Is overtime pay mandatory in Philippines?

Is overtime pay mandatory in Philippines?

Mandatory overtime may be regarded as unlawful unless it meets at least one of the five (5) conditions provided in Article 89 of the Labor Code of the Philippines which provides the rules about Emergency Overtime Work or the only circumstances when an employer may require his or her employees to perform overtime labor.

Who are not entitled to overtime pay in the Philippines?

Similar to managers, supervisors are also not entitled to overtime, night shift differential, and holiday pays. But they are also given a monetary incentive that is equivalent to a 13th month pay. Rank-and-file employees are those who do not occupy high-level positions in a company.

Who are entitled for overtime pay in the Philippines?

If all or any part of his or her regular work hours falls between 10:00 p.m. to 6:00 a.m., a covered employee shall be entitled to a night shift pay in addition to his or her pay for regular work hours. If he or she works for more than 8 hours in one day, he or she shall be entitled to overtime pay.

Who are entitled to overtime pay Philippines?

If he or she works for more than 8 hours in one day, he or she shall be entitled to overtime pay. A day-off of 24 consecutive hours after 6 days of work should be scheduled by the employer upon consultation with the workers.

What is Article 301 Labor Code?

Article 301 of the Labor Code provides: “ARTICLE 301. [286] When Employment not Deemed Terminated. — The bonafide suspension of the operation of a business or undertaking for a period not exceeding six (6) months, or the fulfillment by the employee of a military or civic duty shall not terminate employment.

Is there a limit on overtime in the Philippines?

The Law does not provide a limit on overtime work. Moreover, under time work on a day cannot be offset by overtime work on another day. Overtime pay rates are covered under the Labour Code.

Who is exempt from paying overtime on rest days?

Article 82 of the Labor Code exempts managerial employees from the coverage of labor standards which provides the working conditions of employees, including entitlement to overtime pay and premium pay for working on rest days.

Is the Cola included in the overtime rate?

COLA is not included in overtime calculation. The overtime rate is 125% of the normal hourly wage rate if overtime work is performed on an ordinary working day (100 (assumed normal hourly wage)*125%);

What is the overtime rate for a holiday?

The overtime rate is 260% of the normal hourly wage rate if the overtime work is performed on a regular holiday (100 (assumed normal hourly wage)*130%*200%); The overtime rate is 338% of the normal hourly wage rate if overtime work is performed on a regular holiday which falls on a scheduled rest day (100 (assumed normal hourly wage)*130%*260%);