1) Governing Legal Framework (What the Rules Come From)

The Philippines regulates working hours and overtime primarily through:

The Labor Code of the Philippines (Presidential Decree No. 442), as amended — especially Book III, Title I (Working Conditions and Rest Periods), which contains the core rules on hours of work, meal periods, night shift differential, overtime pay, rest days, and related standards. Key provisions commonly cited include Articles 82 to 96, with overtime pay particularly addressed in Article 87 (and related provisions such as Articles 83, 85, 86, 88, 89, 91).
Implementing Rules and Regulations (IRR) / Omnibus Rules Implementing the Labor Code, plus Department of Labor and Employment (DOLE) issuances that clarify computation and compliance in practice.
Special laws for particular worker groups (e.g., domestic workers under the Kasambahay Law, rules on working children, and public-sector rules for government employees).

This article focuses on the standard private-sector rules, then highlights special regimes where they differ.

2) Coverage: Who the “Hours of Work” and Overtime Rules Apply To

A. General rule

Hours-of-work and overtime rules apply to rank-and-file employees in the private sector—those whose work time is generally controlled or supervised by the employer.

B. Key statutory exclusions (common exemptions)

Under Article 82, the hours-of-work provisions generally do not apply to:

Government employees (public sector has separate rules)
Managerial employees (and, by regulation, certain “managerial staff”)
Field personnel whose actual hours cannot be determined with reasonable certainty
Members of the family dependent on the employer for support
Domestic helpers / persons in the personal service of another (now largely covered by a special law)
Workers paid by results (e.g., piece-rate/task basis) as determined by DOLE in appropriate cases

Important in practice: Exemptions are fact-specific. Labels (e.g., “manager”) do not control if the employee’s duties do not actually meet the legal tests. For example, not all salespeople are “field personnel” if their hours are still trackable and controlled.

3) Core Concepts: What Counts as “Hours Worked”

The legal concept of “hours worked” is broader than just time actively typing, lifting, or serving customers. In general, it includes all time an employee is required or permitted to work, or is suffered or allowed to work by the employer.

Common inclusions

Short rest breaks (often 5–20 minutes) are typically treated as compensable working time.
Waiting time may be compensable if the employee is “engaged to wait” (i.e., kept ready for work and not free to use the time effectively for personal purposes).
Meetings, trainings, briefings may be compensable if required, job-related, or during work hours (details depend on circumstances).
Work performed at home or off-site (including after-hours messages/tasks) can be compensable if the employer requires, permits, or benefits from it and it is reasonably known/recordable.

Common exclusions

Meal periods are generally not hours worked if the employee is completely relieved from duty.
Ordinary commuting time from home to work and back is generally not compensable.

4) Normal Working Hours and “Maximum” Working Hours

A. The 8-hour normal workday

The Labor Code sets the normal hours of work at not more than eight (8) hours a day (Article 83). In plain terms:

8 hours/day is the legal benchmark for a normal workday.
Work beyond 8 hours triggers overtime rules (if the employee is covered by Title I).

B. Is there an absolute maximum number of hours you can work?

For most covered adult employees, the law’s primary control is not a hard “cap” but a pay-and-protection system:

Beyond 8 hours/day is allowed but becomes overtime that must be paid at premium rates.
Overtime generally should not be treated as an indefinite default; labor standards and occupational safety principles expect employers to manage fatigue and health risks, and some arrangements (like compressed workweeks) come with specific guardrails.

C. Workweek and weekly rest day

The Labor Code provides for a weekly rest day of at least 24 consecutive hours after not more than six (6) consecutive days of work (Article 91). Work on rest days is generally allowed but comes with premium pay (and overtime rules if the work also exceeds 8 hours that day).

D. Meal period rule

A meal break of not less than sixty (60) minutes is generally required (Article 85). It is usually unpaid (not hours worked) if the employee is completely relieved from duty.

(Certain industries/conditions allow a shorter meal period subject to regulatory conditions; where employees are required to work during meal time, that period is generally compensable.)

E. Night work and night shift differential

Work performed between 10:00 PM and 6:00 AM generally entitles covered employees to a night shift differential of not less than 10% of the regular wage for each hour worked in that period (Article 86). This is separate from overtime and may be stacked with it when both apply.

5) Overtime: When It Exists, When It’s Payable, and When It Can Be Required

A. What is overtime work?

For covered employees, work performed beyond 8 hours in a day is overtime (Article 87).

B. When is overtime pay due?

Overtime pay is due when:

The employee actually worked beyond 8 hours; and
The work is required, permitted, or suffered/allowed by the employer.

Practice point: Some employers require “prior approval” for overtime. While approval rules may be used for discipline or workflow control, an employer generally cannot avoid paying legally due overtime if the overtime work was actually performed with the employer’s knowledge, instruction, or benefit.

C. Can overtime be waived?

Overtime pay is a labor standard benefit for covered employees. As a rule, agreements that effectively waive statutory overtime premiums are generally disfavored and may be invalid when they result in underpayment of minimum legal entitlements.

D. Undertime cannot be offset by overtime

Article 88 prohibits offsetting undertime with overtime. An employer cannot say: “You were late two hours, so your two hours of overtime later are unpaid.” Overtime must still be paid if overtime work was rendered.

E. When may overtime be compelled? (Emergency overtime)

Overtime is generally based on business needs and employee cooperation, but Article 89 recognizes situations where overtime work may be required, such as:

War or national/local emergencies
To prevent loss of life/property or imminent danger
Urgent work to avoid serious loss/damage to the employer
Work necessary to prevent serious interruption in operations
Similar urgent/emergency circumstances recognized by law

Outside these circumstances, compulsory overtime policies can become legally and practically problematic, especially if they amount to a regular system rather than a true exception.

6) Overtime Pay Rates (The Required Premiums)

A. Basic overtime rate on ordinary working days

For covered employees, overtime pay must be at least:

+25% of the hourly rate for overtime work on an ordinary working day (Article 87)
- Equivalent multiplier: 125% of the regular hourly rate for overtime hours.

B. Overtime on rest days and holidays

When overtime work is performed on a day that is already subject to premium pay (rest day, special day, regular holiday), the law requires at least:

+30% of the hourly rate on that day for overtime hours (Article 87, applied with premium-pay rules)

This matters because the “hourly rate on that day” is already higher due to premium/holiday pay.

7) Premium Pay vs. Overtime Pay (And How They Combine)

It’s crucial to separate these concepts:

Premium pay: extra pay because of the nature of the day (rest day, special day, regular holiday) for work within the first 8 hours.
Overtime pay: extra pay because of exceeding 8 hours in a day.

They can apply together.

Typical statutory multipliers used in practice (illustrative)

Below are commonly applied payroll multipliers for covered employees, assuming the employee works beyond 8 hours:

Day / Situation	Pay for first 8 hours	Overtime premium applied to the hourly rate “on that day”	Common effective multiplier for overtime hours*
Ordinary day	100%	× 1.25	1.25
Rest day	130%	× 1.30	1.69 (1.30 × 1.30)
Special non-working day	130%	× 1.30	1.69
Special day falling on rest day	150%	× 1.30	1.95 (1.50 × 1.30)
Regular holiday	200%	× 1.30	2.60 (2.00 × 1.30)
Regular holiday falling on rest day	260%	× 1.30	3.38 (2.60 × 1.30)

*These multipliers reflect widely used statutory computation logic: overtime is 30% of the hourly rate on that day, and the “hourly rate on that day” already includes the premium for rest day/holiday status.

Night shift differential stacking

If overtime hours fall within 10:00 PM to 6:00 AM, night shift differential (at least +10%) is added on top of the applicable hourly pay. In many payroll implementations, NSD is computed on the regular hourly rate (and then layered); exact treatment can vary by company policy/CBA so long as statutory minimums are met.

8) How to Compute Overtime Pay (Step-by-Step)

A. Determine the hourly rate

For a daily-paid employee:

Hourly rate = Daily rate ÷ 8

For a monthly-paid employee, conversion depends on what the monthly pay is intended to cover (e.g., whether it includes pay for rest days and holidays). A common statutory conversion approach for “true monthly-paid” employees (paid for all days of the month including rest days/holidays) is:

Equivalent daily rate = (Monthly rate × 12) ÷ 365
Hourly rate = Equivalent daily rate ÷ 8

Where pay structures differ, the goal is to arrive at a correct equivalent hourly rate consistent with how the employee is legally deemed paid.

B. Apply the correct multiplier

Ordinary day overtime hour: Hourly rate × 1.25
Rest day overtime hour: (Hourly rate × rest day premium) × 1.30
Regular holiday overtime hour: (Hourly rate × holiday premium) × 1.30 …and so on.

C. Worked example (ordinary day overtime)

Daily rate: ₱800 Hourly rate: ₱800 ÷ 8 = ₱100/hour Overtime: 2 hours on ordinary day OT pay: ₱100 × 1.25 × 2 = ₱250

9) Special Rules for Specific Worker Groups

A. Health personnel (private sector)

The Labor Code provides a special normal-hours rule for certain health personnel in covered facilities: 8 hours/day, 5 days/week (40 hours/week), with premium pay if required to work a sixth day (Article 83). Applicability depends on facility type/size/location as defined by law and regulations.

B. Working children (limits on hours)

Special laws and regulations impose stricter limits for minors, including caps on daily/weekly hours and restrictions on night work, subject to narrow exceptions and protective conditions. These rules are separate from the general adult overtime framework and are designed primarily as child-protection measures.

C. Domestic workers (Kasambahay)

Domestic workers are primarily governed by the Kasambahay Law (RA 10361) rather than the Labor Code’s Title I hours-of-work provisions. Key protections include daily and weekly rest periods, but overtime rules are typically handled through the employment contract and statutory minimum standards under that special law.

D. Field personnel, managerial employees, workers paid by results

If a worker is truly exempt under Article 82, statutory overtime provisions generally do not apply. However:

Employers may still provide overtime pay by contract, company policy, or CBA.
Misclassification disputes are common; entitlement depends on actual duties and the real ability to track/control hours.

10) Common Compliance and Dispute Issues

A. “No overtime pay because it wasn’t approved”

Disciplinary rules on approval are separate from wage compliance. If overtime work was actually performed and suffered or allowed, overtime pay exposure can still arise.

B. “Fixed overtime” built into salary

Some employers structure a salary to include a set amount of overtime. This is generally risky unless:

The arrangement is clearly documented; and
The fixed component is at least equal to what the employee actually earns under statutory OT computations for the overtime hours the employee actually works. Underpayment remains actionable.

C. Off-the-clock work and digital after-hours tasks

Remote work, messaging apps, and “quick tasks” after hours can create compensable time if they are work-related and employer-directed/benefited. Employers should implement clear timekeeping and boundaries; employees should keep records.

D. Undertime offsets are prohibited

As noted, Article 88 bars using overtime to erase undertime.

11) Enforcement, Claims, and Time Limits

Labor standards enforcement may occur through DOLE’s inspection/enforcement mechanisms, and wage claims may also be pursued through the labor dispute system depending on the nature of the case.
Money claims for underpaid wages/benefits are generally subject to a prescriptive period (commonly three (3) years for many labor standard money claims under the Labor Code framework). Timing and procedure can matter.

12) Practical Summary (What Employers and Employees Should Know)

8 hours/day is the normal legal workday for covered private-sector employees; beyond that is generally overtime.
Overtime pay (for covered employees) is mandatory at not less than:
- 125% of hourly rate on ordinary days; and
- 130% of the hourly rate on that day when overtime falls on premium/holiday/rest days.
Premium pay (because of the day) and overtime pay (because of exceeding 8 hours) are different and can stack, as can night shift differential.
Exemptions (managerial, field personnel, paid by results, etc.) are narrow and factual—misclassification can create significant back-pay exposure.
Employers should maintain reliable time records; employees should keep contemporaneous proof of hours worked, especially in remote or flexible setups.