Glossary

What is Overtime pay?

Additional pay for work beyond eight hours in a day, at least 125% of the hourly rate on an ordinary day.

On a rest day or holiday the overtime premium is 30% added to the hourly rate for that day. For example, one overtime hour on a rest day is paid at 130% × 130% = 169% of the regular hourly rate.

Overtime should be approved before it is worked, and payroll should pay only approved hours. Managerial employees and a few other categories are not entitled to overtime pay.

Related terms

  • Monthly salary credit (MSC): The salary bracket SSS uses to compute contributions. Each range of monthly compensation maps to one MSC, and the contribution is a percentage of it.
  • Night shift differential: An additional 10% of the regular hourly rate for each hour an employee works between 10 PM and 6 AM.
  • Pag-IBIG (HDMF) contribution: The monthly savings contribution to the Home Development Mutual Fund, shared equally by the employee and employer at 2% each of monthly compensation.
  • Pay register: The report for a pay period that lists every employee's earnings, deductions and net pay, reviewed and approved before payslips are released.

Compute it in OneHRIS

OneHRIS applies Philippine pay and compliance rules in every payroll run. See the Help Center for step-by-step guides, try the free calculators, or see pricing.

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