Overtime
Work may be performed beyond eight (8) hours a day provided that the employee is paid for the overtime work. A work day is also defined as a 24 hours period from the start of work.
The overtime rate for a normal working day in the Philippines is 25% plus the employee’s regular wage. However, if overtime time is performed on a rest day or holiday, the overtime rate shall be increased to 30% plus the employee’s regular wage. Work may be performed beyond eight (8) hours a day provided that the employee is paid for the overtime work. A work day is also defined as a 24 hours period from the start of work.
Hourly Rate of Overtime
Normal Day
|
125%
|
Rest Day
|
169%
|
Special Holiday
|
169%
|
Regular Holiday
|
260%
|
Special Holiday + Rest Day
|
195%
|
Regular Holiday + Rest Day
|
338%
|
Ex) An employee with Hourly Rate P100 rendered 2 hours overtime work on a Rest Day
● Hourly Rate for 8 Hours Work = (P100 x 130%) = P130
● P130 x 8 Hours = P1,040
● Hourly Rate for 2 Hours Overtime on Rest Day = (P130 x 130%) = P169
● Total Daily Rate = P1,040 + (P169 x 2 Hours) = P1,378
Notes: Excluded employees:
● Employees of government, government-owned and/or controlled corporations;
● Kasambahay and persons in the personal service of another;
● Managerial employees including managerial staffs;
● Workers who are paid by results;
● Field personnel and other employees whose time and performance is unsupervised by the employer, including those who are engaged on task or contract basis, purely commission basis or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof.
Under-time should not offset by overtime
Under-time work on any particular day shall not be offset by overtime work on any other day. Permission given to the employee to go on leave on some other day of the week shall not exempt the employer from paying the additional compensation required in this Chapter.
Under-time work on any particular day shall not be offset by overtime work on any other day. Permission given to the employee to go on leave on some other day of the week shall not exempt the employer from paying the additional compensation required in this Chapter.
Emergency overtime work
Any employee may be required / compelled by the employer to perform overtime work in any of the following cases:
● When the country is at war or when any other national or local emergency has been declared by the National Assembly or the Chief Executive;
● When it is necessary to prevent loss of life or property or in case of imminent danger to public safety due to an actual or impending emergency in the locality caused by serious accidents, fire, flood, typhoon, or other disaster or calamity;
● When there is urgent work to be performed on machines, installations, or equipment, in order to avoid serious loss or damage to the employer or some other cause of similar nature;
● When the work is necessary to prevent loss or damage to perishable goods;
● When the completion or continuation of the work started before the eight hour is necessary to prevent serious obstruction or prejudice to the business or operations of the employer;
In cases not falling within any of these enumerated in this Section, no employee may be made to work beyond eight hours a day against the employee’s will. However, if a worker unjustifiably refuses to render compulsory overtime work in the specified circumstances, his refusal may be considered an act of insubordination.
Any employee may be required / compelled by the employer to perform overtime work in any of the following cases:
● When the country is at war or when any other national or local emergency has been declared by the National Assembly or the Chief Executive;
● When it is necessary to prevent loss of life or property or in case of imminent danger to public safety due to an actual or impending emergency in the locality caused by serious accidents, fire, flood, typhoon, or other disaster or calamity;
● When there is urgent work to be performed on machines, installations, or equipment, in order to avoid serious loss or damage to the employer or some other cause of similar nature;
● When the work is necessary to prevent loss or damage to perishable goods;
● When the completion or continuation of the work started before the eight hour is necessary to prevent serious obstruction or prejudice to the business or operations of the employer;
In cases not falling within any of these enumerated in this Section, no employee may be made to work beyond eight hours a day against the employee’s will. However, if a worker unjustifiably refuses to render compulsory overtime work in the specified circumstances, his refusal may be considered an act of insubordination.