved overtime hours on the DTR before lock. If overtime is capped by policy, show the cap as an unpaid exception, not as missing hours.
A payroll system for the Philippines should apply these rates after timekeeping has classified the hours.
How TimeBoxHR Handles This
TimeBoxHR records overtime against daily time records captured through DTR scanning or geofenced mobile attendance. Leave requests that were approved for the same period stay in the same review path so an overtime date is not also treated as an unpaid absence. Overtime requests can carry configurable statutory pay, including night differential and holiday premiums, once holiday calendars (regular and special, by branch or location) and rest-day assignments are loaded.
Philippine payroll then uses the hours and day types that were actually approved, instead of a separate overtime workbook. TimeBoxHR is designed to support configurable payroll rules; it does not replace a reading of the current handbook, a CBA, or advice on exemptions.
For the full cutoff path from hours to net pay, see how to compute payroll in the Philippines.