Here’s a practical, everything-you-need legal explainer on overtime (OT) pay entitlement for a part-time, fixed-term employee in the Philippines—written so HR, payroll, and workers can compute pay correctly without second-guessing.

Big picture (what the law protects)

“Part-time” and “fixed-term” describe scheduling and contract duration—not your rights. As long as you’re a covered employee, you’re entitled to all labor-standards benefits for the hours you actually work, including:

Overtime pay (work beyond 8 hours in a day)
Premium pay for work on rest day/special day
Holiday pay (subject to the usual eligibility rules)
Night shift differential (NSD) for work 10:00 p.m.–6:00 a.m.
Service Incentive Leave, 13th-month, etc. (if you meet their separate conditions)

Being part-time (e.g., 4–6 hours/day) or fixed-term (e.g., 6-month contract) does not waive these rights.

Coverage & common exclusions

Covered by OT rules (generally): rank-and-file employees in the private sector whose work hours are tracked/controlled by the employer—including part-timers and fixed-term hires.

Common exclusions from OT rules:

Managerial employees and officers with the authority to hire/fire/discipline, etc.
Field personnel whose hours cannot be determined with reasonable certainty and who do not have a fixed schedule/close supervision.
Results-based workers (pakyaw/commission) when the employer does not control hours and timekeeping isn’t feasible (nuanced; many “results” workers are still covered if hours are in fact supervised).
Government employees and household helpers follow separate statutes.

If you’re a part-time cashier, barista, office assistant, BPO agent, or similar—with timekeeping and supervision—you’re covered.

When does overtime start for a part-timer?

Overtime is computed per day, not per week. The benchmark is the 8-hour normal workday.

If your scheduled shift is 5 hours, then:
- The 6th–8th hours worked are paid at your regular hourly rate (still “straight time”).
- The 9th hour onward (i.e., beyond 8 hours) is overtime.
If your scheduled shift is 8 hours:
- Beyond 8 is overtime immediately.

Working beyond your scheduled hours—but not beyond 8—does not trigger the OT premium. It’s still payable, just at regular rate. (Company policy/CBA can be more generous.)

No offsetting. You can’t “cancel” overtime with undertime on another day. UT ≠ OT.

Overtime & premium rates (the multipliers that matter)

Let:

DBR = Daily Basic Rate
HR = Hourly Rate = DBR ÷ 8

A) Regular day

Beyond 8 hours → OT premium = +25% of the hourly rate on that day per OT hour. Per OT hour: 1.25 × HR (on top of the 8 hours already paid at straight time).

B) Rest day or Special (Non-Working) Day

First 8 hours → 130% of DBR (i.e., 1.30 × DBR).
OT beyond 8 → +30% of the hourly rate on that day per OT hour. Per OT hour: 1.30 × HR × 1.30 = 1.69 × HR.

C) Regular Holiday

First 8 hours → 200% of DBR (double pay).
OT beyond 8 → +30% of the hourly rate on that day per OT hour. Per OT hour: 2.00 × HR × 1.30 = 2.60 × HR.

D) Rest day that is also a Regular Holiday

First 8 hours → 260% of DBR.
OT beyond 8 → per OT hour = 2.60 × HR × 1.30 = 3.38 × HR.

E) Night Shift Differential (NSD)

For work 10:00 p.m.–6:00 a.m., add 10% of the hourly rate on that day to each night hour.
Stack it after applying the day’s base (e.g., regular/rest day/holiday) and before OT’s 30% if the night hour is also overtime.

Order of stacking (when a night hour is also OT): Day base → (Rest/Special/Holiday premium if any) → NSD 10% → OT 25%/30% on the resulting hourly rate for that day.

Scheduling wrinkles (compressed weeks, flexible work, on-call)

Compressed workweek (CWW): If there’s a valid CWW agreement (e.g., 10 hours/day × fewer days), daily hours beyond the CWW threshold may still be OT unless the DOLE-compliant CWW explicitly treats them as normal hours. For part-timers, CWW is uncommon; default to the 8-hour benchmark unless a compliant CWW applies.
Flexible work arrangements (reduced days, rotation): Don’t erase OT. Beyond 8 hours/day is still OT.
On-call/standby: Only hours actually worked (or controlled/waiting-to-be-engaged on the employer’s premises) count. Pure standby at home (free to use your time) is generally not compensable.

Consent, authorization, and refusal

Employers should authorize OT in advance (policy/CBA). Employees may generally refuse OT outside recognized exigencies. However, the law allows the employer to require OT in specific situations (e.g., emergencies, to prevent serious loss, urgent machine repairs, perishable goods, national interest). Absent these, recurring forced OT can be contestable.

Payroll mechanics for part-time, fixed-term workers

Identify daily schedule and record actual hours (timekeeping is crucial).
Pay actual hours worked up to 8 at straight time (apply day base).
Pay hours beyond 8 at OT premium (25% on regular days; 30% if the day is rest/special/holiday—applied to that day’s rate).
Add NSD 10% for night hours (stacked as noted).
If the day is a rest day/special/holiday, use that day’s base multiplier first.
No offsetting UT against OT; no “averaging by week.” OT is per day.
Fixed-term status affects when the relationship ends, not the rate computation during the term.

Clean examples (plug-and-play)

Assume DBR = ₱800, so HR = ₱100.

Example 1 — Part-timer scheduled 6 hrs, works 9 hrs on a regular day

Straight time: 8 hrs × ₱100 = ₱800
OT (1 hour beyond 8): 1 × (₱100 × 1.25) = ₱125 Total = ₱925

(The 7th and 8th hours are straight-time, not OT.)

Example 2 — Part-timer scheduled 5 hrs, works 10 hrs on a rest day

First 8 hours (rest day base): 1.30 × DBR = 1.30 × ₱800 = ₱1,040
OT hours = 2; per OT hour on rest day: 1.69 × HR = 1.69 × ₱100 = ₱169
OT total: 2 × ₱169 = ₱338 Total = ₱1,378

Example 3 — Part-timer scheduled 4 hrs night shift, works 9 hrs (10 p.m.–7 a.m.) regular day

First 8 hours at regular base + NSD: Hourly night rate = HR × 1.10 = ₱100 × 1.10 = ₱110 8 hours = ₱880
1 OT night hour: apply OT on the night rate: ₱110 × 1.25 = ₱137.50 Total = ₱1,017.50

Example 4 — Part-timer scheduled 8 hrs, works 9 hrs on a regular holiday

First 8 hours: 2.00 × DBR = ₱1,600
1 OT hour on holiday: 2.60 × HR = 2.60 × ₱100 = ₱260 Total = ₱1,860

Frequent compliance questions (short, straight answers)

Q1: We hired a student on a 4-hour shift. If she works 7 hours, is the extra 3 hours overtime? No. Only the 9th hour onward is OT. Hours 5–8 are paid at regular rate.

Q2: Can we average to 40 or 48 hours per week so some 10-hour days don’t get OT? No, daily OT rules apply (unless there’s a valid compressed workweek arrangement meeting DOLE conditions).

Q3: Do fixed-term employees get paid less per hour? No. Same statutory rates and premiums apply. “Fixed-term” affects tenure, not pay formulas.

Q4: If a part-timer agrees to a flat “project fee,” can OT be waived? No. Labor-standards benefits (including OT for covered workers) are statutory and cannot be waived below minimums.

Q5: Are meal breaks included in the 8 hours? No. The meal period (at least 60 minutes) is unpaid and excluded from the 8 hours, unless the employee is on duty during the meal (then it counts as work).

Q6: What if the “rest day” is changed mid-week? Apply the designated rest day in effect on the day worked. If you reschedule rest days, keep clear written notices; premiums follow the actual rest day.

HR/payroll checklist (printable)

☐ Identify employee coverage (not managerial/field-personnel-exempt).
☐ Confirm daily schedule and capture actual hours (reliable timekeeping).
☐ Pay straight time up to 8 hours; OT only beyond 8.
☐ Apply correct day base (Regular / Rest / Special / Regular Holiday).
☐ Compute OT premium (25% or 30%) on the day’s hourly rate.
☐ Add NSD 10% for 10 p.m.–6 a.m. hours (stack properly).
☐ No UT–OT offsetting; no weekly averaging.
☐ Keep authorizations/approvals for OT on file; note exigency cases.
☐ For fixed-term hires, track end date—but compute pay exactly like regular hires during the term.
☐ Reflect all components (straight time, premiums, NSD) on the payslip.

Bottom line

For a part-time, fixed-term employee in the Philippines, overtime pay kicks in only after 8 hours in a day, computed with the same statutory multipliers as everyone else. Part-time status affects how many hours you’re scheduled, not the rate you’re owed when you work longer—or when you work nights, rest days, special days, or holidays. Keep clean time records, apply the correct stacking (day base → NSD → OT), and you’ll stay fully compliant.