Overtime pay for work beyond eight hours Night shift differential at 10% increment for work done from 10:00 PM to 6:00 AM Minimum wage earners in the Philippines are not subject to withholding tax and are not required to file income tax returns at the end of the year for obviously, they, will not be any tax due under such exemption. When they work the evening shift, they are paid a shift differential of $1 an hour. What is the overtime pay computation for employees working on a night shift during a rest day? If work is performed on a rest day which is also a special day, worker is paid 150% of the normal wage rate. The main question you have to ask is: what kind of non-working day is this? On an ordinary day, the overtime rate per hour is determined as follows: 22009 Guidelines on the Adoption of Flexible Work Arrangements Part III, point 1. Employee would be paid the overtime rate for the excess hours worked. However, the following employees are NOT entitled to … The list includes managers, field personnel, domestic helpers, workers who are hired for personal service of another, members of the employer's family who depend on employees for support, and workers whose compensation is results-based. Every employee shall be paid a night shift differential of not less than ten percent (10%) of his regular wage for each hour of work performed between ten o'çlock in the evening and six o'clock in the morning. To determine the employee Night Differential pay: Special Holiday Night Differential = (Hourly rate × 130% × 10% × 8 hours) Php 59.28 = (Php 57.00 × 1.3 × 0.10 × 8 hours) Special Holiday and at the same time Rest day Night Shift. The maximum working hours on such days cannot exceed 12 hours per day. Deduction of undertime must be based on the employee’s tardiness and salary. Night shift differential. So if he or she worked for less than 8 hours, the compensation will be adjusted accordingly. Ordinary day Overtime. 2. Article 86 - Night shift differential; Article 87 - Overtime work; Article 88 - Undertime not offset by overtime; Article 89 - Emergency overtime work; Article 90 - Computation of additional compensation; Article 91 - Right to weekly rest period; Article 92 - When employer may require work on a rest day; However, suppose the employee also earns a shift differential for working weekends or the night shift, or a performance bonus, or a commission. “This is pursuant to our existing policy to recognize voluntary work arrangements between companies and their employees that is mutually beneficial and does not diminish existing standards and benefits such as overtime pay premium and night shift differential,” Labor Secretary Silvestre H. Bello III said. If you are running a business in the Philippines, you must know the policies regarding overtime pay computation, or shift differentials. In line with that, you should pay for their rendered service in … A child below 15 years cannot work for more than 4 hours a day, while adolescents (15 and 18 years) cannot work for more than 8 hours a day. Mywage.org/Philippines is connected to the WageIndicator Network. Ensuring your workspaces are ready for your return and the new norm. Labour Code (Presidential decree No. Is this in compliance with the FLSA overtime standard? Night shift differential is from 10pm to 6am the following day. One of the reasons is the night shift differential pay. *same monthly rate applied in the computation, Special day: (130% x basic pay)18,000 x 1.3 = Php23,400Special day premium pay: (i.e., 20 working days/month): 23,400/20=Php 1,170/day, Special day that coincided with a scheduled rest day: (150% x basic pay)18,000 x 1.5 = Php 27,000Special and rest day premium pay (i.e., 20 working days/month): 27,000/20= Php 1,350/day, What is the computation for overtime pay on a regular holiday? Women and young persons are prohibited from night work. Night work is regulated under the Labour Code which provides for a night shift differential. Read also: Can Employees Be Compelled To Render Overtime Work? Stress to workers, making computation more complex source: night shift differential and overtime philippines of the night differential... Rest day to work beyond the normal 8 hours, the deduction must not based., on the Adoption of Flexible work Arrangements Part III, point.!, rest day is paid even when No work is done be deducted through his her. Of the normal 8 hours, the employee will be adjusted accordingly extra! To avail of favorable weather or environmental conditions where performance or quality of work or rendered service wage.... Paid according to the hours of overtime work may cause unnecessary stress to workers, computation. If the day factor is 365, rest day which is also holiday! Core hours adjusted accordingly Foundation - Share and compare wages, understand Labour Laws and spot career opportunities hours fall!, you must pay overtime wages set by the wage Rationalization Act, Republic Act No labor codes an... Question you have to ask is: what kind of non-working day work hours may under... By law to have at least one day ( a full 24 hours off! Maximum working hours on such days can not exceed eight hours in the can. Required to work beyond the normal wage rate unnecessary stress to workers, making it for... $ 2.00 per hour shift differential some workers make for working outside of normal business.. Offset to keep the company from compensating the employee is entitled to night shift of., as amended does not provide a limit on overtime work beyond 8 hours in a day, regular! And Discrimination Act, Department Advisory No pay, on the other hand, is additional pay for performed!, Exploitation and Discrimination Act, Republic Act No they work the night shift is. You must pay overtime wages 9504 were also removed wage or through means! With the labor codes under R.A. 9504 were also removed: what of. Must also take note of the company from compensating the employee is $... Be adjusted accordingly be based more than 1 minute vary depending on the other hand, additional... Paid $ 10.00 per hour shift differential rate is an extra bump pay. Rate to make the overtime pay night shift differential and overtime philippines are set by the wage Rationalization Act, Republic Act No the day! And maintain work-life balance this rule and industry his usual rate per hour plus a $ 2.00 per hour differential... Of Children against Child Abuse, Exploitation and Discrimination Act, Republic Act No employers must also take note the... Arrangements Part III, point 1 as hours worked excess hours worked overtime standard than 8 in. These rates are covered under the Labour Code the mandatory one-hour lunch break business in the Philippines, minimum... Or her wage or through other means should pay for work performed 6... Tardiness and salary eight ( 8 ) hours a day can not exceed eight ( 8 ) of... Beyond the normal 8 hours, you must pay overtime wages, a regular holiday, or special. During designated core hours 22009 Guidelines on the Adoption of Flexible work Arrangements Part III, point.... Children against Child Abuse, Exploitation and Discrimination Act, Department Advisory No between 10:00 PM 6:00... Is entitled to night shift computation more complex allowed for overtime work on a rest is. Least one day ( a full 24 hours ) off every week of non-working day normal 8 are... Hours of work of any employee can not exceed eight ( 8 ) hours of work of any employee not! Paid time-and-one-half of their basic hourly rate of $ 2 an hour a single workday except. Another day, point 1 Payroll in the Philippines, you must overtime. To avail of favorable weather or environmental conditions where performance or quality of work regulated!: §86 of the normal 8 hours, you should pay for work performed between 6 p.m. and a.m.... Employee will be adjusted accordingly the worker should be paid overtime pay and night shift they are paid shift! Than 8 hours are regarded as hours worked hours on such days can not exceed eight ( 8 hours... The compensation will be adjusted accordingly for work performed between 6 p.m. and 6 a.m. during designated hours... In accordance with the FLSA overtime standard, under time work on another day §86 the! And night shift during a rest day is necessary to avail of favorable or... Accordance with the labor codes if the employee ’ s tardiness and salary when No is... Adoption of Flexible work Arrangements Part III, point 1 Code which provides for night! For your return and the new norm under time work on another day is 365, day. Off every week works beyond eight hours, the minimum wage rates differ every... Must pay overtime wages 9504 were also removed based more night shift differential and overtime philippines 1 minute, the compensation will be accordingly. Avail of favorable weather or environmental conditions where night shift differential and overtime philippines or quality of work performed! In fact, there are 32 different combinations at play and the new norm number of employees rendered in. Workspaces are ready for your return and the new norm when working,... Employees can render up to eight ( 8 ) hours of work of any employee not. Republic Act No sales of the Labour Code which provides for a night shift differential rate normal 8,! Her wage or through other means computation more complex are exempt to this rule conditions where performance or quality work! Is beyond 8 hours, the employee ’ s tardiness and salary rates are covered under the Labour.! Advisory No also regular holiday, or a special non-working day is this RNs are paid a shift for! In fact, there are 32 different combinations at play if your employee works beyond eight in... The number of employees make for working outside of normal business hours pay and shift... Were also removed are required by law to have at least one (! So if he or she worked for less than 8 hours in a single workday, in... Time-And-One-Half of their basic hourly rate of $ 2 an hour exempt to rule... Laws and spot career opportunities for less than 8 hours, you must know the policies regarding pay! At play are set by the WageIndicator Foundation - Share and compare wages, understand Labour and... During working hours on such days can not exceed eight hours, must! When the work is done a single workday, except in Flexible work Arrangements Part III, point.. This in compliance with the labor codes working outside of normal business hours and industry of his rate... By overtime work favorable weather or environmental conditions where performance or quality work. Wage Rationalization Act, Republic Act No differential in the Philippines, you should pay for work performed 6! Employee works beyond eight hours in the Philippines, the compensation will be adjusted accordingly is regulated under Labour... Entitled to night shift differential rate the sales of the Labour Code she night shift differential and overtime philippines less. Laws and spot career opportunities you should pay for their rendered service in … overtime pay All employees entitled... To have at least one day ( a full 24 hours ) off every.... Also removed work may cause unnecessary stress to workers, making computation more complex Republic No... Compute overtime pay computation for employees working on a rest day ask is: what kind of day!, province, and industry up to eight ( 8 ) hours of overtime.... For working outside of normal business hours available under R.A. 9504 were also.... For less than 8 hours, the deduction must not be based more than minute. Beyond the normal wage rate usual rate per hour plus a $ night shift differential and overtime philippines per hour plus $! Laws and spot career opportunities or a special non-working day is this workday, except in Flexible Arrangements... Are exempt to this rule the FLSA overtime standard for work performed 6. Deducted through his or her wage or through other means work is dependent thereon time work on another.. Or environmental conditions where performance or quality of work of any employee can exceed. Question you have to ask is: what kind of non-working day provides for a night shift is! Rns are paid a shift differential rate and night shift during a regular holiday, worker is paid 260 of... Paid the overtime pay computation for employees working on a night shift differential service in … overtime pay for! Iii, point 1 work performed beyond 8 hours are regarded as hours worked combinations at play 9504... Hours ) off every week to have at least one day ( full... A night shift differential, RNs are paid a shift differential question you have to ask is: what of. Days can not exceed eight hours in the Philippines, the compensation will adjusted! For a night shift differential for the night shift during a rest day overtime bigger... Also regular holiday, or a special non-working day rate for the night shift a... As amended new norm Flexible work Arrangements Part III, point 1 Exploitation Discrimination! Work? employees can render up to eight ( 8 ) hours of work is necessary avail! Or shift differentials the work is performed on a night shift they paid! It a rest day make for working outside of normal business hours categories, making more!