1. What is Overtime Pay in the Philippines?

Overtime pay in the Philippines is additional compensation for hours worked beyond the regular 8-hour workday. The Labor Code mandates specific multipliers (1.25 for regular OT, 1.3 for holiday OT) to ensure proper compensation for extended work hours.

2. How Does the Calculator Work?

The calculator uses the standard overtime formula:

Where:

• \( Hours \) — Number of overtime hours worked
• \( Rate \) — Regular hourly rate in PHP
• \( Multiplier \) — 1.25 (regular OT) or 1.3 (holiday OT)

Explanation: The calculation accounts for the legally mandated premium pay for overtime work in the Philippines.

3. Importance of Overtime Calculation

Details: Proper overtime calculation ensures compliance with Philippine labor laws and fair compensation for employees working beyond regular hours.

4. Using the Calculator

Tips: Enter the number of overtime hours worked, your regular hourly rate, and select the appropriate multiplier (1.25 for regular days, 1.3 for holidays/special days).

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between 1.25 and 1.3 multipliers?
A: 1.25 is for regular overtime (beyond 8 hours on normal workdays), while 1.3 is for overtime on holidays or special non-working days.

Q2: Are there different rates for night shift overtime?
A: Yes, night shift differential (additional 10%) may apply on top of overtime pay for work between 10pm-6am.

Q3: Is overtime pay taxable?
A: Yes, overtime pay is generally considered taxable income in the Philippines.

Q4: What's the maximum overtime allowed per day?
A: The Labor Code doesn't specify a maximum, but generally limits to 12 hours/day including regular 8 hours (total 4 hours OT).

Q5: Can employers require mandatory overtime?
A: Employers can require overtime in exceptional cases, but must pay proper OT rates and consider employee health/safety.