In the Philippines, the Labor Code establishes the standard working hours at eight hours per day. When an employee is required to work beyond this limit—such as in a 12-hour shift—they are entitled to additional compensation known as Overtime (OT) Pay.
Navigating the computation for a 12-hour shift involves understanding the base hourly rate, the overtime premium, and whether the work falls on a special day or during night hours.
1. The Legal Foundation
The Labor Code of the Philippines (Presidential Decree No. 442), specifically Articles 83 to 87, dictates the rules for hours of work and overtime.
- Normal Hours of Work: Shall not exceed eight (8) hours a day.
- Overtime Work: Any work performed beyond eight hours is considered overtime.
- Meal Periods: Employees are entitled to not less than sixty (60) minutes time-off for their regular meals. This hour is generally non-compensable and is not included in the 12-hour work count unless the employee is required to work while eating.
2. Computing the Hourly Rate
Before calculating overtime for a 12-hour shift, you must determine the Regular Hourly Rate (RHR).
3. Overtime Rates for a 12-Hour Shift
A 12-hour shift typically consists of 8 regular hours and 4 overtime hours. The premium applied to those 4 hours depends on the day the work is performed.
| Type of Day | OT Premium Rate |
|---|---|
| Ordinary Working Day | 125% of hourly rate |
| Scheduled Rest Day / Special Non-Working Day | 130% of the rest day hourly rate |
| Regular Holiday | 130% of the holiday hourly rate |
4. Step-by-Step Computation Examples
For these examples, assume a Daily Rate of ₱800.00 (RHR = ₱100.00).
A. Ordinary Working Day
For a 12-hour shift on a normal Monday-Friday:
- First 8 Hours: ₱800.00
- 4 Hours OT:
- Total Pay: ₱1,300.00
B. Rest Day or Special Non-Working Holiday
Work on these days starts with a premium of 130% for the first 8 hours.
- First 8 Hours:
- 4 Hours OT:
- Total Pay: ₱1,716.00
C. Regular Holiday
Work on a regular holiday starts with a premium of 200% for the first 8 hours.
- First 8 Hours:
- 4 Hours OT:
- Total Pay: ₱2,640.00
5. Night Shift Differential (NSD)
If the 12-hour shift falls between 10:00 PM and 6:00 AM, the employee is entitled to Night Shift Differential. This is an additional 10% on top of the hourly rate or the overtime rate.
Note: If an employee is doing overtime during the night-differential period, the OT rate and the NSD are compounded. The formula for OT during night hours is usually:
6. Key Considerations and Limitations
- Undertime vs. Overtime: Undertime on any particular day shall not be offset by overtime work on any other day. Permission given to the employee to go on leave on some other day of the week shall not exempt the employer from paying the overtime.
- Compulsory Overtime: Generally, an employee cannot be compelled to work overtime except in specific emergencies (e.g., war, to prevent loss of life/property, or to prevent serious obstruction to the business).
- Managerial Employees: It is important to note that the overtime pay provisions of the Labor Code generally do not apply to managerial employees or officers/members of a managerial staff, as well as field personnel.