Everhour supports capacity tracking and team controls while Philippines utilization math depends on local working-time inputs.
Measure billable utilization against total capacity and see exactly how many hours you're leaving on the table each period.
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Utilization rate shows how much of a person's available work capacity turned into billable client work. For a Philippines team, the numerator stays simple: billable hours. The denominator needs more care because the country's working-time rules and holiday calendar affect available hours before client work begins.
For general private-sector employees in the Philippines, normal hours of work may not exceed 8 hours per day. The Labor Code also requires at least 24 consecutive hours of rest after every 6 consecutive normal workdays. Those two facts set the outer frame for capacity before leave, holidays, overtime, rest-day work, or firm policy changes the calculation.
Professional-services utilization equals billable hours divided by available hours. A Philippine firm can define available hours as total capacity, scheduled working hours net of leave and holidays, or logged hours. The denominator choice changes the answer even when the same billable hours sit in the numerator.
A five-day professional-services schedule uses 8 hours × 5 days × 52 weeks, or 2,080 gross annual hours, as a firm-policy denominator. A six-day schedule produces 2,496 gross annual hours before subtracting holidays, service incentive leave, company leave, sickness, or other absences. Use one denominator consistently by role, or utilization reports will compare unlike capacity bases.
Start with gross annual capacity, subtract non-working capacity, then divide billable hours by the remaining available hours. For example, a Manila analyst on a five-day schedule starts with 2,080 gross annual hours. If 5 service incentive leave days and 15 national or local non-working days fall on scheduled workdays, that removes 160 hours, leaving 1,920 available hours.
If the analyst records 1,344 billable hours, utilization is 70%. At a ₱2,200 standard billing rate, those billable hours carry ₱2,956,800 of recorded billable value. The revenue figure does not change the utilization rate, but it helps a manager connect capacity planning to client delivery value.
Philippine holidays are commonly divided into regular holidays and special non-working days. The 2026 national list includes 12 regular holidays and 8 special non-working days, including the movable Eid'l Fitr and Eid'l Adha dates. For utilization, both types reduce available capacity when the employee is not scheduled to work on those days.
Local special days can apply to a particular date, group, or place, so available-hours denominators can differ by city or province. A Cebu employee and a Manila employee can share the same five-day schedule and still have different available hours if a local holiday applies to only one location. Track pay treatment separately from utilization math.
A one-off calculator is enough when you need a quick annual, monthly, or project-period utilization check from known billable and available hours. It is also enough for comparing denominator policies before leadership commits to one standard for a team.
A managed workflow becomes necessary when managers approve time, correct entries, lock closed periods, assign roles, or enforce personal tracking limits. Everhour Team Management supports weekly capacity, approvals, lock rules, admin time correction, project assignments, and team groups, so utilization data comes from governed time records instead of a spreadsheet recreated each reporting period.
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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Divide billable hours by the available-hours denominator chosen by the firm, then multiply by 100. The Philippines-specific work happens in the denominator. Normal private-sector hours may not exceed 8 hours per day, and scheduled capacity should reflect leave, holidays, absences, and the firm's five-day or six-day work pattern.
Yes, when utilization is measured against working hours net of leave. Employees who have rendered at least one year of service are entitled to 5 paid service incentive leave days per year. For an 8-hour day, that removes 40 hours from annual scheduled capacity before billable work is counted.
Yes, when the employee is not scheduled to work on those days. The 2026 Philippines national holiday list includes 12 regular holidays and 8 special non-working days. Utilization math should treat both as non-working capacity reductions while keeping pay treatment separate from the utilization calculation.
No statutory Philippines-wide professional-services utilization target exists in the provided rules. A firm should set targets by role, team, delivery model, and expected non-billable work. A senior manager with sales and review duties needs a different target than a full-time delivery analyst.
A six-day denominator is correct only for a team scheduled around that pattern. The Labor Code requires a 24-hour rest period after every 6 consecutive normal workdays, so a six-day schedule is the outer normal-work pattern before overtime or rest-day work premiums. Many professional-services teams use a five-day policy denominator instead.
Everhour Team Management lets admins set weekly capacity, approve timesheets, lock completed periods, correct member time, assign roles, and group teams for reporting. Those controls help Philippine teams keep utilization inputs consistent across locations, schedules, and approval cycles.
Use governed timesheets, weekly capacity, lock rules, and approvals before utilization numbers reach management reports. Everhour Team Management keeps capacity and time records consistent for cleaner utilization review.
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