Overtime work may cause unnecessary stress to workers, making it difficult for them to achieve and maintain work-life balance. Employees working anytime from 10 o’clock in the evening to 6 o’clock in the morning qualifies for the Night Shift Differential (NSD). Processing of Payroll 110% x number of hours in excess of 8 hours (130% x hourly rate)Monthly rate: Php10,000Daily rate (20 working days/month): 10,000/20= Php500Hourly rate (8 hours): 500/8= Php 62.50, What is the overtime pay computation for employees working on a night shift during a special day? These rates are set by the Wage Rationalization Act, Republic Act No. 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. These guidelines define a compressed workweek as being one where the normal workweek is reduced to less than 6 days but the weekly working hours (48 hours) remain unchanged. Source: §82, 83, 84, 87, 88 and 89 of the Labour Code, as amended; §12A of the Special Protection of Children against Child Abuse, Exploitation and Discrimination Act; Department Advisory No. The working hours for kasambhay (domestic helpers) are 10 hours a day, exclusive of one hour breaks for each regular meal of the day. However, suppose the employee also earns a shift differential for working weekends or the night shift, or a performance bonus, or a commission. 87. Under certain conditions and circumstances, however, employers may require overtime work: Can an employee offset his or her filed undertime with overtime work?The undertime cannot be offset with overtime. ARTICLE 87. The worker should be paid overtime pay, equivalent to 125% of his usual rate per hour. Overtime work. 442 of 1974), Special Protection of Children against Child Abuse, Exploitation and Discrimination Act, Department Advisory No. What is the overtime pay computation for employees working on a night shift during a rest day? Cottage and handicraft For example, on average, the minimum daily payroll in the Phili… Take note that it can fall into more than one category: it can be both a rest day and a regular holiday, for example. 22009 Guidelines on the Adoption of Flexible Work Arrangements Part III, point 1. When working overtime, RNs are paid time-and-one-half of their basic hourly rate of $22. Source: §86 of the Labour Code, as amended. Since differential pay is company policy, not something regulated by the government, there’s no standard way to pay it. Overtime Work Work may be performed beyond eight hours a day provided that the employee is paid for the overtime work, which consists of an additional compensation equivalent to his regular wage plus at least 25% thereof. Overtime pay rates are covered under the Labour Code. *same monthly rate applied in the computationRegular holiday: (200% x basic pay)18,000 x 2 = Php36,000Holiday pay (i.e., 20 working days/month): 36,000/20 = Php1,800/day, Regular holiday that coincided on a scheduled rest day: (260% x basic pay)18,000 x 2.6 = Php46,800Premium pay (i.e., 20 working days/month): 46,800/20= Php 2,340/day. As far as the rate of night work is concerned, night shift employees must be paid a differential of at least 10% of the regular wage for each hour of work performed between 10:00 p.m. and 6:00 a.m. 22009 Guidelines on the Adoption of Flexible Work Arrangements Part III, point 1. Where an employee is made or permitted to work on his scheduled rest day or a special day, he is paid an additional compensation of at least 30% of his regular wage (130% of the normal wage rate). As far as the rate of night work is concerned, night shift employees must be paid a differential of at least 10% of the regular wage for each hour of work performed between 10:00 p.m. and 6:00 a.m. Overtime is beyond 8 hours in a single workday, except in flexible work arrangements such as compressed work week. Source: §91-94 of the Labour Code, as amended, Living and Working during the Coronavirus Pandemic - Link me to the Covid 19 Survey and Daily Updates, Cite this page © WageIndicator 2021 - Mywage.org/Philippines -, Living and Working during the Coronavirus Pandemic, Survey on Living and Working in Philippines during Coronavirus, Coronavirus Work & Life in Maps and Graphs - updated daily, Daily updated Maps on Living and Working during Coronavirus, Daily updated Graphs on Living and Working during Coronavirus. Women and young persons are prohibited from night work. Moreover, work hours may fall under different categories, making computation more complex. The personal and additional exemptions of employees previously available under R.A. 9504 were also removed. Overtime pay, on the other hand, is additional pay for work performed beyond 8 hours in a day. (When an employee is required to work beyond the normal 8 hours, they are entitled to receive Overtime Pay) If the employee’s overtime reaches overnight or the night differential time frame, the night differential would affect the overtime rate of the employee. Employees who work between the hours of 10 p.m. to 6 a.m. are entitled to night shift differential pay also known as Night Shift Pay to compensate them for the hazards and inconvenience of working at odd hours when the body is normally asleep. The overtime rate is 125% of the normal hourly wage rate if overtime work is performed on an ordinary working day (100 (assumed normal hourly wage)*125%); The overtime rate is 169% of the normal hourly wage rate if the overtime work is performed on a special day or scheduled rest day (100 (assumed normal hourly wage)*130%*130%); The overtime rate is 195% of the normal hourly wage rate if the overtime work is performed on a special day which falls on a scheduled rest day (100 (assumed normal hourly wage)*130%*150%); The overtime rate is 260% of the normal hourly wage rate if the overtime work is performed on a regular holiday (100 (assumed normal hourly wage)*130%*200%); The overtime rate is 338% of the normal hourly wage rate if overtime work is performed on a regular holiday which falls on a scheduled rest day (100 (assumed normal hourly wage)*130%*260%); In case of actual or impending emergencies caused by serious accident, fire, flood, typhoon, earthquake, epidemic or other disaster or calamity to prevent loss of life and property, or imminent danger to public safety;, In cases of urgent work to be performed on the machinery, equipment, or installation, to avoid serious loss which the employer would otherwise suffer;, In the event of abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be expected to resort to other measures;, To prevent loss or damage to perishable goods;, Where the nature of the work requires continuous operations and the stoppage of work may result in irreparable injury or loss to the employer; and. Night Shift Differential in the Philippines WHAT IS NIGHT SHIFT DIFFERENTIAL Article 86 of our labor provides that 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’clock in … What is the overtime pay computation for employees working on a night shift during a rest day? Is it a rest day, a regular holiday, or a special non-working day? Art. No. Working hours in the Philippines cannot exceed eight hours in a day, not including the mandatory one-hour lunch break. Knowing the level of compensation your employees should receive if they work the extra hours on regular workdays and holidays helps you establish a reputable image for your business. Industry sectors are segmented as follows: 1. Overtime work. The Labour Code provides that work may be performed beyond 8 hours a day provided that the employee is paid for the overtime work as prescribed. The maximum working hours on such days cannot exceed 12 hours per day. Employers must also take note of the night shift differential rate. Under R.A. 9504 overtime pay, night shift differential pay and hazard pay received by such minimum wage earners are exempt from income tax (Section 2, R.A. 9504). Read also: Can Employees Be Compelled To Render Overtime Work? However, suppose the employee also earns a shift differential for working weekends or the night shift, or a performance bonus, or a commission. *same monthly rate applied in the computation, Regular holiday (200% x basic pay)10,000 x 2 = Php 20,000Holiday pay (i.e., 20 working days/month): 1.1 x (20,000/20) = Php 1,100/day, Regular holiday that coincided on a scheduled rest day (260% x basic pay)10,000 x 2.6 = Php 26,000Premium pay (i.e., 20 working days/a month): 1.1 x (26,000/20) = Php 1,430/day, How a PEZA-Accreditation Can Benefit Your Business, 15-Minute Team Building Activities You Can Apply in the Workplace, The Pros and Cons of Working in a Call Center in Manila, Overtime Pay Computations And Policies In The Philippines, , you must know the policies regarding overtime pay computation, or, . Basic Labor Code of the Philippines - Night Shift Differential (NSD) Night Shift Differential For work performed from 10:00 p.m. to 6:00 a.m. the following day, the employee is entitled to a night shift differential pay of not less than 10% of his regular wage for each hour of work rendered. 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. What is the overtime pay computation for employees working on a night shift during a regular workday? An employee shall be paid night shift differential of no less than ten percent (10%) of his regular wage for each hour of … 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’clock in the evening and six o’clock in the morning. Night shift differential. Ensuring your workspaces are ready for your return and the new norm. The employee will be paid according to the hours of work or rendered service. Is this in compliance with the FLSA overtime standard? However, kasambahay under the age of 18 years are not allowed to work more than 8 hours a day, 5 days a week, exclusive of 1 hour breaks for each regular meal of the day. Knowing the level of compensation your employees should receive if they work the extra hours on regular workdays and, helps you establish a reputable image for your business. 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’clock in the evening and six o’clock in the morning. For example, the employee is paid $10.00 per hour plus a $2.00 per hour shift differential for the night shift. Regular holidays, such as Labor Day and Independence Day, tend to have fixed dates and are present ye… Overtime pay rates depend upon the the day the work is performed, whether it is ordinary working day, special day, regular holiday or rest day. 86. Deduction of undertime must be based on the employee’s tardiness and salary. An employee is entitled to night pay for any nonovertime work performed between 6 p.m. and 6 a.m. during designated core hours. In the Philippines, the minimum wage rates differ for every region, province, and industry. Overtime work. Night-shift differential pay may be granted to government personnel at a rate not exceeding 20% of the hourly basic rate of the employee.-- uno. In line with that, you should, If the country is at war or declared to be under national or local emergency, If overtime work can help save lives or properties in face of danger to public safety due to emergencies caused by fire, natural disasters, or serious accidents, If work started before the 8th hour needs to be completed or continued to avoid grave obstruction or to prevent prejudice to the business or operations, If overtime work is needed to achieve good weather or environmental conditions and the quality of work and performance depend on these conditions, If urgent work needs to be done on equipment, installations, and machinery to avoid loss or damage, If work is required to preserve perishable goods or prevent its loss. Under R.A. 9504 overtime pay, night shift differential pay and hazard pay received by such minimum wage earners are exempt from income tax (Section 2, R.A. 9504). Retail and services 4. Art. Women and young persons are prohibited from night work. Art. Agricultural 3. The undertime can be deducted through his or her wage or through other means. 4 Simple Charts to explain Philippines Premium Pay Rate FIND OUT THE OVERTIME PAY RATE, NIGHT SHIFT DIFFERENTIAL PAY RATE, REST DAY PAY RATE AND HOLIDAY PAY RATE. Employees are required by law to have at least one day (a full 24 hours) off every week. “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. OVERTIME PAY • An employee is entitled to overtime pay for each hour of work done beyond normal working hours • The overtime rate on normal day is 25% • The overtime rate on rest day and holiday is 30%. Republic of the Philippines. If you find this site useful and want to show your support, feel free to … Every employee shall be paid a night shift premium of not less than 10% of their regular wage for each hour of work performed between 10:00 PM and 6:00 AM. Mywage.org/Philippines is connected to the WageIndicator Network. Overtime Pay and Night Shift Differential in the Philippines. Ordinary day Overtime. However health personnel in cities and municipalities with a population of at least one million, or in hospitals and clinics with a bed capacity of at least one hundred may be required to work additional hours where exigencies of the service require. Under Philippine labor laws, an employee who works between 10 p.m to 6:00 a.m. should be paid a night shift differential of not less than ten percent (10%) of his regular wage. N ight Shift Differential (NSD) refers to the additional compensation of ten percent (10%) of an employee’s regular wage for each hour of work performed between 10 p.m. and 6 a.m. Generally, all employees are entitled to night shift differentials, except the following: Employee would be paid the overtime rate for the excess hours worked. Can employers/business owners require their employees to render overtime work?The law does not encourage employers/business owners to ask their employees to do overtime work. What is the computation for overtime pay on a regular work day?Here's a sample computation based on the given values (monthly rate: Php18,000; factor rate: 258; 246 total regular days + 12 regular holidays): Daily rate: 18,000 x 12 / 258= Php837.21Hourly rate (8 hours): 837.21 / 8= Php 104.65, Number of hours in excess of 8 hours (125% x hourly rate x number of hours rendered)Overtime hourly rate: 1.25 x 104.65= Php 130.81/hour, What is the computation for overtime pay on a rest day? Rest periods of short duration during working hours are regarded as hours worked. A prevailing rate employee is entitled to a night shift differential when the majority of hours worked during a regularly scheduled nonovertime shift occur in either of these two shifts: "Majority of hours" means a number of whole hours greater than one-half (including meal … This extra pay needs to be added into the Regular Rate to make the overtime rate bigger. 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