Overtime Pay Calculator

[ OVERTIME PAY ]
₱562.50
125% of the ordinary rate — ₱112.50 of that is premium
An overtime hour pays₱187.50
Ordinary hourly rate₱150.00
Overtime hours3
This is the overtime portion only. What the first 8 hours of the day pay is a separate question, and night differential is a further premium on top of whatever is shown here.
[ THE WORKING ]
Ordinary hourly rate₱26,100.00 a month, 261-day factor, 8 hours a day₱150.00
Ordinary working dayPlus 25% of the hourly rate. This is the only day type where the overtime premium is 25% rather than 30%.
Overtime hours in the day11 worked − 8 ordinary3.00
Overtime hourly rate₱150.00 × 125% = 125% of the ordinary rate₱187.50
Overtime pay₱187.50 × 3 hours₱562.50
The first eight hours are not includedThis is the overtime portion only. What the ordinary hours of the day pay is a separate question.
[ WHAT THIS IS ]

Work beyond eight hours in a day earns your hourly rate plus a premium. On an ordinary working day that premium is 25%. On a rest day, a special day or a regular holiday it is 30% — and this is where hand-worked figures go wrong, because that 30% is a percentage of the rate already being paid for the day, not of your ordinary rate.

So the two premiums multiply. A regular holiday pays double for the first eight hours, and an overtime hour adds 30% of the doubled rate: 200% × 1.30 = 260% of your ordinary hourly rate. Not 230%. Adding the percentages instead of multiplying them understates every overtime hour on a holiday by 30% of your rate, and it is easy to miss because on an ordinary day the two methods give the same answer. This page shows both figures so the gap is visible rather than merely warned about.

What it will not do is pay you for the first eight hours of the day. That is a different question with a different answer, and it belongs to the holiday pay calculator. Nor does it add night differential, which is a further premium on top of whatever applies here.

[ QUESTIONS ]

Is overtime pay 25% or 30%?

Both, depending on the day. On an ordinary working day an overtime hour adds 25% to your hourly rate. On a rest day, a special day or a regular holiday it adds 30% — and it adds that 30% to the higher rate already being paid for the day, not to your ordinary rate. The 25% figure is the one most people remember, which is exactly why the others get worked out wrongly.

How much is overtime on a regular holiday?

An overtime hour on a regular holiday pays 260% of your ordinary hourly rate. A regular holiday pays double for the first eight hours, and overtime adds 30% of that doubled rate — 200% × 1.30 = 260%. It is not 230%. Adding the two percentages instead of multiplying them is the single most common mistake in a hand-worked overtime figure, and it costs you 30% of your hourly rate for every overtime hour.

Why do the premiums multiply instead of adding?

Because the overtime premium is defined as a percentage of the rate applicable on that day, not of your ordinary rate. On a regular holiday the applicable rate is already 200%, so the extra 30% is 30% of 200%, which is 60 percentage points — giving 260% in total. On an ordinary day the applicable rate is 100%, so the two happen to coincide and nothing looks wrong. That is why the error hides.

When does work become overtime?

After eight hours in a day. That threshold is statutory and does not shrink because your contract says fewer hours — someone working a six-hour day does not start earning overtime at six. Your own hours per day matter for working out your hourly rate, which is a different thing.

Does this include my pay for the first eight hours?

No. The figure here is the overtime portion only. What the ordinary hours of a rest day or a holiday pay is a separate question and belongs to the Holiday Pay calculator. Keeping them apart means the same statutory multiplier is not sitting behind two different headline numbers.

What about night differential on top?

Night differential is a further 10% for hours between 10pm and 6am, and it compounds on whatever rate applies — so overtime worked at night on a holiday carries both. This page does not add it; the Night Differential calculator handles article 86 on ordinary days. Combining the two is not yet modelled, and a figure that quietly left one out would be worse than saying so.

Can my employer make me work overtime?

Generally overtime is voluntary, but article 89 lists circumstances where an employer may require it — among them emergencies, urgent work on machinery, and preventing loss of perishable goods. Whether it was required or volunteered makes no difference to what it pays.

Is overtime pay taxable?

Overtime pay forms part of your taxable compensation, though minimum wage earners are exempt on their holiday, overtime, night differential and hazard pay. The treatment is a BIR matter with conditions attached and is not modelled here — the figure on this page is gross.

[ THE MATHS ]
What an overtime hour pays
Ordinary day100%125%
Rest day130%169%
Special day130%169%
Special on a rest day150%195%
Regular holiday200%260%
Regular holiday on a rest day260%338%

As a percentage of the ordinary hourly rate. The dimmed column is what the first eight hours pay; the right-hand column is an overtime hour.

[ WORKED EXAMPLE ]
₱125 an hour, 3 hours overtime on a regular holiday
Holiday hourly rate, ₱125 × 200%₱250.00
Overtime hour, ₱250 × 130%₱325.00
× 3 hours₱975.00

Adding the premiums instead of multiplying them would give ₱287.50 an hour and ₱862.50 for the three — ₱112.50 short. The first eight hours of the holiday are a separate ₱2,000 on top.

[ NEXT ]
04Night Differential CalculatorThe 10% premium for hours between 10pm and 6am
05Holiday Pay CalculatorWhat the first eight hours of a holiday pay
01Salary CalculatorDaily and hourly rate from your monthly pay
0213th Month Pay CalculatorTotal basic salary for the year, divided by twelve
10Basic Payroll CalculatorGross to net, with contributions and withholding
[ IMPORTANT ]

This is the overtime portion only and does not include pay for the first eight hours or night differential. It is an estimate of the statutory minimum, not legal advice — a collective agreement or company policy may provide more. Nothing you type here is sent to our servers — the calculation runs entirely in your browser.