Philippine overtime uses daily thresholds and day-type multipliers. Everhour supports time and money budgets for cost control.
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This calculation answers how much extra pay is due when a covered employee in the Philippines works beyond the normal daily limit or works on a rest day, special non-working day, regular holiday, or qualifying night shift. Philippine labor law sets normal hours at no more than 8 hours in a day and requires at least 24 consecutive hours of rest for every 7 consecutive days.
The result matters for payroll review, cost estimates, and policy checks. The Philippines does not use a general 40-hour weekly overtime trigger in the facts listed here; the key threshold is daily. For overtime and premium-pay calculations, the employee's regular wage includes cash wage only, with no deduction for facilities provided by the employer.
Start by classifying the day before counting overtime hours. Work beyond 8 hours on an ordinary working day is paid at 125% of the basic hourly wage. Work within the first 8 hours on a scheduled rest day or special non-working day is paid at 130%, while overtime beyond 8 hours on that day is paid at 169%.
Holiday and overlap rates change the result sharply. A special non-working day that also falls on the employee's rest day is paid at 150% for the first 8 hours and 195% for overtime hours. A regular holiday is paid at 200% for the first 8 hours and 260% for overtime. When a regular holiday falls on the employee's rest day, the rates are 260% and 338%.
Assume a covered employee earns ₱180 per hour in cash wages. On Monday, the employee works 10 hours on an ordinary working day. Regular pay is 8 hours × ₱180 = ₱1,440. Ordinary-day overtime is 2 hours × ₱180 × 125% = ₱450, so Monday's total is ₱1,890.
On Sunday, the same employee works 9 hours on a scheduled rest day. The first 8 hours are 8 × ₱180 × 130% = ₱1,872. The ninth hour is rest-day overtime: 1 × ₱180 × 169% = ₱304.20. Sunday total is ₱2,176.20, and the two-day total is ₱4,066.20.
Do not calculate from the default statutory rates until coverage is clear. Overtime and premium-pay coverage excludes government employees, qualifying managerial employees and managerial staff, kasambahay or personal-service workers, qualifying paid-by-results or task workers, and field personnel whose hours cannot be determined with reasonable certainty.
Also check the employment contract, collective bargaining agreement, company policy, or consistent company practice. If any of those provides overtime or premium rates higher than the statutory minimum, the higher rate should be used. Night shift work adds another layer: night shift differential adds 10% of the corresponding hourly rate for each hour worked between 10:00 p.m. and 6:00 a.m.
A one-off calculation is enough when you are checking one employee, one day type, and a simple daily overtime total. It is also enough for a quick estimate before payroll closes, provided the schedule, rest day, holiday status, and night-shift hours are already verified.
A managed workflow is needed when overtime flows through approvals, department budgets, client billing, or recurring payroll handoff. Everhour Project Budgeting can track time and money budgets, recurring budget periods, email alerts, and budget protection, so overtime costs can be reviewed against limits before they become a payroll or billing problem.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
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Based on the listed facts, Philippine overtime is primarily a daily-threshold calculation. Hours beyond 8 in a day trigger overtime treatment for covered employees. The calculation should not start from a general 40-hour weekly threshold unless a separate policy, contract, or collective bargaining agreement creates a higher or additional rule.
Use the employee's regular wage based on cash wage only for overtime and other premium-pay calculations. The listed facts state that there is no deduction for facilities provided by the employer. If a contract, collective bargaining agreement, company policy, or practice provides a higher rate, use that higher rate.
Ordinary-day overtime beyond 8 hours is paid at 125% of the basic hourly wage. On a scheduled rest day or special non-working day, the first 8 hours are paid at 130%, and overtime beyond 8 hours is paid at 169% because the overtime premium is applied to the rest or special day rate.
The overlap creates a higher premium tier. When a regular holiday falls on the employee's rest day, work within the first 8 hours is paid at 260% of the basic rate, and overtime hours are paid at 338%. Do not use the ordinary holiday overtime rate for this overlap.
The biggest error is applying one multiplier to the whole shift without separating the day type, first 8 hours, overtime hours, and night-shift hours. A 9-hour regular holiday rest-day shift, for example, needs 260% for the first 8 hours and 338% for the overtime hour, plus night differential if any covered hours fall between 10:00 p.m. and 6:00 a.m.
Everhour Project Budgeting tracks time and money budgets as people log hours, with recurring budget periods for ongoing work. Teams can use email alerts and budget protection to review overtime cost pressure before time moves into payroll review or client billing.
Track overtime against time and money budgets before payroll pressure builds. Everhour Project Budgeting supports recurring budget periods, email alerts, and budget protection for cleaner cost control.
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