1. What is Overtime Calculation?

Overtime calculation in the Philippines follows the labor code regulations where employees are entitled to additional compensation for work performed beyond regular working hours. The standard overtime rate is 125% of the regular hourly rate.

2. How Does the Calculator Work?

The calculator uses the overtime formula:

Where:

• \( OT \) — Overtime pay (pesos)
• \( OH \) — Overtime hours worked
• \( R \) — Regular hourly rate (pesos/hour)
• 1.25 — Overtime multiplier (125% of regular rate)

Explanation: The formula calculates the total overtime compensation by multiplying overtime hours by the overtime rate (regular hourly rate multiplied by 1.25).

3. Importance of Overtime Calculation

Details: Proper overtime calculation ensures compliance with Philippine labor laws, protects workers' rights, and helps employers maintain fair compensation practices while avoiding legal penalties.

4. Using the Calculator

Tips: Enter the number of overtime hours worked and the regular hourly rate in pesos. Both values must be positive numbers to calculate the overtime pay.

5. Frequently Asked Questions (FAQ)

Q1: What is the standard overtime rate in the Philippines?
A: The standard overtime rate is 125% of the regular hourly rate for work performed beyond 8 hours in a day.

Q2: Are there different overtime rates for holidays or rest days?
A: Yes, work performed on rest days, special days, or regular holidays has higher overtime rates (130% to 200% of regular rate).

Q3: Is there a limit on overtime hours?
A: The Labor Code allows maximum of 8 hours overtime per day, but collective bargaining agreements may provide different provisions.

Q4: How is night shift overtime calculated?
A: Night shift overtime (10PM-6AM) is paid at 130% of the regular overtime rate.

Q5: Are all employees entitled to overtime pay?
A: Most rank-and-file employees are entitled to overtime pay, but managerial employees may be exempt under certain conditions.