Overtime Policy in the Philippines

Overtime Policy in the Philippines

Definition of Overtime

• Overtime refers to work rendered in excess of the regular 8-hour workday or 48-hour workweek
• Covered by the Philippine Labor Code and its implementing rules

Overtime Pay

• Overtime pay is 125% of the employee's regular hourly rate for work rendered in excess of 8 hours a day
• For work rendered on a rest day or special holiday, overtime pay is 130% of the regular hourly rate
• For work rendered on a regular holiday, overtime pay is 150% of the regular hourly rate

Overtime Limitations

• Maximum of 16 hours of overtime work per week
• Employees are not allowed to work more than 12 hours of overtime in a single day
• Employers must obtain prior approval from the Department of Labor and Employment (DOLE) for overtime work exceeding 16 hours per week

Exemptions

• Certain employees are exempt from overtime pay, including:
  • Managerial employees
  • Executive employees
  • Officers or members of a managerial staff
  • Employees of retail and service establishments regularly working less than 4 hours a day
  • Employees of establishments which by nature of their business are not covered by the Labor Code

Records and Reporting

• Employers must maintain accurate records of overtime work, including the number of hours worked and the corresponding pay
• Employers must submit a report on overtime work to the DOLE on a quarterly basis

Penalties

• Failure to comply with overtime policy and regulations may result in penalties, including:
  • Payment of unpaid overtime wages
  • Imposition of fines and penalties
  • Criminal liability for repeated violations