Overtime Pay refers to the additional compensation for work performed beyond eight (8) hours a day.
B. Coverage
Every employee who is entitled to premium pay is likewise entitled to the benefit of overtime pay.
C. Overtime Pay Rates
The minimum overtime pay rates vary according to the day the overtime work is performed, as follows:
For work in excess of eight hours performed on ordinary working days: Plus 25 % of the hourly rate.
For work in excess of eight hours performed on a scheduled rest day, a special day and a regular holiday: Plus 30% of the hourly rate on said days.
D. Stipulated Overtime Rates
Generally, the premium pay for work performed on the employee's rest days or on special days or regular holidays are included as part of the regular rate of the employee in the computation of overtime pay for any overtime work rendered rates on the said days especially if the employer pays and the minimum overtime rates prescribed by law. The employees and employer, however, may stipulate in their collective agreement the payment of overtime rates higher than those provided by law and exclude the premium payments in the computation of overtime pay. Such agreement may be considered valid only if the stipulated overtime pay rates will yield to the employees not less than the minimum prescribe by Law.
