2. ART. 87
OVERTIME
WORK
Workmay beperformed beyondeight(8) hoursa
dayprovidedthattheemployeeispaidfor the
overtimework, anadditionalcompensation
equivalenttohisregularwageplusatleasttwenty-
fivepercent(25%) thereof. Workperformed
beyondeighthoursona holidayorrestdayshall
bepaidanadditionalcompensation equivalentto
therateofthefirst eighthours on aholidayorrest
dayplusatleastthirtypercent(30%)thereof.
3. CONDITIONS:
1. ORDINARY DAY
2. REST DAY OR SPECIAL DAY
3. REST DAY FALLING ON SPECIAL DAY
4. REGULAR HOLIDAY
5. REST DAY FALLING ON A REGULAR HOLIDAY
4. ORDINARY DAY
Overtime rate on an ordinary day is equal
to the regular hourly rate multiplied by
125%
OT Rate=125%*Hourly Rate*No.of
overtime hours worked
5. ORDINARY DAY
Example:
Michael works 8 hours a day as an office staff. His daily wage is ₱ 537 (Manila Rate). His employer told
them that they can render a maximum of 4 hours a day as an overtime work. On one Monday, Michael
decided to work for 11 hours. How much was his wage for that day?
Hourly Rate- P537/8= P67.125
O.P. = 1.25x 67.125 x 3
O.P. = P251.718
P537 + P251.72 = P788. 72
6. REST DAY OR SPECIAL DAY
(FOR THE FIRST 8 HOURS)
If an employee works on his rest day or
on a special day, the rate will be a regular
hourly rate multiplied by 130%.
Rest Day Rate=Regular Hourly Rate X
130%
7. O.P. = 130% x Hourly Rate x No. of
overtimes worked
O.P. = 1.30 x 67.125 x 8
O.P. = P698.10
8. REST DAY OR SPECIAL DAY
(IN EXCESS OF THE FIRST 8 HOURS)
O.P. = 169% x Hourly Rate x No. of Hours Worked
=1.69 x 67.125 x 4
= P453. 77
P453.77
+ P698.10
___________
P1,151.77
9. Nothing in this world is handed to
you. You have to go out and get it.
Nobody said it would be easy but
hardwork always pays off.
