How to Compute Overtime and Night Differential Pay in the Philippines

By the PH Trend Watch team · Updated October 29, 2026

Short answer: overtime on a regular workday is paid at 125% of your hourly rate. Work between 10 pm and 6 am earns a night shift differential of at least 10% of your hourly rate for each hour. Working on your rest day pays 130% of your daily rate.

Step 1: Find your hourly rate

Normal working hours are 8 hours a day, so your hourly rate is your daily rate divided by 8. A ₱800 daily rate gives an hourly rate of ₱100.

Overtime on an ordinary working day

Work beyond 8 hours earns your hourly rate plus at least 25%.

Example: 2 hours of overtime at ₱100 an hour: 2 × ₱100 × 1.25 = ₱250.

Working on your rest day or a special day

Work on your scheduled rest day or a special non-working day is paid at 130% of your daily rate for the first 8 hours. Overtime on those days adds another 30% of the hourly rate for that day.

Example: 8 hours on your rest day at a ₱800 daily rate: ₱800 × 1.3 = ₱1,040. Two more hours of overtime: 2 × (₱100 × 1.3) × 1.3 = ₱338.

Night shift differential

For every hour worked between 10:00 pm and 6:00 am, you get at least an extra 10% of your hourly rate for that time.

Example: a shift from 6 pm to 2 am includes 4 hours of night work. At ₱100 an hour, the night differential is 4 × ₱100 × 0.10 = ₱40. Night hours that are also overtime earn both premiums.

Things to know

Undertime can't cancel overtime. Under the Labor Code, coming in late or leaving early on one day can't be offset by overtime on another day.
Overtime must be paid even if it wasn't formally approved when the employer knew about the work and allowed it — but company rules on approval still matter, so keep records.
Not everyone is covered. Managerial employees, officers, field personnel and some others are excluded from overtime and night differential rules.
For holidays, see our holiday pay guide.

General information based on the Labor Code of the Philippines. Your contract or company policy may give more than the legal minimum; check with DOLE for your situation.