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Hours
Overtime pay
Overtime pay is the premium for work beyond eight hours in a day, generally 125% of the hourly rate on an ordinary day, with higher rates on rest days and holidays.
How it works
Article 87 sits next to Article 86. Night OT is both OT and NSD. Undertime on Monday does not cancel overtime on Tuesday. Compressed workweeks need a proper flexible-work arrangement, not a handshake. Track hours. A Slack culture of ‘just hop on’ at 11 p.m. PHT is an OT generator. For a U.S. company hiring one Filipino teammate, write this into the brief, the employment contract, and the peso payroll file before the start date. Slack habits do not override the Labor Code, BIR, or NPC. If the local employer of record holds the paper, they run the statutory step; you still owe a clean operating definition so the seat does not fail in week three. Put a number on the example when you budget loaded cost, because a nameless allowance always returns as a December surprise or a missed SLA.
Example: 9 hours on an ordinary Wednesday, last hour after 10 p.m.: one hour at OT 125% with NSD 10% on the OT hourly as the stack requires. Two premiums, one hour.
How it differs
Undertime is short hours. Night differential is the 10 p.m.-6 a.m. window even inside eight hours. Compressed workweek is the lawful way to go past eight without daily OT if approved.
Common errors
Offsetting OT against later tardiness. Ignoring OT because the person is ‘salaried.’ Monthly pay does not erase Book III for rank-and-file.