Handbook on Workers' Statutory Monetary Benefits (2024)

Overtime Pay: Definition

Overtime pay refers to the additional compensation for work performed beyond eight hours a day.

Overtime Pay: Coverage

Same as those covered under 3. Premium Pay.

Overtime Pay: Overtime Pay Rates

The minimum overtime pay rates vary according to the day the overtime work is performed, as follows: 1. For work done in excess of eight hours on an ordinary working day, the employer shall pay the employee an additional 25% of the hourly rate on said day. (hourly rate of the basic wage x 125%) 2. For work done in excess of eight hours on a special (non-working) day or scheduled rest day, the employer shall pay the employee an additional 30% of the hourly rate on said day. (hourly rate of the basic wage x 130% 130% x number of overtime work hours) 3. For work done in excess of eight hours on a special (non-working) day that also falls on the employee’s rest day, the employer shall pay the employee an additional 30% of the hourly rate on said day. (hourly rate of the basic wage x 150% 130% x number of overtime work hours) 4. For work done in excess of eight hours on a regular holiday, the employer shall pay the employee an additional 30% of the hourly rate on said day. (hourly rate of the basic wage x 200% 130% x number of overtime work hours) 5. For work done in excess of eight hours on a regular holiday that also falls on the employee’s rest day, the employer shall pay the employee an additional 30% of the hourly rate on said day. (hourly rate of the basic wage x 200% 130% x 130% x number of overtime work hours)

Overtime Pay: Stipulated Overtime Rates

Generally, the premium pay for work performed on rest days, special days, or regular holidays is included as part of the regular rate of the employee in the computation of overtime pay for overtime work rendered on said days, especially if the employer pays only the minimum overtime rates prescribed by law. The employees and employer, however, may stipulate in their collective agreement the payment for overtime work at rates higher than those provided by law.